Republican Leader Comments on Governor Culver’s Property Tax Increase

(DES MOINES)-House Republican Leader Kraig Paulsen (R-Hiawatha) commented on the across the board cuts and resulting tax increases which Gov. Culver made today. 

“Today the governor raised property taxes,” said Paulsen. ”The result of this across the board cut is higher property taxes for Iowans. A tax increase thatcould have been avoided by better management of the state budget. The governor is pushing his out-of-control spending problem on to the backs of Iowans.”

Among other things, an across the board cut reduces the state funding for the K-12 foundation formula. This is the amount the state provides school districts on a per pupil basis. If the state does not provide its statutory share, school districts have three options: cut spending, use reserves or raise property taxes. As a result of his actions, hard-working Iowans could see their property taxes increase as much as $245 million.

During the 2009 legislative session, House Republicans offered over $330 million in cost-saving measures. Nearly all were rejected by legislative Democrats. Also rejected by Democrats was a searchable budget database accessible to Iowans that allows them see how the state is spending taxpayer dollars. Paulsen points to Republican’s targeted and meaningful budget efficiencies as more responsible than resorting to haphazard across the board cuts.

“The governor should instead look at cost-saving measures to eliminate unnecessary and wasteful government spending,” said Paulsen. ”House Republicans will continue to offer sensible solutions and reduce spending rather than asking the taxpayers to pick up the tab.”

Paulsen Comments on Revenue Estimating Conference

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement regarding the Revenue Estimating Conference newest report on Iowa’s revenue.

“The news from the Revenue Estimating Conference, while troubling, is not surprising. Gov. Culver signed the largest budget in the history of Iowa and his $1.7 billion borrowing plan has not worked. The out-of-control spending and lack of fiscal discipline expressed by legislative Democrats has caused the economic mess Iowa is currently in.

“Even though we face economic turmoil, House Republicans remain ready to offer cost-saving measures, oppose tax increases, and increase transparency in state government budgeting.”

Paulsen Issues Statement on Film Office Report

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) issued the following statement in response to the program review of the Iowa Film Office:

“It is outrageous that the executive branch has been administering this program for two years in violation of the laws passed by the Legislature.

“Regular Iowans are not allowed to sidestep the law and state government cannot be allowed to either.

“This is another example of why House Republicans offered proposals last year to provide a more open and transparent state government. Regrettably, these were defeated in the Senate.”

Paulsen Issues Statement on Revenue Numbers

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha issued the following statement today in regards to the nonpartisan Legislative Services Agency’s report that revenue was down $141 million or 9.1 percent compared to the first quarter of FY 09.

“Based on the numbers released today and the recent record unemployment numbers, it’s clear that the governor’s $1.7 billion borrowing plan is simply not working.

“We continue to be in this fiscal mess because Gov. Culver signed the largest budget in the history of Iowa. I have very serious concerns that Gov. Culver will use this as an excuse to raise taxes on hard-working Iowans. The problem has now carried in to the 2010 budget, which is clearly out of balance.

“House Republicans offered over $337 million in budget savings during the last legislative session and we will continue to offer ideas and create a plan that brings Iowa’s checkbook back into balance without shifting more burden to the taxpayers.”

Please find the LSA report here:

http://www.legis.state.ia.us/lsadocs/MonMemo/2010/MMSLS001.PDF

House Republican Leader Statement on 2009 Budget

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement today in response to the governor dipping into the economic emergency fund to balance the 2009 budget:

“The governor’s actions today once again prove that Legislative Democrats and Gov. Culver were reckless with taxpayer dollars, spent too much money, and borrowed even more to cover their excessive spending.

“When the 2009 books closed, the governor came up short so he raided our savings account to balance the checkbook. Not only is this kind of budgeting irresponsible, but it also puts Iowa’s economic future for fiscal year 2010 and 2011 in further turmoil.

“House Republicans remain committed to reining in out-of-control spending and protecting Iowa taxpayers.”

Culver Hires Consultant to Explain Budget

(DES MOINES)—As Gov. Culver’s staff put the final touches on a plan to spend $300,000 on an out-of-state consultants to find budget savings, House Republican Leader Kraig Paulsen (R-Hiawatha) encouraged the governor to instead enact savings offered by House Republicans earlier this year.

“Gov. Culver is spending money to find solutions that we offered in April,” said Paulsen. “House Republicans’ list of savings would have increased transparency, brought more accountability to budgeting and reduced unnecessary spending.”

In March, Republicans launched a website to gather Iowans’ input on cost-saving measures. Soon after, House Republicans offered these suggestions, among others, such as selling part of the state vehicle fleet and reducing office supplies, which were nearly all rejected by Legislative Democrats.

“It’s clear the governor continues to not understand his own budget,” said Paulsen. “House Republicans will continue to offer savings and stand ready to meet with him to discuss solutions that will save the taxpayers money and make government more efficient.”

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.

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.

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.