Appropriations – All-Bill Summary 2017 (with vetoes noted)

The following bills were passed by the Legislature and signed into law by the Governor.The Governor vetoed some of the provisions in four of the bills.

SF 130—FY17 budget cuts
SF 497—Transportation Budget FY18
SF 498—Federal block grants FY18 and FY19
SF 500—E911 consolidation
SF 509—Justice Budget FY18
SF 508—Judicial Budget FY18
SF 510—Agriculture & Natural Resources Budget FY18 [ITEM VETOED]
SF 513—Economic Development Budget FY18 [ITEM VETOED]
SF 516—Standing Appropriations FY18
HF 640—Administration & Regulation Budget FY18
HF 642—Education Budget FY18
HF 643—RIIF Budget FY18 [ITEM VETOED]
HF 653—Health & Human Services Budget FY18 [ITEM VETOED]

SF 130 de-appropriates a net of $113.3 million from the FY17 General Fund budget. These cuts leave estimated cash on hand of $700,000 as of June 30, 2017. Below are highlights:

FY17 De-appropriations	$92,497,000
Transfers from Funds	$25,135,000
Coupling
FY17 Supplemental	-$4,300,000
Net de-appropriations	$113,332,000

Estimated COH FY17	$700,000

Significant Funding Increases – Supplemental (in millions)
Indigent Defense	$4.300

Significant De-appropriations/Cuts in Funding (in millions)
Board of Regents	$18.000
Department of Human Services (DHS)	$22.000
Department of Corrections	$5.500
DHS – Medical Asst.	$13.850
Community Colleges	$3.000
Judicial Branch	$3.000
Department of Education	$4.527
Department of Public Safety	$1.000
Department of Public Health	$2.000
Legislative Branch	$0.600
Department of Revenue	$1.200
Department of Ag & Land Stewardship	$0.400
Workforce Development	$0.500
Attorney General	$0.598
State Public Defender	$0.457
Department of Economic Development	$0.700
Department of Natural Resources	$1.300
Department of Aging	$0.400
Inspections & Appeals	$0.300
College Aid Commission	$0.390
Iowa Public Television	$0.200
Iowa Veterans Home	$0.200
Department of Administrative Services	$0.262
Department of Public Defense	$0.241
Vocational Rehabilitation	$0.000
Department of Cultural Affairs	$0.210
Department of Vets Affairs	$0.000
Department of Management	$0.000
Secretary of State	$0.000
Department of Human Rights	$0.087
Homeland Security	$0.000
Department of Commerce	$0.000
Department for the Blind	$0.000
Governor’s Office	$0.000
Public Employment Relations Board	$0.000
State Treasurer	$0.000
Iowa Law Enforcement Academy	$0.000
State Auditor	$0.000
Board of Parole	$0.000
Drug Control Policy	$0.000
Executive Council	$0.000
Public Information Board	$0.075
National Guard Ed Assistance Program	$0.000
Department Operational Reductions	$11.500
Total	$92.497

Revenue Adjustments – FY17
FY17 IRC Update (no Sec. 179)	$0.000

Transfers – FY 17 (in millions)		Cash Balance
Taxpayers Trust Fund	$0.000	$8.20
Cultural Trust Fund	$6.135	$6.10
Strategic Investment Fund	$1.000	$10.20
Innovation & Commercialization Fund	$2.000	$9.80
Economic Development Energy Projects	$2.000	$12.60
Grow Iowa Values Fund	$12.000	$38.60
Federal Economic Stimulus Fund	$2.000	$2.10
Subtotal Transfers	$25.135

Other provisions include:

Open Spaces – Park Maintenance: Uses $1 million from the REAP Open Spaces Account for state park maintenance in FY17.
Iowa Veterans Home carryover surplus transfer: Transfers $350,195 from FY16 surplus funds to the College Student Aid Commission for the National Guard Educational Assistance program.
Re-allocations to Health & Human Services-related appropriations
- Provides a net reduction of $22 million from the General Fund to various non-Medicaid programs operated by DHS; $16 million of this reduction is backfilled by an increase in TANF funds.
- This also realizes savings in the Medicaid program by eliminating the state’s share of DHS payments, which totals $3 million, and reduces the lodging allocation for the University of Iowa Hospitals & Clinics by $150,000 to meet the projected demand. These savings combined with $23.5 million in internal “savings” identified by DHS result in a cut to Medicaid of $13.9 million and addresses the FY17 projected shortfall of $14.5 million.
Operational expenditures reductions
- Reduces FY17 operational expenses for the Executive Branch by $11.5 million.
- Operational expenses include state agency office supplies, outside services purchases, equipment purchases, printing and binding, information technology, marketing and state employee travel.
- Operational expenses may also include a moratorium on filling vacant or newly created positions from March 1, 2017 through June 30, 2017.
- Department of Management (DOM), in consultation with each department, applies the reductions. DOM must submit a report to the Legislature within 30 days of the effective date of this section.
Legislators’ per diem – 2017 session: Reduces Legislative per diem from 110 days to 100 days. This is estimated to save $380,000.
Legislative travel: From the effective date of this section through June 30, 2017, costs for out-of-state travel and per diems for legislators and legislative staff will not be paid from the General Fund (2.12).
[1/26: 28-19, party-line (Bertrand, Horn, D. Johnson absent)]

SF 497 makes appropriations for FY18 and FY19 from the Road Use Tax Fund and the Primary Road Fund to the Department of Transportation. The bill appropriates $384,371,793 for FY18, which is $13,294,022 more than FY17. Significant changes from FY17 include:

An increase to the Highway Division for equipment depreciation and salary adjustments — $311,000 from the Primary Road Fund.
An increase for inventory and equipment replacement — $5,169,000 from the Primary Road Fund. The increase will move up the replacement schedule for medium and heavy-duty trucks from 15 years to 12 years.
A $438,562 increase supports payments to the Department of Administrative Services for workers’ compensation.
A $242,000 decrease for transportation maps, which are printed every other year. This appropriation is included in the FY19 appropriation.
$10,800,000 for replacing and relocating the Dubuque maintenance garage. Primary Road Fund — $10,200,000; Road Use Tax Fund — $600,000.
$1,478,000 for upgrades to the existing Adair garage (adding six stalls to the garage bays).
FY19 appropriations are 50 percent of FY18 appropriations. New line items in FY19 include transportation maps and renovations to the Waterloo maintenance garage.
[4/10: 49-0 (Allen excused)]

SF 498 makes appropriations of federal block grants, other federal funds and non-state funds. The appropriations are for Federal Fiscal Years 2017-2018 and 2018-2019. The Federal Fiscal Year begins on October 1. The bill:

Provides procedures for increasing or decreasing appropriations if the amounts available are not what are anticipated.
Makes standing appropriations for State Fiscal Years 2018 and 2019 for other federal grants and non-state funds.
Appropriates $426 million for FY18 and $332 million for FY19. The difference between the two fiscal years is a one-time $96 million Housing & Urban Development grant to Iowa Economic Development Authority for disaster relief. The focus of this grant is watersheds and reducing floods.
Funds go to the departments of Public Health, Human Services, Human Rights (Community Action Agencies), Justice, Economic Development and Transportation, and to the Governor’s Office of Drug Control Policy.
[4/10: 48-0 (Allen, Taylor absent)]

SF 500 makes recommended changes from a 911 Public Safety Answering Point (PSAP) Consolidation Study. It contains technical changes, including moving from E911 to 911 and updating various definitions to reflect current practice; includes a consolidation plan that combines wireline 911 networks into wireless 911 networks; creates a shared service environment for Public Safety Answering Points call processing equipment; and includes costs for development, deployment, operation and maintenance. Technical reasons for having two networks are eliminated, and the shared service is a possible cost-saving measure.

