Cownie Statehouse Report: Sequesters, Shutdowns Not in Iowa’s Future if Legislature Holds Budget Line

By Rep. Peter Cownie
An important first step was taken this past week for the legislative session to ultimately reach adjournment. The Democratic majority in the Iowa Senate, as well as the Republican majority in the Iowa House released budget targets.

To finalize a budget, the Senate, the House, and the governor must reach consensus.

Last year’s state budget was $6.22 billion. This year, my colleagues in the Senate have proposed a budget of $6.9 billion, while we in the House have proposed a budget of $6.41 billion. As you can read, this is a gap of nearly $500 million.

The Senate budget proposal is an 11 percent increase over last year’s budget. The House proposal would increase the budget by 3 percent  with the additional dollars spent mainly on built-in expenditures, property tax credits, mental health funding, and a 2 percent increase in supplemental state aid for our schools.

Should Iowa return its budget surplus to taxpayers, bank it or spend it on new programs? Tell us in the comments.

The Revenue Estimating Conference states revenue for Iowa to be estimated at $6.74 billion this fiscal year.

The following principles guide me when I decide whether or not I will support a proposed budget:

• The state needs to spend less than it takes in. 
• The state will not use one-time money to fund ongoing expenses. 
• The state will not balance the budget by intentionally underfunding programs. 
• And, finally, the state must return unused dollars to the taxpayers of Iowa. 

It should be noted that the State of Iowa is doing very well economically, especially compared to other states and the country as a whole. The $6.74 billion is proof. Why do we find ourselves in this fortunate circumstance? Iowa has low unemployment (4.9 percent vs. 7.8 percent for the national average).

The agriculture economy is thriving and has led to increased revenues. And the state has put forth reasonable budgets the past two years, choosing not to overspend despite our current good fortune and leaving us with an ending balance of nearly $700 million this fiscal year. While revenue growth is currently ahead of projections, there is a great deal of uncertainty about future revenue due to the on-going drought conditions, slow economic growth, and the federal budget situation. Caution and smart investing needs to remain the practice.

All in all, Iowans should be proud of the financial state of Iowa. We have exercised caution the past two years while smartly investing in necessary programs for Iowa to advance.

Look no farther than what is going on in Washington D.C. to see what happens when restraint is not practiced. It seems the only things we hear about from the Beltway are shutdowns and sequesters.

That is not the case here at home. Nor will it be so long as we continue to spend less than we take in, not use one-time monies for ongoing expenses, and not intentionally underfund programs so as to stick local governments with the tab. These are fundamental principles that Iowans use to manage their own family budgets. State government should be no different.

(Rep. Peter Cownie, R-West Des Moines, represents District 42 in the Iowa House of Representatives. Contact him at Peter.Cownie@legis.state.ia.us or 515-281-3221.)