Responsible Budgeting Part of the Senate Republican Plan

Governor asks that he be held accountable for actions on his watch

During last week’s annual Condition of the State address, Governor Culver made it crystal clear that he expects to be held liable for what happens during his tenure in office noting, “I’ll tell it like it is, and you can hold me accountable for what happens on my watch.” We intend to take the governor up on his offer. We know that Iowans are angered by wasteful government that grows too expansive and too intrusive and we recognize that Iowa families are making tough financial decisions every day. Iowa families know they must live within their means, prioritize their personal spending and even make sacrifices in the midst of a slowing economy and they expect nothing less of their elected officials too. Iowa is now facing over a half billion dollar budget shortfall for fiscal year 2010 because the governor and our legislative counterparts spent way beyond the state’s means. According to the Auditor’s office, Iowa will be $525 million short for fiscal year 2010. That shortfall amount is even after the governor implemented approximately $120 million dollars in across the board spending cuts. The governor and our legislative counterparts are attempting to blame the national economic recession for the colossal budgeting failures that have transpired but the non-partisan Revenue Estimating Conference has calculated the effects of the economic slowdown to be at only approximately $165 million dollars in less revenue. The governor’s math just does not add up. During the last two years, the time Governor Culver has been in office, Iowa’s budget has grown by an unsustainable 21 percent with nearly a billion dollars in new spending. Had the governor and our counterparts in the Legislature kept spending to the level of inflation, Iowa would be facing minimal budget concerns and would have hundreds of millions of additional dollars left in reserves and other fund balances. Iowans from all corners of the state are wondering why Iowa’s budget is growing so rapidly while their personal budgets are not. We believe that Iowa’s governor and Legislature must change course and abandon the practices that have driven our state into the fiscal malaise it is now in. Unbridled spending is what got our state into the financial dilemma and it is ill-advised to believe that even more spending will get us out of it. We believe we must act now and demonstrate fiscal restraint, financial discipline and responsible budgeting behavior before we saddle our children, grandchildren and future generations of Iowans with even more burdensome debt.

Senate GOP Announces $2.6 Billion for Disaster Recovery Funding comes through the Federal Heartland Disaster Tax Relief Act Iowa will soon see more disaster aid funding coming from the federal government. Last week we announced that $2.6 billion will go to the state for disaster recovery. The financing is available under the Federal Heartland Disaster Tax Relief Act of 2008 with rules being implemented by the Iowa Finance Authority. The legislation creates a new category of tax exempt bonds called “qualified disaster bonds.” These bonds can be loaned by governmental units to private entities for limited projects including small manufacturing facilities, solid waste disposal facilities, and certain rebuilding and replacing of agricultural, manufacturing, and retail business facilities. The ultimate distribution decision will take place by Executive Order of the governor. The Act authorizes up to $13 billion of bonds for seven Midwestern states. Seventy-eight of Iowa’s ninety-nine counties designated as disaster areas by President George Bush will be eligible. Iowans may apply for these bonds through the Iowa Finance Authority. For more specific information on the bonds and how the application process works, the number for the Iowa Finance Authority is 1-800-432-7230. Substantial Increase in Hunting, Fishing Licenses Proposed Senate Republicans argue proposal goes too far during tough economic times We are questioning the timing of a 34% increase in Iowa’s hunting and fishing licenses that was asked for this week. During a time of state and national economic uncertainty it is time for government to do with less, just like Iowa’s families. The Department of Natural Resources (DNR) believes they need the additional money to cover inflation and the recent flood damage, but many Senate Republicans believe the proposal goes way too far during these tougher economic times. This proposal comes at a time when not only the DNR but other state agencies are asking for increased fees, fewer tax deductions and more regulations on the very people that create jobs. It is time to say enough is enough and ask all government agencies to make due with less. We will continue to look for ways to protect the taxpayer, shrink the size of government and protect citizens from unreasonable and excessive government regulations. SENATOR TIM KAPUCIAN GRUNDY, TAMA, BENTON & IOWA COUNTIES