Omnibus. Frankenstein. The proposed budget for the State of Iowa 2012 fiscal year is known by many names. Whichever name it goes by, the July 1 deadline for the end of the fiscal year is approaching fast. Without a solution, state government will shut down until a budget agreement is passed.

On June 17, Tim Albrecht, a spokesman for Gov. Terry Branstad’s office, admitted to the Des Moines Register that the governor’s office had no contingency plan in place for a government shutdown.

Government shutdowns occur when a state or federal legislature cannot agree on a budget. The state cannot operate without a budget. Because the 2011 fiscal year ends and the new fiscal year begins on July 1, the Iowa Senate must reach an agreement before that date or face a shutdown of non-essential services.

Although the Iowa government faced a similar situation when Branstad, a Republican, was governor in 1992, it did not shut down.

Typically, essential services include emergency services such as police and fire, mail services, and utilities. The state of Minnesota is facing a similar budget-agreement situation. Minnesota’s plans include shutting down state parks.

If an agreement is not reached, it is possible that the government shutdown would close state parks over the Fourth of July holiday weekend.

One of the biggest issues holding up an agreement is preschool funding. The initial Republican-proposed plan for preschool funding would create a voucher system. However, more recently, Republicans have instead proposed cutting funding from $70 million to $35 million. This differs significantly from the Democrats’ proposed cut to $59 million.

Democrats proposed this plan on Monday. Iowa Senate Democrats released a list on their website of over 50 items that they have compromised on with Senate Republicans. However, House Republicans disagree. 

On the House Republicans web site, Speaker Kraig Paulson (R-Hiawatha) said, “They need to come back to Des Moines and work with Republicans to pass a sustainable budget instead of playing games.”

The budget debate will continue until an agreement can be reached by both parties. All hope that it comes before July 1.