House Journal: Page 38: Tuesday, January 15, 2002
wage of more than $18 an hour. Last year, 33 projects were funded with state grants,
helping to create nearly 3,000 new, good-paying jobs for Iowa workers. Today in Iowa,
there are 7,000 more Iowans working-in the depth of a recession-than there were in
January, 1999-at the height of prosperity.
More is on the way: With the passage of landmark electric generation legislation,
utilities are poised to invest $3 billion in new construction and generation capacity,
helping to create hundreds more quality jobs.
This is real progress. Lasting progress. Rather than squandering the rare oppor-
tunity good times afforded us, we made investments that will yield dividends to our
state for years to come. And we did it while delivering an unprecedented $800 million
in annual tax relief to Iowa citizens and businesses - and holding general fund growth
to little more than two-percent a year.
And that two percent-a-year represents the lowest rate of growth in spending by
Iowa state government in thirty years. That’s why the Wall Street credit agencies
recently awarded Iowa another superior financial rating, which means we continue to
enjoy lower borrowing costs than most other states. That’s why Governing Magazine
gave Iowa an A-minus grade for our fiscal stewardship - the second highest ranking out
of all the states. I take great pride in that grade, and so should you. Our standing as a
fiscal leader among the states reflects a fundamental Iowa value.
Today, we face a new challenge - the challenge of governing in hard times, when our
dilemma is not how to apportion great bounty, but how to manage scarce resources.
The national economic winds that propelled us to great heights for much of the last
decade have shifted. Across America, at least forty-four states are currently facing
sudden, deep, and unpredicted drops in revenues.
In neighboring Illinois, the state budget faces a $500 million shortfall. Wisconsin
faces a deficit of $300 million, with estimates climbing to $1.3 billion by the year 2004.
Lawmakers in Missouri have already cut $600 million in their budget, and may have to
cut another $500 million in Fiscal Year 2003. The governor of South Dakota has
recommended that his state use nearly $12 million in reserve funds this year, and
another $36 million next year. And our neighbor to the north, Minnesota, is short $2
billion.
A decade ago, two decades ago, when faced with similar challenges, past Iowa
governors and legislatures responded by raising taxes. We did not. Instead, we cut
taxes. We reorganized. We sacrificed - and we asked for sacrifice.
The prudent action that we took together in last November’s special session pared
$186 million from the budget and stabilized our state’s fiscal condition. We have also
undertaken important reforms in how Iowa government does business, to increase
efficiency and better serve families and communities across our state.
Improvements in the Department of Transportation and Department of Natural
Resources will push decision-making closer to people and communities - reducing
management and putting workers in the places they are most needed. And our reform
of the Department of Human Services will eliminate layers of bureaucracy while
© 2002 Cornell College and
League of Women Voters of Iowa
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