Executive Order 24

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WHEREAS, _ the nation’s economy has experienced a severe downturn that has been exacerbated by the tragic events of September 11"; and

WHEREAS, Many states across the country have expcricnced significant reductions in revenue as 2 result of this economic downturn; and

WHEREAS, on October 11, the state's Revenue Estimating Conference (REC) reduced its projection of state revenue for fiscal year 2002 by $157.5 million; and

WHEREAS, budget allotments to state departments must be modified in order to avoxd an overdraft or deficit in the several funds of the state at the end of fiscal year 2002; and

WHEREAS, —_prodent fiscal management during this unprecedented penod of national uncertainty necessitates the creation of an cconomuc buffer in budget allotments in the event that REC projections are higher than the actual revenue collected by the state at the end of the fiscal year; and

WHEREAS, = 4.3 percent reduction in appropriations, pursuant to lowa Code § 8.31, would reduce State expenditures by approximately $200 million, and help the state to avoid an overdraft or deficit; and

WHEREAS, —_ pursuant to Article IV, Section 11 of the lowa Constitution, | will issue a proclamation to convene the general assembly for a special session to consider prudent and necessary legislation to restore funds to targeted areas of the state budget, following this across-the- board budget reduction.

NOW, THEREFORE, |. Thomas J. Vilsack, Governor of the State of lowa, by the power vested in me by the Constitution and laws of the State of lowa, do hereby order and direct a uniform modification of allotment requests, pursuant to lowa Code § 8.31, to achicve an annual 4.3 percent budget reduction for fiscal year 2002. The Departmen of Management shall take all accessary steps undet lows law to effectuate the annual 4.3 percent budget reduction for fiscal year 2002, directed to all state departments and establishments, as provided in lowa Code § 8.2/5) Actions taken by the Department of Management and all state departments and establishments descnbed above, to implement ths order, shall commence on November 1, 2001.

IN TESTIMONY WHEREOFP, | have hereunto subscribed my name and caused the Great Seal of lowa to be affixed. Done at Des Moines this 1" day of November, in the year of our Lord two thousand

-¥ . ees CHESTER J. CULVER SECRETARY OF STATE

COURTESY STATE LIBRARY OF IOWA