Funding changes include:

Leaving PSAP pass through at 60 percent.
Creating PSAP GIS grants at $15,000 per PSAP.
Eliminating Land Mobile Radio funding.
Carryover operating surplus for FY18: $7 million for consolidation grants of $200,000; the remainder goes to PSAP for “receipt and disposition.”
Putting $9 million toward support for the consolidation plan.

The Department of Homeland Security & Emergency Management will develop a plan to combine the wireline 911 network with the next generation 911 network. The plan must describe anticipated costs, use of surcharges, use of shared services technology and suggested amendments to Code chapter 34A to allow the plan to be implemented. The department must submit the plan to the Legislature by January 15, 2018.
[4/17: 48-1 (Bisignano “no”; McCoy absent)]

SF 508 is the Judicial Branch budget, which appropriates $178.8 million from the General Fund for FY18—no change compared to revised estimated net FY17. However, it is $3 million less than the FY17 appropriation passed last year. The bill allows the Supreme Court to increase the salaries of judicial officers by up to 2.5 percent beginning in FY18. In addition, when “passing through” the Judicial Branch appropriations request for FY19, the Department of Management will reduce the Judicial Branch request in the Governor’s proposed budget by the amount of any salary increase for judicial officers.

The Judicial Branch is permitted to implement policies and procedures for FY19 that are contrary to Code Sections 602.1215(1) – hiring and firing clerks of court, 602.2301 – delaying filling judge and magistrate positions, 602.6113, 602.6201, 602.6301, 602.6401 – apportionment of judicial officer positions, and 602.6603 – hiring court reporters. This gives the Judicial Branch flexibility in hiring and apportionment to save money.
[4/17: 29-21, party-line (D. Johnson voting “no” with Democrats)]

SF 509 is the Justice System budget, which appropriates $559 million from the General Fund for FY18 to the Departments of Justice (Attorney General), Corrections, Inspections & Appeals, Public Defense, Human Rights (Criminal & Juvenile Justice Planning Division), Public Safety, Homeland Security & Emergency Management, Iowa Law Enforcement Academy, Board of Parole and Iowa Civil Rights Commission. This is a decrease of $2.9 million compared to estimated net FY17.

The bill appropriates $14.5 million from other funds for FY18, reflecting an increase of $1.1 million compared to estimated net FY17. The increase comes from the Gaming Enforcement Revolving Fund, which is funded with gambling revenue. The additional money is for radios for Gaming Enforcement Officers at casinos.

Significant funding decreases from revised FY17

Attorney General	-$1,000,000 (13 percent decrease)
Victim Assistance Grants	-$1,450,000 (22 percent decrease)
Department of Corrections	-$1,604,608 (.42 percent decrease)

The decreases are larger when also considering the mid-year cuts:

Attorney General – Cut from original FY17 is $1,317,598 (16.49 percent decrease)
Victims Assistance Grants – Cut from original FY17 is $1,717,692 (25.51 percent decrease)
Corrections – Cut from the original FY17 is $7,354,168 (1.91 percent decrease)

Increase in funding from revised FY17

Department of Public Safety

· Narcotics Enforcement

· Fire Marshal

· Iowa State Patrol

$1,334,730 – total

$182,261

$107,704

$1,044,765

New language in the bill

Allows Veterans Trust Fund to be used for survivor outreach activities supported by the Department of Public Defense.
Establishes an Iowa Law Enforcement Academy Internal Training Fund Clearing Account. Money from ILEA reimbursements for training local governments will go into the new account. Money from sales at the ILEA gift shop and any gifts, loans, donations, grants and contributions to the Academy will go into this account. It will provide a more efficient way for the Academy to handle their finances.
Increases the “unsecured bond amount” in a uniform citation. About $2.8 million will be generated, accounting for the increased amount over the original target. An unsecured appearance bond for traffic violations and scheduled violations under Iowa Code sections 8A, 805.8B , 805.8C will equal 1.5 times the minimum fine and applicable surcharge, plus court costs. Previously, the unsecured bond amount was the sum of 1.5 times the minimum fine, plus the applicable surcharge and court costs.
Allows the Attorney General to spend up to $1 million from the Consumer Education & Litigation Fund to maintain staffing for criminal prosecution, criminal appeals and state tort claims for FY18.
Adds five FTEs back into the Crime Victim Assistance Division FTE total, from 19 to 24. These are paid for from the Victim Compensation Fund, which is comprised of non-General Fund money.
[4/19: 29-21, party-line (D. Johnson voting “no” with Democrats)]

SF 510 is the Agriculture & Natural Resources budget for FY18. It appropriates $38.85 million from the General Fund, a 5.6 percent cut from the revised FY17 level. It also appropriates $42 million from the Environment First Fund and more than $43.11 million from the Fish & Wildlife Trust Fund for conservation programming at the Department of Natural Resources (DNR).

