Governor needs to get 'real' about revenue:Roberts

Criticism of Gov. Chet Culver's optimistic reaction to the latest state revenue numbers continues from Republicans seeking to replace him.

Republican gubernatorial hopeful Rep. Rod Roberts of Carroll has called on Culver, a first-term Democrat, and his staff to be more honest with Iowans about the condition of the state's finances.

“Iowans need a governor who will be ‘real' with them about the health of the Iowa economy,” he said after the governor's office claimed Monday that the state experienced a boost in revenue for July. “Iowans realize that we are in an economic recession … and the governor needs to be upfront about how the recession is affecting the Iowa economy.”

Culver spokesman Phil Roeder said Roberts is an echo of earlier Republican attacks.

"Republicans might want to spend a little more time reading and a little less time attacking," Roeder said. "As the governor said, while the increase in gross revenue is positive, we need to continue with our work to strengthen the economy and be prepared to cut the budget if needed."

The slight increase in gross revenue reported by the non-partisan Legislative Services Agency was  due to a bookkeeping change that credits the state with receiving tax dollars that must be passed along to local school districts, Roberts said.

Net revenues -- not gross revenues -- should be used to determine the health of the Iowa economy, Roberts said. Net revenues dropped 6.1 percent for July when compared to July 2008, the LSA said.

“Net revenue is the amount which the state actually has to spend,” he said. “It is the true indicator of the health of the state's economy. By focusing on a slight increase in artificially inflated gross revenue rather than a sizeable decrease in net revenue, the governor's office is not being straightforward about the true health of Iowa's economy.”

Culver hasn't been “real” with Iowans about the condition of the state budget, Roberts said. Republican claim the state is in a budget crisis, facing a $1 billion spending gap in 2011.

Iowans “don't need a governor who denies the state's fiscal challenges; they need a governor who will acknowledge them,” said Roberts.

The solution to the state's budget crisis is to enact fiscally responsible policies, according to Roberts, who called for reducing spending and keeping taxes low on businesses and families.

Rather then denying the state's financial condition, Roeder said Culver has been real. Republicans, on the other hand, have ignored the fact the state's gross revenues improved, albeit slightly, Roeder said.

"By any measure that is a step in the right direction,” he said, and when combined with recent economic indicators "there are early signs of improvements in the economy.”