Highlites from the Senate

The majority of our time before this week was spent in committee meetings preparing bills for debate on the floor. The deadline for most of those bills to “funnel” out of committee has now passed. The legislature now will begin debate on those bills as work continues on finishing the budget process.

The House of Representatives had set budget targets a week earlier than the Senate because our Appropriation Committee CoChairs were looking for common ground. Unfortunately, that resulted in two differing sets of targets being offered. The Senate Democrat’s version would grow state government at a rate of 9.5% - faster than the Iowa economy is growing. Their budget includes tax increases and “revenue enhancements” that I would consider to be tax increases. The Republican version increases the budget by 4.5%, but that is sustainable and would grow with the Iowa economy.

Iowa is showing a much stronger recovery from the economic downturn than all of our neighboring states. Much of that is due to our fiscal responsibility and the decision to not impose tax increases during the economic slump. I have trouble justifying any tax increase when revenues are coming in at a record high pace. There is an old adage, “if you want more of something you subsidize it - if you want less you tax it.”

If revenues continue to flow into our state coffers at this accelerated rate, it will be imperative that we start refilling our depleted reserves. To be disciplined and follow through with this plan will be a difficult task if there is irresponsible state spending.

As you can see, much work needs to be done before we find a resolution to the differing approaches to the budget. The system may be cumbersome, but the issues are always resolved at the end of the day.

Representative Gipp and I hope you will join us at our next town meeting. Saturday, March 19, we will be at Harpers Café in Harpers Ferry. The forum will get started at 9 a.m. Please come and share your views on the issues and a cup of coffee with us.