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Dear President Kramer: I hereby transmit Senate File 267, an Act relating to state budgetary matters by providing for reductions and supplementation of appropriations made for the fiscal year beginning July 1, 2000, and transferring, crediting, and appropriating certain moneys, and providing an effective date. We have some very difficult choices ahead of us as we determine next year's state budget. Rather than create chaos with the state's budget during the last months of this fiscal year, we need to get down to the serious business of focusing on next year's budget. With revenues down, we will need to aggressively address next year's budget in a thoughtful, planned, and bipartisan manner. Senate File 267 is, therefore, approved on this date with the following exceptions, which I hereby disapprove. I am unable to approve Division III, Section 3 in its entirety. This provision requires a one percent reduction for most general fund appropriations. Under this Section, education and human services programs would bear the brunt of the cuts. I made it very clear to Republicans that if they chose to move forward with budget cuts, they would assume the responsibility for determining which programs and services should be eliminated. Instead of thoughtfully studying how these cuts would effect Iowans, they chose to make an across the board cut mandating a reduction in services without specifying which services to reduce or eliminate. I am unable to approve the language contained in Division VIII, Sections 17 and 18. These provisions would reduce the state's contribution to the Judicial retirement system during the current fiscal year and future fiscal years. At this time, the judicial retirement system is not actuarially sound. Reducing the contributions to the fund, delays achievement of our long held goal of fully funding the judicial retirement system. In my continued effort to work in a bipartisan manner, I am approving a number of cuts to the FY 01 budget. The Republican controlled legislature rejected bipartisanship by passing rash and not well thought out cuts that were not agreed to and would have unnecessarily disrupted services to Iowans. I made it very clear to Republican legislative leaders that if they chose to move forward with budget cuts, they would need to identify which programs and services should be eliminated. Instead of thoughtfully studying how these cuts would affect Iowans, they chose a rash approach that would create chaos in the services on which Iowans rely. The State of Iowa has experienced a serious decline in revenues, a decline that is
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