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It’s time to confront our state’s spending problem
Drew Klein, guest columnist
Jan. 17, 2016 5:00 am
With over over $19 billion of debt hanging over us - $37 billion when you factor in unfunded pension liabilities - our state government has created a weak and unstable economy for working Iowans. Just like any problem, if nothing is done to address it, it will only become worse.
How did we get ourselves into this hole? Every year, our spending increases with lots of bickering over where the increased spending will go, but little attention paid to whether the spending from last year or the last decade still is necessary. Last year's budget was a record $7.3 billion; an increase of 5 percent from the previous year.
To put that in perspective, just 10 years ago our state budget was at $4.3 billion. That means government spending has skyrocketed by 70 percent, or $3 billion in just a few short years. Typically, it's not uncommon for a state's budget to increase over a ten-year period, but a budget increase should reflect a growth in population or inflation. Here's the catch: neither the population nor inflation in Iowa have grown at that rate, meaning spending is unsustainable and our state government has become too large.
So how do we address this spending problem? As private citizens, we all have to live within our means and evaluate all of our spending at times. There is no reason our state government should be exempt from that same standard. We need to ensure that the state doesn't spend more than in takes in, but furthermore, we must emphasize that having a dollar is not justification to spend a dollar.
Step one is to implement a zero-based budgeting plan. This requires lawmakers to scrutinize all of the state's spending rather than just the new spending. It would bring an end to the trend of automatic spending increases that ultimately leads to government waste, unaccountability and higher taxes. It will encourage the elimination of ineffective and wasteful programs and duplicated processes - allowing a reallocation of resources from poor-performing government initiatives to more accountable projects or much needed tax relief for workers in our state.
The good news is Iowa has made progress toward implementing a zero-based budgeting plan. Last March, the Iowa House passed House File 352, which would require state agencies to use zero-based budgeting when submitting their annual funding requests. Unfortunately, the plan died in the Senate but with a new legislative session beginning, the opportunity to implement a revised budget plan is now.
We have a few options when it comes to dealing with Iowa's spending problem. We can continue down the same road and resume passing budgets that seemingly ignore the Iowans that foot the bill. We can pretend that this problem doesn't exist and by some miracle, it will sort itself out. Or, we can admit Iowa has a spending problem. We can start taking concrete steps to address that problem and reign in out of control spending. We owe it to ourselves and future generations of Iowans.
' Drew Klein is the Iowa State Director of Americans for Prosperity, an organization that exists to recruit, educate, and mobilize citizens in support of the policies and goals of a free society at the local, state and federal level, helping every American live their dream - especially the least fortunate. Comments: dklein@afphq.org| @klein_drew
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