“Liberty Morning” fundraiser with Congressman Ron Paul

Please join us for what will sure to be an exciting event with Congressman Ron Paul of Texas who enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency.

This will be a great opportunity to come and support Kent for his Senate Bid!

The Event itself will be a free will offering.

Host Committee Spots Available (includes private meeting with Congressman Paul)

Please Contact
Susan Geddes
515-202-3733

Please RSVP to sgeddes0@aol.com (sgeddes zero)

Date:         Saturday November 14th 2009

Time:        9:30am – 10:30am

Place:        Des Moines Airport Holiday Inn – 6111 Fleur Dr, Des Moines, IA

10% Across the Board Cuts

The Revenue Estimating Conference (REC) met last Wednesday to revise the revenue estimate for FY 2010 and set the revenue estimate for FY 2011. The REC is a panel of three people — Richard Oshlo (Governor’s appointee), Holly Lyons (Legislature’s appointee) and David Underwood (private sector representative, appointed by the other two members).

Recall a fiscal year runs from July 1st through June 30th and we are currently in FY2010.

The previous REC estimate for FY 2010 was $5.843 billion, or negative 1.4 percent compared to actual adjusted FY 2009.   The new estimate is $5.438 billion, or negative 8.4 percent compared to FY 09.   This is $415 million lower than the estimate used to create the FY 2010 budget.

As a result the Governor ordered a 10% across the board cut.   This cut applies to all General Fund expenditures regardless of need or priority.  The cut the Governor made is somewhat larger than was necessary in order to hedge against a further reduction in December and possibly provide some backfill next January.

Most Iowans will see the impact of this cut in their property tax bill.   Among other things, an across the board cut reduces the state funding for the K-12 education foundation formula.    This is the amount the state provides school districts on a per pupil basis.   As across the board cut does not reduce the amount of money a school district can spend.

If the state does not provide its statutory share, school districts have three options:    cut spending, use reserves or raise property taxes.   My expectation is cash reserves will be the first response.   However, realize these cash reserves will almost certainly be refilled using the cash reserve tax levy against property.

As a result of the Governor’s actions, Iowans could see their property taxes increase as much as $250 million dollars.

Last spring when this budget was passed we could see all this coming and nothing the REC said or did was a surprise.  Even with this information the current year’s spending was the largest in the history of Iowa.   We did not have to be in this position.

Additionally, the REC initial estimate for FY 2011 is $5.412 billion, or negative 0.4 percent compared to the new estimate for FY 2010.   Because of the promises that have been made, next year is again going to be a very difficult year.

The state has a severe spending problem and it needs to stop.   Programs and expenditures need to be reviewed for need and benefit to Iowa.  Those that fail the test or are at the bottom of the list need to be eliminated – not reduced by10%.

You may recall that during the 2009 legislative session, House Republicans offered over $330 million in cost-saving measures.   Nearly all were rejected.   Also rejected was a searchable budget database that would allow Iowans to see how the state is spending taxpayer dollars.   Targeted and meaningful budget efficiencies are more responsible than resorting to haphazard across the board cuts.

We cannot continue down the path we are on we need bold leadership from our elected officials.   The Governor should of called a special session  so we could better evaluate the cuts.   Every program the State has is not of equal importance.   So we should of prioritized the cuts accordingly.   Rest assured that my colleagues and I will address this when given the opportunity.

More Budget Woes

The Revenue Estimating Conference met today to revise the revenue estimate for FY 2010 and set the revenue estimate for FY 2011.

The previous estimate for FY 2010 was $5.843, or -1.4 percent compared to actual adjusted FY 2009.  The new estimate is $5.438 billion, or -8.4 percent compared to FY 09.  This is $415 million lower than the estimate used to create the FY 2010 budget.

When the ending balance is taken into account, the budget is $315 million short for FY 2010.  Also by law the Governor is required to refill the $45.3 million taken from the EEF to balance the FY 09 budget. In order to balance the budget he would need to order a 6.2 percent ATB cut.  If he not withstands the EEF language, he would need a 5.4 percent ATB cut.  However, it will have to be bigger than that because he has to leave a cushion in case the December or March estimates are lowered.

The initial estimate for FY 2011 is $5.412 billion, or -0.4 percent compared to the new estimate for FY 2010.  The spending gap is at least $1 billion for FY 2011 but we will have more accurate numbers once Fiscal Services updates the general fund balance sheet.

It is expected the Governor will enact an across the board cut within the next few days.  The Governor’s spokesman suggested it will be larger than 5.4 percent.  Stimulus funds will not be impacted by the ATB cut.

While the national economy is partially to blame, the spending and borrowing of the Democrats has contributed to the problem. And now our children will be carrying the burden of the current administration mismanagement.