New programs – Foreign Animal Disease response and preparedness – $100,000 to develop response and preparedness efforts for future outbreaks of infectious animal diseases. Last year’s outbreak of high-pathogenic avian influenza (HPAI) was devastating for poultry producers across the state. The federal government was vital in assisting the state in responding to the outbreak and assisting producers in how to restart their operations. In the future, that assistance will not be available at the same level. IDALS, in cooperation with farm groups and the Livestock Health Advisory Council at Iowa State University, will develop measures to prepare for, prevent, control and eradicate the transmission and incidence of foreign animal diseases.
Significant funding increases
- The Water Quality Initiative (WQI) is increased by $1 million over FY17 by creating a new appropriation of $2,375,000 in the Environment First Fund to offset a $1.3 million reduction from the General Fund.
- Soil & Water Conservation receives a $1 million increase from the Environment First Fund. The money helps pay for soil conservation staff, including technicians and assistants in districts around the state. This is not a true $1 million increase because cuts to REAP funding are also included in the budget. Soil conservation receives 20 percent of REAP funding. With the proposed $4 million cut to REAP, soil conservation efforts see an $800,000 reduction, making the effective increase closer to $200,000.
- State cost share assistance for soil and water conservation projects increases by $1,575,000 to $8.3 million. This is effectively a $1.1 million increase because the bill earmarks $450,000 for Hungry Canyons, which assists western Iowa counties with streambank stabilization to protect bridges. The streambanks are eroding from stream and river straightening projects. The straightened streams flow faster, causing erosion and endangering bridge supports.
- Department of Agriculture & Land Stewardship (IDALS) – $500,000 increase, which is close the department was appropriated before mid-year budget cuts.
Significant cuts – Department of Natural Resources (DNR)
- A reduction of $208,000 from the revised FY17. Diverts $288,000 from the REAP Open Spaces to mitigate the impact of this cut on state parks. The FY18 cut is in addition to the $1.3 million mid-year cut. The mid-year cut was mitigated by a $1 million diversion from REAP Open Spaces for state parks operations. That $1 million diversion is not in place for FY18, so DNR operations will effectively receive $1 million less than in FY17 (nearly 10 percent less than FY16). This may cause one or two park closures.
- Eliminates General Fund support for the Nutrient Research Center (NRC) at Iowa State University ($1.3 million). The funding is replaced with help of Groundwater Protection Funding that had done to the Leopold Center for Sustainable Agriculture. This eliminates funding for research, grants and other programs at the Leopold Center.
- A reduction of $100,000 (10 percent) to the CRP/state buffer initiative, which provides quality wildlife and pollinator habitat.
- A reduction of $4 million (25 percent) from REAP:
Open Spaces – $1.1 million (plus another $288,000 diversion). Open spaces is used to permanently protect and develop Iowa’s public lands and waters. DNR also uses funds in this account to pay property taxes owed to counties for land that has been acquired by DNR.
County conservation boards – $792,000. County conservation boards compete for grants that they can use to develop programing and public areas under their control.
Soil and water conservation – $792,000. This money is divided between projects and practices funding. IDALS has used funding from this area in the past to support urban soil conservation and water quality projects.
City parks and open spaces – $594,000. Cities compete for grants that they can use to develop public areas and amenities to promote outdoor recreation and natural habitat.
DNR Land Management – $356,400. DNR uses these funds to manage state conservation lands and facilities.
Cultural Affairs – $198,000. Grants for historical preservation and country schools.
Major language changes
[ITEM VETOED] This budget proposed to eliminate the Leopold Center for Sustainable Agriculture at Iowa State University. The center is widely known and a valuable tool to Iowans who want to develop local products and agriculture. The Leopold Center has helped establish local food networks across the state and helped promote the development of Iowa’s wine industry. The center also educates on the importance of conservation practices to farmers around the state and the benefits of sustainable production. The Governor did not veto changes to the center’s funding source and also left in a provision that was originally designed to provide for the transition and oversight of existing projects by the College of Agriculture and Life Sciences after the center was eliminated. The Governor kept that portion of the bill intact to allow the college to have some additional oversight over projects conducted by the center. However, the effect of maintaining this language, while allowing the center to continue, could create uncertainty for current projects and how the center operates going forward.
Eliminates the watershed improvement funding program and the Watershed Improvement Review Board. The program was developed in 2005 to encourage cooperative projects among local groups to improve watersheds. This program has helped cities, counties and soil districts build larger coalitions to address unique problems. All remaining funds (approximately $700,000) go to IDALS for soil and water conservation program administration and efforts.
Takes an additional $50,000 from soil conservation cost share to fund the Loess Hills Alliance, which promotes and preserves the Loess Hills area.
[4/17: 29-21, party-line (D. Johnson voting “no” with Democrats)]

SF 513 appropriates $38.4 million from the General Fund for FY18 to the Department of Cultural Affairs, Iowa Economic Development Authority, Iowa Finance Authority, Public Employment Relations Board, Iowa Workforce Development and Regent institutions for economic development programs. This is $3 million lower than the revised FY17 level (after the mid-year cuts). Compared to the original FY17 budget (before mid-year cuts), this budget sees a 10.8 percentage cut. Other funds provide $38.7 million, which is a $10.7 million increase over FY17. The bill authorizes 584.77 FTEs—no change from FY17. FY19 is funded at 50 percent of the FY18 level.

New Programs – Cultural Trust Grants (Department of Cultural Affairs): A new General Fund line item in the Economic Development budget (not a new program but new to this budget). The Department provided $50,000 in grants with interest from the Cultural Trust. The FY17 de-appropriation bill transferred all Cultural Trust money to the General Fund. This budget bill appropriates $25,000 for grants from the General Fund.
Significant funding increases – None from General Fund.
Significant cuts
Department of Cultural Affairs (DCA)
- $50,736 cut compared to estimated FY17; a total cut of $280,658 with mid-year cuts. Total appropriation is $5,756,055.
- Line item for archiving former governor’s papers is eliminated. DCA will continue their work with funding from the Historical Division, which saw a 5.6 percent cut from the mid-year cuts. They are currently archiving Governor Branstad’s first term.
Iowa Economic Development Authority (IEDA)
- $1,587,804 cut compared to estimated FY17, a total cut of $2,287,804 with mid-year cuts. Total appropriation is $15,043,201.
- IEDA general line item appropriation is cut by $1,085,192 from estimated net FY17. A total cut since 2016 session of $1.7 million.
- World Food Prize’s gets $400,000, which is $312,500 lower than estimated net FY17.
- Council of Government (COGs) Assistance gets $175,000, which is $15,000 lower than estimated net FY17. With mid-year cuts, the total cut is $25,000, a 12.5 percent decrease.
- Tourism Marketing—Adjusted gross receipts is reduced by $167,800 for a total appropriation of $900,000.
Iowa Workforce Development (IWD)
- $270,845 cut to Labor Services Division from estimated net FY17. With mid-year cuts, the total cut is $813,845, an 18.9 percent reduction.
- $900,000 cut to IWD Field Offices Operations from estimated net FY17. With mid-year cuts, the total cut is $1,031,000.
- $11,306 cut to Offender Reentry Program from estimated net FY17. With mid-year cuts, the total cut is $71,306
ISU Small Business Centers – $101,000 is eliminated from general appropriations, though some funding remains through the Skilled Worker & Job Creation Fund. Iowa State must allocate at least $735,728 for the small business development centers.
Major language changes
IWD is not required to use appropriations for satellite field offices (Decorah, Fort Madison, Iowa City or Webster City). This would allow IWD to close all four satellite offices.
All money paid in advance by PERB and subsequently taxed as a cost to parties when reimbursed by the parties is retained by PERB as repayment receipts. All fees established and collect by PERB regarding elections will be retained by PERB as repayment receipts and used to cover the cost of elections (including paying the vendor). This is a change from HF 291, which had deposited the fees into the General Fund.
The Iowa Energy Center is transferred from the Iowa State University to the Iowa Economic Development Authority and its mission is changed. The Governor will appoint a governing board for the Iowa Energy Center. The same funding mechanism is maintained, except that civil penalties are assessed under three Code sections 478.29 (transmission lines), 479.31 (pipeline/underground gas storage) and 479B.21 (hazardous liquid pipeline and storage facilities). The penalties will go to the Low-Income Home Energy Assistance Program (LIHEAP). The Iowa Energy Center is repealed on July 1, 2022. The assessment on utilities is repealed for July 1, 2022 for the Iowa Energy Center and for the Center for Global and Regional Environmental Research at U of I.
[ITEM VETOED] Language regarding participation in the Iowa Finance Authority’s Rent Subsidy Program was item vetoed because HF 586 put the language into the Iowa Code.
Other funds
Skilled Worker & Job Creation Fund are status quo from FY17. This budget does not include the Governor’s proposed cuts.
Unemployment Compensation Reserve Fund Interest ($1,060,000) provides an increase of $503,000 to IWD satellite field offices. This is an accurate representation of the interest available because interest rates have gone up.
Struggling Families Act (aka REED Act, federal funds)
- In 2009, Iowa received $70.8 million in federal funds for our Unemployment Compensation Trust Fund. They may be used to modernize unemployment insurance systems; cover administrative costs for the unemployment insurance program and field offices; and provide unemployment insurance benefits.
- A new appropriation of $597,000 goes to IWD administrative costs for unemployment insurance.
- A new appropriation of up to $9.6 million for IWD to procure a vendor for software and hardware for a new unemployment insurance claims system. This is in addition to $5.9 million authorized in HF 572.
  [4/19: 31-19, party-line (Danielson, D. Johnson voting “yes” with Republicans)]

SF 516 is the Standings budget, which reduces appropriations by $12.2 million for FY18. With the adjustments in this bill, total standing appropriations will be $3.73 billion.

