State Auditor Mosiman Praises House Republican Budgeting Principles

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State Auditor Mary Mosiman, in fulfilling her duty as the “Taxpayers’ Watchdog” to report directly to the people of Iowa on the condition of the State’s finances, has completed her review of the Final Action Fiscal Year 2014 budget. Mosiman said, “The first rule of fiscal sustainability is to not spend more than you take in, and this budget delivers in that regard. This budget is significant because it virtually erases the spending gap that has existed for years in our State’s budgets.”

Final Action Budget Continues to Reduce Reliance on One-Time Monies

Auditor Mosiman said, “The poor budgeting practice of shifting ongoing General Fund costs to onetime or limited-time monies has been severely curtailed. The Fiscal Year 2014 adopted budget reduces the reliance on one-time monies to just $36 million – a huge improvement over past years.”

Improved Revenues and Fiscal Discipline Nearly Eliminate Spending Gap

The Final Action Fiscal Year 2014 budget reduces the spending gap from $764 million in Fiscal Year 2011 to under $17 million in Fiscal Year 2014. Auditor Mosiman said two factors led to the dramatic, three-year reduction in the spending gap—8.8% average annual revenue growth with modest, 2.9% average annual spending growth. Mosiman said, “The Final Action budget reflects a continued focus on long-term sustainability of services instead of only thinking about the next year. For the first time in years, Iowans have a budget that does not spend more than it takes in on an ongoing basis.”