Branstad withdraws from trade mission due to budget impasse

DES MOINES - Gov. Terry Branstad officially bowed out of participating in an upcoming trade mission to South Korea and China, saying he will stay in Iowa to continue working to negotiate a new state budget for the 2012 fiscal year that begins on July 1.

Branstad told his weekly news conference that Lt. Gov. Kim Reynolds will lead the Iowa delegation when it travels abroad on June 6 for a 10-day mission that could hold the potential for billions of dollars of investments and thousands of jobs for the state.

“I intend to stay here and hold their feet to the fire,” he said.

The governor said the sticking point that currently is holding up a budget agreement is the level of future spending. Branstad and House Republicans have agree to hold state spending for fiscal 2012 at $6 billion while Democrats who control the Senate want to spend more – especially a higher level of funding for K-12 schools, community colleges and regent universities.

Branstad acknowledged that his administration is putting together contingency plans in the event the new fiscal year arrives July 1 without an authorized budget to fund state government operations. However, he said there was no reason a fiscal 2012 spending plan could not be hammered out in June to avoid a possible govenment shutdown.

“I am not anticipating an emergency. I will deal with it if it happens,” he told reporters. At the same time, Branstad said his message to lawmakers would be “we've got a month to resolve it and get busy.”

The governor noted that last week, he acknowledged his preschool bill would likely not be passed. He also acknowledged last week that his corporate income tax reduction plan would likely not survive this session. Added to today's announcement that he will not participate in the trade mission, the governor believes it is time for the Senate Democrats to step up and present a plan.

“So, while I have taken a number of issues off the table, Senate Democrats won't even put a plan on the table,” said Branstad. “I believed we were on our way to a resolution of this year's budget.”

The House and Senate are slated to hold brief gavel-in and gavel-out meetings with skeleton crews of lawmakers while the budget impasse continues.

Comments: (515) 243-7220; rod.boshart@sourcemedia.net

DES MOINES - Gov. Terry Branstad officially bowed out of participating in an upcoming trade mission to South Korea and China, saying he will stay in Iowa to continue working to negotiate a new state budget for the 2012 fiscal year that begins on July 1.

Branstad told his weekly news conference that Lt. Gov. Kim Reynolds will lead the Iowa delegation when it travels abroad on June 6 for a 10-day mission that could hold the potential for billions of dollars of investments and thousands of jobs for the state.

“I intend to stay here and hold their feet to the fire,” he said.

The governor said the sticking point that currently is holding up a budget agreement is the level of future spending. Branstad and House Republicans have agree to hold state spending for fiscal 2012 at $6 billion while Democrats who control the Senate want to spend more – especially a higher level of funding for K-12 schools, community colleges and regent universities.

Branstad acknowledged that his administration is putting together contingency plans in the event the new fiscal year arrives July 1 without an authorized budget to fund state government operations. However, he said there was no reason a fiscal 2012 spending plan could not be hammered out in June to avoid a possible govenment shutdown.

“I am not anticipating an emergency. I will deal with it if it happens,” he told reporters. At the same time, Branstad said his message to lawmakers would be “we've got a month to resolve it and get busy.”

The governor noted that last week, he acknowledged his preschool bill would likely not be passed. He also acknowledged last week that his corporate income tax reduction plan would likely not survive this session. Added to today's announcement that he will not participate in the trade mission, the governor believes it is time for the Senate Democrats to step up and present a plan.

“So, while I have taken a number of issues off the table, Senate Democrats won't even put a plan on the table,” said Branstad. “I believed we were on our way to a resolution of this year's budget.”

The House and Senate are slated to hold brief gavel-in and gavel-out meetings with skeleton crews of lawmakers while the budget impasse continues.

Comments: (515) 243-7220; rod.boshart@sourcemedia.net