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DES MOINES — The state fund that supports infrastructure work on roads and bridges has been shorted more than $10.4 million over four budget years due to the misallocation of more than $27.5 million in court fees, according to updated figures published Wednesday by the Iowa Judicial Branch.
Other significant funding shortages include $7.2 million that should have gone to a state program that helps victims of violent crimes with certain expenses and $4 million to a fund that supports juvenile detention homes.
The Iowa Judicial Branch first revealed the misallocated funds last week.
In Iowa, funds paid to the courts in the form of fines, fees and penalties in criminal cases are distributed to various sources, including state funds for victim compensation, emergency services, road infrastructure, county attorneys and the state’s general fund.
Under the state’s distribution system, clerks of courts enter court fees into a coding program that is supposed to channel those funds to the proper source. The Iowa Judicial Branch said last week that coding programming errors sent millions of dollars in fees to the wrong sources.
Additional documentation produced Wednesday by the Iowa Judicial Branch shows more than $27.5 million was erroneously allocated to the state’s general fund, and showed in more detail where those funds should have been sent.
Road Use Tax Fund
More than $10.4 million should have gone to the Road Use Tax Fund, which is the state’s primary funding source for road and bridge construction and is operated by the Iowa Department of Transportation.
Just less than $2 billion was spent out of the fund in the 2023 state budget year, the most recent available from the state’s nonpartisan Legislative Services Agency.
The Road Use Tax Fund flows to the DOT and local governments for the construction and maintenance of roads throughout the state.
At the state level, any revenue “being misdirected would reduce the funds available for the completion of road construction projects listed in the five-year Iowa Transportation Improvement Program,” Iowa DOT spokeswoman Andrea Henry said.
Henry said the funds do not directly impact DOT’s day-to-day operations like staffing and equipment.
Other funds
More than $7.2 million should have gone to the Crime Victim Compensation Fund, which supports Iowa victims of violent crime and is operated by the Iowa Attorney General’s Office.
The program pays for crime-related expenses like medical care, counseling, lost wages and funeral expenses not covered by insurance or other sources. It also can pay for replacement of clothing held as evidence, child care, housing or shelter expenses, relocation and travel expenses, and crime scene cleanup, according to the AG’s office.
“My office’s Crime Victim Compensation Fund was shorted more than $7.2 million for crime victim services,” Iowa Attorney General Brenna Bird said in a statement. “No domestic violence victim should have to stay with their abuser because they cannot afford to leave.”
More than $4 million should have gone to the Juvenile Detention Home Fund, which funds juvenile detention homes and is operated by the Iowa Department of Health and Human Services.
Iowa HHS did not respond to a request seeking comment Thursday.
More than $7.2 million should have gone to counties for county attorney collection fees.
The Iowa general fund, where most of the erroneous allocations were sent, currently has a $2.2 billion surplus, according to the Legislative Services Agency.
What happened?
According to the Iowa Judicial Branch, the programming issues arose in the 2021 state budget year after lawmakers changed the court fees distribution system during the 2020 and 2021 legislative sessions.
The new laws in consecutive years both required programming changes to the distribution system. A report from the National Center for State Courts said the state law changes created confusion in implementing the new coding.
The Iowa Judicial Branch’s information technology staff has been working to implement changes recommended in the reports, and completion is anticipated this fall, the courts said.
The new documentation produced Wednesday included a memo, written by Iowa Judicial Branch Director of Finance Kent Farver, that says all the financial calculations are “accurate to the best of our knowledge at this time.”
“If we become aware of any limitations to the financial calculations or technical issues, we will provide updates,” Farver’s memo stated.
Comments: (515) 355-1300, erin.murphy@thegazette.com
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