Posted on July 22, 2010 by Erin in News Clips, News Clips, Press Room
Keokuk Daily Gate City: Branstad foresees spending problems
Political candidates are traveling the state this summer, pointing out their opponents’ shortcomings, shaking hands and kissing babies.
More than 60 people — and none of them babies — listened to former governor Terry Branstad and state auditor David Vaught during their “Truth and Budgeting Tour” stop Wednesday in Keokuk. Both are running on the Republican ticket for governor and auditor respectively.
Armed with charts displaying the state’s financial picture, the two walked the crowd through what they believe is a disastrous financial situation Iowa could be facing soon. One of their charts refers to a $1 billion financial shortfall projected for next year as a cliff that Iowa is fast approaching.
The premise of the “Truth in Budgeting Tour” is that basic problems with the state’s finances are being caused by expenses exceeding revenue and one-time financial resources being used to support ongoing expenses.
Gesturing toward Vaught, Branstad referred to him as the “voice of fiscal responsibility.”
“They haven’t listened to him,” Branstad said. “That’s why Iowa is in the mess it is today.”
The state’s financial picture needs stability and predictability, something Branstad said he accomplished during his 16 years as governor.
Under his governorship, state revenue increased by 4 percent, the state increased school funding and the state took over its responsibility of paying for the court system – not shifting those duties to the counties as it stands now, he said.
While Branstad was governor he appointed a committee to reform state spending. A 99 percent spending limitation was made law so that when revenues exceeded expenses, only 99 percent of the revenues could be spent. The rest was placed in a cash reserve for emergency situations – a rainy day fund.
In that way, the controlled spending led to a 10 percent income tax cut and a $900 million surplus, he said.
