The non-partisan Iowa Taxpayers Association (ITA) has studied Iowa’s budget and today shared its findings that show big problems in three key areas, which will drive up property taxes and leave Iowa with a huge budget gap.
In a release today, the ITA states, “the overreliance of one-time funding for on-going expenses and a deepening burden for property taxpayers provides significant challenges for the current fiscal year and specifically for the 84th General Assembly.”
ITA noted that the budget signed by Gov. Chet 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 news comes as former Gov. Terry Branstad and state Auditor David Vaudt wrap up the second week of their “Truth in Budgeting” tour, specifically outlining these three areas as problems, and demonstrating solutions for fixing Iowa’s budget mess.
In response to the ITA release, Governor Branstad 2010 campaign manager Jeff Boeyink stated, “The non-partisan ITA has confirmed our assertions about the Culver budget: It is reliant on one-time sources, has a projected budget gap of between $700 million and one billion dollars, and it is resulting in huge property tax increases.
“Terry Branstad is committed to placing Iowa on sound fiscal footing. His plan to correct these violations, end the practice of using ‘not withstanding’ language and outlining multi-year budgets will bring stability and predictability back to the state budget and ensure Iowans have a proven, effective manager as governor.”
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