Executive Order 31

Im THE NAME AND By THE AuTnortry OF THE STATE OF lowa

EXECUTIVE ORDER NUMBER THIRTY-ONE

WHEREAS, the nationa! economic situation has presented serious challenges to the people of lows and thew government resulting in lower erpployment levels and a cominued decline m state revenues, and

WHEREAS, —s many states across the country have expenenced significant reductions in revenue as a result of this cconomic downturn; and

WHEREAS, — on October 10”, the state"s Revenue Estimating Conference (REC) reduced its projection of state revenue for fiscal year 2004 by $142.2 million—far exceeding the ending balance for the fiscal year of approximately $81.7 million; and

WHEREAS, the underlying reasons for reduced revenues include continued drops in corporate income tax receipts, significant increases in tax refunds, and the State Auditor's determination that accelerated insurance premium tax collections cannot be counted as receipts in the current fiscal year, and

WHEREAS, lows Code § 8.31 states that “If the governor determines that the estimated budget resources during the fiscal year are insufficient to pay all appropriations in full, the reductions shall be uniform and prorated between all departments, agencies and establuhments upon the basis of thes Tespective appropriations”; and

WHEREAS, _ prudent fiscal management necessitates the creation of an economic 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, on October 10", I publicly ordered an across the board reduction pursuant to lowa Code § 8.31; and

WHEREAS, =a. 2.5 percent reduction in appropriations would reduce state expenditures by approximately $82.5 millon and help the state avoid an overdraft or deficit; and

WHEREAS, =| am confident that lowans are up to this challenge, and | am confident in lowa's comprehensive plan for economac growth despite these —

NOW, THEREFORE, 1, 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, parsuant to lowa Code § 8.31, to achieve an annual 2.5 percent budget reduction for fiscal year 2004. The Department of Management shall take all necessary steps under lowa law to effectuate the annual 2.5 percent budget reduction for fiscal year 2004, directed to all state departments and establishments with the exception of departments designated as charter agencies, which are exempted from across the board cuts because they are already taking action to achieve savings or increase revenue to the general fund, pursuant to lowa Code § 73.2(d). Actions taken by the Department of Management and all state departments and establishments described above, to implement this order, shall commence on October 10, 2003

IN TESTIMONY WHEREOP, | have hereunto subscribed my name and caused the Great Seal of lows to be affixed. Done at Des Moines this 14* day of October, in the year of our Lord two thousand three.

Lie ——. VILSACK 7

ATTEST

COURTESY STATE LIBRARY OF IOWA