The state auditor is calling Gov. Terry Branstad’s budget proposal an improvement over past budgets but warns the state could run into trouble if it doesn’t continue to use fiscal discipline when lawmakers plan what they’ll spend.
Auditor Mary Mosiman praised the budget proposal for reducing reliance on one-time money and not spending significantly on new programs.
But she also identified a $144 million gap that will be made up through carry-over surplus money from the previous year. Mozeman says most of that comes from commitments to education and property tax reform and warns against continuing the practice of using one-time money to fund on-going commitments.
Mozeman also identified a $19 million shortfall on Medicaid spending and the continued possibility of decreasing federal dollars.