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House Journal: Page 1189: Monday, April 3, 1995

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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