Posted by
Paul McKinley
on
August
13th
Last week, Governor Culver issued a statement lauding Iowa’s lack of public debt as compared to the other 50 states in the union. Moody’s Investor Services issued a report showing Iowa had the second lowest amount of debt in the nation per capita – with only Nebraska slightly ahead of us.
Governor Culver promoted this report and mentioned that it was after the $1.7 billion dollar debt that was added to the state’s credit card to pay for his failed debt scheme known as I-JOBS. Said Culver in a press release, “Even after bonding for desperately needed infrastructure investments through I-JOBS, we maintain one of the lowest debts among states – a testament to our very careful and cautious budgeting and spending practices in this state.”
As it turns out, Governor Culver is completely wrong.
This report only factors in debt prior to I-JOBS and also does not factor in a whole host of other public debt at several levels of government for which taxpayers are on the hook.
State Auditor Dave Vaudt released his analysis of the report and noted, “Most of Iowa’s debt is secured by revenue outside the General Fund and is not considered General Fund debt—simply because of the way Iowa borrows funds. Just like with the General Fund, any non-General Fund resources used for debt payments take away resources that would have been available to provide ongoing services to the taxpayers.”
Vaudt continued, “Interestingly, the average ratio of ‘gross’ tax-supported debt to General Fund debt illustrates how Iowa’s borrowing practices compare to other states. The average ratio for all 50 states is only 2.24. This means for every $1.00 of General Fund debt, the average state has $1.24 of non-General Fund debt. Iowa’s ratio, however, is significantly higher at 14.54 (and substantially more than the next highest ratio of 6.41). This means for every $1.00 of Iowa’s General Fund debt, Iowa has $13.54 of non-General Fund debt. It is obvious that comparing Iowa to other states without accounting for this non-General Fund debt is very misleading.”
In closing, Vaudt laid out how much debt each Iowa taxpayer is actually responsible for by concluding, “For an apples-to-apples comparison with other states, Iowa’s “gross” tax-supported debt per capita is substantially more meaningful than the General Fund debt reported in the news. Comparing Iowa’s ‘gross’ debt with that of other states would put Iowa closer to the middle of the pack rather than second lowest in the nation. It means the share of Iowa’s debt load belonging to a family of four is over $4,000 rather than under $300. Iowa’s families should know Iowa’s debt load is 14 times more than was originally reported [by Culver]. Iowans deserve complete information to put Iowa’s debt load in context. Full disclosure is essential to Iowan’s effective participation in the policy debate concerning Iowa’s debt load.”
Culver’s release, which was debunked by Auditor Vaudt, is just the latest attempt by this governor to mislead Iowans about our level of debt. He continues to try to spin his failed four years as governor and shows how out-of-touch he is to the economic realities facing every day Iowans.
This political spin is exactly why Iowans also do not trust his inflated temporary work I-JOBS numbers, they do not trust his budget numbers as he continues to be in denial about the $1 billion dollar deficit that faces our state next year and they do not trust in his abilities to clean up the scandals that have consistently rocked his administration.
Senate Republicans believe Iowans deserve an honest government that will put the focus on private sector job creation, cutting spending, reducing taxes and cleaning up state government. We believe elected officials should be upfront with the taxpayers instead of providing misleading reports.
This debt and spend governor and the other Culver Democrats in the Legislature have amassed an unacceptable record that we cannot afford to repeat.
It’s past time that we put in place the kind of fiscal policies that will lead to less debt – not more. When government is fiscally responsible and does not continue heaping more debt and taxes onto citizens and employers, we will begin to see more certainty and stability and that means more private sector jobs.
Senate Republicans stand ready to lead Iowa forward with a focused agenda on more private sector jobs, real property tax relief, responsible budgeting and reduced spending. That’s the kind of positive agenda that all Iowans – present and future - can really rally around.
Posted by
Paul McKinley
on
August
10th
DES MOINES - Senate Republican Leader Paul McKinley (R-Chariton) today, after receiving numerous requests for comment, issued the following statement about continuing the effort to give Iowans a right to vote on the definition of marriage despite the recent decision in California:
“Since the April 3, 2009 ruling by the Iowa Supreme Court allowing marriage to be something other than just between one man and one woman, Senate Republicans have been resolute in our numerous attempts to give the voters of Iowa an opportunity to vote on the basic definition of marriage. The recent ruling in California does nothing to shake our resolve and we will continue to fight to give Iowans a vote.
