Good afternoon!
I just received this press release from the Governoršs Office announcing the
date of the Special Session, with some info about budget agreement.
Lyle
------ Forwarded Message
> From: Governor Tom Vilsack <[log in to unmask]>
> Date: Fri, 17 May 2002 13:57:43 -0500
> Subject: FW: Governor sets date for special session, budget agreement reached
> with Legislative Republicans 5.17.02
>
>> For immediate release For more information
>> Friday, May 17, 2002 Joe Shannahan, 515-281-0173
>>
>> Governor sets date for special session, budget agreement reached with
>> Legislative Republicans
>>
>> DES MOINES - Governor Tom Vilsack today set May 28 as the date lawmakers will
>> return to Des Moines to meet in special session to address the $219 million
>> budget shortfall for the current fiscal year. Vilsack has been meeting with
>> Republican legislative leaders to hammer out an agreement on using resources
>> available from other state funds to balance the state's current budget and
>> protect education from further cuts.
>>
>> "Iowa has the resources to get us through these difficult economic times
>> without jeopardizing the progress we've made in education through smaller
>> class sizes and providing health care for children," Vilsack said. "While
>> this is far from a perfect solution, we will continue to protect the
>> priorities of education and health care from further budget cuts."
>>
>> Vilsack and lawmakers agreed to balance the state's current budget by using
>> $105 million from the economic emergency fund, $84 million from the cash
>> reserve fund, and $30 from other funds that have unobligated and unspent
>> balances. Iowa will still have reserves amounting to four percent of the
>> annual budget.
>>
>> The debate over next year's budget between lawmakers and Vilsack continues.
>> Vilsack continues to insist that Republicans use a portion of the road fund
>> to protect important education, health care, and public safety programs from
>> further cuts. The Governor reiterated his proposal will not delay a single
>> mile of road construction because he has recommended using a separate fund
>> for capital projects so road construction activities will continue without
>> delay.
>>
>> Vilsack urged Republican lawmakers to make public their new proposal for
>> funding next year's state budget including their list of cuts and eliminated
>> services. Iowans have the right to know, review, and provide a response to
>> Republican lawmakers' proposed cuts and eliminated services before the
>> legislature takes action on May 28.
>>
>> "Why are legislative Republicans continuing to protect a special interest
>> group like road builders by leaving the road fund untouched, when every other
>> fund and every other service has been impacted? By rejecting the use of a
>> small portion of the state's road fund, they are making road builders a
>> protected species and making child protection workers and state troopers an
>> endangered species."
>>
>> Vilsack reiterated the importance of having the special session in May to
>> address the current budget situation. "Without legislative action, Iowans
>> who are expecting an income tax refund from the state will be forced to wait
>> a couple of weeks longer," Vilsack said. "By taking action to address the
>> budget shortfall by the end of May, the tax refunds Iowans are expecting will
>> not be delayed. We have an obligation to return this money to Iowans in a
>> timely manner."
>>
>> Other reasons Vilsack cited for holding the special session this month
>> include ensuring Iowa's schools receive the money from the state they are
>> expecting and entitled. Unless the budget is modified by June 1, school
>> districts in Iowa will have their state aid delayed. Vilsack also noted that
>> delaying action on the budget could jeopardize the state's credit rating. A
>> lower credit rating for the state would cost the state millions of dollars in
>> interest whenever the state borrows money for construction and other
>> projects.
>>
>> ####
------ End of Forwarded Message
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