General Assembly: 79 (2001 Regular GA) - Chapter 190 - Compensation for public employees


Published: 2001

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

CH.190 LAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION

CHAPTER 190 COMPENSATION FOR PUBLIC EMPLOYEES

H.F. 746

590

AN ACT relating to the compensation and benefits for public officials and employees, providing for related matters, and making appropriations.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. STATE COURTS - JUSTICES, JUDGES, AND MAGISTRATES. 1. The salary rates specified in subsection 2 are for the fiscal year beginning July 1, 2001,

effective for the pay period beginning June 22, 2001, and for subsequent fiscal years until otherwise provided by the general assembly. The salaries provided for in this section shall be paid from funds appropriated to the judicial branch from the salary adjustment fund pursuant to section 6 of this Act or if the appropriation is not sufficient, from the funds appropriated to the judicial branch pursuant to any Act of the general assembly.

2. The following annual salary rates shall be paid to the persons holding the judicial positions indicated during the fiscal year beginning July 1, 2001, effective with the pay period beginning June 22, 2001, and for subsequent pay periods.

a. Chief justice of the supreme court: $ 120,920

b. Each justice of the supreme court: $ 116,600

c. Chief judge of the court of appeals: $ 116,490

d. Each associate judge of the court of appeals: $ 112,170

e. Each chief judge of a judicial district: $ 111,140

f. Each district judge except the chief judge of a judicial district: $ 106,610

g. Each district associate judge: $ 92,910

h. Each associate juvenile judge: $ 92,910

i. Each associate probate judge: $ 92,910

j. Each judicial magistrate: $ 27,700

k. Each senior judge: $ 6,180

Sec. 2. SALARY RATE LIMITS. Persons receiving the salary rates established under section 1 of this Act shall not receive any additional salary adjustments provided by this Act.

Sec. 3. APPOINTED STATE OFFICERS. The governor shall establish a salary for ap- pointed nonelected persons in the executive branch of state government holding a position enumerated in section 4 of this Act within the range provided, by considering, among other items, the experience of the individual in the position, changes in the duties of the position, the incumbent's performance of assigned duties, and subordinates' salaries. However, the attorney general shall establish the salary for the consumer advocate, the chief justice of the supreme court shall establish the salary for the state court administrator, the ethics and campaign disclosure board shall establish the salary of the executive director, and the state fair board shall establish the salary of the secretary of the state fair board, each within the salary range provided in section 4 of this Act.

591 LAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION CH.190

The governor, in establishing salaries as provided in section 4 of this Act, shall take into consideration other employee benefits which may be provided for an individual including, but not limited to, housing.

A person whose salary is established pursuant to section 4 of this Act and who is a full- time, year-round employee of the state shall not receive any other remuneration from the state or from any other source for the performance of that person's duties unless the addi- tional remuneration is first approved by the governor or authorized by law. However, this provision does not exclude the reimbursement for necessary travel and expenses incurred in the performance of duties or fringe benefits normally provided to employees of the state.

Sec. 4. STATE OFFICERS - SALARY RATES AND RANGES. The following annual salary ranges are effective for the positions specified in this section for the fiscal year beginning July 1, 2001, and for subsequent fiscal years until otherwise provided by the general assembly. The governor or other person designated in section 3 of this Act shall determine the salary to be paid to the person indicated at a rate within the salary ranges indicated from funds appropriated by the general assembly for that purpose.

1. The following are salary ranges 1 through 5 for the fiscal year beginning July 1, 2001, effective with the pay period beginning June 22, 2001: SALARY RANGES Minimum Maximum

a. Range 1 .............................................................. $ 8,800 $ 29,870 b. Range 2 .............................................................. $ 32,200 $ 60,255 c. Range 3 .............................................................. $ 44,100 $ 70,246 d. Range 4 .............................................................. $ 53,100 $ 80,340 e. Range 5 .............................................................. $ 62,400 $ 90,434 2. The following are range 1 positions: There are no range 1 positions for the fiscal year

beginning July 1, 2001. 3. The following are range 2 positions: administrator of the arts division of the depart-

ment of cultural affairs, administrators of the division of persons with disabilities, the divi- sion on the status of women, the division on the status of African-Americans, the division of deaf services, and the division of Latino affairs of the department of human rights, and administrator of the division of professional licensing and regulation of the department of commerce.

