Iowa's Debt is on the Rise

Posted by Paul McKinley on May 21st

Government debt is on the rise in Iowa.

 

Not only have Iowans witnessed hefty increases in state spending, the unemployment rate and property taxes during the last few years, but we have seen an alarming spike in public debt.

 

As it stands today, Iowa now has the most debt in the state’s 164 year history. A recent tally shows that Iowa has nearly $1.1 billion in public debt associated with our prisons, Vision Iowa spending, school infrastructure, and Governor Culver’s failed I-JOBS program. Prior to Governor Culver being elected and Democrats taking control of the Legislature in 2006, Iowa had close to $200 million of debt in those areas. In just a few short years, the debt amount has quintupled.

 

This graph below illustrates the dramatic spike. If you notice, the chart only accounts for principal – the taxpayers are also on the hook for paying any interest and fees as well.

 

Iowa's Debt is on the Rise

Unfortunately, that is only just a fraction of Iowa’s debt. Iowa’s true total debt for all of state government and its agencies, cities, schools, AEAs, regent universities and community colleges is over $11.6 billion as of June 30, 2009 according to a report issued late last year by the State Treasurer. Compared to the year before, that level of debt is an increase of 6.33 percent. With the level of spending happening in Iowa this year, that number is likely to only get bigger.

 

Debt at all levels of government is growing out of control. The debt crisis in Greece and Europe as a whole has threatened their currency which has undermined the European economy and the consequences are beginning to ripple through our stock market and the worldwide economy. Our federal deficit is now well beyond $12 trillion and getting worse by the day.

 

The simple truth is that government is spending too much of your money.

 

The long-term solution is two-fold. First, we need to stop spending at such an alarming rate. We need to better prioritize our spending. Secondly, we must grow our economy so we can create more jobs. With the highest unemployment in over two decades, it’s safe to say Governor Culver and legislative Democrats have proven that you cannot tax, borrow or spend your way to prosperity.

Governor Culver’s $1.7 billion I-JOBS program is a prime example. When he announced the idea, he promised it would create 30,000 jobs. In the time since, over 30,000 Iowans have actually lost their jobs. We must move away from the mindset of allowing government to pick winners and losers.

Instead, we must unleash the entrepreneurial spirit and ingenuity of the private sector. We know small business, the engine of economic growth in this state, is responsible for two out of every three new jobs created. We should not be adding additional barriers, such as Culver’s massive property tax increases, that make it more difficult for jobs to be created. We must grow this economy and send a clear message that Iowa is a destination for all those who wish to find success and fulfill their economic dreams.

 

We must never lose focus on the future and remember that while we aim to help the Iowans of today, we are also building a state so that all of our children, grandchildren and the future generations of Iowans can find a job or build a business and raise their families here.

 

Future generations of Iowans deserve more than spiraling debt and unsustainable spending year after year. It is simply unfair to them. They deserve a state where opportunity is provided and success is rewarded. Each generation is trusted with the goal of renewing the promise of a more hopeful and optimistic future. Our children and grandchildren are counting on us to make good on our word.

Restoring Iowa's Proud Heritage in Education

Posted by Paul McKinley on May 14th

The end of the school year is upon us. Students are scrambling to finish their remaining projects and finals, proud parents and grandparents are seeing their sons and daughters graduate from high school and college and energetic youngsters are eagerly anticipating the beginning of their summer vacation.

 

Schools are busy finalizing their budgets and preparing for next year. Since Governor Culver and legislative Democrats underfunded K-12 education by $162 million dollars while still spending the second most amount of money in Iowa history, schools are making deep cuts and property taxes are going up. Culver’s property tax increases are collectively estimated to be near $182 million but could be as high as a half billion dollars.

 

Through all of this, many teachers and staff members have been let go to ensure districts are operating with a balanced budget. When these layoffs are made, districts are forced to make decisions based on seniority – not necessarily on whether they are retaining the best teachers for the students in their districts.

 

This must change.

