Branstad says he'd cut spending in targeted areas

Republican gubernatorial nominee Terry Branstad Monday defended his proposal to cut government spending by 15 percent over five years, arguing that it'd focus on targeted reductions instead of an across-the-board cut like Gov. Chet Culver did in 2008.

During a visit to Hawkeye Community College, Branstad said one of the first things he'd implement as governor is a package of savings House Republicans proposed last year that they estimated would save up to $300 million. Any other savings would come from a top-to-bottom review of state government, he said.

“That doesn't mean the budget goes down by 15 percent,” Branstad said. “We spend less on the cost of government. That means we have more money available for education, for property tax relief and things that will make Iowa better and more competitive.”

Branstad accused the Culver administration of crafting budgets that spent at least 15 percent more than the state took in from tax receipts. Lawmakers then used one-time funding sources like the state's leaking underground storage tank fund and federal stimulus money to balance the general fund budget.

“That's basically gone,” Branstad said. “The chickens have come home to roost.”

Other savings Branstad pointed to included selling the state's fleet of vehicles and leasing them back - which would save up to $34 million - and reducing the number of government positions.

The spending proposal has become a flash point in the race over the last week, as Culver accused Branstad of “back-pedaling” on the plan's effectiveness and specifics. Culver said Branstad was promising to both cut and increase spending in a telephone conference with reporters earlier Monday.

“His campaign needs to get their story straight,” Culver said. “They've had two different positions on this since last week.”

Culver argued that the cuts would add up to $800 million less in state coffers for education, public safety and health care and said Branstad was being “really reckless and irresponsible.”

Culver said the cuts would also be offset by Branstad's promises of increased spending for more education programs and to cover his other proposal to reduce corporate income and commercial property taxes by 40 percent. That second proposal could add up to $400 million to the state budget, he said.

Troy Price, a Culver spokesperson, also said Branstad was “being hypocritical” by appearing at Hawkeye Community College since the cuts could result in a loss of $23 million for Iowa's community colleges, including a $1.6 million loss for Hawkeye.

However, Jeff Boeyink, Branstad's campaign manager, said Culver appeared to be confused over the budget, and called the phone conference an act of desperation. Boeyink and other campaign officials said Culver didn't attend his own budget hearings, and seemed believe his only means of cutting spending was an across-the-board cut.

Branstad instead said he'd look at targeted cuts.