However, the only way Iowans will ever get a vote is if a Republican majority is elected in the Iowa Senate and Iowa House because of the persistent Democrat obstruction. If you believe Iowans- not unelected judges - should have the final say on this important issue, I encourage you to become actively involved in your local State Senate and State House race immediately.”
Posted by
Paul McKinley
on
August
6th
It’s no secret that Iowa Republicans have consistently issued warnings about the reckless and irresponsible agenda carried out by Governor Culver and the Culver Democrats in the Legislature during the last few years.
Record spending, generational debt, billion dollar deficits, irresponsible budgeting, higher property taxes, massive fee and fine increases and the list could go on and on.
Now, the non-partisan Iowa Taxpayers Association (ITA) recently released their long-awaited report on the fiscal health of Iowa. Their assessment echoed the concerns continually voiced by Republicans.
ITA noted that the budget signed by Governor Culver violates three key principles for sound budgeting:
1. Funding ongoing expenses from revenue sources that are non-sustainable, one-time or time-limited sources
2. Diverting funds that are statutorily authorized for other purposes
3. Shifting program funding for education to the counties by underfunding property tax credits and school aid
"The legislature's budget actions this year will negatively affect taxpayers,” wrote ITA in their analysis. They continued by noting, “Concerns still remain regarding the legislature's refusal to abide by its own spending limitation, the use of one-time money for ongoing expenses, and the
shift of the tax burden to property taxpayers.”
Shortly after, the Waterloo-Cedar Falls Courier wrote an editorial on July 23 titled, “Lose spin on budget plan” where they took the Democratic controlled Legislature and Governor Culver to task for their four years of fiscal “violations” and their constant use of political spin to try to lead Iowans to believe they have been responsible managers of taxpayer dollars.
They wrote:
“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.”
Later in the editorial, the newspaper noted that, “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.”
But it is not just the Iowa Taxpayers Association and the Waterloo-Cedar Falls Courier taking note of the serious problems created by this administration and their liberal allies in the Legislature.
A recent web video produced by the Iowa Farm Bureau does an excellent job highlighting many of the budget and property tax woes that are the responsibility of this governor and the other Culver Democrats in the Legislature.
Next year, The new governor and Legislature will have their hands full as we work together to clean up the mess created during the last four years.
Here are three big ideas we proposed to help begin to turn this state around:
1. First, Senate Republicans propose and support an amendment to the Iowa Constitution to limit state spending to no more than 99 percent of state revenue.
2. Secondly, Senate Republicans propose requiring a two-thirds supermajority vote of both houses of the Legislature to authorize new state debt.
3. Next, we propose a systematic process wherein every program funded by state government will be sunset (de-authorized) by a date certain unless the governor and Legislature take action to reinstate it.
Beyond real budget reform and putting an end to Governor Culver’s property tax increases, we must get serious about private sector job creation. The best and only real long-term solution is to streamline government and substantially grow our economy and increase job creation.
Responsible budgeting, lower property taxes and more private sector jobs for Iowans. That is the Senate Republican vision for a more prosperous future worthy of embracing.
Posted by
Paul McKinley
on
August
4th
McKinley was in Fort Dodge Tuesday to support the candidacy of Chris McGonegle, who's running for the state Senate in the 25th District. The Fort Dodge man is trying to unseat Sen. Daryl Beall, D-Fort Dodge. That Senate district includes Calhoun and Greene counties and most of Webster County.
McKinley said as he travels the state with various candidates, he's found that people are ''very concerned about jobs.''
Read the entire story on the Fort Dodge Messenger website
Posted by
Paul McKinley
on
August
3rd
DES MOINES - Senate Republican Leader Paul McKinley (R-Chariton) today issued the following comment regarding Culver’s latest attempt to mislead Iowans about our level of debt:
“Governor Culver’s latest attempt to spin his failed four years as governor by touting an outdated and incomplete Moody’s report on Iowa’s debt once again highlights his mismanagement and demonstrates how out-of-touch he is to the economic realities faced by everyday Iowans. This latest campaign-style charade is exactly why Iowans do not trust Governor Culver’s I-JOBS numbers, they do not trust his budget numbers and they do not trust in his abilities to clean up the scandals that have rocked his administration.
Senate Republicans believe Iowans deserve an honest government that will put the focus on private sector job creation, cutting spending, reducing taxes and cleaning up state government. This debt and spend governor and the other Culver Democrats in the Legislature have amassed an unacceptable record that we cannot afford to repeat.”