GOP leader: Culver cuts will raise property taxes

House Republican Leader Kraig Paulsen, Hiawatha, charged Gov. Chet Culver's cut in aid to schools will result in a property tax increase possibly greater than a half billion dollars.

The governor's 10 percent across the board cut reduced the state funding for the K-12 foundation formula by $235 million. Dec. 1 Culver said he does not intend to restore any of his cuts to allowable growth.

Ultimately, school districts have no place to find this money other than through increased property taxes even if school districts use available reserve funds because they will refill those reserves through property tax increases, Paulsen said. So as a result of Culver's cut, Iowans are now faced with a potential $540 million tax increase for Fiscal Year 2011, Paulsen said.

“Iowans do not need higher property taxes, they need real leadership from their elected officials and willingness to dive into budgets and find real efficiencies,” said Paul “House Republicans will continue our efforts to do just that.  We will not support raising Iowans' taxes.”

Culver's staff disputed Paulsen's claims and his numbers.

"Culver is opposed to increases in property taxes, and that is why he will propose to the legislature in January a bill that will require schools to spend down a portion of their reserves before considering any such increase," his spokesman Troy Price said.

Paulsen, Price said, seems to be making assumptions about restoration of the governor's budget cuts -- "otherwise I don't know how he gets to $540 million" -- and that school districts won't make cuts to their current budgets.

"What is clear is that Rep. Paulsen is dealing in fiction, and Iowans quite simply deserve better," Price said.