With budget impasse in fifth week, Iowa Democrats take debate on the road

CEDAR RAPIDS - Iowa Democrats called on Gov. Terry Branstad and House Republicans to drop their “just because” $5.999 billion budget cap and break a budget stalemate they say already is hurting the state.

With the budget impasse extending into a fifth week past the Iowa Legislature's scheduled adjournment, Democratic legislators brought out State Treasurer Mike Fitzgerald to reinforce their message that the state's fiscal house is in order and Iowa can afford to fund its priorities.

“I understand they are trying to make a point to their people they want to be fiscally sound and have a tight budget,” Senate Appropriations Committee Chairman Bob Dvorsky, D-Coralville, said at a news conference June 1 at the Cedar Rapids Museum of Art. “Why wouldn't they go along with having a tight budget and funding schools? I don't understand that. I really don't.”

House Speaker Kraig Paulsen, R-Hiawatha, isn't surprised that Democrats want to spend more than Republicans.

However, he warned that while the Iowa's economy, including state revenues, is showing signs of recovery, “there are signs of weakness, as well - especially gas prices.”

The budget Senate Democrats approved “spends more money in ongoing expenses than we have in ongoing revenue,” Paulsen said. “House Republicans think that's a huge problem and, quite frankly, irresponsible.”

House Republicans and Branstad are insisting they won't spend more than $6 billion in fiscal 2012. They say the message of the 2010 election that saw Branstad oust an incumbent Democrat and Republicans gain control of the House was that Iowans want the state's fiscal mess cleaned up.

There is no mess, Fitzgerald said.

“The state of Iowa is in a strong financial position,” he said.

Fitzgerald pointed to a balanced budget, a projected budget surplus, ample reserve funds and a AAA credit rating as indicators of the state's fiscal strength.

“Iowa is the envy of many states that are facing serious budget shortfalls,” Fitzgerald said. “We will end fiscal year 2011 with nearly $1 billion in the bank.”

Democrats heard the same message about spending, Dvorsky added.

“We got the message on being fiscally sound, so we're cutting back on all of these things,” he said.

Allowable growth has been a major sticking point in budget negotiations. Democrats budgeted for a 2 percent increase. Republicans offered no increase but budgeted about $216 million to backfill underfunding in the current budget approved when Democrats controlled the Legislature and governor's office.

“We will never agree to 0 percent,” Sen. Rob Hogg, D-Cedar Rapids, said. “Two percent is the reasonable minimum amount.”

Democrats might agree to less than 2 percent, Dvorsky said, “and still get the job done. There's a way to do it if people want to do it.”

Paulsen said he's flexible.

“There's an opportunity to move and accommodate within a total budget that is fiscally responsible,” he said, “but they just want to spend more money. When I've asked for specific proposals, I can't get a breakdown. When I ask, ‘How much?' I can't get an answer to that.”

One thing Democrats and Republicans agreed on is their frustration with the lack of progress.

Democrats said Branstad needs to be at the bargaining table rather than sending his staff to meet with them.

Paulsen said Democrats need to be at the table rather than spending their time on a “road show.”

“They seem to think that's a better strategy than negotiating,” Paulsen said. “House Republicans are very committed to getting this done to avert the shutdown Bob Dvorsky keeps talking about.”

The House will be in session Thursday. The Senate will be back Friday.