4. The following are range 3 positions: administrator of the division of emergency management of the department of public defense, administrator of the division of criminal and juvenile justice planning of the department of human rights, administrator of the divi- sion of community action agencies of the department of human rights, executive director of the commission of veterans affairs, and chairperson and members of the employment ap- peal board of the department of inspections and appeals.

5. The following are range 4 positions: superintendent of banking, superintendent of credit unions, and chairperson, vice chairperson, and members of the board of parole.

6. The following are range 5 positions: consumer advocate, state public defender, drug policy coordinator, labor commissioner, workers' compensation commissioner, adminis- trator of the alcohol beverages division of the department of commerce, and administrator of the historical division of the department of cultural affairs.

7. The following are salary ranges 6 through 9 for the fiscal year beginning July 1,2001, effective with the pay period beginning June 22, 2001: SALARY RANGES Minimum Maximum

a. Range 6 .............................................................. $ 48,200 $ 80,340 b. Range 7 .............................................................. $ 66,000 $ 91,155 c. Range 8 .............................................................. $ 70,800 $ 105,781 d. Range 9 .............................................................. $ 79,000 $126,175 8. The following are range 6 positions: director of the department of human rights,

director of the Iowa state civil rights commission, executive director of the college student aid commission, director of the department for the blind, and executive director of the ethics and campaign disclosure board.

CH.190 IAWS OFTHE SEVENTY-NINTH GA, 2001 SESSION 592

9. The following are range 7 positions: director of the department of cultural affairs, director of the department of elder affairs, and director of the law enforcement academy.

10. The following are range 8 positions: the administrator of the state racing and gam- ing commission of the department of inspections and appeals, director of the department of inspections and appeals, commandant of the veterans home, director of the department of general services, director of the department of personnel, administrator of the public broad- casting division of the department of education, commissioner of public safety, commis- sioner of insurance, executive director of the Iowa finance authority, director of the depart- ment of natural resources, director of the department of corrections, and chairperson of the utilities board. The other members of the utilities board shall receive an annual salary within a range of not less than 90 percent but not more than 95 percent of the annual salary of the chairperson of the utilities board.

11. The following are range 9 positions: director of the department of education, di- rector of human services, director of the department of economic development, director of the information technology department, executive director of the Iowa communications and technology commission, 1 executive director of the state board of regents, director of the state department of transportation, director of the department of workforce develop- ment, director of revenue and finance, lottery commissioner, director of public health, the state court administrator, secretary of the state fair board, and the director of the depart- ment of management.

Sec. 5. PUBLIC EMPLOYMENT REIATIONS BOARD. 1. The salary rates specified in this section are effective for the fiscal year beginning July

1,2001, with the pay period beginning June 22, 2001, and for subsequent fiscal years until otherwise provided by the general assembly. The salaries provided for in this section shall be paid from funds appropriated to the public employment relations board from the salary adjustment fund, or if the appropriation is not sufficient from funds appropriated to the public employment relations board pursuant to any other Act of the general assembly.

2. The following annual salary rates shall be paid to the persons holding the positions indicated:

a. Chairperson of the public employment relations board: ................................................................................................................... $ 70,761

b. Two members of the public employment relations board: ................................................................................................................... $ 65,920

Sec. 6. COLLECTIVE BARGAINING AGREEMENTS FUNDED - GENERAL FUND. There is appropriated from the general fund of the state to the salary adjustment fund for distribution by the department of management to the various state departments, boards, commissions, councils, and agencies, including the state board of regents, for the fiscal year beginning July 1,2001, and ending June 30, 2002, the amount of $61,270,200, or so much thereof as may be necessary, to fully fund the following annual pay adjustments, expense reimbursements, and related benefits:

1. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the blue collar bargaining unit.

2. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the public safety bargaining unit.

3. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the security bargaining unit.

4. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the technical bargaining unit.

5. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the professional fiscal and staff bargaining unit.

6. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the university of northern Iowa faculty bargaining unit.

, Iowa "telecommunications" and technology commission probably intended

593 LAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION CH. 190

7. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the clerical bargaining unit.

8. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the professional social services bargaining unit.

9. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the community-based corrections bargaining unit.

10. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the judicial branch of government bargaining unit.

11. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the patient care bargaining unit.

12. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the science bargaining unit.

13. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the state university of Iowa graduate student bargaining unit.

