Governor Chet Culver has proposed a $5.3-billion state spending plan for Fiscal Year 2011 that uses more than $200 million from the state's cash reserves and $48 million in federal stimulus money, while reducing tax credits by $52.5 million and saving $341 million from state-government reorganization.
Culver said the budget would leave an ending balance of $117.3 million and would leave $265.2 million in the state's cash reserves.
"We have achieved this lower budget by continuing the 10-percent across-the-board budget cut made last fall in Executive Order 19 for most of the General Fund budget," Culver said. "Only 31 percent of programs or agencies would receive any increases over the revised FY 2010 budget ... reflecting the need to reduce state-government spending while preserving critical services for protecting vulnerable adults and children."
Culver's budget recommendations include a $6.9-million increase for the Department of Public Safety to prevent potential layoffs of up to 122 people, and a $25-million increase for the Department of Corrections to avoid layoffs at state prisons.