Division I—Standing Appropriations and Related Matters
Sections 1 & 2: Annual Departmental Estimates – For the budget process in FY18 and FY19, state agencies must submit estimates and other expenditure information specified by the Department of Management, instead of information required under Code Section 8.23. This was also done in 2015.
Section 3: Limitations on Standings Appropriations for FY18:
Nonpublic school transportation is cut by $2.4 million; appropriation of $8.2 million.
Sac and Fox Indian Settlement education is cut by $4,250; appropriates $96,000.
Section 4: Limitations of Standings Appropriations for FY19:
Nonpublic school transportation is cut by $2.4 million; appropriation of $8.2 million.
Sac and Fox Indian Settlement education is cut by $4,250; appropriates $96,000.
Section 5: General Assembly (FY 18)
Reduces the Legislative branch budget by $400,000. Appropriates $31.86 million (FY16 actual was $35.65 million).
No money for annual membership dues for organizations, associations and conferences.
No out-of-state travel and per diems for out-of-state travel. No language restricting in-state travel.
Section 6: Instructional Support State Aid FY 18 – Zero dollars appropriated for instructional support state aid. School districts that implement the program may use local property tax and income surtax for their portion of the program. This was also done in 2015. Reduction of $14.8 million.
Section 7: Special Funds—Salary Adjustments – Allows departments to use special funds for salary adjustments for FY 18 and FY 19.
Section 8: Operational Appropriations—Reversion FY17 – At the close of FY17, any unspent operational appropriation (salary, support, administrative expenses or other personnel-related costs) reverts to the General Fund (notwithstanding Iowa Code 8.62, which states that a state agency may use 50 percent of unspent money on Internet-based employee training, technology enhancement or purchases from Iowa Prison Industries. The other 50 percent goes to the Cash Reserve. This is a way to balance the FY17 budget. This section takes effect upon enactment. The amount state agencies carry forward varies from year to year. In FY16, state agencies carried forward and expended about $3.8 million.
Section 9: Special Funds—Salary Adjustments—Unappropriated Money – Allows departments to use special funds for salary adjustments for FY18 and FY19. Names the special funds.
Section 10: Salary Model Administrator – Requires the salary model administrator to work with LSA on the state’s salary model, and requires some departments to submit salary data to DOM and LSA. This has been done in the past (most recently in 2016).
Section 11: AEA reduction – $15 million cut, on top of the statutory reduction of $7.5 million. School Aid: $3,183,743,218, which is 1.11 percent SSA, minus the $22.5 million cut from. In this third (and final) year of the Teacher Leadership Compensation, 1.11 percent costs $108 million.
What stays the same:
Various standing appropriations to DAS, DOM and Public Defense.
Peace Officer’s Retirement – $5 million (standing appropriation level) (97A.11A)
All property tax credits at the standing appropriation level (fully funded):
- Homestead Tax Credit
- Elderly & Disabled Tax Credit
- Ag Land Tax Credit
- Military Service Tax Exemption
- Commercial and Industrial Property Tax Replacement
- Business Property Tax Credit
Division II—Miscellaneous Appropriations
Section 13 & Section 19: Transfer from Cash Reserve Fund – Transfers $131.1 million from the Cash Reserve Fund for the General Fund for FY17 to fill the budget shortfall, notwithstanding 8.56, subsections 3 and 4, paragraph “a”. Effective upon enactment.
Section 14: Appropriation to Cash Reserve Fund FY 18 – Repays $20 million to the Cash Reserve Fund for FY18. At the end of FY18, assuming revenues come in as projected, the Cash Reserve Fund should be close to being repaid.
Section 15: Appropriation to the Cash Reserve Fund FY 19 – Appropriates $111.1 million from the General Fund to the Cash Reserve for FY19.
Section 16: Rape Collection Kits Appropriation – Appropriates $200,000 from the General Fund and 2 FTEs for the Department of Public Safety for FY18 to expedite rape kit processing.
Section 17: Vocational Rehabilitation Appropriation – Creates a supplementary appropriation for Vocational Rehabilitation Services of $106,705 for FY18. This allows them to meet maintenance of effort requirements to draw down an additional $394,300 in federal funds.
Section 18: Gubernatorial Transition – $150,000 to the offices of the Governor and Lt. Governor for expenses incurred during the gubernatorial transition. Does not specific the expenses.
Division III—Miscellaneous Provisions
Sections 20 & 21: Capitol Space – Removes court offices from the Capitol (little room off 116). Courts may use space for ceremonial purposes only.
Section 22: Small Wireless Siting – Small Cell Siting Amendment – Makes a one-word change to the Small Cell Siting bill (SF 431). It eliminates the word “building,” allowing an Authority to require certain things in a simple permit, rather than a building permit.
Section 23: Technology Modernization Fund – Using FY17 as the base, the Secretary of State may retain up to $2 million from any increased fees starting in FY18 for technology upgrades and modernization. Repeals the Section starting in FY23. SOS needs to increase fees first.
Section 24: Iowa Braille and Sight Saving School – Permits sale of the Iowa Braille and Sight Saving School property, as authorized in the Education Budget.
Section 25: Surplus Lines of Insurance – Eliminates a provision that allows County Mutual Insurance Associations to issue surplus lines of insurance, and eliminates a provision that allows insurance carriers that issue surplus lines to issue auto insurance.
Section 26: Voter Suppression implementation – States that the appropriation from the General Fund to the Secretary of State (in the Admin & Reg Budget) is sufficient to implement the voter registration card program.
Section 27: ABD Study
Requires ABD and other stakeholders to study manufacturing, distribution and sale of liquor, wine and beer in Iowa, emerging trends in the industry and the impact of the three-tiered system on manufacturers, wholesalers and retailers.
Findings and recommendations must be made to the Legislation by July 1, 2018.
Allows the ABD to defer on final determination of license eligibility if the applicant has a conflict with business interests pursuant to Iowa Code 123.45. Deferment may occur during study and consideration of the issue during the 2019 session.
This section is repealed July 1, 2019.
Section 28: Rape Kits – Requires local law enforcement to retain rape kits indefinitely and to provide them to the Attorney General’s Office upon request.
Section 29: Fine Arts in Public Buildings – Repeals Iowa Code 304A, the requirement for one half of one percent of the cost of state building construction is set aside for fine arts.
Division IV—Corrective Provisions – LSA corrective provisions to 2017 bills.
Corrective provision to HF 291 – Collective Bargaining changes
Corrective provision to SF 438 – Project Labor Agreements
Corrective provision to SF 509—Justice Budget
Corrective provision to HF 572 – Workforce Development Board/WIOA Conformity
Corrective provision to HF 215 – Coverage of treatment of autism in insurance
Corrective provision to HF 642—Education Budget
Corrective provision to HF 488 – Non-substantive Code corrections
Corrective provision to SF 510—Ag & Natural Resources Budget
Corrective provision to SF 505 – First-time Homebuyers
Division V—Weapons
Section 46 fixes language allowing reserve and peace officers to carry weapons on school grounds.
Sections 47, 49, and 50 clarifies the definition of intoxication when carrying weapons and supervising children
Section 48 adds that an application for a permit to acquire will include a query as to whether the applicant meets the criteria for obtaining a permit to acquire.
Section 51, 53 and 54 – The sections relating to possession of guns by children and prohibition against being intoxicated while supervising children while possessing a pistol or revolver are effective upon enactment and retroactive to April 13 when the Governor signed the bill.
Section 52 fixes a redundancy relating to “loser pays” for appeals of denials of permits. It remains in section 27 of HF 517.
Division VI — Eminent Domain—Merchant Lines (Clean Line) – “Above ground merchant lines” (clean lines) are included in the definition of private development purposes. This means there is no eminent domain for construction of above-ground merchant lines. Effective upon enactment.
Division VII– Vapor and alternative nicotine products
Authorizes and establishes requirements for online sellers of vapor and alternative nicotine products. Online sellers are required to get state retail permits based on the type of product they sell. Purchases from an online seller delivered to Iowa or used in Iowa are subject to the state sales tax. Online sellers must collect and remit state sales tax.
Makes it permissive to issuing a local retailer permit for cigars, other tobacco products, and vapor and alternative nicotine products. That means cities and counties are not required to issue a retail permit as they have been. This mirrors how cities and counties determine if they will require a retailer to get a permit to sell the products.
Requires those selling Vape products online to verify the age of the buyer to ensure he/she is at least 18 years old.
Division VIII—National Junior Angus Show – Authorizes $10,000 from IDALS to support the 2017 national junior Angus show. They funding will come from unclaimed winnings at pari-mutuel racetracks during FY16 and FY17. [4/21: 27-13; party-line (Allen, Bertrand, Bisignano, Dawson, Hart, D. Johnson, Kinney, Lykam, Mathis, and Taylor absent)]

