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I am disappointed the General Assembly has fallen back into the irresponsible budgeting practices of the past. These same practices, which are inconsistent with sound accounting principles, led the state into massive financial difficulties which took years to correct. The bill contains numerous expenditures that are charged to the wrong fiscal year. Such practices are inappropriate because they do not fairly represent the expenditures for the given fiscal year (in this case, fiscal year 1996 expenses are budgeted in fiscal year 1995), and to the extent that ongoing expenses are funded from a prior year's budget, create "built-in" increases for the subsequent year. These practices are unacceptable and cannot be tolerated. Furthermore, I am also disappointed by the General Assembly's failure to provide critical supplemental funding for the Iowa Communications Network (ICN) which I recommended in January. This inaction by the General Assembly represents a grave neglect of pressing financial needs that could jeopardize the operation of a statewide communications system that benefits thousands of Iowa school children every day. The Iowa Communications Network is such a vital and visionary component of Iowa's educational future that the absence of this much needed supplemental is both indefensible and shortsighted. House File 132 is, therefore, approved on this date with the following exceptions which I hereby disapprove. I am unable to approve the items designated as Sections 1 and 2, in their entirety. These items appropriate approximately $2 million to the Department of Human Services to fund program expansions and provider reimbursement increases. A current year appropriation for these purposes is inappropriate in that the actual spending will occur almost entirely in the next fiscal year. It not only masks the true base spending level in fiscal year 1996, but also creates an automatic increase in fiscal year 1997. I am unable to approve the item designated as Section 4, subsection 1, in its entirety. This item appropriates additional funds in fiscal year 1995 for restoration of the Capitol. My budget recommendations include funding to implement an aggressive plan for Capitol restoration over the next three years, starting in fiscal year 1996. This funding should be considered a part of the fiscal year 1996 budget. I am unable to approve the item designated as Section 6, in its entirety. This item appropriates $4 million for the Iowa Court Information System (ICIS). This is an expense that will be incurred in fiscal year 1996, where it is more appropriately budgeted. My budget recommendations for fiscal year 1996 fully fund the Court's request, including the funding requested for ICIS. I am unable to approve the item designated as Section 10, in its entirety. This item would require that regional networks be a part of the state's managed care contract for substance abuse services. Such a requirement would inhibit the state's flexibility to achieve the most cost-effective contracting arrangement for substance abuse services. For the above reasons, I hereby respectfully disapprove these items in accordance with Amendment IV of the Amendments of 1968 to the Constitution of the State of Iowa. All other items in House File 132 are hereby approved as of this date. Sincerely, Terry E. Branstad Governor
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Last update: Sun Jan 14 21:05:02 CST 1996
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