Big decisions in bad times

State revenues in Iowa fell off a cliff on Wednesday. The impact came Thursday, and promises to send shock waves through state government and the citizens it serves.

On Wednesday, a panel of state budget experts agreed that tax revenues are on pace to plunge a whopping $415 million during the current budget year, a far more dramatic drop than originally forecast. And on Thursday, Gov. Chet Culver responded with a 10 percent, across-the-board cut in state spending. It's the most sweeping budgetary action taken by a governor in recent memory and will spare no corner of state government. Schools, universities, public safety, human services, the judicial system and countless other programs and agencies will take serious hits.

We know that this was not an easy decision for the governor. And we commend him for a swift, decisive response to the crisis. The governor's sweeping cut adds up to $565 million, which he hopes will leave an ending balance to serve as a down payment on an even more difficult budget next year. That's a prudent, responsible action.

The governor is wrestling with big decisions in bad times. Tax revenues evaporated while the state's economy struggles to deal with a stubborn economic downturn - the worst in decades. State tax collections took a 19 percent dive in September alone. At the same time, 114,000 Iowans are unemployed.

But while we commend Culver, we also wish he had listened more intently to the many voices who warned that trouble was coming. Culver and Democrats who control the Legislature pressed ahead with spending increases on many fronts, even as economic conditions worsened and Iowans slashed their personal budgets.

We certainly share lawmakers' and the governor's desire to wisely invest in education, health care and other important areas, but taxpayers also expect a cautious, prudent approach. Too often, our leaders hoped for the best and failed to prepare for the worst.

Minority Republicans and others warned that state spending levels were not sustainable. Culver insisted again and again that the warnings were overblown, that the ship would right itself. Unfortunately, those warnings were correct.

We also believe Culver's across-the-board cut should be coupled with an immediate legislative response to the crisis.

Culver should reconsider his opposition to calling a special legislative session. Now that the governor has promptly wielded a hatchet to cut the budget, Culver and his legislative partners should sift through the budget to find both opportunities for smart savings and to see if some damage can be repaired. For starters, lawmakers could shield local property taxpayers from tax increases spawned by state cuts in local funding.

Culver made a tough call. And it won't get any easier from here.