The Iowa General Assembly

State of Iowa

Eighty-First General Assembly

STATEHOUSE

Des Moines, Iowa 50319

For Immediate Release Contact: Kimberly Steenhoek, (515) 281-6571

Thursday, March 23, 2006 Tim Albrecht, (515) 281-5566

Republican Leaders Protect Budget Commitments

DES MOINES – Senate and House Republican budget leaders today said that they want to protect additional revenue from being scooped for the Fiscal Year 2007 budget should the Revenue Estimating Conference (REC) increase state revenue projections on Friday.

According to the December REC estimates, after the expenditure limitation is taken into account, the state has $280 million in new funds to spend in the FY 07 budget year that begins July 1. The law says the Legislature must abide by the December REC estimate when establishing the state budget.

The REC is also expected to increase their FY 06 budget estimates based on actual revenue received since July 1, 2005. Republican budget leaders say those revenues are already committed to paying for property tax credits, repaying the Senior Living Trust Fund and filling the cash reserves.

“The law is clear, we must abide by December’s REC estimate,” said Rep. Scott Raecker, head of the House Appropriations Committee. “Any new money this year is already allocated – to property tax credits, repaying the Senior Living Trust Fund and filling the state’s cash reserve. For the next budget year, I am optimistic that we will fund the priorities of Iowans, including education, human services and public safety, and we will get it done on time.”

“Let’s stop robbing Peter to pay Paul,” said Senate Appropriations Committee Co-Chair Jeff Angelo (R-Creston). “Let’s stop robbing from our seniors, veterans and property tax payers to balance the budget and repay these funds.”

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