Governor Culver proposed his budget yesterday afternoon.  Going into the session, it was noted that Iowa had a budget deficit of about $500 million.   The Governor fills this hole in the following manner.

                -Uses $48 million of Federal bailout funds

               -Reduces the tax credits by $52.5 million

               -Cash Reserve Spending – $207.5 million

               – Government reorganization savings – $352 million

Total proposed savings of: $660 million

The Governor had several positive budget increases:

                        -Education $60 million for allowable growth

                        -Education $100 million for K-12 cash reserves

                        -Iowa tuition grant increase of $3.3 million

                        -Nonpublic school textbook increase of $62,500

                        -Community College increase of $6 million

After dissecting the proposed budget, it seems there is no rationale on how it will be a balanced budget.  The government reorganization savings will be about half of what the governor has anticipated.  Also, the governor doesn’t spell out any tax credits he wants to cut.  It’s interesting to hear all sides saying that this document is so flawed that it cannot even be used as a starting point.  

The pressure will be on the legislature to craft a budget that will actually be balanced yet create sound fiscal policy for the state.

Final comment for the week:  We did NO bills on the floor this week.  It seems several of the fast track bills, like Government reorganization, have had enough opposition to put them on hold.  Transparency is always a good thing!

I have a real heart for people that are physically or mentally challenged.  I am amazed by those that give their time to help these people.  The care and concern they have really makes you believe that there is still a lot of good in society.

This past summer Gov. Culver did a 10% across the board cut on every program.  It had direct affects at the Village in Sheldon and Hope Haven. Iowa vocational rehab program that is used by both of these organizations gets 80% funding from the federal government and 20% from the state.  However, it’s a match, whatever the state puts in, the federal gives back at 80%.

This program is very important to these organizations, but with the across the board cut minus the matching dollars, it has nearly ended the program.  It give a quality of life and a purpose to each of these special clients. Many of these clients work for pay by doing jobs that help benefit government and society.  They sort cans, make blankets, machine parts, etc.  It give each person a reason to wake up and be a part of society.

The small saving that is being accumulated by the state is actually costing us millions in federal matching dollars.  The reckless across the board cut impacted 4,400 rehab workers.

I understand government has major budget problems. However, rather than playing politics, the governor needs to do what’s is best for ALL Iowans, especially those that have no voice! It pains me to see this ill-will.

Yesterday, I received a letter that came from Governors Culvers top aid telling all the department heads that they must follow the governor’s directives that were put together in the government re-organization bill.  It was noted that they MUST support the full enactment of the budget and the government reorganization bill.

The bill isn’t passed and there is a lot of discussion on how we can make the bill better.  However, Culver wants it in the form he sent it to the legislature, and no matter what changes are made, he will implement his plan, not the legislatures plan. 

The letter tells the agencies heads “be open and honest and clear” but “thoroughly support” Culvers plan.  The Des Moines Register noted; “lawmakers said Monday that they interpreted Frew’s e-mail as an attempt by Culver to muzzle department leaders who might disagree with his reorganization plan or who want to offer different ideas for what’s best for Iowans.”

It seems that several agency heads had grave concerns about the bill and they were voicing their opinions to the public.  The problem is the speed that this bill is getting pushed through the legislature.  There is no sun light on the bill.  So, agencies can only respond as they hear the ramifications through news outlets. 

The biggest concern for most agencies was the golden parachute portion of the bill. It offers a retirement plan to government employees that are 55-years and older.  It is such a great gift ($1000 for every year worked plus 5-years of paid health insurance) that agencies are worried about a mass exodus of workers and a complete brain drain.  Agencies don’t know how they will operate if this legislation passes.

Agencies had no say and now they are demanded to support the bill.  This seems very dictorial.  An open process of allowing agencies and legislators to work to craft  proper policy is what the constitution demands.  Not, the executive branch overpowering all other arms of government.

 This past Saturday we had the Republican township caucuses.  I came away with a crystal clear message.  Society wants a change in government.  They demand that that their voice is heard and, if not, they will find new leadership.   

 It doesn’t matter if your Republican or Democrat, society will get rid of the bureaucrat that doesn’t listen.  Scott Browns win in Mass was a blast felt by all politicians! The message was clear, we don’t want health care, we don’t like terrorist tried in our courts and we hate reckless spending!

 In Charles Krauthammer column on Jan 23, 2010, he hit this issue on the head.  He wrote:  “Brown ran on a very specific, very clear agenda. Stop health care. Don’t Mirandize terrorists. Don’t raise taxes; cut them. And no more secret backroom deals with special interests…..

