Democrats Made Calculated Decision to Tax Iowans

(DES MOINES)—Today House Republican Leader Kraig Paulsen (R-Hiawatha) called the governor’s failure to couple Iowa tax laws with federal tax law changes and allow disaster victims, students, and teachers to keep their full tax return a calculated decision, not an accident.

In February, the governor’s office received a memo from the Department of Revenue outlining federal tax changes and how they would affect Iowans’ tax bills. The governor and legislative Democrats knew in February that a failure to couple with the changes meant Iowans could not deduct disaster losses, college tuition and fees, or educator expenses from their Iowa returns.

In March, Republicans on the House Ways and Means Committee tried to force the committee to bring up the legislation dealing with the tax changes. Unfortunately for Iowans, all the House Democrats on the committee voted against the bill to allow disaster victims to fully deduct net disaster losses.

Additionally, House Republicans repeatedly requested debate on the House floor on this important issue.

“The governor is acting like this was an accident or an oversight. That is not what happened,” said House Republican Leader Kraig Paulsen. “The governor and Legislative Democrats made a calculated decision to not couple with federal law and force Iowans to payback tax returns because they needed the money for their spending plans. House Republicans stand ready to correct this error.”

It has been at least 20 years since the Legislature failed to pass a bill that couples with the federal tax changes. Even in 2000 and 2001, when the state was facing similar economic hardships, the Legislature still coupled with the federal changes.

VANDER PLAATS: CULVER, DEMOCRATS USED DEVASTATING FLOODS TO TAKE MORE TAXES FROM IOWANS

SIOUX CITY – The failure of Gov. Chet Culver and legislative Democrats to mesh the state’s tax code with federal disaster relief provisions was “simply a way to take money from people who had already suffered far too much,” Sioux City Republican Bob Vander Plaats said today.

In a story published in today’s edition of the Cedar Rapids Gazette, state Sen. Matt McCoy, D-Des Moines, said his party did not adopt the appropriate federal tax laws because the state would have taken in $56 million less in this fiscal year. Although Democrats refused to consider a GOP proposal to reduce spending by $300 million, McCoy said action to spare Iowans from the higher taxes was “a hit to the budget that, frankly, was not an option.” As a result, many Iowa flood victims who filed their state taxes early will be forced to repay refunds that were based on the federal guidelines.

“Where was Chet Culver when this was happening? Was he simply asleep at the switch again or did he go along with the plan to feed his voracious spending habit?” Vander Plaats asked. “When he signed the state budget into law, he effectively said to thousands of flood victims that he was going to balance the state budget on their backs. It was simply a way to take money from people who had already suffered too much to pay for his bloated government that consistently does less with more.”

He added, “This is the clearest evidence yet that state government doesn’t have a revenue problem; Chet Culver has a spending problem. When Senator McCoy is willing to admit that his party didn’t couple the state tax code with federal disaster relief provisions because it was ‘a hit to the budget’ that tells Iowans that we need leadership that going to look out for them rather than pick their pockets when they’ve been knocked down by a natural disaster.”

Vander Plaats said the episode also demonstrates the need to make our state’s tax structure simpler. “We’re long overdue for tax reform that helps Iowa’s working families and the people who create jobs. We’re never going to get that on Chet Culver’s watch but it will be a priority for my administration,” he said.

King: America’s Judeo-Christian Heritage Not A Political Bargaining Chip

Congressman Steve King today issued the following statement after voting against H RES 135 last evening. The resolution directs the Architect of the Capitol to place a marker in Emancipation Hall in the Capitol Visitor Center acknowledging the role that slave labor played in the construction of the United States Capitol.

“In the Capitol Visitor’s Center, we agreed to change the name of the Great Hall – which honored the immigrants that came legally to America – to Emancipation Hall to honor the 645,000 slaves and their descendants who were brought to the United States more than two centuries ago.

“Last night I opposed yet another bill to erect another monument to slavery because it was used as a bargaining chip to allow for the actual depiction of ‘In God We Trust’ in the CVC. The Architect of the Capitol and liberal activists opposed every reference to America’s Christian heritage, even to the extent of scrubbing ‘In God We Trust’ from the depiction of the actual Speaker’s chair in the U.S. House of Representatives.

“This is just the latest example of a several year effort by liberals in Congress to scrub references to America’s Christian heritage from our nation’s Capitol. Liberals want to amend our country’s history to eradicate the role of Christianity in America and chisel references to God or faith from our historical buildings.

“Our Judeo-Christian heritage is an essential foundation stone of our great nation and should not be held hostage to yet another effort to place guilt on future Americans for the sins of some of their ancestors. Christian abolitionists gave their lives by the hundreds of thousands to end slavery. Great American leaders like Dr. Martin Luther King, Jr. worshipped God just as our Founding Fathers did. We must never forget this important aspect of our heritage or use it as a political bargaining chip.”

VANDER PLAATS: CULVER CAN TAKE STEPS TO CLEAN UP HIS BUDGET MESS

FORT DODGE – Gov. Chet Culver should freeze state workers’ pay, take a serious approach to government reorganization, work with legislative Republicans who proposed more than $300 million in budget savings and “ditch his firemen-first scare tactics” to resolve a massive deficit created by his own excessive spending habits, Sioux City Republican Bob Vander Plaats said today.

