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Republican gubernatorial candidate Terry Branstad, left, and Auditor David Vaudt, right, went to Fairfield on Wednesday to argue that Branstad will be more fiscally responsible as governor than Gov. Chet Culver. Branstad is seeking to return to the office he held for 16 years in the 1980s and 1990s. Matt Milner/The Courier
Branstad focuses on fiscal responsibility
Solution pressed by gubernatorial candidate is strict adherence to state’s spending limits
FAIRFIELD —
Former Gov. Terry Branstad blasted Iowa’s spending habits on Wednesday, saying they are unsustainable and must change.
Branstad’s comments in Fairfield were part of his ongoing campaign tour of Iowa focusing on fiscal responsibility. He is traveling with fellow Republican and State Auditor David Vaudt to discuss what they call the looming “revenue cliff,” and what the state needs to do to avoid severe economic pain.
The pair tag-teamed for much of the presentation in Fairfield, with Vaudt giving a more technical explanation followed by a simile from Branstad to drive home the point. Vaudt said the state has spent more than its revenues for years, funded in part by borrowing. The state’s bonds aren’t a stable source of revenue, he said, and that money runs out in 2012.
Vaudt’s projections show drastically lower revenue when that happens. That means either spending must be slashed or the state will face massive deficits.
“We turned to any other money we could find,” Vaudt said of the past several years.
“We’re breaking every piggy bank,” Branstad agreed.
Branstad compared the record of the Legislature and his rival Gov. Chet Culver to “paying your utility bill with your credit card.” The bill gets paid this month, but you get another one next month, plus the credit card bill with interest added.
The primary solution pressed by Branstad is strict adherence to the state’s spending limits. Iowa’s constitution caps spending at 99 percent of revenues, building in a cushion each year. Branstad charged his opponent and legislative leaders pass too many bills that authorize spending, constitutional limits “notwithstanding.” In essence, the language creates an instant loophole.
“I’ll veto any bill that violates the 99 percent spending limit,” Branstad said.
Some of the discussion about cutting state spending raised concerns for Fairfield Mayor Ed Malloy. Fairfield receives money from state programs like the Iowa Power Fund and the state’s Great Places initiative. He wanted to know whether Branstad’s cuts would mean restrictions for similar programs.
Branstad didn’t address specific programs he would protect, but said the state “is probably not going to be able to do everything.” He wants to be able to take close looks at each of the programs and determine whether they can be cost effective.
The key question is whether the programs accomplish what officials said they would and whether there is a clear benefit to Iowa. If there is, the program will be seen in a better light by a Branstad administration.
“I think you know from my previous record I’m pro growth,” he said. “I’m very pro investment.”
Finding savings will also involve Kim Reynolds, Branstad’s pick for lieutenant governor. Reynolds served as a county treasurer for years before winning a seat in Iowa’s senate. Branstad said that expertise and her ties to county officials will make it easier for his administration to honestly engage local governments and work together to find ways to help each other.
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