I read recently about the State budget cuts. What is the effect to Windsor Heights?

Preliminary reports outlining State executive branch departments' plans to implement a ten percent across-the-board State budget cut can be viewed at the Governor's website at http://www.governor.iowa.gov/index.php/static/budget/. The plans were developed in response to an order by Governor Chet Culver to cut state government spending by ten percent, or nearly $565 million. Culver's order was made after the Revenue Estimating Conference projected earlier this month an 8.4 percent decline in revenue for the current fiscal year. Departmental plans are to be finalized by Wednesday, October 28.

The biggest hit to city budgets came in the form of cuts to the homestead tax credit reimbursement. Iowa Code Section 25B.7 normally provides protection for cities by requiring the State to fully fund credits (that homeowners receive for their owner-occupied properties) when the State appropriates the credit; however, the homestead credit is paid out in November and April, with residential property owners paying their tax bills in September and March. Those tax bills were computed last summer based on the funding adopted by the State for the homestead credit. Because tax bills have already been sent (with the homestead credits included), local governments cannot go back and accordingly adjust the amount of the credit received to make up for the shortfall created by the reduction in the homestead credit reimbursement from the state. Local governments will simply be reimbursed less by the State. The net effect to the City of Windsor Heights is $4,178.88.