HF 640 is the Administration & Regulation Budget. It appropriates $47.4 million from the General Fund and 1,212.4 FTEs for FY18. This is a decrease of $1.4 million and an increase of 9.4 FTE positions compared to estimated net FY17. The bill also appropriates $54.4 million from other funds for FY18, an increase of $150,000 compared to estimated net FY17. FY19 appropriations are 50 percent of FY18 levels.

GOP correction amendment
Changes FTEs for Credit Unions (adds 1) and banks (adds 1), and put the SOS at the same amount as last year (15.6 on each line item)
Adds $96,000 back to DOM
Adds $50,000 back to Public information Board
Decreases $146,000 to Department of Revenue to match add backs
Department of Administrative Services
Appropriates $6.5 million from the General Fund and 57.2 FTEs; a decrease of $305,000, a 4.5 percent decrease, and no change in FTE positions compared to estimated net FY17.
A decrease of $62,000 for utilities.
An increase of $727 for Terrace Hill Operations.
Department of Commerce
Appropriates $1.4 million from the General Fund, $27.3 million from the Commerce Revolving Fund and 301.4 FTEs; a decrease of $266,000, which is a 16.2 percent decrease from the General Fund, a net increase of $150,000 from the Commerce Revolving Fund, and an increase of 9.2 FTE positions compared to estimated net FY17.
Decrease of $196,000 for Alcoholic Beverages Division operations (General Fund)
Decrease of $70,000 for the Professional Licensing Bureau (General Fund)
Increase of $320,000 to the Banking Division to hire and train new banking examiners (Revolving Fund)
Decrease of $170,000 to the Utilities Division (Revolving Fund)
Governor’s Office – Appropriates $2.2 million from the General Fund and 23.9 FTEs; a decrease of $86,561 and no change in FTE positions compared to estimated net FY17. Changes include reducing $86,000 for the Governor’s office and $561 for Terrace Hill Quarters.
Governor’s Office of Drug Control Policy – Appropriates $228,000 and 4 FTEs; a decrease of $9,000 and no change in FTE positions compared to estimated net FY17.
Department of Human Rights – Appropriates $1.2 million from the General Fund and 13.5 FTEs; a decrease of $62,000 and a decrease of 0.1 FTE positions compared to FY17.
A decrease of $11,000 for Central Administration
A decrease of $51,000 for Community Advocacy & Services
Department of Inspections & Appeals – Appropriates $11.4 million from the General Fund, $7.8 million from other funds and 278.9 FTEs; a decrease of $391,000 from the General Fund and no change in FTEs or other funds compared to estimated net FY17.
A decrease of $8,000 for the Administration Division
A decrease of $10,000 for the Administrative Hearings Division
A decrease of $40,000 for the Investigations Division
A decrease of $78,000 for the Health Facilities Division
A decrease of $650 for the Employment Appeal Board
A decrease of $41,000 for the Child Advocacy Board
A decrease of $9,000 for Food and Consumer Safety
A decrease of $203,000 to be applied by the Department as it sees fit across divisions
Department of Management – Appropriates $2.4 million from the General Fund, $56,000 from other funds and 21 FTEs; a decrease of $96,000 from the General Fund, a negligible decrease in FTEs and no change in other funds.
Department of Revenue – Appropriates $16 million from the General Fund, $1.3 million from other funds and 194.9 FTEs; a decrease of $751,000, which is 4.5 percent decrease from the General Fund, and no change in other funds or staffing compared to estimated net FY17.
Office of the Secretary of State – Appropriates $3.5 million from the General Fund and 26.6 FTEs; a net increase of $646,000 and no change in FTEs compared to FY17.
An increase of $700,000 for implementing voter ID
A decrease of $54,000 (3.8 percent) for Business Services
Office of Treasurer – Appropriates $1 million from the General Fund, $93,000 from other funds and 28.8 FTEs; a decrease of $41,000 from the General Fund, a decrease of 0.2 FTEs and no change in other funds compared to FY17.
Auditor – Appropriates $894,000 from the General Fund and 103 FTEs; a decrease of $35,000 and no change in FTE positions compared to estimated net FY17.
Gaming Regulatory Revolving Fund, Ethics & Campaign Disclosure Board, Public Information Board and IPERS Administration – no change.
New language:
Requires the Department of Inspections & Appeals (DIA) to reduce appropriations by $203,000. Allows DIA to reallocate funds within the department to implement the reduction upon notice and rational for the reallocation.
Allows the Chief Administrative Law Judge at DIA to hear cases. This is an at-will positon.
Eliminates the requirement that local governments furnish to ABD a retail permit issued by the local government, and changes the date for ABD to submit a list of permits issued to the Department of Public Health from the first day of each quarter to the last day of each quarter.
[4/18: 29-21, party line]

HF 642 is the FY18 Education Budget.

