Iowa finished fiscal year 2010 on June 30 with an ending balance of $335.6 million and $419 million in various reserve accounts, the Iowa Department of Management reported yesterday. Remarkably, the surplus is the second-largest in the last 10 years despite the weak national economic recovery of the past year.
It’s been clear since July that the ending balance would exceed the $100 million projected when the legislature adopted the 2010 budget. Revenues during the second half of the fiscal year came in higher than expected.
Republicans have been lying about Iowa’s so-called “budget deficit” all year. During the past three months, gubernatorial candidate Terry Branstad has continued to accuse Governor Chet Culver of spending too much, and GOP candidates for many other offices have joined in the chorus about allegedly “out of control” spending.
Don’t expect Republicans to apologize for their demagoguery. Instead of acknowledging our state’s fiscal health, Iowa House Republicans put out a statement today fanning fears about a huge Medicaid funding shortfall in fiscal year 2012 (that’s the year that begins on July 1, 2011).
Kathie Obradovich’s take on today’s news at the Des Moines Register blog was stunning as well. Instead of pointing out that the final budget numbers disprove statements Branstad has been making all year, she chided Culver for “name-calling” against his Republican opponent. Why doesn’t she ask Branstad to show how he would balance the budget without accepting federal fiscal aid or dipping into reserve funds, while keeping his promise to reduce the size of state government by 15 percent over five years? We’ve seen no budget details from Branstad, and his plans to cut corporate taxes while having the state take on more responsibility for funding mental health and education services simply don’t add up.
More details on the final state budget numbers for fiscal year 2010 are after the jump, along with ending balances for each of the last ten fiscal years.
UPDATE: Iowa House Republican leader Kraig Paulsen still claims Culver “has a history of reckless and irresponsible budgeting” and accuses him of forcing a $500 million property tax increase. That Republican talking point has been debunked before. Paulsen asserts that Culver has “left a budget shortfall of over $1 billion for next year, including $600 million in Medicaid.” Again, that refers to fiscal year 2012. The Iowa legislature will take account of updated revenue and expense projects when drafting next year’s budget during the 2011 legislative session, just like legislators adjusted spending plans during this year’s session to keep the 2011 budget balanced.
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