“Republicans have solutions and an important first step for Chet Culver to take would be to work with our party to limit spending,” Vander Plaats said during a campaign stop in Fort Dodge. “The private sector is doing more with less these days but Chet Culver seems committed raising state spending and running a government that does less with more.”

Responding to a complaint by a Culver spokesman that the governor would have to cut education and health care spending if he followed Republicans’ advice, Vander Plaats added, “Now it seems that Chet Culver has turned into Chicken Little. When the mere suggestion of fiscal responsibility comes up, his staff starts screaming that the sky is falling. Iowans are tired of these firemen-first scare tactics. Education and health care do make up the lion’s share of the state budget. That means it’s time we look at reforming those systems to get the most from taxpayers’ dollars. Rather than defending the status quo, we need to raise state government’s commitment to excellence.”

Vander Plaats said it’s time to bring in Iowans from the private sector to recommend a government overhaul to increase efficiency and effectiveness while reducing costs. “Currently, we have legislative Democrats in charge of a committee to reform government. If that’s not a case of putting the foxes in charge of the chicken coop, I don’t know what is,” he said.

With the state facing a $903 million shortfall next fiscal year, Vander Plaats said he would freeze state employees’ merit and step pay increases that will cost taxpayers more than $120 million this year.

“A wage freeze is simple common sense,” he said. “I’m sure a number of state employees who have worked very hard do deserve pay raises but what people deserve and what we can afford are often two different things. Plenty of people in the private sector deserve pay raises, too, but they’re getting pay cuts and pink slips. State employees should not expect raises in this economic climate and under a budget that Chet Culver has mismanaged.”

Vander Plaats also urged Culver to meet with legislative Republicans to revisit their proposals to reduce state spending.

Culver has said he would “keep a close eye” on the state budget and hope the state’s economy bounces back faster than other states as a solution to a mounting state deficit. “As a business consultant, I can tell you that ‘hope and wait’ isn’t a leadership strategy. It’s a prescription for disaster and that’s exactly what Chet Culver is giving us,” Vander Plaats said. “We need someone who will have the courage to step up and fix this problem. I’ll be that governor.”

McKinley Statement on Iowa’s Bond Rating and State’s Fiscal Future

DES MOINES, IA – Senate Republican Leader Paul McKinley (R-Chariton) issued the following statement today regarding the State of Iowa’s bond rating and the fiscal future of the state:

“Governor Culver continues to be in denial about the fiscal condition of this state as a result of the massive deficits and unbalanced budgets that he and his Democratic allies in the Legislature have created because of record spending and record borrowing. The governor just put nearly $1.7 billion dollars on the state’s credit card to create temporary government work just a few short months ago and now he is again talking about Iowa’s bond rating again at a time when our state cannot afford to borrow and spend any more of our children and grandchildren’s money.

Republicans will continue to offer responsible spending cuts, will continue to fight burdensome tax increases and will continue to work to create sustainable private sector jobs that will provide a real shot of adrenaline to Iowa’s economy without growing the size and scope of state government.”

Paulsen Comments on State’s Bond Rating

(DES MOINES)— Closing the books on the 2009 fiscal year, the nonpartisan Legislative Service Agency announced yesterday that net state revenue came in $161 million below the Revenue Estimating Conference’s (REC) estimate. This news, coupled with the historic spending levels, means the 2009 and 2010 budgets are now both out of balance. Also, the 2011 budget now has a gap exceeding $1 billion.

Today House Republican Leader Kraig Paulsen (R-Hiawatha) commented on the state’s bond rating and the current fiscal condition of Iowa.

“Bond ratings are not what will help put Iowans back to work. Iowa needs a economic growth plan – not a government growth plan. The facts are clear: the governor spent too much, cut too little and borrowed even more money which led to the most spending in Iowa’s history. We now have a generation’s worth of debt, and my fear is that this irresponsible spending will be used as an excuse to raise taxes and further slow Iowa’s recovery.”

In May, the governor signed a bonding package that plunged the state $1.664 billion in to debt to pay for $765 million worth of projects. All House Republicans were opposed to these measures.

VANDER PLAATS: CULVER NEEDS FISCAL NEW YEAR’S RESOLUTION TO CONTROL HIS OUT-OF-CONTROL SPENDING

SIOUX CITY – With the start of the new fiscal year today, Gov. Chet Culver should make a resolution to control his excessive spending habits that have already pushed the state to the brink of an illegal deficit.

“The Legislative Services Agency reported today that state revenues are $123 million less than the estimate the budget was based on. That may mean the state is deficit spending or Chet Culver’s budget director may be correct in saying he can transfer enough funds to ‘manage’ the estimated $58 million shortfall. Either way, Chet Culver’s irresponsible, out-of-control spending have left state government with a deficit or just pushed it to the very edge. He needs to make a resolution to change his ways,” Vander Plaats said today. “I realize that traditional New Year’s resolutions come on January 1, but the fiscal year starts today. Besides, because of Chet Culver’s irresponsible handling of the budget, we can’t afford to wait another minute for him to start a healthier fiscal regimen.”