14. The collective bargaining agreement negotiated pursuant to chapter 20 for employees in the state university of Iowa hospital and clinics tertiary health care bargaining unit.

15. The annual pay adjustments, related benefits, and expense reimbursements referred to in sections 7 and 8 of this Act for employees not covered by a collective bargaining agreement.

Sec. 7. NONCONTRACT STATE EMPLOYEES - GENERAL. 1. a. For the fiscal year beginning July 1, 2001, the maximum salary levels of all pay

plans provided for in section 19A.9, subsection 2, as they exist for the fiscal year ending June 30, 2001, shall be increased by 3 percent for the pay period beginning June 22, 2001, and any additional changes in the pay plans shall be approved by the governor.

b. For the fiscal year beginning July 1, 2001, employees may receive a step increase or the equivalent of a step increase.

2. The pay plans for state employees who are exempt from chapter 19A and who are included in the department of revenue and finance's centralized payroll system shall be increased in the same manner as provided in subsection 1, and any additional changes in any executive branch pay plans shall be approved by the governor.

3. This section does not apply to members of the general assembly, board members, commission members, salaries of persons set by the general assembly pursuant to this Act or set by the governor, other persons designated in section 3 of this Act, employees desig- nated under section 19A.3, subsection 5, and employees covered by 581 IAC 4.6(3).

4. The pay plans for the bargaining eligible employees of the state shall be increased in the same manner as provided in subsection 1, and any additional changes in such executive branch pay plans shall be approved by the governor. As used in this section, "bargaining eligible employee" means an employee who is eligible to organize under chapter 20, but has not done so.

5. The policies for implementation of this section shall be approved by the governor.

Sec. 8. STATE EMPLOYEES - STATE BOARD OF REGENTS. Funds from the appro- priation in section 6 of this Act shall be allocated to the state board of regents for the purposes of providing increases for state board of regents employees covered by section 6 of this Act and for employees not covered by a collective bargaining agreement as follows:

1. For regents merit system employees and merit supervisory employees to fund for the fiscal year, increases comparable to those provided for similar contract-covered employees in this Act.

2. For faculty members and professional and scientific employees to fund for the fiscal year, percentage increases comparable to those provided for contract-covered employees in section 6, subsection 6, of this Act.

Sec. 9. APPROPRIATIONS FROM ROAD FUNDS. 1. There is appropriated from the road use tax fund to the salary adjustment fund for the

CH. 190 LAWS OF THE SEVENlY-NINTH G.A., 2001 SESSION 594

fiscal year beginning July 1,2001, and ending June 30, 2002, the following amount, or so much thereof as may be necessary, to be used for the purpose designated:

To supplement other funds appropriated by the general assembly: ................................................................................................................... $ 3,122,527

2. There is appropriated from the primary road fund to the salary adjustment fund, for the fiscal year beginning July 1,2001, and ending June 30, 2002, the following amount, or so much thereof as may be necessary, to be used for the purpose designated:

To supplement other funds appropriated by the general assembly: ................................................................................................................... $ 10,305,191

3. Except as otherwise provided in this Act, the amounts appropriated in subsections 1 and 2 shall be used to fund the annual pay adjustments, expense reimbursements, and related benefits for public employees as provided in this Act.

Sec. 10. SPECIAL FUNDS -AUTHORIZATION. To departmental revolving, trust, or special funds, except for the primary road fund or the road use tax fund, for which the general assembly has established an operating budget, a supplemental expenditure authori- zation is provided, unless otherwise provided, in an amount necessary to fund salary adjust- ments as otherwise provided in this Act.

Sec. 11. GENERAL FUND SALARY MONEYS. Funds appropriated from the general fund of the state in this Act relate only to salaries supported from general fund appropria- tions of the state except for employees of the state board of regents. The funds appropriated from the general fund of the state for employees of the state board of regents shall exclude general university indirect costs and general university federal funds.

Sec. 12. FEDERAL FUNDS APPROPRIATED. All federal grants to and the federal re- ceipts of the agencies affected by this Act which are received and may be expended for purposes of this Act are appropriated for those purposes and as set forth in the federal grants or receipts.

Sec. 13. STATE TROOPER MEAL ALLOWANCE. The sworn peace officers in the de- partment of public safety who are not covered by a collective bargaining agreement negoti- ated pursuant to chapter 20 shall receive the same per diem meal allowance as the sworn peace officers in the department of public safety who are covered by a collective bargaining agreement negotiated pursuant to chapter 20.

