Use scalpel, not ax, on state budget crisis

Laying off hundreds of state employees might alleviate budget crisis in the short term, but it's not the best move.

A better idea would be to make targeted budget cuts and negotiate modest across-the-board salary reductions, keeping state workers on the job and helping to maintain government services.

Gov. Chet Culver has docked his own pay and asked for a 10 percent cut in government spending after this month's Revenue Estimating Conference projected a greater than 8 percent decline in revenue this fiscal year.

Preliminary plans to meet that goal within the executive branch were announced on Wednesday, and included a reduction of 1,321 state government positions, including layoffs of 791 state workers.

The plan also would eliminate 529 vacant positions. More cuts could come from Regents institutions, the legislative or judicial branches.

But putting even more people out of work isn't the answer to the state's financial troubles.

Ed Failor Jr., president of Muscatine-based Iowans for Tax Relief, has an alternative suggestion: roll back pay increases and ask state employees to take a 5 percent pay cut.

We agree. It's better to spread the sacrifice around, to maintain most services and keep more Iowans working, even at reduced pay, than to push more employees onto the unemployment rolls.

Instead of asking some state workers to give up everything, union leaders should agree to negotiate a small decrease for everyone - at least until the economic outlook brightens.

It's the kind of tough choice demanded by the financial impact of Iowa's natural disasters and the overall economic climate. But this also is an opportunity for us to examine our priorities - taking a hard look at spending increases of the past two years and reviewing non-essential programs and services.

If leaders cut budgets with a scalpel, not just an ax, the state could emerge a more efficient, more focused government operation.

Iowans for Tax Relief has floated some suggestions, like eliminating the Department of Economic Development and merging the departments of Natural Resources and Agriculture and Land Stewardship.

Folks at the Iowa Fiscal Partnership are calling for leaders to boost revenues by closing tax loopholes and eliminating tax credits that aren't working.

Legislators have asked for ideas from Iowans to streamline services in administration, regulation, agriculture and natural resources, economic development, education, health and human services, justice, transportation and infrastructure.

If lawmakers and the governor think only about immediate budget reduction needs, they are wasting a chance to improve government efficiency instead of just surviving.