DES MOINES – Democratic state legislator Todd Prichard says it’s time to protect the state’s budget and “stop balancing the budget on the backs of workers.”
In his latest legislative update, Prichard said:
The 2017 Legislative session opened last week at the Capitol and I was fortunate to be in attendance. In the first week, usually no real legislation is passed but instead we hear from State leaders like the Governor and Chief Justice of the Supreme Court. Every year I am sure to pay close attention to the Governor’s address as he will outline his legislative priorities and concurrently release his budget proposal for the coming year. As many of you may know, this current and coming year will be a tight budget year. Unfortunately, it looks like the state is short of its current budget by $115 million and the Governor is proposing wide ranging cuts to state departments to deal with the short fall.
The causes for this shortfall are many. For reasons that are unclear at the moment, revenue or tax collection receipts are down unexpectedly from previous estimates. There are likely a number of factors driving this trend. Farm commodity prices are low and that affects income across Iowa’s economy. Also, revenue from corporations is down last year over 9% due to corporate tax breaks.
The Governor’s speech paid the usual lip service to education (a paltry 2% increase in school funding) and job growth and job training. While I generally support what the Governor is hoping to do, unfortunately, he has cut the state revenues too short to be able to fund any economic growth initiatives. Given the short fall in revenue, the state can’t fund the Governor’s priorities.
After the Governor’s Tuesday speech to the Legislature, on Wednesday the legislature also heard from Iowa Supreme Court Chief Justice Mark Cady. Justice Cady talked about programs the Iowa Courts are implementing to divert juveniles from criminal activity and the success drug courts have to keep addicts from entering the prison system. My take away from Justice Cady’s remarks was that programs that target treatment and other options short of sending nonviolent offenders are reducing repeat offenders and saving money for the state by decreasing the prison population. Unfortunately, the Governor’s budget proposal cuts the Judiciary budget by $8 million. Again the tight budget situation will hamstring the courts’ ability provide innovative and cost saving programs to Iowans.
The situation for the state is unfortunate. The Governor’s schools, courts, universities, community colleges, veterans, the state patrol (and many other important departments and programs) are all facing serious cuts to deal with the drop in revenue. This is the Governor’s solution, cut programs that aid Iowans.
There is another option to deal with budget cuts, cut tax breaks for corporate interests. This year, the state plans to provide over $400 million in various tax credits. Many of these tax credits help working Iowans and families. However, many credits don’t seem to benefit anyone except corporate interests. The Governor and the legislature need to reevaluate our generous tax credit system to 1) ensure a benefit to the people of the state and 2) avoid too many give a ways to out of state corporate interests.
It time to stop balancing the budget on the backs of workers and ask corporations to pay their fair share.
Iowa already has one of the highest corporate tax rates in the country. Raising them again will result in more job losses.
Correction: Iowa has THE HIGHEST corporate tax rate in the country at 12%. Todd Pritchard wants to raise that. Great idea. What corporation would possible want to come to Iowa under Pritchard’s draconian tax hikes?
Get educated here: http://taxfoundation.org/article/state-corporate-income-tax-rates-and-brackets-2016
Democrats Republican (public servants) regard a budget as a nuisance unlike a middle class family who has to live by it – you and I both know that if a public service department has say $10,000.00 in their budget for an item they will by the item (even if they don’t need it or they will forfeit the money and it will reduce their overall budget for the next year – Happens 100% of the time -once it’s i place it never goes away – like the approx. $5.00 tax on your phone bill that was placed there during the Spanish-American WAR – I shit you not – do your own research libtard.
Hey dumbass, that tax was repealed 10 years ago.
Do your own research pubtard.
At least he is looking out for the working taxpayer.
Bull Crap. He is like all Democrats. All mouth and no action. They do this every year and nothing changes. That is why the Democrats lost.
Shouldn’t you give him a chance like you want everybody to do for our new President? Oh, wait. That kind of thing only applies when it comes to people who you think are good people.
He had his chance just like all the other Democrats and all they did when they had control was shoot off their mouth. Just like Ragan and Steckman. All talk and no action.
In other words, you didn’t read this because it contains facts.
If there is one thing that describes the new “reality” during the President Trump era, it is best summed up by Trump’s counselor Kellyanne Conway recent comment.
“Donald Trump’s team has ‘alternative facts.’” – Kellyanne Conway
That pretty much says it all.
Alternative facts are not facts, they are falsehoods.
Welcome to the Trump circus.
He is starting his run for Governor already.