Oskaloosa.com

January 14, 2010

Iowa lawmakers: Reorganization plan moving quickly

By MIKE GLOVER

DES MOINES — Legislative leaders promised on Thursday to approve a government reorganization plan that they claim will save millions of dollars.

A draft of the plan includes merging computer systems, consolidating purchasing efforts and combining some state agencies, including moving the Office of Drug Control into the Department of Public Safety. Some large agencies, including the Department of Human Services, would undergo internal streamlining.

"We don't have a dollar amount at this point, but we believe it will save millions of dollars and every dollar we can save here in the reorganization effort are dollars we can put forth into human services, into education, all of those priorities we know Iowans care deeply about," said Rep. Mary Mascher, D-Iowa City.

House Majority Leader Kevin McCarthy, D-Des Moines, speculated the plan would save "scores of millions of dollars."

Democrats, who hold majorities in the House and Senate, said the reorganization would work in concert with a separate measure backed by Gov. Chet Culver that would offer early retirement incentives to state workers. That measure is projected to save up to $60 million.

Democrats said they'd have a better idea of potential savings within a few weeks.

Senate Majority Leader Michael Gronstal, D-Council Bluffs, said the effort will be the first major item lawmakers tackle. He said legislators would try to approve the measure and send it to Culver by early February.

A Senate panel will likely approve the plan next week, and once there is a concrete proposal, legislative staffers will estimate the savings, Gronstal said.

After that, the plan could change, in part due to complaints by state officials and interest groups.

"I think certainly there will be some push-back. Some of it will be legitimate," said Gronstal. "If they come back and say something probably doesn't save what people thought it would save, we will take that information and decide what to do with it."

But with a shortfall that lawmakers estimate could range from $400 million to as much as $1 billion, the leaders said legislators are under pressure to find savings.

House Speaker Pat Murphy, D-Dubuque, said the reorganization probably would be what this year's Legislature is remembered for.

Sen. Staci Appel, D-Ackworth, a main backer of the effort, said she expects opposition but was optimistic the measure would get overwhelming support.

"Change isn't easy," said Appel. "But if we keep listening to Iowa taxpayers instead of the special interests and government bureaucrats, I believe the Legislature will end up overwhelmingly supporting these reforms."

Appel said legislators need to move quickly on the early retirement program because of the potential for fast and large savings. She said it likely would win approval by a Senate committee early next week.