Governor Culver Releases FY 2011 Budget

The Governor’s proposed FY 2011 budget released this week calls for cuts in property tax credits and Human Services. The Governor proposes to cut the Homestead Property Tax Credit by $3.8 million compared to FY 2010, but recommends funding Agricultural Land and Family Farm Tax Credits, Military Service Tax Credits, Elderly Disabled Tax Credit and Reimbursement, and the Property Tax Credit Fund at the FY 2010 level. The FY 2010 level includes the 10% cut implemented in October 2009. 

In regard to Human Services, the Governor is not recommending funding MH/MR/DD Growth, which was last funded in FY 2008.  He also recommends a cut to MH Property Tax Relief of $15 million. The Governor generally recommends funding county MH/DD at the FY 2010 level, which includes the 10% across-the-board cut.

The Governor continues to push for the transfer of $50 million from the Road Use Tax Fund to the State Patrol. While the Governor includes this as a savings on the General Fund balance sheet in the budget report, the Road Use Tax Fund financial summary does not reflect the shift. A $50 million loss to the Road Use Tax Fund would result in a decrease of $12.2 million to the Secondary Road Fund, a decrease of $3.9 million to the Farm-to-Market Road Fund, and a decrease of an estimated 4.5% to Transfer of Jurisdiction and Farm-to-Market extension revenues.