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.

Iowa Democratic legislative leaders on Thursday promised to act "extremely quickly" to maintain the state's ban on corporate contributions to campaigns, following the U.S. Supreme Court's 5-4 decision to strike down the central part of the McCain-Feingold campaign finance law and allow corporations to spend as much as they wish to support or oppose candidates for president and Congress.

Former Republican Governor Terry Branstad raised $1.55 million in the two and a half months after the start of his campaign and had $1.36 million left at the end of the year, while Democratic Governor Chet Culver raised $2.15 million in the past 12 months and ended the year with $2.59 million in his campaign chest.

"These fundraising numbers posted by the two governors forebode a very vigorous and spirited statewide campaign ahead," observed Pete Jeffries, senior counsel for Republican Jim Nussle's 2006 gubernatorial campaign.

Iowa is likely to retain its first-in-the-nation presidential caucuses in 2012, Iowa Attorney General Tom Miller -- a member of the Democratic Change Commission -- announced following the December 30 report of the commission.

The 2012 Iowa caucuses will be held in early February 2012, along with caucuses or primaries of Nevada, New Hampshire, and South Carolina, Miller said at a Statehouse news conference.

January

January 10: Matt Strawn becomes chair of the Republican Party of Iowa, defeating former State Representative Danny Carroll of Grinnell by a vote of 10-7 to replace Stewart Iverson. Strawn, the Iowa Barnstormers co-owner and former state director for John McCain, takes his dark-horse candidacy on the road in the months after the November election. Members of the Republican State Central Committee attributed Strawn's win to his ability to use fresh approaches to bring in new members and said his state listening tour helped him gain credibility in his quest for the position.

The 2010 legislative session will be dominated by budget cuts, government consolidation, and reorganization when state lawmakers return in January with what some say is a $1-billion shortfall and a midterm election just 10 months away.

Rather than a 100-day session, lawmakers will aim to have an 80-day session to do their part to cut spending. Shortening the session will save about $40,000 a day.

During a recent IowaPolitics.com legislative forum, Senate Majority Leader Mike Gronstal (D-Council Bluffs) warned that it will be a painful session as lawmakers work to realign state government with revenues. House and Senate Democratic leaders have vowed not to increase taxes in 2010 but have repeated that everything is on the table for cuts.

Governor Chet Culver used a speech before the Iowa Taxpayers Association to unveil 90 cost-saving recommendations proposed by consultant Public Works of Philadelphia that he said have the potential to save $341 million in the first year, and nearly $1.7 billion in the next five years.

Many of the proposals call for consolidation. They include consolidating the state's 223 data centers, 23 e-mail systems, and $2 million in wireless-equipment contracts now purchased from seven vendors. They also call for consolidating mailrooms, Department of Natural Resources offices in Des Moines, and administrative functions at Department of Human Services institutions.

The report also calls for reducing the state's car fleet, consolidating property management, and selling surplus properties, including 5 to 10 percent of the 8,000 acres of state-owned prison farms that are no longer mission-critical.

And it calls for reducing human-resource staff in departments, using state master contracts for commonly purchased goods, negotiating Medicaid durable-medical-equipment prices, increasing efforts to collect debt, and making it easier to collect unpaid taxes.

Iowa must look toward consolidating state agencies, school districts, and counties as a way to help balance the state budget, a key legislator said at a recent IowaPolitics.com forum in Davenport.

"What we're going to have to do is consolidate," said Representative David Jacoby (D-Coralville), chair of the economic-development budget subcommittee. "We're going to look at consolidation, streamlining, and at the same time improving services."

Jacoby said legislators are working to consolidate the Department of Economic Development, Iowa Workforce Development, and the Department of Cultural Affairs. "It makes sense to me that we move these three agencies together under the same roof," he said. "It saves an administrative cost and it saves in rent that we're paying. That is a big leap I think we'll take at the state level."

The issue of housing accused terrorists in the Midwest was at the forefront this week as Thomson Correctional Center, in Illinois just over the Mississippi River from Iowa, is considered as a potential landing spot for Guantanamo Bay detainees after they leave Cuba.

Iowa Republicans spoke out against the possible transfer, while Democrats said they'd be open to the option.

Governor Chet Culver said that the transfer could create much-needed jobs.

Preliminary plans to lay off 792 Iowa state employees show that while some would be laid off in November and December, the bulk would be laid off in early January.

Layoffs have been proposed by 15 of the 36 state agencies as an element of their plan to implement a 10-percent across-the-board budget cut ordered by Governor Chet Culver in October.

The bulk of layoffs would occur in the Department of Corrections under a plan not yet approved by Culver. An initial plan called for 515 layoffs in corrections. The latest plan shows 377 layoffs would occur on Janurary 1, 4, or 7.

Pages