ISBA President
In December 2016, the state’s Revenue Estimating Conference (REC) lowered its projection for the current fiscal year (FY 2017), which means the current state budget is no longer in compliance with the statutory 99 percent spending limitation. Consequently, the governor and the legislature must deappropriate funds to cover the shortfall by June 30, 2017.
In conjunction with the State of the State Address last week, Governor Terry Branstad released a budget revision with a $110 million deappropriation amount. The proposal exempts more than two-thirds of the state budget from cuts, including K-12 education, property tax credits, and most of Medicaid. That means $110 million in cuts must come from the remaining third of the budget.
For the judicial branch, this means a 4.25 percent reduction in the current budget–or roughly $7.7 million—all to be done with less than half of the fiscal year remaining.
Last year, the judicial branch requested a $5.5 million increase for FY 2017 to maintain current service levels. With roughly 96 percent of the judicial branch budget used for employee costs, the increases often represent cost of living increases and rising health care premiums that are beyond the control of the branch itself. These costs simply must be absorbed in order to maintain workers. The legislature did not, however, appropriate any new money to the judicial branch to cover this additional $5.5 million. Now, the governor plans to deappropriate an additional $7.7 million this year.
The total effect on the judicial branch will be devastating. I have no direct knowledge or information on how the judicial branch anticipates recovery of $7.7 million between now and June 30. Rough calculations by ISBA staff rely on furlough days to address the budget shortfall. Based on those estimates, beginning March 1, all court employees, including judges, clerks, court reporters, juvenile officers and staff at all levels would be limited to a four-day work week for the balance of the fiscal year. All court personnel, court functions and court programs may be affected throughout the state. Failure to receive necessary funding will have serious consequences—likely resulting in substantial reduction to judicial services statewide.
The House Appropriations Committee must review the governor’s request and determine how to meet the shortfall. The committee will take action within the next couple of weeks.
It is essential to contact your representative, immediately. Legislators need to hear what impact furlough days, delayed motion days, extra travel, restricted travel for court officers and limited specialty courts will have on your practice and your clients.
Do not hesitate to take immediate action. Click here to find out how to contact your representative. If you have trouble navigating the webpage, please call the ISBA office for assistance. Once you have made contact, please email an update to our legislative counsel: Jim Carney, Doug Struyk or Shannon Henson.
This is one of the toughest challenges our bar family has faced. I cannot stress enough how dire the circumstances are—or how essential your help is during this crucial time.
Arnold “Skip” Kenyon III
ISBA President
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