 

A recent Register Editorial in the Des Moines Sunday Register does a good job highlighting the need to change the way we evaluate and promote teachers. “Seniority tends to be a big factor in who stays – it’s written into school district contracts – which can have devastating consequences for students,” wrote the Des Moines Sunday Register. “Putting the best teacher possible in every classroom should be everyone’s top priority. It’s mind-boggling that it isn’t,” they concluded.

 

Senate Republicans could not agree more.

 

Year after year, Senate Republicans have authored broad and sweeping education reforms in the Iowa Legislature to reform education. If enacted, our “pay for performance” law would be one of the boldest reform plans anywhere in the nation. Our “pay for performance” legislation was passed by the Legislature in 2006 but Governor Vilsack caved in to the demands of the deep pocketed union bosses who prefer the stagnant status quo. This, like many similar proposals to enhance student achievement and renew the legacy of Iowa’s proud heritage in education, has been defeated year after year by the party currently in power.

 

Case in point, when Iowa applied for President Obama’s Race to the Top grant program, our state’s application was denied. Governor Culver and legislative Democrats, like Vilsack, caved to the demands of powerful special interests and well-funded union bosses by voting down our efforts to revitalize our education system and make Iowa more competitive.

 

Incidentally, this is a rare instance where we find some common ground with President Obama. Obama has advocated for new teacher evaluations that reward the best teachers for higher student achievement and implement needed changes when student achievement falters.

 

Today, 20 to 25 percent of our students are one year or more below grade level. This drastic change in direction is one of the leading reasons why our eighth graders in 1993 were first in mathematics but have now fallen to 28th. Though we have spent billions of dollars, student achievement has stagnated and in many instances declined. The 2008 Iowa Condition of Education Report shows student proficiency has decreased over the past year in fourth grade reading, fourth grade math, eleventh grade reading and eleventh grade math.

 

We need more accountability. Everyone must be accountable for the success of our students. Though these children may be students today, we will be relying on them to be the leaders of tomorrow. Students, parents, schools, colleges of education and policymakers all need to be held accountable.

 

We need to pay our good teachers well and weed out those who are not meeting the necessary standards. There are excellent teachers with all levels of experience and they must be rewarded and those who do not excel need to move on. We must be clear, basing personnel decisions solely on seniority must end.

 

As it stands now, the rest of the world is leaving America behind and the rest of America is starting to leave Iowa behind. Simply throwing more money at the problem without real reform has not and will continue not to work.

 

We need dramatic reform and we need it now. If we fail to act, we are leaving our children, grandchildren and future generations of Iowans without the necessary skills they need to be productive members of society.

 

It’s time to put our students first by preparing them to be productive citizens who possess the necessary skills and knowledge to compete with any one else in the world. Our kids deserve the very best.

Omaha World-Herald: Iowa Docs want Competition

Posted by Paul McKinley on May 14th

State Sen. Paul McKinley, R-Chariton, has served on a board recruiting doctors to Iowa.

“Iowa has many areas considered shortage areas. It is difficult but not impossible to attract physicians to rural Iowa,” he said. “It can be done. I think southern Iowa has wonderful assets to sell.”

He said efforts like that by the medical society are imperative.

“I truly believe Iowa is the hidden gem (of this) country,” said McKinley. “I think we have more potential, but we’ve got to do it right.”

Read the entire story on the Omaha World-Herald website

Powering the Iowa Economy of Tomorrow

Posted by Paul McKinley on May 7th

Iowa needs energy.

 

We need clean, affordable, abundant and reliable energy to power the growth and job creation of the future. With plentiful and dependable sources of lower cost energy brings the opportunity for widespread private sector job creation and the revitalization and renewal of our communities.

 

Though this year’s legislative session may have been one of missed opportunities when it comes to encouraging private sector job creation, implementing responsible budgeting and providing property tax relief, the Legislature did take a major step forward in the area of energy production.

 

All Senate Republicans along with some Senate Democrats joined together to pass a bill that allows MidAmerican Energy to conduct a $15 million dollar feasibility study to determine the possibility of constructing a brand new state-of-the-art nuclear power plant in Iowa. If MidAmerican moves forward with this project, construction could begin as early as 2014.

