“While the FY 2009 budget calls for a 4.7% increase in spending, it creates at least a 9.3% spending gap, $569.3 million, which the next legislature will have to address. Iowans should ask lawmakers how they plan to bridge that gap. Will it be through tax and fee increases, or will they find areas to reduce spending? Iowans deserve to know where their leaders are taking them.”
-- David A. Vaudt, State Auditor, May 28, 2008
Seven months later Iowans are still waiting for an answer from Governor Culver and legislative leaders.
Yesterday, Iowa’s Revenue Estimating Conference said Iowa will have $99.5 million less in revenues for the current budget year, with the outlook for FY 2010 even worse.
Not to worry, says Democrat House Leader Kevin McCarthy in today’s Des Moines Register because they can tap the rainy day fund of $620 million in reserves.
Mr. McCarthy, the state’s economic weatherman told you seven months ago it would be raining, why is it you still don’t have an umbrella?
Perhaps he’s just following the lead of his caucus. Above the fold on the front page of Tuesday’s Des Moines Register was a story on 2009 legislative priorities with the headline: “Cell phones, smoking, flu shots on '09 agenda.” Not one mention from a Democrat legislator about reducing spending or state bureaucracy. Not one mention of bold and innovative tax policies that actually incentivize business investment or job creation. No recognition at all of recent layoffs and a slumping ag economy.
How can our leaders solve problems when they fail to recognize their existence? Fortunately, Iowa taxpayers have a principled public servant who isn’t afraid to tell them the truth in Dave Vaudt. By the sound of yesterday’s statements, it looks like Dave’s posse has grown in ranks. Strong statements yesterday from new GOP leaders Paul McKinley and Kraig Paulsen show that our Republican leadership is prepared for a serious debate on tax and spending policy in Iowa.
I am encouraged to see Republicans speaking with a unified voice in drawing sharp and clear distinctions that focus on our principles of responsible economic stewardship. All Republicans should be prepared to join this fight at the opening bell of the legislature next January.