Sec. 14. SALARY MODEL COORDINATOR. Of the funds appropriated by section 6 of this Act, $133,800 for the fiscal year beginning July 1,2001, is allocated to the department of management for salary and support of the salary model coordinator who shall work in conjunction with the legislative fiscal bureau to maintain the state's salary model used for analyzing, comparing, and projecting state employee salary and benefit information, in- cluding information relating to employees of the state board of regents. The department of revenue and finance, the department of personnel, the five institutions under the jurisdiction of the state board of regents, the eight judicial district departments of correctional services, and the state department of transportation shall provide salary data to the department of management and the legislative fiscal bureau to operate the state's salary model. The for- mat and frequency of provision of the salary data shall be determined by the department of management and the legislative fiscal bureau. The information shall be used in collective bargaining processes under chapter 20 and in calculating the funding needs contained within the annual salary adjustment legislation. A state employee organization as defined in section 20.3, subsection 4, may request information produced by the model, but the infor- mation provided shall not contain information attributable to individual employees.

Sec. 15. PATIENT CARE BARGAINING UNIT - OVERTIME. 1. Of the funds appropriated in section 6 of this Act, the following amount, or so much

thereof as is necessary, shall be allocated to the department of revenue and finance for the

595 LAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION CH. 190

fiscal year beginning July 1,2001, and ending June 30, 2002, to be used for the purpose designated:

To reimburse state agencies for expenditures related to the payment of overtime to state employees covered under the patient care bargaining unit: ................................................................................................................... $ 768,000

2. The department of revenue and finance shall provide guidelines and forms for docu- mentation that a state agency shall submit for the overtime reimbursement provided for in subsection 1. The reimbursement shall be restricted to the amount of moneys appropriated from the general fund of the state that is used to pay overtime of state employees covered under the patient care bargaining unit for the fiscal year beginning July 1, 2001, and ending June 30, 2002.

Sec. 16. HEALTH INSURANCE INCENTIVE PROGRAMS. For the fiscal year begin- ning July 1,2001, and ending June 30, 2002, the department of revenue and finance shall administer the health insurance incentive programs as contained in the collective bargain- ing agreements. The incentive payment shall be distributed in the paycheck of an eligible state employee if the employee is employed by a central state agency. Each judicial district department of correctional services and the state board of regents shall provide monthly to the department of revenue and finance a list of their employee counts by benefit plan that qualify for the incentive and the amount of the incentive due. The judicial district depart- ment of correctional services and the state board of regents shall include the amount of the incentive payment to their eligible employees' paychecks as soon as the payment is admin- istratively practical.

Sec. 17. STATE EMPLOYEE BENEFIT PROGRAMS - ADMINISTRATIVE COSTS. 1. For the fiscal year beginning July 1,2001, and ending June 30, 2002, the department of

personnel shall include a monthly administration charge of $2.00 per contract on all health insurance plans administered by the department. This is an administration fee attributable only to the employer share for those employees who are eligible for the state share of insur- ance. If the contract holder is without a state employer to pay the fee, the contract holder shall not be assessed the fee of $2.00 per month.

2. For the fiscal year beginning July 1, 2001, and ending June 30, 2002, the state board of regents, all regional libraries, the state fair board, the department of transportation, and the eight judicial district departments of correctional services shall report and remit the admin- istration charge on a monthly basis to the department of revenue and finance. The report shall contain the number and type of health insurance contracts held by each of its employ- ees whose health insurance is administered by the department of personnel.

3. A health insurance administration fund is created in the state treasury. The proceeds of the monthly administration charge shall be remitted to the health insurance administra- tion fund. The department of revenue and finance shall collect from each department on centralized payroll the administration charge each month and shall remit the amount to the health insurance administration fund. The department of personnel may expend no more than $600,000 from the health insurance administration fund for the fiscal year beginning July 1, 2001, and ending June 30, 2002. Any unencumbered or unobligated balance in the health insurance administration fund at the end of the fiscal year shall be transferred to the health insurance surplus fund.

Sec. 18. Section 80.8, unnumbered paragraphs 2 and 3, Code 2001, are amended to read as follows:

The commissioner may delegate to the members of tHe Iowa state patrol peace officers of the department such additional duties in the enforcement of this chapter as the commis- sioner may deem proper and incidental to the duties now imposed upon them by law.

