At the Iowa Rural Development Summit on April 4, Gov. Kim Reynolds gave an impassioned appeal to improve education, quality of life and workforce. She stressed collaborative efforts with community colleges and universities as a way to meet business needs and move Iowa forward.
David Yepson, in an Iowa Public Television interview with Senate Appropriations Chair Charles Schneider of West Des Moines, asked about Kansas’ failed tax experiment and what Iowa could do to avoid those mistakes. Schneider stated, “They made the mistake of not managing spending.”
On March 29, the Governor made a mid-term cut of an additional $11 million in funding to the University of Iowa and Iowa State. Over the past five years, there has been a cumulative cut to public school spending.
The Iowa House is considering a bill to cut taxes $1.3 billion over 6 years. The Senate’s proposal is even more drastic, proposing a 15 percent budget cut annually (1.2 billion).
Iowa is positioned to have a huge downturn in tax receipts in the coming year. Iowa’s businesses and farmers are positioned to pay a devastating price for China’s proposed tariffs on soybeans, pork, ethanol and heavy equipment.
The Governor and Republican-controlled legislature need to educate themselves about the impact of aggressive tax cuts and probable decreased revenues, then use those findings to avoid a race to the bottom. Hopefully, when planning for Iowa’s economic future, the Governor and legislature will avoid the mistakes Kansas and Oklahoma made.
William Brenny, O.D.