Culver balances budget with $45.3 million transfer

By James Q. Lynch

The Gazette

DES MOINES -- Iowa has closed the books on fiscal 2009 without raising taxes or holding special legislative session to balance the budget, Gov. Chet Culver announced Friday.

It did require the governor to transfer $45.3 million from the state's Emergency Fund to bring the budget into balance. Under Iowa law, the governor has the authority to transfer up to $50 million to balance budgets at the end of the fiscal year.

Still, Culver, who early in the fiscal year ordered a 1.5 percent across-the-board budget cut and took other measures totaling nearly $180 million, said he kept his word to balance the budget without raising taxes.

“We did it because, in good times and bad, we've managed the state's finances,” Culver said.

“In spite of the economic challenges brought on by the world-wide recession, and a projected shortfall for the fiscal year 2011 budget, Iowa not only has a balanced budget for fiscal year 2009 but a budget surplus of well over $450 million for the current fiscal year.”

Culver said he will take the same approach this year – cutting spending while holding the line on taxes.

Despite gloomy predictions, “We are not going to overreact or under-react but will do what is necessary to maintain Iowa's financial strength in the midst of this national economic recession, he said.