The salaries of all members and employees of the department and the expenses of the department shall be provided for by the legislative appropriation therefor. The compensa- tion of tHe members of tHe Iowa state patrol peace officers of the department shall be fixed

CH.190 lAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION 596

according to grades as to rank and length of service by the commissioner with the approval of the governor. The members of the Iowa state patrol peace officers shall be paid additional compensation in accordance with the following formula: When members of the IO'lla state patrel peace officers have served for a period of five years their compensation then being paid shall be increased by the sum of twenty-five dollars per month beginning with the month succeeding the foregoing described five-year period; when members thereof peace officers have served for a period of ten years their compensation then being paid shall be increased by the sum of twenty-five dollars per month beginning with the month succeeding the foregoing described ten-year period, such sums being in addition to the increase pro- vided herein to be paid after five years of service; when members thereof peace officers have served for a period of fifteen years their compensation then being paid shall be increased by the sum of twenty-five dollars per month beginning with the month succeeding the forego- ing described fifteen-year period, such sums being in addition to the increases previously provided for herein; when members thereof peace officers have served for a period of twenty years their compensation then being paid shall be increased by the sum of twenty-five dollars per month beginning with the month succeeding the foregoing described twenty- year period, such sums being in addition to the increases previously provided for herein. While on active duty each member peace officer shall also receive a flat daily sum as fixed by the commissioner with the approval of the governor for meals while a'ilay from the office to which the member has been assigned and within the member's district.

Sec. 19. TERMINAL LIABILITY HEALTH INSURANCE SURCHARGE. For the fiscal year beginning July 1, 2001, and ending June 30, 2002, the department of personnel shall include in the rates for the Wellmark Blue Cross/Blue Shield Program 3 Plus, Wellmark Blue Cross/Blue Shield Program 3 plus with a comprehensive major medical overlay, and Iowa Select Preferred Provider Organization health insurance plans a surcharge, as deter- mined by the department of management, on only the employer's share of the health insur- ance premium cost to fund the state's share of the terminal liability ofthe existingWellmark health insurance contract. The department of revenue and finance shall collect the sur- charge from state agencies, the state fair board, state board of regents, and the eight judicial district departments of correctional services. The proceeds of the surcharge shall be credited to the terminal liability insurance fund. The health insurance plans provided to state em- ployees covered by the state police officers council collective bargaining agreement are exempt from the surcharge provided in this section.

Sec. 20. NEW SECTION. 421.46 TERMINAL LIABILITY HEALTH INSURANCE FUND. 1. A terminal liability health insurance fund is created in the state treasury under the

control of the department of personnel. The proceeds of the terminal liability health insur- ance fund shall be used by the department of personnel to pay the state's share of the terminal liability of the existing health insurance contract administered by the department of personnel. The moneys appropriated to the terminal liability health insurance fund plus any additional moneys appropriated or collected pursuant to this Act or other Acts of the general assembly shall constitute the total amount due to pay the terminal liability specified in this section.

2. The proceeds of the terminal liability health insurance fund shall also be used by the department of revenue and finance to reimburse state agencies for expenditures related to the payment of the health insurance plans surcharge for the terminal liability of the health insurance contract for state employees. The department of revenue and finance shall pro- vide guidelines and forms for documentation that a state agency shall submit for the health insurance reimbursement. *The reimbursement shall be restricted to the amount of moneys appropriated from the general fund of the state that is used to pay the terminal liability of health insurance for state employees for the fiscal year. *

3. Notwithstanding section 8.33, any unencumbered or unobligated balance remaining in the terminal liability health insurance fund at the close of a fiscal year shall not revert .

• Item veto; see message at end of the Act

597 LAWS OF THE SEVENlY-NINTH G.A., 2001 SESSION CH.190

*However, upon total payment of the terminal liability of the existing health insurance con- tract administered by the department of personnel, any remaining balance in the terminal liability health insurance fund shall revert to the credit of the unassigned revenue fund admin- istered by the Iowa comprehensive underground storage tank fund board. *

Sec. 21. Section 455G .3, Code 2001, is amended by adding the following new subsection: NEW SUBSECTION. 6. There is appropriated from the unassigned revenue fund admin-

istered by the Iowa comprehensive underground storage tank fund 2 board to the following funds for the fiscal year beginning July 1,2001, and ending June 30, 2002, the following amounts as specified:

a. To the terminar liability health insurance fund created in section 421.46: ................................................................................................................... $ 9,000,000

b. To the salary adjustment fund provided for in section 6 of this Act: ................................................................................................................... $ 9,000,000

This subsection is repealed effective July 1, 2002.