The reason both wings of American liberalism — congressional and mainstream media — were so surprised at the force of anti-Democratic sentiment is that they’d spent Obama’s first year either ignoring or disdaining the clear early signs of resistance: the tea-party movement of the spring and the town-hall meetings of the summer. With characteristic condescension, they contemptuously dismissed the protests as the mere excrescences of a redneck, retrograde, probably racist rabble.

 This is a great lesson for Republicans.  LISTEN to your constituents!! Taxpayers are still in control and if you think you know better than them, you might want to find a new occupation.

 So, we start with ideas for a Republican platform at the township caucus, we take these ideas to the county, district and state convention.  We pass a final Republican platform that will be created by the taxpayers of Iowa. And, I will read it, understand it and follow it as a State senator.  “Throw the bums out” should be a warning phrase for every politician!

 Last year, Governor Culver hired a $300,000 out-of-state consultant to make suggestions of where the state could save money. At the conclusion of their work in Iowa, these consultants produced a report suggesting that Iowa could save $1.7 billion over 5 years. Governor Culver and legislative Democrats were quick to say they would piece together a bill that would save the state $250 million dollars in this year alone with more savings in future years.

 After independent and non-partisan analysts scored the nearly 250 page bill, they came to the conclusion that the savings will only add up to approximately $43 million, a tiny fraction of the advertised savings that the taxpayers were told they could expect to see.

 In addition, many portions of the bill do not amount to a reduction in government– but instead amount to more government. Several provisions also include new ways for the government to generate more revenue instead of finding new efficiencies or cost savings.  Other parts actually increase the size and scope of the bureaucracy.

 I applaud that we have found $43 million in savings but lets be realistic before we promote a grandiose plan of massive savings.

1-20-10 State Employee’s GOLDEN Parachute

 If you have children and have there best interest in mind, you might urge them to work in state government.  Great wage, premier insurance plan, and a retirement plan that take care of you until you die.  And, when your 55 you can retire with the following benefits:        

-         You will get $1,000 for every year of service.(25-years = $25,000)

-         You will get 5-years of paid health insurance

-         You will get your government pension

This is a bill that will be voted on by the Senate on Thursday (1-21-10) There are over 2100 workers that could retire under this plan.  It is projected that well over a 1000 will take this deal.

 QUESTION

Why do we have all these employees currently working for the government if we want them to all retire?

 I talked with several county and local retired government employees and they all stated that they had the option of money OR health insurance.  In the private sector you get a small severance and a plaque.

 State Government is again spending your money (tax money) on egregious ideas.

 If you have read many of my posts in the past you will find one common thread.  I am passionate about creating a more efficient form of government.  After being in local, county and State government, I see many sacred cows (programs) that are not needed or can be completely modernized.  I also see many agencies that thrive on power and control.

 I am a tax payer just like you; I believe we could cut 30% of our budget by doing the following:

 Eliminating all non-essential programs

-Allowing the private sector to run many of our government programs

-Eliminate or combine agencies (drastically reducing workers)

-Change chapter 20 where all government workers are paid by performance

-Allow full local control, (modernizing oversight agencies like the Dept of Ed)

-Cutting government perks, cars, cadillac insurance plans, free travel

-Cutting the legislature to 25 senators, 50 legislators, and 40 day session

-Demand that all agencies manage for results (continuous improvement)

 I bring up this topic because we have a massive bill in committee this week called “government reorganization” This summer; the government reorganization commission developed a bill that would do some of these things I noted above:

 Eliminating phantom employees; agencies were creating fictitious employees to pad their budgets.

-Span of Control;  eliminating middle management by creating a higher ratio of manager per employees

-Combines or eliminates commissions

-Eliminates a mental health location and allows many of these patients to reside at a private facility.

This all sounds wonderful, but there are 45 parts to this bill, 150 pages loaded with items that have NO fiscal impact. The bill also removes transparency from some parts of government and in some cases; the bill passes the cost of certain programs down to local tax payers.  This begs the question?  At first blush this looks like a good bill, but unfortunately it has been corrupted by a wish list of things the democrats want, rather than true government reform.  This bill seems to be a band aid to a budget gap rather than government reform.

1-14-10 GOV’S BUDGET UNJUST TO JUSTICE

 Supreme Court Justice Marsha Ternus, In the State of the Judiciary speech, took issue with Governor Culver’s State of the State address which had been delivered a day earlier. The Justice challenged the disproportionate amount of employee cuts the Judiciary Branch received verse the increase of employees in the Governor’s Executive Branch. State government gained state employee staffing levels between 2002 and 2009 while the Judicial Branch workforce was down 7% in the same timeframe.” 