Funding increases:
Midwest Higher Education Compact – an increase of $15,000
STEM Initiative at UNI – $246,000 increase (4.7 percent over original FY17)
Significant cuts (Most comparisons are from original FY17):
Department for the Blind – No funding for Newsline for the Blind ($50,000 cut)
College Student Aid Commission – Every line item is decreased, except for National Guard (status quo)
Iowa Tuition Grant Not-For-Profit: $46.8 million, a cut of $2.3 million or 4.7 percent from original FY17.
Iowa Tuition Grant For-Profit: $1.5 million, a cut of 475,000 or 24 percent from original FY17.
Vocational Technical Tuition Grant Program: $1.8 million, a cut of $500,000 or 22 percent from original FY17.
Foster Care All Opportunity Scholarship Program: 100-percent cut, now an allowable expenditure for Iowa All Opportunity Scholarship program.
National Guard Tuition Assistance: NOBA = $1 million increase. However, it’s really a $1 million decrease because of last year’s large carry-forward. Total funding $3.1 million, a 24-percent decrease from original FY17.
Nurse Educator Loan Forgiveness program – 100-percent cut; program repealed.
Teacher Shortage Loan Forgiveness – 50-percent cut and no more applicants allowed; will be completely defunded.
Major language changes:
Foster Care Grant Program – Strikes program, moves $500,000 to All Iowa Opportunity Scholarship and gives priority to foster care kids.
Barber and Cosmetology Program – repealed and now an allowable use of ITG For-Profit funding. Defines Waldorf and Le James as eligible institutions for assistance.
Notwithstands Work Study Standing appropriation ($0).
Removes $6,000 cap on ITG and makes it “equal to two semesters at public university.”
Department of Education – Every line-item is reduced, except Midwest Higher Education Compact.
Community Colleges – A $3 million cut, or 1.5 percent from original FY17.
Community College Quality Faculty Salaries program – 100 percent cut, zeroed out.
Early Childhood Iowa – Combines all three line items and appropriates $22.2 million; a cut of $1 million or 4.3 percent from original FY17.
Student Achievement and Teacher Quality (SATQ) – Appropriates $3.4 million. This is a reduction to the Teacher Leadership Compensation, which is now in the school aid formula. Cuts $4 million from Beginning Teacher Mentoring and repeals the program (now an allowed Professional Development expense).
Shared Visions Preschool/Child Development – $12.6 million Standing Appropriation in Code. Notwithstands and appropriates $10.7 million. This is a $2 million cut, or 15p-ercent reduction.
No Regional Telecommunications Council – 100 percent cut ($992,000)
No English Language Learners Pilot – 100 percent cut ($500,000)
No AEA Support System – 100 percent cut ($1 million cut to “core curriculum” support)
No Competency Based Education – 100 percent cut ($425,000)
No Fine Arts Mentoring – 100 percent cut ($25,000; now an allowed expenditure under SATQ)
Administrator Mentoring – 75 percent cut ($750,000)
Major language changes:
Early Literacy – Strikes third-grade retention and summer school requirements. Keeps intensive language assistance and testing, and expands it to any student (not just K-3).
Mentoring and Induction for Beginning Teachers – Strikes references in Code, but allows schools to offer mentoring for beginning teachers with their professional development funds.
Delays funding of $10 million for high-needs schools by another year.
Board of Regents:
One of two items to receive an increase – STEM Initiative at UNI, a $246,000 increase or 4.7 percent over last year.
University of Iowa – $217.7 million, a cut of $15.5 million or 6.66 percent from original FY17, and $5.3 million from the level appropriated after mid-year budget cuts.
Iowa State University – $172.9 million, a cut of $11.5 million or 6.25 percent from original FY17 and a decrease of $2.5 million from the mid-year budget cuts.
University of Northern Iowa – $93.7 million, a cut of $3.3 million or 3.5 percent and a decrease of $823,000 from the mid-year budget cut level.
University of Iowa Flood Center – A cut of $300,000, or 20 percent from FY17.
Iowa State University Leopold Center – Eliminates the appropriation of $397,000.
Specialty Schools (Blind and Deaf) – Increase of $174,000, which is a 1.11 percent increase. Regents will sell or otherwise dispose of the Iowa Braille and Sight Saving School property.
Combines regional centers line items –$279,000 to be allocated by the Regents as they see fit.
Budget concerns:
Vocational Rehab (IVRS) is reduced them by an additional $223,663, which impacts their ability to draw down $826,395 in federal funds. That means a total reduction to their budget of $1,050,058. Standings funding for IVRS brings the total decrease to $117,000, but they will still have to reduce employment services for Iowans with disabilities, including intermediary networks at community colleges and school-to-work partnerships.
State Library – Because their maintenance of effort match is based on a three-year rolling average, the FY18 reduction could prevent them from drawing down as much as $145,351 in federal funds for FY18. The State Library reports it will reduce interlibrary loan reimbursement, the Open Access program, aid to public libraries, continuing education, shared statewide online databases, and travel.
Iowa Public Television (IPTV) receives a Community Service Grant from the Corporation of Public Broadcasting, which is based on the state appropriation. The FY18 budget reduces the appropriation for IPTV by $484,985 from original FY17. Their CSG grant may be reduced significantly as a result.
Board of Regents – In December 2016, the Board approved a 2-percent increase to the base resident undergraduate tuition rate at each university. In February 2017, the Legislature approved mid-year permanent funding reductions for FY17, cutting $20.75 million. In April 2017, the Legislature further reduced funding for FY18 by $9.58 million. In total, Regent higher education appropriations for FY18 are $30.33 million less than original FY17.
- In May 2017, the Board set in motion approval of a $216 increase to all undergraduate resident students from the rates approved in December 2016, about a 3-percent increase. The proposed tuition rates are expected to generate $25.67 million ($16.51 million at U of I, $7.12 million at ISU and $2.04 million at UNI).
Increasing student debt at community colleges and private colleges is likely, as a result of cuts to community colleges, voc-tech grants and the Iowa Tuition Grant.
Worker Training – $40.3 million to the Skilled Worker & Job Creation Fund (status quo). This Fund was created in FY14 with $66 million in gambling revenue normally deposited into the General Fund. The remaining $25.7 million is appropriated in the Economic Development Budget for various programs.
Workforce Training and Economic Development Funds (260C.18A) – $15.1 million
Workforce Preparation Reporting System – $200,000
Adult Literacy for the Workforce – $5.5 million
Pace and Regional Sectors – $5 million
GAP Tuition Assistance – $2 million
Skilled Workforce Shortage Tuition Grants – $5 million
Work-Based Learning Intermediary Network – $1.5 million
ACE Infrastructure – $6 million
[4/18: 29-21, party-line (D. Johnson voting “no” with Democrats)]

HF 643 makes appropriations from Rebuild Iowa Infrastructure Fund (RIIF); Technology Reinvestment Fund (TRF); State Bond Repayment Fund; and Revenue Bond Capitals Fund (RBC).

HIGHLIGHTS FROM RIIF:

