Iowa Gov. Chet Culver said his upcoming fiscal 2011 budget would fully cover a 2% allowable growth increase in funding for public education. The 2% increase would cost the state $70 million.
Culver asked lawmakers to approve legislation that would allow school districts to spend down a portion of their cash reserves in an effort to avert increased property taxes. He also wants to use $100 million in state reserves to reverse some school funding cuts.
In his state of the state address, the governor touted Iowa’s top bond ratings and balanced budget as signs of his strong fiscal stewardship.
The state faces a deficit in the next fiscal year of as much as $1 billion, according to some estimates. Culver said the state has kept the budget balanced through spending cuts, a state hiring freeze, furlough days, and other measures.
He asked lawmakers to support proposals in his Government Efficiency Report that includes streamlining some operations, changing the work week for some employees, and changes to purchasing contracts. The measures could save about $200 million in fiscal 2011. Culver also wants to eliminate some tax credits, including the state’s controversial film tax-credit program.