 

Iowa has many aging energy plants that are becoming more out-dated and therefore more expensive to operate. Earlier this year, Alliant Energy, another major energy company in Iowa, asked the Iowa Utilities Board to approve a phased in 10 – 14 percent rate hike for their approximately 480,000 customers over three years.

 

Rate hikes will continue to occur if we do not increase our base load energy generation in Iowa. We cannot continue to rely solely on our existing aging infrastructure to meet the challenges that lie ahead. Iowans will pay more. Higher energy costs will only continue to hold back our economy and kill job creation.

 

Our state must embrace the energy technology of the 21st Century that will bring the clean, affordable, abundant and reliable energy needed to move Iowa forward.

 

That’s why the move last year by Governor Culver’s own appointees, who regulate the state’s energy industry, is so disappointing. Citing radical environmental beliefs, Culver’s appointees killed a $1.7 billion dollar clean coal plant that was to be built near Marshalltown.

 

Not only would the construction of that plant have been a significant step forward toward the goal of significantly increasing Iowa’s base load energy supply, it would have lead to the creation of 1400 temporary construction jobs, dozens of permanent high-paying jobs and provided a jolt of added vigor into the Central Iowa economy.

 

A promising project stopped dead in its tracks and a major set back for Iowa’s economic future.

 

Even after the Marshalltown plant was killed, Governor Culver attempted to re-appoint some of the same extreme appointees but Senate Republicans, utilizing the Senate’s role of advise and consent, denied those individuals another term on these important regulatory boards and commissions.

 

After four years of too much spending, not enough saving, higher property taxes, rampant job losses and another session of missed opportunities on the key priorities that Iowans care most about, this energy bill is positive step in the right direction. This is the kind of issue that all of Iowa’s elected officials should be united in support of but yet many Senate Democrats still voted “No”.

 

Iowa’s energy rates are some of the lowest in the nation and we must take every action to keep them there. Clean, affordable, abundant and reliable energy is one of the keys to attracting the employers, businesses and entrepreneurs we need to grow our state, keep our kids and grandchildren here and revitalize our communities.

 

Going forward, Iowa needs to pursue all possibilities when it comes to providing the energy of the future. Our goal should be to generate more energy in Iowa so we do not have to import as much energy from foreign entities. Whether it is wind and solar, ethanol and biodiesel, nuclear and clean coal, oil and natural gas or other sources of renewable and alternative energy, the Iowa economy of tomorrow demands that we take an all of thee above approach.

McKinley Earns Perfect Pro-Jobs Vote Rating from Iowa Association of Business & Industry

Posted by Paul McKinley on May 4th

DES MOINES, IA  - Senate Republican Leader Paul McKinley earned a perfect 100 percent pro-jobs voting record from the Iowa Association of Business and Industry (Iowa ABI) for the 2010 legislative session.

 

“In these challenging economic times, these legislators have distinguished themselves in voting for policies that promote job growth,” said Mike Ralston, ABI President.

 

All 50 State Senators and 100 State Representatives were evaluated on 10 key votes based on ABI’s legislative priorities and policies established by the association’s 1400 members. Thirteen Senators and 42 Representatives earned perfect scores for the 2010 session.

 

“My constituents know they can count on me to be a strong advocate for policies that encourage private sector job creation, responsible budgeting and property tax relief,” said McKinley. “With a new governor and more legislators that share my commitment to jobs, responsible budgeting and property tax relief, I am confident that we can begin to turn this state around and realize the prosperity that all of us want for our families and communities.”

 

Highlights from the voting records include legislators’ stance on various regulatory mandates on employers including health insurance mandates, rulemaking authority of unelected commissions, preserving Iowa’s Property Assessment Appeals Board as well as responsible budgeting measures. The full voting records for all Iowa House and Senate members are available by visiting the Iowa Prosperity Project website at: www.iowaprosperityproject.org