DAS
Major Maintenance – $11,510,000. At least $2 million must modernize and upgrade Capitol Complex elevators.
[ITEM VETOED] Vacant Building Study: Requires DAS to inventory and study vacant buildings owned by the State, including an assessment of how much could be saved by selling any buildings identified. If, during FY17, DAS sells a vacant building, 50 percent of the money goes to DAS for major maintenance and 50 percent to the Department of Cultural Affairs for State Historical Building maintenance projects.
IDALS
Ag Drainage Wells – $1.9 million (status quo). Approximately 28 wells will be closed in Floyd, Grundy, Butler and Humboldt counties.
Water Quality Initiatives – $5.2 million (status quo)
Renewable Fuels Infrastructure Fund – $3 million. Last year’s funding was the same, but from Statutory Allocations Fund of the Road Use Tax Fund. Money will be used for blender pumps and to retrofit pumps.
Department of the Blind – Elevator Upgrades – $150,000 to comply with State Code.
Department of Cultural Affairs
Cultural Affairs Building – $1 million to repair leaking roof, skylights.
Great Places Infrastructure Grants – $1 million (status quo)
Rural YMCAs – $250,000 for maintenance and infrastructure in communities with a population of 28,000 or less (status quo)
Economic Development Authority
CAT Grants – $5 million (status quo)
Regional Sports Authorities – $500,000 (status quo)
World Food Prize Scholar Program – $300,000 (status quo)
Lewis & Clark Regional Water System – $2,250,000 for FY17. The Economic Development Authority must establish a plan to repay money appropriated once federal money for the project is received, and submit a report to the Legislature on the status of federal money for the project by February 1, 2018. In FY18, $4,750,000 is appropriated to connect communities to the Lewis and Clark Regional Water System. The Economic Development Authority must establish a plan to repay money appropriated once federal money for the project is received, and submit a report to the Legislature on the status of federal money for the project by February 1, 2019.
Camp Sunnyside Pool – $500,000 to be combined with private donations (currently more than $1.4 million) to Easter Seals Disability Services to renovate the year-round indoor heated therapy pool.
Western Iowa Utilities Relocation – $1.5 million to relocate utilities from widening of I-29 .
Human Rights – [ITEM VETOED] Community Action Agencies – $1.8 million to be distributed equally among the state’s 17 CAAs and the State Association for infrastructure Improvement and Technology Modernization, including a mobile food pantry.
Human Services – Nursing Home Facilities Improvements – $500,000 for improvements to remain compliant with health and safety regulations.
Management – Technology Reinvestment Fund – $10 million from RIIF to TRF for FY18, in lieu of the $17.5 million standing General Fund appropriation in Code.
Natural Resources
Lake Restoration – $9.6 million for lake dredging and water quality
State Parks Infrastructure – $2 million for improvements for the 100th Anniversary of State Parks in 2020
Public Defense
Must submit report to Legislature by December 15, 2017 on what projects the department has funded, or intends to fund, from money appropriated.
National Guard facilities – $1 million for major maintenance, matched dollar-for-dollar with federal funds
Statewide Modernization – $1 million, matched dollar-for-dollar with federal funds
Camp Dodge Upgrades – $250,000 for improvements to sanitary and storm sewers. State funds (15 percent) matched with federal (85 percent).
Board of Regents
Tuition Replacement – $28.3 million to supplement debt service on academic revenue bonds to hold down tuition. This year $16.1 million from RIIF and $12.2 million from SBRF.
Regents Construction Projects – ADJUSTMENT
Reallocation of Prior Appropriations – Regents
- Reduces the FY18 RIIF appropriation to University of Iowa Pharmacy Building by $5,500,000 and appropriates $5,500,000 for FY19. The University of Iowa was appropriated $64,300,000 over a four-year period for the Pharmacy Building during the 2014 session. The appropriations include $13,000,000 for FY16, $23,000,000 for FY17 and $28,300,000 for FY18. This bill reduces the FY18 appropriation to $22,800,000 and appropriates $5,500,000 for FY19.
- Iowa State University Biosciences Building renovation – Decreases FY17-FY18 funding by $4,000,000 and appropriates $4,000,000 for FY18-FY19. Iowa State University was appropriated a total of $50,000,000 for the bioscience facility during the 2014 session. This maintains that total.
- Iowa State University Student Innovation Center construction – Increases the FY 17-FY18 appropriation to $6 million and decreases FY 21-FY22 to $3 million (was $9 million). Iowa State University was appropriated a total of $40,000,000 during the 2015 session.
Public Safety- Land Mobile Radio Network Lease/Purchase Payment – $4.1 million. This is the third of 10 annual payments to fully fund the system. FY16 and FY17 payments came from the surplus carry-forward from E911 surcharge.
DOT
State Recreational Trails – $1 million for trails in communities statewide. A local match of 25 percent is required.
Public Transit Vertical Infrastructure Grants – $1.5 million for vehicle storage facilities for local transit authorities. Matching funds of up to 85 percent may be required.
Commercial Service Airports Vertical Infrastructure Grants – $900,000 distributed 50 percent equally to the eight airports; 40 percent based on percentage of passengers; and 10 percent based on portion of air cargo tonnage of previous year.
General Aviation Airports – $500,000. Eligible airports apply to DOT Office of Aviation. Review and approval by Transportation Commission.
Railroad Revolving Loan Fund – $1 million for grants and loans to construct and improve railroad facilities, such as main lines, branch lines, switching yards, sidings, rail connections, intermodal yards and highway grade separations.
State Fair Authority – Northwest Improvements – Remodeling includes a new events area and updates to the grandstand, stage and midway. FY18 – $1 million; FY19 – $8.5 million.
Treasurer – County Fair Infrastructure Improvements – $1.1 million to be distributed among the 106 county and district fairs of the Association of County Fairs.

HIGHLIGHTS FROM TRF:

Chief Information Officer – $1 million for FY18 to consolidate IT systems within state government.
Education
Build-out of ICN Part III – $2.7 million to pay for maintenance and leases at current level.
Statewide Education Data Warehouse – $600,000 to develop and implement at current level.
Iowa Public Television – $260,000, a decrease of $740,000 compared to FY17.
Human Rights – Criminal Justice Information System – $1 million for continued development and implementation
Justice Data Warehouse – $158,000 for updates. This is an increase of $40,000 to restores cuts made in 2016.
Human Services – Medicaid Technology – $1 million for upgrades to Medicaid claims processing through Medicaid Management Information System.
Public Defender – Online billing and claims tracking – $66,000 for upgraded system that better tracks and processes claims by attorneys and allows claims submissions by expert witnesses, court reporters and interpreters.
Management
Searchable online budget and tax database – $45,000
Grants Enterprise Management System – $50,000 for web portal that is one-stop shop for federal grants received by state and grants available to local governments.
Local government budget and property tax upgrade – $600,000 to redesign system used by local governments to submit property tax data to DOM.
Public Health – State Medical Examiner – $1 million to upgrade equipment that provides examinations, including autopsies and death investigations.
Public Safety – Radio Replacement – $1.1 million to replace 15-year-old radios for 130 uniformed officers, thereby improving communications and interoperability.
Homeland Security – Mass Notification and Emergency Messaging Fund – $400,000 for a system that can be used by state and local governments.
[4/19: 42-8 (Bolkcom, Bowman, Hart, Hogg, Jochum, Kinney, Quirmbach, Taylor “no”)]

HF 653 is the Health & Human Services Budget.

FY18 GOP Recommendation      $1,766,437,202
FY17 (revised) Appropriation     $1,794,365,942
Difference                                          $    -27,928,740
Percent Decrease                                 -1.6 percent

The Health & Human Services budget is $10 million less than the Governor’s revised FY18 budget; $28 million less than FY17 (revised); $70 million (-3.8 percent) less than original FY17 (as signed by the Governor); and $134 million less than FY16 actual.

General Fund	Actual FY16	Original FY17	Revised FY17	Republican FY18	Diff FY18 to Rev FY17
Aging	12,676,515	13,925,386	13,395,352	12,202,757	-1,192,595
IDPH	59,701,658	59,371,352	57,078,445	51,242,801	-5,902,947
DHS	1,815,779,839	1,751,291,251	1,711,935,542	1,691,673,022	-20,195,217
Veterans	12,285,542	12,285,542	11,956,603	11,318,622	-637,981
Total	$1,900,443,554	$1,836,873,531	$1,794,365,942	$1,766,437,202	-27,928740

Other Funds

Actual FY16

Original

FY17

Revised FY17

Republican

FY18

Diff FY18 to Rev FY17

SSBG

12,350,348

15,270,606

TANF

123,816,868

146,001,005

156,346,125

131,992,100

-24,354,025

NEW PROGRAMS

A new State Family Planning Program is created to replicate the Medicaid Family Planning Waiver but requires all state funding to prevent Planned Parenthood (and other providers who perform abortions) from participating and being reimbursed. Forgoes $3 million in federal funds and spends an additional $3.1 million from the state General Fund.
[ITEM VETOED] A new allocation of $202,000 from the Autism Support program to Drake University to establish a Master’s Program in Applied Behavior Analysis (ABA). This is expected to be a one-time start-up allocation.

