Governor’s item vetoes make changes to FY 2016 general fund budget

Gov. Branstad’s final actions on the FY 2016 budget has slightly changed the total numbers for state spending in the new fiscal year.

When the Legislature adjourned on June 5, general fund spending in FY 2016 was set at $7.1757 billion for the year.

This amounted to a 2.59 percent increase in state expenditures over FY 2015 levels. Ongoing revenue for the year was $7.1846 billion, meaning the budget passed by the Legislature would spend 99.88 percent of on-going revenue.

For the fifth straight year, the budget passed by the Legislature spends less than that year’s projected on-going revenue.

The governor’s item vetoes impacted several spending items. In the Standing Appropriations bill, Gov. Branstad vetoed language that would have moved the funding of State Appeals Board claims from the general fund to the economic emergency fund.

These claims are those made against the state for various damages. Often, these claims arise from cases involving care at the University of Iowa Hospitals and Clinics. The standing level of appropriation for this is $3 million, although the actual amount can vary dramatically based upon the number and size of claims against the state in a particular year. The governor’s action raised general fund spending by $3 million.

The governor also vetoed language in the standings bill that set aside the first $2 million of judicial branch revenue collected by the state into a special fund that could be used to increase judicial salaries. This action increases the state’s ongoing revenue figure for FY 2016 by $2 million.

In the health and human services budget bill, the Legislature had maintained funding for the operation of the Mount Pleasant mental health institute.

Gov. Branstad item vetoed this, reducing funding to the Department of Human Services by approximately $6.5 million. Also, the governor vetoed spending for care coordination activities by health care collaboratives.

These projects have been funded by the Department of Public Health. This funding — $1.7 million — will not be spent by the department and revert back to the general fund at the end of the fiscal year.

After the governor’s vetoes, general fund spending for FY 2016 will be $7.1717 billion. Ongoing revenue for the fiscal year will be $7.1867 billion, meaning that the FY 2016 budget will spend 99.79 percent of on-going revenue.

The final budget is also $169.3 million lower than the FY 2016 budget proposed by Gov. Branstad back in January. That budget called for general fund spending of $7.3410 billion while ongoing revenue had been projected to be $7.1946 billion by the Revenue Estimating Conference in December.