Yesterday, October 8th, Governor Chet Culver responded to the state of Iowa’s $415 budget gap for FY 2010 by issuing an executive order imposing a 10% across-the-board (ATB) spending cut. Although the Governor tried to blame the budget gap solely on the national economy, he conveniently ignored huge increases in spending during his first three years in office. To be fair, we have to admit that the national recession and irresponsible spending increases are both to blame.
This 10% spending cut applies equally to all areas of state government. No effort will be made to prioritize state spending, no effort to determine which state programs are more valuable than others. During the last legislative session, House Republicans offered over amendments amounting to over $330 million in budget savings, yet those were almost all ignored. With targeted cuts, the state would now be in a position to preserve funding for the most critical functions of government.
(Question: Is the Power Fund equally as important as Education or Public Safety?)
It is important to understand that this budget cut also shifts much of the financial burden on to local communities. Included in the 10% ATB spending cut is local school. Here in the West Des Moines Community School District, initial estimates reveal at least $4 million in direct cuts for FY 2010. By Governor Culver’s own admission, this will likely end up as a property tax increase.
I continue to stand opposed to any property tax increase. Family budgets are stretched too thin and commercial property taxes are already a disincentive to economic development.
While I am glad that Governor Culver has finally seen the light on the need to cut spending, he’s going about it the wrong way. The correct course of action would have been to call the legislature back into special session to make targeted budget cuts. We must learn to set priorities for state spending. It is also regrettable that the Governor has backtracked on his promise to not raise taxes.
My colleagues and I in the House Republican Caucus stand ready to again offer our ideas on how to save the state money. Perhaps next year, the Governor will be listening.
