BY Jason Clayworth, The Des Moines Register
Gov. Chet Culver said today, announcing an across-the-board budget cut, that education and Medicaid won't escape unscathed.
Culver announced a 1.5 percent across-the board reduction in an attempt to deal with the state’s declining revenues.
The governor said staff reductions and employee furloughs are likely,
which will be determined by each department. “It’s going to be
painful,” he said.
In total, the cuts announced today amount to $61.4 million and will have an effect on services, Culver acknowledged.
Combined
with cuts announced Dec. 9, the total is $101 million in reduced
expenses in the current budget year that ends June 30. The earlier cuts
largely targeted hiring freezes and travel reductions.
“We are
in the midst of an economic challenge that is historic in its scope,”
Culver said at a meeting with reporters at the Capitol.
Iowa
will have $99.5 million less in revenue for the current budget year,
which ends in June, than was projected two months ago, the three-member
Revenue Estimating Conference said last week.
“I don’t want to
be an alarmist or suggest to Iowans that their state government is in
financial trouble,” Culver said, noting the state has more than $620
million in reserves.