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House Journal: Page 37: Tuesday, January 11, 2000

For the past six months, the Lieutenant Governor and I have challenged our staff
and the departments of state government to focus on these goals and to develop
programs and budget priorities aimed at achieving these goals. We’ve also encouraged
the participation of all Iowans through the 2010 Strategic Planning Council efforts and
two weeks of public hearings on the budget held at locations around the state. Through
this inclusive process, we developed the agenda we outline for you today - an agenda
that seizes our moment to lead - an Iowa quality of life agenda that builds and
improves upon our already good quality of life. We will be better educated and
healthier. We will enjoy cleaner air and water and the benefits of richer soil. We will
experience value-added economic opportunity and feel more secure in our homes,
schools and communities, and we will be served by a responsible, accountable
government.

The budget presented to the general assembly funds these priorities while
recognizing the need to limit general fund spending this year. We take seriously our
collective duty to be fiscally responsible. When revenues in the current year didn’t
increase as expected, we called for budget cuts and spending reductions. As part of our
budget, we have already presented to you a de-appropriations bill. We ask you for quick
and speedy action on the bill. I have appreciated the cooperation exhibited by leaders of
both chambers and both parties as cuts and reductions were identified for
consideration. Let us continue that work together. Working together, I know of no
reason why that bill could not be signed one week from today.

Ordinarily, a budget-cutting year would be a very bad time to present an aggressive
list of new ideas. I can already hear the objections. But our administration has a
different approach. This year, we are going back to the basics - the three r’s.

The three r’s I am talking about are not reading, writing, and arithmetic.

Our three r’s are reduce, reallocate, and redouble. State agencies have identified
$30 million in reductions they are ready to make. They also will reallocate current
dollars to fund priorities by undertaking hard-nosed evaluations of how funds can be
better spent. As for redoubling, state agencies are working smarter than ever to find
other sources of money for our priorities - from federal funds, to private foundations
funds.

The budget we are presenting assumes a general fund revenue growth rate of 4.2%
and a general fund expenditure rate of 2.8%. Our budget is balanced, is fiscally
responsible, and calls for no new taxes.

Last year, working together, we made a down payment on better educational
opportunities for Iowa’s students with the class size reduction reading initiative, by
increasing allowable growth and by fully funding the community college formula for
the first time in recent memory. We must continue investing in our children and their
future. We fund an additional $10 million this year for the class size reduction and
reading initiative. We propose fixing the allowable growth rate at 4% for fiscal year
2002 and fund an additional $8.9 million in new resources for the community colleges.
But, that is just a beginning - we pledge to do more.

We pledge to do more because Iowa prides itself on quality schools - from
kindergarten to graduate school. The challenge of a global economy will only be met by


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