The Sioux City Republican added, “It takes 21 days to develop a new habit so if the governor starts today and works very hard, he’ll be able to resist his big-spending ways by the time his staff starts to work next month on the next fiscal year budget. He might even work up the ability to say no to legislative Democrats who only want to increase spending, taxes and the size of state government.”

Culver said last week that the state budget “should be all right,” despite concerns by the nonpartisan Legislative Services Agency that slumping state revenues can’t keep pace with sharp spending increases approved by Culver and the Democrat-controlled legislature since the Democrat took office in January 2007.

While, the state’s largest union agreed to a zero-percent pay raise this year, merit raises and “step increases” that move employees closer to the top pay in their grade mean state workers still will receive an average 4.5 percent raise in the coming fiscal year.

“That adds $121 million to the overspending that’s already going on,” Vander Plaats said today. “I respect state workers but we shouldn’t be giving raises when the private sector is cutting back and state government is faced with a $903 million shortfall this year because of the governor’s fiscal mismanagement.”

Culver has also said he hopes Iowa’s economy will rebound faster than other states so the state can work its way out of the financial hole he’s dug. However, a published report on Monday indicates economists expect Iowa’s employment and revenue to remain down for the next two years.

“New Year’s is a time when people often face the cold, hard facts, reflect on their shortcomings and resolve to take action and make constructive changes,” Vander Plaats said. “I’d encourage Chet Culver to do exactly that today on the fiscal new year and set the state budget back on the right course.”

Paulsen Issues Statement on New Revenue Numbers

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) released a statement today regarding the nonpartisan Fiscal Services Agency’s monthly review of the state’s revenue:

“Democrats passed the largest amount of spending in the state’s history, so we shouldn’t be surprised that we’re in this budget mess. House Republican efforts to save over $300 million in cost savings and spark job growth were thwarted by legislative Democrats. The bottom line remains the same: Gov. Culver spent too much and cut too little. House Republicans will continue to look for ways to rebuild Iowa’s economy through hard-working Iowans not big government.”

Paulsen Reacts to State Employee Raises

(DES MOINES)—Today House Republican Leader Kraig Paulsen (R-Hiawatha) reacted to news that, despite taking a pay “freeze,” some state employees will actually see up to a 9 percent increase in salary and benefits.

In addition to the merit and step raises that state employees will see this new fiscal year, they will also receive an increase in deferred compensation benefits as well as insurance premiums. These benefits add up to an $886,000 and $474,000 increase respectively.

“At a time when the government’s current budget is out of balance and next year’s budget is facing a billion dollar hole, it’s irresponsible to be handing out salary increases and benefits,” said Paulsen. “While private sector employees are dealing with layoffs, furloughs, and higher health insurance premiums, state government is actually doing the opposite. Only in government does a pay freeze cost the taxpayers over $120 million.”

Today marks the first day of the 2010 fiscal year.

Culver, Legislative Democrats’ State of Denial and Failed Fiscal Leadership Leaves Iowa With Unconstitutional State Budget

Republicans and independent expert economists have continually warned Governor Culver and legislative Democrats about the perils of their massive overspending and now Iowa taxpayers will pay a big price

DES MOINES, IA – Senate Republican Leader Paul McKinley (R-Chariton) issued the following statement today regarding the beginning of Iowa’s new fiscal year and the news that Iowa’s FY2009 budget, which ended yesterday, is likely unbalanced, a violation of the Iowa Constitution:

“The Iowa Constitution requires our state to operate with a balanced budget yet the fiscal year that ended yesterday leaves Iowa with an unbalanced budget. Republicans and independent expert economists for the past few years have consistently and continually warned Governor Culver and legislative Democrats, who remain in a state of denial about Iowa’s budget, that Iowa’s taxpayers cannot afford the record spending, record borrowing and record deficits.

Governor Culver seems to be auditioning for the role of Gilligan. While taking Iowa taxpayers on a three hour tour, the governor has let go of the rudder of the ship, cannot read the compass and his crew members, legislative Democrats, have ignored the life preservers thrown their way by House and Senate Republicans in the form of hundreds of millions of dollars in responsible budget cuts. Had the governor and legislative Democrats followed the leadership of Republicans and ended the purchasing of new state vehicles, slashed millions out of the pens and paperclips fund, banned the state from paying for blackberries for bureaucrats among many other smart budget savings ideas, Iowa taxpayers would not be facing these serious fiscal problems.

Unfortunately, today starts a new fiscal year and the prognosis for Iowa’s new budget, the largest in the 163 year history of Iowa, does not look better as independent and non-partisan analysts with the Legislative Services Agency (LSA) have already pegged the new budget to have over a $900 million dollar deficit. Senate Republicans will continue to offer real fiscal leadership for Iowa because the taxpayers of this state cannot afford more of the same out-of-control spending practices that have been implemented by Governor Culver and his allies in the Legislature that are responsible for this mess.”