FUNDING INCREASES

Nursing facilities receive an increase of $2.5 million for rebasing (plus match)
Melanoma research at the University of Iowa and Child Health Specialty Clinics are restored to the original FY17 level.

SIGNIFICANT FUNDING DECREASES

Iowa Department on Aging

The Department on Aging’s FY 18 appropriation is 12 percent lower than the original FY17 appropriation.
A general reduction of $628,674 to the Department on Aging
A general reduction $163,921 to the Long Term Care Ombudsman’s Office. The appropriation will soon draw down a 50-percent match.
The Aging and Disability Resources Center’s work on elder abuse is cut by $150,000
Life Long Links is cut $250,000, which is 25 percent of the $1 million they were appropriated in FY17.

Iowa Department of Public Health

The IDPH FY18 budget is 13.7 percent less than the original FY17 budget.
A “general reduction” of $1,281,367
Medical residency program is suspended for FY18; $2 million savings
Tobacco cessation is reduced by $1 million, leaving just over $4 million for tobacco use, prevention and control
The following programs are completely eliminated:
- Culturally competent substance abuse project
- Childhood obesity program
- Direct care worker scholarships
- Office of Minority and Multicultural Health
- Safety Net Collaborative
- UIHC primary care model for mental health treatment
- Viral hepatitis education, treatment and prevention
Cervical cancer screening is cut by $100,000, leaving $275,252
EMS fund is cut by $100,000, leaving $304,700
Iowa Donor registry is cut by $90,000 leaving $150,000
Direct Care Worker Advisory Council is reduced by $87,169, leaving $76,231
Direct Care Worker Association is cut $16,831, leaving $191,188
Specialty healthcare is decreased $105,493, leaving $100,000
Circle of Care grant is reduced by $50,000, leaving $1.1 million
ABLE Act appropriation to the Treasurer’s Office is reduced by $50,000, leaving $200,000

Department of Human Services

A general reduction of $1,467,303
Child care assistance gets a net increase of $7.6 million from the General Fund. Other sources are reduced, leaving the overall funding level for CCA at $4.3 million below the projected need.
Field operations are cut $8.3 million ($885,682 – General Fund; $7.5 million – TANF), which is a 10.9 percent cut compared to original FY17. In addition, field operations are matched with federal funds at approximately a 50/50 rate.
DHS general administration is cut $1.5 million. A 50/50 match is also lost.
College of Direct Supports (HCBS provider training); $200,000 [ITEM VETOED]
$2 million is scooped from the end-of-year transfer to DCAT: $1 million from child welfare prevention services and $1 million from graduated sanctions.
$1.9 million cut to adoption subsidy due to changes in FMAP and a projected surplus, so this amount fully funds the adoption subsidy projection
$2 million cut to Child Support Recovery
The Refugee RISE program is cut by one-third, $100,000.
Eldora Training School is cut $882,977
Cherokee Mental Health Institute is cut $788,340
Independence Mental Health Institute is cut $950,394
Glenwood Resource Center is cut $2,581,021
Woodward Resource Center is cut $1,918,318
Civil Commitment Unit at Cherokee is cut $1,207,210
$500,000 decrease to Early Childhood Iowa
A $3 million appropriation made last year to help Polk County MHDS and Eastern Iowa Regions is eliminated.

Medicaid

Legislative Republicans adopted all of the Governor’s Cost Containment strategies, even though they fall on the backs of hospitals, doctors and other health care providers.
- Eliminate consultation codes: $500,000 reduction
- Reduce hospital reimbursements (DRG outliers) by reducing reimbursements for extremely high-cost cases: $10 million reduction
- Reduce primary care physician reimbursement rates (eliminates a 1-percent increase from the ACA; $5 million reduction)
- Reduce anesthesiologist reimbursement rates: $3.1 million
- Change site of service claims (difference between hospital and office): $2 million reduction
- Change cross-over claims payments (Medicaid no longer paying up to the Medicare rate): $7.7 million reduction
Eliminate three-month retroactive eligibility: $4.3 million reduction
A positive FMAP change resulted in $66 million savings
A significant savings to the Medicaid budget of $22 million comes from performance payments to the MCOs that will NOT be made because the MCOs have not met the performance expectations.
Additional $3.2 million expense for State Family Planning program
$2.5 million increase for nursing facility rebasing plus match
Medicaid provider reimbursement rate protections were ITEM VETOED

Veterans – Veteran’s Home Ownership program is cut by $500,000, out of a total of $2.5 million.

BUDGET CONCERNS

On top of specific cuts, the HHS budget includes “general reductions” of $628,674 to Aging; $163,921 to LTCO; $1,281,367 to IDPH; and $1,467,303 to DHS for a total of $3,541,275. Departments must make cuts in consultation with the Department of Management.
Legislative Republicans are spending $3.2 million state General Fund dollars for family planning services while forgoing $3 million federal dollars to prevent Planned Parenthood from participating in the program.
No consideration of the expected increase to the capitation rates paid to MCOs in FY18.
IDPH could be at risk of losing federal matching funds. There is maintenance of effort requirement for the substance abuse funding which could be reduced by 1:1.
There is also a matching requirement around the Title V Maternal and Child Health funding. Much of that match funding comes from the healthy children and families and community capacity budget units. The distribution of the $1.3 million general reduction could have a negative impact.
DHS field operations receive an approximate 50/50 federal match making the effective cut to field operations more than $16 million.
DHS general administration receives a 50/50 match, bringing the total cut to almost $2 million.
Potential loss of federal matching funds at DHS include:

LANGUAGE CHANGES

Requires IDPH to assist the Alzheimer’s Association of Greater Iowa in finding funding for the HERO Project for those caring for a family member.
Requires Aging, IDPH, DIA and DHS to analyze and make recommendations for coordinating between state agencies and private entities to promote increased access to care for individuals with dementia.
The Legislative Council is asked to establish an Interim study committee on telehealth parity.
Biologics and Genetically Targeted Drugs: Requires the Pharmaceutical and Therapeutics Committee under Medicaid to review information regarding drug, biological product or rare disease when making recommendations for the Preferred Drug List.
Extends the repeal of the Hospital Health Care Access Assessment Program to July 1, 2019.
Juvenile bed cap is raised from 162 to 172 in FY18 and to 182 in FY19
Prior Consent – Prohibits a licensed or certified medical practitioner or clinical student or resident from performing a pelvic examination on an anesthetized patient without prior written consent.
Psychiatric Bed Tracking System. Requires DHS to submit new administrative rules to require the psychiatric bed tracking system to be updated twice daily.
Children’s Well Being Collaborative. Directs DHS to issue an RFP to establish a children’s well-being collaborative and to reconvene the advisory committee.
HCBS Rates – Requires DHS to discontinue using the cost settlement methodology and begin using a tiered rate methodology for HCBS providers.
Requires DHS to allow mental illness service providers to use check boxes for documenting services.
Requires DHS and DPS to review alternatives for contracting out background checks. A report is required by December 15.
Re-writes language for the Nursing Facility/Hospital Intergovernmental Transfer plan to address CMS guidance and to gain approval of the plan.
Requires DHS to review step therapy exceptions in Medicaid managed care.
Requests a legislative interim on the opioid epidemic.
Several reporting requirements were ITEM VETOED.
[4/20: 28-21, party-line (Chapman, D. Johnson voting “no” with Democrats; Bisignano excused)]