 Justice Ternus cited figures that affirmed the disproportionate 23% cut to the judicial branch where only 4% of the employees from the state were cut. She also noted the judiciary’s budget is lower than the budget of 1987, yet they have 60% more cases. She stated additional cuts “will have noticeable and dire consequences on the delivery of justice to Iowans who need court services.” It was clearly obvious as an attendee and observer that the Governor was not very comfortable with the Chief Justice’s remarks.  It will be interesting to watch the legislative budget process and see whether the Governor and the majority party will help the judicial system.

 The Chief Justice did comment that she had no plan to replace court reporters and was not interested in merging clerk of court offices, which is great to hear for NW Iowa.  I can only hope that there is enough funding to make this occur.

 Government has a duty of bringing justice to society.  (However, doing this by following the constitution)

 I really wonder who the Department of Education supports.  It’s definitely not the kids, it’s not the schools, and it is surely not the taxpayers.  Single handedly they are trying to torpedo all three of these units. The Department of Education along with the majority party is rushing to pass several bills that will hurt our local schools and taxpayers. 

 First Bill “The Dash for Cash”

 It’s actually called “Race to the Top” This is President Obama’s plan that requires the State to submit a grant for $175 million.  The Dept of Ed will get 50% of these funds and 50% will go to schools.  The money will be used for core curriculum objectives.

 Sounds great, but—There is no such thing as free money!  This is federal stimulus money that has so many strings attached that very few if any of our local schools want the money.  However, the Department of Ed wants it and wants to implement the programs that go along with it.

This begs the question; what happens when the money runs out?  Who ends up paying for this program?  Well, it will be YOU the tax payer.  It amazes me that government can take your money, put it into a grant for schools and then tax you again when the grant money runs out. 

 Second Bill “Spending down school reserves”

 Its funny how things come around from the past. In the 1990’s the Republicans passed a bill to spend down county reserve funds.  At that time Sioux County had quite a large amount of reserves.  The State required them to use the money and they built a very nice health and human service building.  Since Sioux County no longer had reserve money it had to raise taxes.  They went up by 30%. 

 This bill does the same thing.  It demands that the schools spend down there cash reserves.  Our schools in Lyon, Sioux, and Plymouth counties have very little reserve.  Yet, anything they have will be gone.  This will cause a property tax increase to fill up the reserves again.

 Also, There will be a state committee who will decide who can keep their funds and who needs to spend them.  This will be made up of a 5-member board called “State School Board budget Review Committee” This is again taking the power away from our local schools and hand it over to the State.  The Department of Education is sponsoring this bill!  

The state has a rainy day fund; maybe the federal government should mandate we cannot have one!  This is again Big Brother thinking they know what is best for local schools.

 I will be voting no on both these bills.  Again, limited government is best!

 Governor Culver gave his State of the State address today.  He sent most of his speech defending the past policies and reassuring Iowa that these past policies worked.  He seemed like a man that was trying to keep his job.  I applaud him for the effort, it was very passionate.  However, in politics, it’s always good to tell the truth. Below are a few his comments in bold and my remarks challenging his comments.

 “I didn’t raise taxes last year and will not raise taxes again this year.”

 I reject this political rhetoric. Governor Culver and the majority party raised taxes last year and will do it again this year by;  creating higher property taxes by reduced funding to schools and local governments, eliminating tax credits, and raising government fees on many items. These are tax increases.

 “Let’s end the confusion! Here are the facts. Today, the budget is balanced. And it has been balanced every single day since I’ve been Governor.” “I’m proud of the fact that on my watch we’ve earned the highest possible bond rating for good fiscal management. I’m proud of the fact that we’ve balanced the budget three years in a row, without raising taxes!”

 Well,  a balance budget is a mandated law.  We will always have a balance budget.  However, you can bond all the money want, the $180 million bond from last year will be paid for over 25-years.  This is not balancing the budget when you spend more than you take in.

 “Additionally, because of our cost savings initiatives, the budget today is “smaller” than it was on the day I took office.  But this didn’t happen by accident.  It happened because we made tough choices.  We managed the budget responsibly and effectively.”

 This current budget is the second largest budget ever in the history of Iowa. Even after the Governor’s across the board reduction this is the 2nd largest budget ever.  FY 09 was the only one larger.

-SFY08 is 5.856 billion

-FY09 was 6.1 billion

-FY10 after 10% ATB is 5.867 billion

 “In the short term, I-JOBS is creating jobs.”

 Governor Culver claims that a yes vote for his I-Jobs program was a vote for rebuilding Iowa’s economy. It was actually a vote to double the state’s debt that has temporarily employed less than 5,000 people.  Frankly, if you ask any local or county governments, you will find that they used the money on projects that were already planned to be completed. (no long-term full-time jobs were created)

 Government gets a bad name when a politician uses rhetoric to make themselves look good.  If I ever do this, call me out on it. You are the judge!