Paulsen Calls for Spending Freeze

House Republican Leader Kraig Paulsen (R-Hiawatha) today requested that Gov. Chet Culver instruct department directors to freeze all discretionary spending.

Paulsen and House Republicans say the move is necessary to align ongoing expenditures with ongoing revenue. Currently, the governor’s budget uses over $700 million of one-time funds to cover the Fiscal Year 2011 general fund ongoing expenditures. By freezing state spending, House Republicans will be able to review all spending for the FY 2011 budget and identify specific spending reductions.

“Iowans elected us to be responsible with their tax dollars and reduce spending that was passed by the previous legislature,” said Paulsen. “We will waste no time in balancing the budget and reducing the size of government.”

November 3, 2010

The Honorable Governor Culver,

In light of yesterday’s election results and with the pending transition of leadership in the House and the Executive branch, we are beginning the hard work of aligning ongoing expenditures with ongoing revenue.

Due to the use of over $700 million of one-time funds to cover the FY 2011 general fund ongoing expenditures, we believe it is necessary to reduce the amount of general fund expenditures.

To accomplish this task, we are requesting you direct your department directors to freeze all discretionary spending until the Legislature convenes in January. This will enable us to review all spending for the FY 2011 budget and identify the necessary spending reductions to protect Iowa’s priorities.

You have our commitment to work in a positive and proactive way to support an effective leadership transition for the benefit of all Iowans.

Sincerely,
Kraig Paulsen

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