Iowans for Tax Relief: Articles

Kim Reynolds as the Lieutenant Governor selection is good for Iowa Taxpayers

Thu, 24 Jun 2010 00:00:00 -0500

Iowans for Tax Relief PAC, 2610 Park Avenue, Muscatine, IA 52761
Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org
For Immediate Release: Thursday, June 24, 2010

MUSCATINE, IA- Ed Failor, Jr., President of Iowans for Tax Relief, said today, "The selection of Kim Reynolds for Lieutenant Governor brings forward a fresh new voice in leading Iowa's comeback.

"Her dedication to streamline government and reduce the tax burden on Iowa families has always been a priority for Kim as a County Treasurer and as a State Senator. Kim Reynolds has been a long-time friend of Iowans for Tax Relief and all Iowa taxpayers. Her actions and voting record illustrate her commitment to lower taxes and limited government.

"The ticket of Terry Branstad and Kim Reynolds is good for Iowa taxpayers. This leadership team, on day one, will lead a pro-taxpayer agenda through the Iowa Legislature, and will lead Iowa forward."

Iowans for Tax Relief PAC, sponsored by the 54,900-members Iowans for Tax Relief organization, last month gave their first ever endorsement in an Iowa governor primary to Terry Branstad. ITR PAC fully supports and endorses the Branstad-Reynolds ticket.

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Paid for by Iowans for Tax Relief PAC

Iowans for Tax Relief PAC Endorses Terry Branstad for Governor

Wed, 19 May 2010 00:00:00 -0500

Iowans for Tax Relief PAC, 2610 Park Avenue, Muscatine, IA 52761

Contact: Katie Koberg, (563) 288-3509 or kkoberg@taxrelief.org

For Immediate Release: Wednesday, May 19, 2010

Iowans for Tax Relief PAC Endorses
Terry Branstad for Governor

First ever endorsement by ITR PAC in a governor primary

MUSCATINE, IA - Iowans for Tax Relief PAC, sponsored by the 54,900-members Iowans for Tax Relief organization, today announced its endorsement of Terry Branstad for Governor in the June 8 Republican primary. This is the first time in ITR PAC's history it has endorsed a candidate for governor in a primary.

"We proudly endorse Terry Branstad because this is a critical time, and so much is at stake for Iowa's future," said Ed Failor, Jr., President of Iowans for Tax Relief. "Terry Branstad is the candidate who is ready on day one to lead Iowa forward."

The announcement was made during a five-city swing through Ankeny, Sioux City, Mason City, Cedar Rapids, and Davenport.

Failor continued, "While we have not always agreed with Terry Branstad, we judge a leader's actions by the end result and there is no denying he has been a true friend of Iowa taxpayers.

"Current Governor Culver has put the state in debt for a generation, while causing property tax increases and repeatedly ignoring Iowa's 99% spending limit law. He is no friend of the hard-working taxpayer and it is time for a change.

"Terry Branstad understands the taxpayers are the heart and soul of this state. He has, and will continue to defend them first."

Failor noted that no governor before or since Terry Branstad has done more to reduce the tax burden on Iowa families. This includes:

10% across-the-board income tax cut for EVERY Iowan. This is the single largest tax cut in Iowa's history.
Eliminated the state inheritance tax for children and grandchildren-critically important to allow family farms and small businesses to pass from generation to generation.
Indexed income taxes so inflation does not push Iowans into higher and higher tax brackets.
Has become a true champion of the need to protect federal deductibility as an essential part of Iowa's tax code.
Strongly supports the People's Right to Vote Amendment to the Iowa Constitution, to give Iowans the final say on future tax increases.

"Iowa is in desperate need of strong, proven leadership and Terry Branstad is the one candidate in this Republican field who can both defeat Chet Culver and then successfully lead a pro-taxpayer agenda through the Iowa Legislature," concluded Failor.

"I am excited and honored to receive this endorsement," said Branstad. "Iowans for Tax Relief is synonymous with clean, honest government and a commitment to balanced budgets and eliminating government waste. I look forward to working with their leaders and members as we move Iowa forward on a path to lower taxes and fiscal stability."

