Executive Order 40

'··· IN THE NAME AND BY THE AUTHORITY OfTHE STATE Of IOWA EXECUTIVE ORDER NUMBER 40 WHEREAS, On August 12, 1980, in Executive Order 38, which ordered reductions in state spending, I noted there were "uncertain prospects for immediate improvement" in the economy o f our nation, and consequently in our state, which was in the throes of recession, and that additional reductions in state spending might be necessary; and WHEREAS, increasingly negative economic factors including rising interes t rates, falling grain prices, huge losses by certain manufact uring companies and further job lay- offs persist ; and WHEREAS, latest revenue estimates by the State Comptroller for fiscal year 1980 - 81 anticipate revenues to be $29.4 mill ion below the August, 1980, estimates; and WHEREAS, unant icipat ed expenditures of $16.7 million must be made for taxpayer refunds, to local schools for special education and for increased social service caseloads and institutional populations; and WHEREAS, Article VII of the I owa Constitution proh ibits state budget deficits (with few exceptions i napplicable here); and WHEREAS, Secti on 8 . 31, the Code, provides a p r ocedure for uni- form and prorated reductions of state appropriations by the Governor to avoid overdrafts and deficits; and WHEREAS, there has been an expression of willingnes s in the General Assembly to consider and implement certain Code revisions to permit fiscal transfers and reallocations into the general fund; and WHEREAS, the fiscal measures underta ken t his year have achieved significant savings, but further uniform, p r orated reductions in state appropriations, and certain trans - fers and re - allocations are necessary to prevent the state from facing a deficit in the gener al fund on June 30, 1981 . Page 2 NOW THEREFORE, I, Robert o. Ray, Governor of the State of Iowa, by the power·and authority vested in me by the Con- stitution and the laws of Iowa, do hereby make the following findings and orders: 1. I find at this time the estimated budget resources during the fiscal year 1981 are insufficient in the amount of $46 . 1 million to pay all appropria- tions in full as required by Section 8 . 30, the Code . 2. I further find t hat an additional one percent reduction in appro priations covered by Section 8 . 31, the Code, is necessary to prevent an overdraft or deficit in the g eneral f und of the state at the end of t his fiscal year subject, however , to revision i n t he event subsequent projections pro- vide good reason to alter these findings . 3. I hereby direct the uniform modification of all allotment requests fil ed pursuant to Section 8.31, the Code, for the remaining one-half of the fiscal year to achieve a further annual one percent fiscal year reduction in each respective appro- priation . 4. I further direct that the State Comptroller prepare such modified allotme nts for the third quarter of fiscal year 1981, which commences January 1, with the exception of appropriat ions excluded by Section 8 . 2(1), the Code, pertaining to the courts, the legislature , constructive trust funds s u~h as tax refund allocations, federal highway matching funds, and obligated , encumbered or con- tracted capital items. 5. I ask the Governor's Economic Advisory Council to continue to meet at least 15 days prior to the commencement of each quarterly allotment period for the purpose of evaluating the Iowa economy and its likely effect of budget resources . IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the Great Seal of the State of Iowa to be affixed . Done at Des Moines this / S-..q( day of December in the year of our Lord one thousand nine hundred and eighty. L,;~?n~