Letter to the Editor: Tough decisions concerning the state budget

To the Editor:

Several weeks ago Karen Pratte had a letter referencing my involvement in closing Luster Heights. After several inquiries from community members, here’s the “Rest of the Story.”

Anyone who works in a public system or private business understands the role of delegated authority. For example, superintendents delegate to principles, supervisors/city councils, CEO’s to department managers. This normal flow is no different for Legislators.

Regarding Luster Heights, state budgets are set one year ahead based on projections by the Revenue Estmating Conference (REC). This conference reconvenes in October and December to re-evaluate these projections set in March for Legislators to appropriate for Departments. This past March 2016 revenues received were under by 1.5% in a budget of $7.4 Billion. This lead to the initial budget shortfall of $117 Million. Coming into office, we were immediately faced with the need to de-appropriate that amount from the current  Fiscal-Year 2016-2017 operating budget (July 1, 2016 - June 30, 2017).

- Iowa requires a balanced budget.
- To save the $117 Million, we had to make tough decisions early.
- The Governor vowed to veto any bill that cut K-12 education (43% of the budget) and property tax backfills ($24 Million).
- Department of Corrections (DOC) portion of the budget was cut $5.5 Million.
- Where these cuts came from was left up to the Director of DOC who had to make tough decisions quickly out of the remaining four months in the fiscal year, prioritizing public safety.
- Follow up conversations with the Governor, Director and involved employees were ineffective in changing the Director’s decision supported by our Governor and his delegated authority.

Did I vote to deapproprate $5.5 Million from the DOC budget? Yes. Did I vote specifically to close Luster Heights? No.

Unfortunately last week, REC has reported an additional shortfall of $131 Million for this current budget. We are looking at using the Cash Reserve Fund but by legislation we are required to refill this.

We will be making tough cuts in the Fiscal-Year 2018 budget. While employees from Luster Heights were absorbed into other jobs, this newly reported shortfall may lead to a loss of jobs across all departments across the state. These will be tough and trying days ahead knowing the significance.

Thanks in advance for your prayers.

Kristi Hager
Iowa House Representative
District 56