Preliminary Departmental Plans Released on State Budget Cuts

Statement

DES MOINES -- Preliminary plans on how state executive branch departments implement a 10 percent across-the-board budget cut were released this morning. The plans are in response to an order by Governor Chet Culver to cut state government spending by 10 percent, or nearly $565 million, after the Revenue Estimating Conference projected earlier this month an 8.4-percent decline in revenue for the current fiscal year.

The preliminary plans include a proposed reduction of 1,321 state government positions, including 791 layoffs and eliminating 529 vacant positions. The plans released today do not include the Board of Regents, statewide elected officials, and the Legislative and Judicial branches. Departmental plans are to be finalized by Wednesday, Oct. 28.

Governor Culver issued the following statement about the preliminary departmental plans:

"It is very important to note that this is the starting line, not the finish line, to implement cuts made necessary by the impact of the national economic recession. As Governor, my obligation is to keep our budget balanced and my goal is to do everything we can to preserve essential services and minimize layoffs.

"During the next seven days, we will review these plans, discuss the impact with the collective bargaining units, and work with our department directors to finalize how we implement these cuts. The plans for each department, in their final form, will become effective upon my approval. I've set October 28 as that deadline.

"Like all state departments, the Governor's office will be cutting its budget by 10 percent and has submitted our own plan. I have decided to take a 10 percent cut in pay, my Chief of Staff has done the same, and our entire staff will take up to seven furlough days.

"I disagree with certain recommendations in these preliminary plans, and I will discuss them with department directors and the collective bargaining units as part of my review. I also want to be certain that there are no inconsistencies between these plans and what our departments are required to do by law.

"In particular, I disagree with some recommendations that cut services to children and vulnerable adults, as well as in areas of public safety. These cuts have a very disproportionate impact on public safety, an area I vowed to protect. For example, two-thirds of layoffs are in the Department of Corrections, which relies almost entirely on support from the General Fund, and I want to find a way to mitigate that situation."

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