Approved May 30,2001, with exceptions noted.

THOMAS J. VILSACK, Governor

Dear Mr. Secretary:

I hereby transmit House File 746, an Act relating to the compensation and benefits for public officials and employees, providing for related matters, and making appropriations. This bill is another example of the Legislature's short-sighted method of dealing with budget cuts for the coming fiscal year. While any successful business understands that you have to provide the resources necessary to maintain a capable workforce, the Legislature has reduced by over $11 million the funding necessary to pay the increased costs of wages and benefits for all state employees.

For several years, the Legislative and Executive Branches have worked together to provide departments the resources necessary to pay for employee wage and health insurance in- creases. By doing so, departments do not have to reduce services to Iowans to pay personnel costs. This maintains a stable workforce and provides the opportunity to manage costs.

Unfortunately, the Legislature has intentionally underfunded these personnel costs, and the State will have no choice but to reduce services to cover these fixed costs. When the Department of Human Services does not have the resources to pay the increased costs of health insurance, there will be fewer case workers to protect children from abuse; when the Department of Revenue and Finance does not have the resources to pay these costs, there will be fewer workers to process tax refunds; when the Department of Natural Resources does not have the resources they need, there will be fewer park rangers and attendants to ensure the safety and upkeep of parks; when the Department of Transportation does not have the resources they need, there will be fewer snow plows clearing our roads; when the Board of Regents does not have the resources they need, there will be fewer class offerings at our State Universities.

This is, once again, an abdication of responsibility by the Legislature. It is the Legislature's responsibility to determine where budget cuts should be made and what services Iowans should be willing to do without because of those cuts. By arbitrarily cutting salary dollars, the burden falls on department heads and administrators to make those decisions. The people of Iowa deserve better from their elected Senators and Representatives .

• Item veto; see message at end of the Act , Iowa comprehensive ·petroleum" underground storage tank fund probably intended

CH.190 lAWS OF THE SEVENTY-NINTH G.A., 2001 SESSION 598

While seriously underfunding these required appropriations, the Legislature continues its bad budget practice of providing one-time resources for on-going budget needs. The Legis- lature uses $18 million in one-time funding to make up its $79 million. Because salary adjustment dollars are allocated to departments as part of their base, this will increase the amount of new dollars that must be provided in next year's budget. Once again, the Legisla- ture is simply putting off problems until next year - something they claim to have avoided by their actions.

For these reasons I reluctantly approve House File 746 on this date with the following exceptions, which I hereby disapprove.

I am unable to approve the designated portion of Section 20, subsection 2. The language places a cap on the amount of salary resources that will be dedicated to dealing with the terminal liability issue. While the Legislature has identified $18 million for this purpose, the actual need will likely be around $21 million. By not providing a mechanism to deal with the entire cost, state departments would have to come up with the balance of the needed funds. Given the sorry nature of the Legislative budgets for many departments, this is an unreasonable expectation.

I am unable to approve the designated portion of Section 20, subsection 3. This would require that any remaining balance in the terminal liability health insurance fund revert to the credit of the unassigned revenue fund administered by the Iowa comprehensive under- ground storage tank fund board.

The Terminal Liability Fund contains resources for a variety of sources, including the Road Use Tax Fund, grant moneys, and federal funds. It would be unconstitutional to transfer excess Road Use Tax Fund moneys to the underground storage tank fund. It would also subject the state to federal repayment with possible penalties and interest to transfer re- maining federal funds to the underground storage tank fund.

For the above reasons, I hereby respectfully approve House File 746, with the exceptions noted above.

Sincerely, THOMAS J. VILSACK, Governor

CHAPTER 191 APPROPRIATIONS - HUMAN SERVICES

H.F. 732

AN ACT relating to appropriations for the department of human services and including other provisions and appropriations involving human services and health care, and providing effective dates.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. EARLY CHILDHOOD FUNDING. 1. The appropriations made in 1998 Iowa Acts, chapter 1218, section 2, and 2000 Iowa Acts,

chapter 1228, section 2, subsection 1, paragraph "b", from the fund created in section 8.41 to the department of human services for the fiscal year beginning July 1,2001, and ending