Posted on July 23, 2010 by Erin in News Clips, News Clips, Press Room
WFC Courier: Lose spin on budget plan
Last week, a nonpartisan tax group gave Iowa’s leaders mixed reviews on the state’s fiscal 2011 budget plan.
Ed Wallace, president of the Iowa Taxpayers Association, said the Democrat-controlled Legislature and Gov. Chet Culver violated three key principles of sound budgeting.
One of those “violations” was that the legislative action that “drastically” shifted costs to counties and schools by underfunding state commitments to local property tax credits and K-12 education – a move that likely will push tough decisions on to local elected officials resulting in higher property taxes.
It’s the same conclusion we came to in March and April commentaries, despite a statement sent from Culver’s office that read, in part:
“We worked together to save taxpayer dollars, create jobs and protect our priorities. We’ve kept our promises and, most importantly, we have moved Iowa forward. And, as other states continue to debate how much taxes will increase, we balanced our budget – just as we have done every year since I took office – without raising taxes!”
Yes, that part of the statement actually came with an exclamation mark. Frankly, we could do without the political spin.
While state budgets during Culver’s term have not proposed direct taxes, they have given school districts the authority to use reserves or property taxes to recoup increases that will not be covered by state appropriations. That equates to probable increases in taxes for property owners.
Over a three-year period, $532 million of general fund spending has been shifted to Iowa property taxpayers, including nearly $200 million for the 2011 budget.
