Dems plan $95 million spending increase with no extra taxes, fees
2/15/2008
By James Q. Lynch
The Gazette
DES MOINES — Majority Democrats announced a $95 million increase in state spending Thursday, saying they will honor the commitments they made last year in education, health care and energy without the tax and fee increases Gov. Chet Culver proposed.
“Will we meet those commitments at his level? Probably not,” House Speaker Pat Murphy, D-Dubuque, said. “We’re tightening our belts while keeping our commitments to Iowans.” The budget targets — $3.3 billion representing about half of the state’s general fund budget — showed legislators “are making some progress” on the budget, Culver said. Lawmakers are sending the wrong message, however, by not taking up his proposal to raise $75 million through combined corporate reporting and $20 million from deposits on beverage cans and bottles.
“I think the overwhelming majority of Iowans support the bottle bill expansion and combined corporate reporting,” Culver said. “So when you’re talking about tax fairness — when you’re talking about cleaning up the environment — Iowans expect us to do something about it.” When lawmakers refuse to talk about those issues, “the people of Iowa feel like they don’t have a voice,” Culver said. “When the people of Iowa see their elected officials not voicing opinions and not having debate on important issues I think that sends the wrong message.” Those issues have been discussed, Democratic leaders said, but there’s not a major ity of legislators who support those measures.
“We did not see the Legislature reaching consensus” on the governor’s proposal to double the nickel deposit to a dime and keep 2 cents to help redemption centers and fund environmental programs,” Senate Majority Leader Mike Gronstal , D-Council Bluffs, said. “I can find 10 votes for six different versions,” but not a majority for any one of them.
Likewise, he said, there aren’t 26 votes in the Senate or 51 in the House to pass combined reporting, an idea that has been proposed before but never taken up.
The Democrats’ budget calls for decreases in spending on ag and natural resources, economic development, jus tice systems, and administration and regulation. However, it proposes $60 million in new spending for education and $38 million more for health and human services.
Although he hasn’t seen the details, Department of Management Director Charlie Krogmeier said it appears lawmakers are meeting Culver’s budget criteria of protecting cash reserves and protecting his priorities, including raising teacher pay, renewable energy, the Iowa Power Fund and balancing the budget.
“Generally, they’re not that far off from what the governor recommended on most spending categories,” he said. “I think they’re doing it a different way.” Culver won’t give up on his tax and fee increases and called on lawmakers to “work with me in a bipartisan way to try to find some consensus.” “This idea of stifling debate and having no discussion about critically important issues related to our environment, related to our tax code, is not a healthy thing,” he said.
¦ Contact the writer at (319) 398-8375 or James.Lynch@gazettecommunications
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