RAECKER REPORT 2/2: Legislative Republicans Release Budget

Iowans deserve and expect a state government that uses their tax dollars wisely. Legislative Republicans are committed to making sure state government is efficient and effective.

As chairman of the House Appropriations Committee, my role is to manage a process that will continue to use several common sense principles to develop a budget that lives within our means and meets priority needs of Iowans.

The Republican budget proposal aligns ongoing spending with ongoing revenue.

Iowans cannot afford a government that spends more money than it takes in and the budget proposal reflects this principal with ongoing revenue of $6.252 billion and $6.059 billion of budgeted expenses.

This is how Iowans manage their own checkbooks at home and it is how legislative Republicans will continue to manage the government checkbook.

The budget fully funds commitments to entitlement programs such as Medicaid, Indigent Defense, and the mental health reform initiative that was started last year.

In addition, the commitment to the largest two-year increase in K-12 education will be fulfilled in the budget proposal, and for the first time in over a decade the Legislature will fully-fund property tax credits previously committed to Iowans.

The budget proposal continues with the principle to end the practice of using one-time money for ongoing expenses.

The legislative Republican budget will be crafted with the long-term future of Iowa in mind. The past practices of overspending in one budget year and then slashing budgets with across-the-board cuts the next year only leads to more uncertainty and instability, hurting Iowans and job creators.

Legislative Republicans are committed to passing a budget that is fact-based and accountable to Iowans. Legislative Republicans and the governor both released the entirety of their budget assumptions.

To date, legislative Democrats have released only a portion of their budget proposal that indicates they will spend more money than ongoing revenue.

Controlling government spending by budgeting less than the taxpayer contributes demonstrates a commitment to common sense principles and economic health that Iowa taxpayers deserve.

The plan of action is to have a responsible state budget that contributes instead of takes away from economic, family and community health. Iowans deserve quality jobs that will develop into careers. They deserve the peace of mind to plan for their futures.

Iowa’s employers need a commitment from the Legislature to keep government from spending more than it takes in. Spending more than the state receives will lead to tax increases, tax shifting and uncertainty for Iowans and employers. They need the certainty that this will not happen.

Highlights of the Republican budget plan include:

• Continued effort of listening to Iowans and digging deep into the budgets, line-by-line review to cut out waste and find efficiencies. Republicans will craft another government efficiency bill, saving an estimated $20 million.

• A modest and conservative one percent growth. The Republican plan spends just 97 percent of ongoing revenue. By comparison, the Republican budget spends $313 million less than two years ago when the state was spending $1.18 for every dollar of revenue. This is an efficient budget that funds Iowans’ priorities.

• Republicans’ budget funds Iowans priorities including: education, public safety, health care, fully-funding property tax credits and preserving any ending balance in the Taxpayers Trust Fund.