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.