04.24.2010
(Taken from “McKinley’s Memos 4/23/10)
The last four years have produced the four largest budgets, the most debt and the largest deficits in state history – all while taxes and unemployment are heading higher. Now, the taxpayers of Iowa are now suffering the consequences of their overspending and fiscal mismanagement.
There is a reason why not a single Senate or House Republican voted for any of Governor Culver and legislative Democrats’ budgets the last two years: we simply cannot afford it and it spends too much money.
For example, while we were disappointed that the government reorganization effort did not go far enough and that many of our ideas were not incorporated, Auditor Vaudt showed the effort trimmed $108 million for the state’s general fund – an amount that is approximately two percent of the state’s budget. However, they turned around and increased spending by $248 million. Subtract $108 million from $248 million and you are left with $140 million dollars in added spending.
Vaudt put it in perspective by noting, “It’s like a family with a $250 weekly grocery bill finding $4 per week in savings on cereal so they decide to celebrate by having a $9 steak each week – increasing the grocery bill by a net of $5 per week. Would any Iowa family consider this to be ‘savings,’ or is it just Iowa government which does?”
Auditor Vaudt also echoed the concerns of Senate Republicans about the use of one-time dollars for ongoing expenses. Over $736 million one-time dollars were authorized in the new budget to pay for on-going expenses. Unless new sources of revenues are generated next year or spending is reduced significantly, next year’s session will be extremely difficult.
According to Vaudt, “This spending gap is often referred to as a “cliff” by experts because of the severity and suddenness of the drop in resources which are expected to be available.”
