These are the 2015-16 House Republican budget principles.
The House is 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 under funding programs
4. We will return unused tax dollars to Iowa’s taxpayers.
The House budget plan
• Total ongoing state revenue: $7.1847 billion
• Total ongoing state expenditures: $7.1752 billion
• Percent of ongoing revenues expended: 99.87 percent
• Rate of revenue growth: 2.6 percent
• FY15 ending balance: $285.4 million (after expenditures in HF 666)
• Amount expended from the FY15 ending balance: $134.9 million
• Percent of available revenues expended under the 99 percent Expenditure Limitation Law: 97.48 percent
• Projected FY16 cash reserve: $560 million
• Projected FY16 economic emergency fund: $186.7 million
• Projected FY16 ending balance: $262.8 million
• Projected FY16 taxpayer trust fund balance: $8.1 million
During budget negotiations, some pushed for a spending level of $7.3509 billion. This is 102.3 percent of ongoing revenue and obviously well above the ongoing revenue number of $7.175 billion.
As we have done since the 2011 session, the House held firm to our budget principles resulting in an agreement that has the state living within its means. Under this plan, the ending balance in FY16 is projected to be $262.8 million.
As has been the case every legislative session since 2011, the holdup to adjournment was the spending appetite of those who don’t agree with the principals. Every year there is a push to spend more than the state collects and every year the House holds the line while providing workable solutions to spend within our means.
The House budget plan spends 99.9 percent ($7.175 billion) of ongoing revenue ($7.184 billion) ensuring that government does not spend more than it has and lives within its means. This is a 2.48 percent ($173.8 million) increase over FY15. Other plans spend 102.3 percent ($7.3509 billion) of ongoing revenue. That is a 5.10 percent ($356.6 million) increase over FY15. Some in the House advocated spending the $7.490 level allowed by our outdated expenditure limitation law.
Why does the House maintain its budget principles? Because the money is earned by hardworking Iowans and we have a responsibility to protect the taxpayers and families who go to work, play by the rules and pay their taxes.
Those Iowans expect to be treated with respect. That is why the House will stand up and protect their money every day. Every dollar the Legislature spends what it doesn’t have puts the financial security of those taxpayers and families in jeopardy. Responsible budgeting ensures Iowa’s must vulnerable citizens have resources they can depend on next year and the year after.
It is important to Iowans that the Legislature does not spend more than we have and live within our means. While standing by this principle for the last five legislative sessions, Republicans have found common ground with the governor and Senate Democrats. We expect that to continue next year. Living within our means is something the hardworking taxpayers of Iowa do every day. Government needs to do the same.
Iowans are sending $7.184 billion to state government coffers. That is a tremendous amount of money. Spending more than they are sending to the state sets hardworking taxpayers up for either future budget cuts or a tax increase. Instead of that, the Legislature should simply live within its means.
For the third consecutive year, House Republicans and Senate Democrats have also agreed on a Strategic Investments and Debt Reduction Bill. Key pieces include:
• $10 million payment will be made into the Debt Repayment Fund for future debt retirement
• Additional K-12 funding — $55.7M one-time commitment from the ending balance
• Fiscal Year 2015 Medicaid Supplemental — $43M one-time commitment from the ending balance
• Community Colleges — $2.5M one-time commitment from the ending balance
• University of Iowa — $2.9M one-time commitment from the ending balance
• Iowa State University – $2.3M one-time commitment from the ending balance
• University of Northern Iowa – $1.1M one-time commitment from the ending balance
Thank you once again for the honor of serving each of you in the Iowa Legislature. While this session was extended by a bit over a month, it was clearly worth the effort to be sure that Iowa citizen’s needs were met and their voices were heard. I look forward to visiting with you over the summer.