Rep. Peter Cownie Reports: Budget Talk on the Back Burner Because Iowa’s Economy is Doing ‘Relatively Well’

By Rep. Peter Cownie

The sixth week of the 2012 legislative session has come and gone. It can be dangerous to make predictions at the Statehouse, but I believe all parties are serious about ending the session on time in early to mid-April.

House Republicans, Senate Democrats and Gov. Terry Branstad have proposed different spending increases. Who's right? Tell us in comments.

Several issues are progressing, namely property tax relief, Gov. Terry Branstad’s education reform package, mental health reform and many others that do not make the news.

Remarkably, the budget does not seem to be focus of much attention this year so far.

I believe this is because Iowa’s economy is doing relatively well compared to other states. This has shifted the focus from prior years regarding the state budget.

The state of Iowa’s revenues have gone up about 5 percent over last year and our unemployment hovers around 5 percent compared to over 8 percent nationally. Most economists agree this is due to Iowa’s robust agricultural economy, high commodity prices and farmland at record levels. This is certainly no time to rest on our laurels. I believe our state government can still be much more efficient while spending our tax dollars.

Just because the media has not been focusing on the budget does not mean it is not a point of emphasis this year. Quite the contrary. Budget subcommittees have been meeting twice a week for the past month and have begun formulating their respective budgets.

The House Republicans have proposed a $6.059 billion budget. The Governor has proposed a $6.244 billion budget. The Senate Democrats have proposed a $6.218 billion budget. Last year’s budget that was signed into law was $5.999 billion.

So, why the increase? The increase of $60 million is due to fully funding of the property tax credits for Iowans. This has not been done since 2001. Times have changed and it is the duty of the Legislature to not pass on expenses to local governments and Iowans by purposely underfunding priorities.

My principles with the budget have always been to not spend more than the state takes in, align spending with revenue, and make government as efficient as possible. This budget does just that. In fact, this budget spends .97 cents for every dollar of revenue taken in. This compares to $1.17 spent for every dollar of revenue taken in just two years ago. This was due to the usage of one-time stimulus dollars and reserve funds raided for ongoing expenses.

The state budget is a core function of government. It is the responsibility of the Legislature to adequately fund Iowans priorities. This budget spends less than it takes in and keeps our reserve funds at an appropriate level.

This is what Iowans should expect. We will do that this year. And this budget that has been submitted is a good first step as we reach consensus with the Iowa Senate and Gov. Branstad. There is still much work to do.

We have two more community forum scheduled. The Clive forum is Feb. 25 from 9:30 to 11 a.m. at the Walnut Ridge Senior Campus, 1701 Campus Drive (behind the Clive Aquatic Center). The West Des Moines forum is March 24 from 9:30 to 11 a.m. at the West Des Moines City Hall, in the community room, located at 4200 Mills Civic Pkwy. Please stop by and let us know your thoughts on the current session.