20 Mar 2009

New Revenue Estimates Mean $1-Billion Shortfall, Layoffs

By Lynn Campbell

More budget cuts are on the way in Iowa after the three-member Revenue Estimating Conference (REC) on Friday lowered estimates of state revenues by $129.7 million this fiscal year and $269.9 million next fiscal year.

"The economy continues to falter," said Holly Lyons, director of the Legislative Services Agency's fiscal services division. "We're witnessing more layoffs. We're witnessing reduced hours and furloughs. We may not even be halfway through this recession."

The lowered revenue estimates, combined with the $700-million budget gap the state already had for Fiscal Year 2010, make for a $1.1-billion gap between expenses and revenues over the next 15 months, according to Representative Scott Raecker (R-Urbandale), ranking member of the House Appropriations Committee.

13 Mar 2009

Iowa Unemployment Reaches 20-Year High

By Lynn Campbell

The number of unemployed people in Iowa increased to 80,600 in January, surpassing the 80,000 mark for the first time since September 1987, Iowa Workforce Development announced this week. That's up from 73,700 in December, and 64,900 a year ago.

Elisabeth Buck"Jobless claims remain very elevated, and continue to point to large payroll losses," said Elisabeth Buck, director of Iowa Workforce Development. "The major share of Iowa's job losses since January 2008 occurred during the final four months of the year."

The state's seasonally adjusted unemployment rate increased to 4.8 percent in January, up from December's revised rate of 4.4 percent and last year's rate of 3.9 percent. The total number of working Iowans dropped to 1,592,100 in January from 1,602,900 in December.

06 Mar 2009

IPERS Tries to Ease Concerns About Frozen Assets

By Lynn Campbell
IPERS CEO Donna Mueller

Officials with the Iowa Public Employees Retirement System (IPERS) attempted to ease concerns this week about its $339-million investment with Westridge Capital Management that's been frozen during the investigation of Westridge owners Paul Greenwood and Stephen Walsh for securities fraud.

Donna Mueller, IPERS' chief executive officer, told the legislature's joint Government Oversight Committee that the frozen assets represent just 2 percent of the pension fund that serves about 300,000 current and former employees in state government, cities, counties and school districts.

"We're going to aggressively pursue every last dollar," Mueller said. "We maintain an additional cash balance so that we do not have to unnecessarily cash out investments. We are managing cash so we have a cash reserve to pay monthly benefits. It's only 2 percent, so we have other assets that are available to manage and to pay benefits. A greater concern, almost, is what's happening in the economy and impacting the entire portfolio."

27 Feb 2009

Iowa Courthouses Set to Close Eight Days Between March and June

By Lynn Campbell

Lynn CampbellIowa courthouses will close an additional eight days between now and June 30 if the $3.8-million cut to the judicial system approved Thursday by the Iowa House is also approved by the Senate and signed by the governor, State Court Administrator David Boyd told a panel of lawmakers this week.

That's twice a month, or once a pay period, Boyd told the legislature's joint justice-system budget subcommittee. Beginning in March, the courts would close on each day that the state's 1,600 clerks of court and other judicial employees take a furlough, or unpaid day off, for a savings of $335,000 a day.

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