Budget principles, proposal

2015-16 House budget principles

House Republicans are committed to these principles to produce a balanced and sustainable state budget:

1. We will spend less than the state collects;

2. We will not use one-time money to fund on-going needs;

3. We will not balance the budget by intentionally underfunding programs; and

4. We will return unused tax dollars to Iowa’s taxpayers.

Gov. Branstad’s budget proposal

The governor’s budget spends $7.3410 billion in FY 2016, an increase of $346.7 million over FY 2015 or 4.95 percent. Branstad’s FY 2016 proposal spends more money than the Revenue Estimating Conference’s December ongoing revenue estimate of $7.1946 billion. The gap between ongoing revenue and the Governor’s budget is approximately $146.4 million.

For FY 2017, the governor is proposing a general fund budget of $7.5252 billion. This would be an increase of $184.2 million or 2.50 percent.

Each of the past four years, the budget passed by the Legislature has spent less than what the governor proposed. The FY 2016 budget will continue this trend.

Ninety percent of Iowa’s budget goes to three areas — school aid ($2.9 billion), wages and benefits for state employees ($2.1 billion), and Medicaid ($1.6 billion).

Over the past decade, state revenue has grown by 4.1 percent annually, state spending on K-12 education grew by 4.2 percent, and Medicaid grew by 11.7 percent.

Fifty-five percent of the governor’s FY 2016 budget proposal is targeted to education.

The House is looking forward to working with Gov. Branstad and the Senate to put together a budget that keeps Iowa in a strong financial position.

I look forward to seeing you at one of the scheduled forums for January.

Friday Jan. 23:

8 a.m. — Corydon Farm Bureau

10 a.m. – Chariton Mosaic

Noon – Lakeside Casino, Osceola

2 p.m. – Leon Community Center