A sensible opening bid

By The Gazette Editorial Board

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Gov. Terry Branstad's budget plan drew plenty of reactions after its unveiling Thursday. But one thing he can't be accused of is breaking his campaign promises.

What we heard throughout the 2010 campaign is what we're getting from the newly re-elected governor.

He promised and proposed a two-year budget that would cut spending and end the unwise practice of funding ongoing programs with one-time dollars. He vowed to reduce business taxes, fund development programs and sunset regulations with hopes of stimulating job growth. His budget attempts all three.

Branstad was critical of an across-the-board school funding cut in 2009 that led to property tax increases. His budget replaces those dollars. The governor did not eliminate funding for preschool, but, as promised, he'll ask parents to pick up part of the tab.

It's in many ways a clear-eyed, gimmick-free budget. But it is also an opening bid in a long process. And we hope that process fills some troubling gaps.

We're supportive of Branstad's drive to lower commercial property taxes, but we're concerned that his budget does too little to cushion the revenue blow for local governments. Cedar Rapids leaders are already struggling to balance the hefty needs of flood recovery and running a city with scarce resources. The governor shouldn't make that task more difficult.

We understand Branstad's argument that lower commercial rates will reduce cities' use of abatements and tax increment financing, or TIF, to lure jobs. But we're skeptical business won't still seek maximum incentives.

Branstad's budget does not direct state sales tax dollars to Cedar Rapids flood protection, as local leaders hoped, although he remains open to the idea. Branstad provides dollars in his budget for some existing watershed conservation programs, but, unfortunately, there are no new, more aggressive initiatives.

Public schools will get money that was cut, but they won't see a funding increase for two years. With expenses rising, the status quo is, in reality, a reduction. Regents universities will again sustain troubling cuts. Branstad's preschool compromise sounds promising, but we're waiting to see the details. State funding for a high-speed rail link from Iowa City to Chicago, which we support, was cut from the budget. We hope the governor will reconsider.

With legislative control divided between a Republicans and Democrats, Branstad's plans will be revised and revised again. But he deserves credit for sparking a critical debate over what priorities Iowans can and cannot afford.