For more information on the Governor Branstad 2010 campaign, please visit www.GovernorBranstad2010.com.

For more information on Iowans for Tax Relief, and to see the completed surveys of the Governor candidates please visit www.TaxRelief.org.

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Paid for by Iowans for Tax Relief PAC

I-JOBS Contract With Frew Nations Group Needs Review

Thu, 29 Apr 2010 00:00:00 -0500

Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761

Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

For Immediate Release: Thursday, April 29, 2010

I-JOBS Contract With Frew Nations Group Needs Review

Management contract with Governor Culver's outgoing Chief-of Staff, John Frew, needs review

MUSCATINE, IA-Ed Failor, Jr., President of Iowans for Tax Relief, delivered the letter below today to W. Charles Smithson, Executive Director and Legal Counsel of the Iowa Ethics and Campaign Disclosure Board, to request a review of Governor Culver's Chief-of-Staff Mr. John Frew and his company Frew Nations Group.

"Deals like this do not pass the smell test. The Iowans who foot the bill for government do not like even the appearance of cronyism. Actions like this cause Iowans to not trust their government. Today I sent this letter to W. Charles Smithson to stand up for taxpayers who need answers," said Ed Failor, Jr., President of Iowans for Tax Relief.

April 29, 2010

Mr. W. Charles Smithson

Executive Director and Legal Counsel

Iowa Ethics and Campaign Disclosure Board

510 East 12^th Street, Suite 1A

Des Moines, Iowa 50319

Re: John Frew Contract

Dear Mr. Smithson:

I am writing this letter in response to recent reports in the Des Moines Register and the Cedar Rapids Gazette regarding the contract between Frew Nations Group and the City of Cedar Rapids to manage the downtown convention facility.

John Frew was hired to serve as Chief of Staff to the Governor in July 2009, and began his position in September 2009. As the Governor's Chief of Staff, Mr. Frew was responsible for managing the day to day business within the Governor's office, as well as advising the Governor on various policy matters. A centerpiece of the Governor's legislative package in 2009 was the I-JOBS program. The I-JOBS program was developed by the Governor's office and, presumably, Mr. Frew had an active role in its implementation and oversight.

The City of Cedar Rapids applied for I-JOBS funding in August 2009 and received approval for $15 million dollars to partially fund a convention center. The funds were distributed to the City in March 2010. Shortly after the City of Cedar Rapids received I-JOBS funding, Mr. Frew announced his resignation from state government, citing a desire to "return to the private sector." Days later, the City signed a contract with Frew Nations Group for the management of the downtown facility. Mr. Frew is a principal and owner of Frew Nations Group.

While I will not suggest to know the specific details of the transaction or how it was negotiated, I believe this situation warrants further investigation to ensure various ethical rules and statutes were not violated. Specifically, the contract awarded to Frew Nations Group may fall within the prohibitions of Iowa Code Section 68B.7, as Mr. Frew is now receiving compensation for activities for which he had a direct responsibility, namely the I-JOBS program. Additionally, given the unusual timeline of the transaction, the taxpayers should be assured that this contract was not negotiated during Mr. Frew's working hours or using other state resources in violation of Iowa Code chapter 68B.2A.

Again, I want to reiterate that I am not suggesting any wrongdoing on the part of Mr. Frew or Frew Nations Group. However, Mr. Frew's position as Chief of Staff, combined with the unusual timing of the contract with Frew Nations Group, warrants further review to ensure that not only the letter of the law was followed, but the spirit and intent as well.

Sincerely,

Ed Failor, Jr.

President

Iowans for Tax Relief

Tuesday (tomorrow) Ed Failor, Jr. is speaking with Governor Pataki in Des Moines

Mon, 19 Apr 2010 00:00:00 -0500

Dear Friends,

ALERT!!! Ed Failor, Jr., President of Iowans for Tax Relief, and Governor George Pataki, will be speaking together in the movement to Repeal Obamacare on Tuesday, April 20 at 12:15pm at the Des Moines Embassy Suites at 101 East Locust Street.

Government cannot and should not make decisions about your health care. It should be between you, your family, and the doctor you have personally chosen. Join us tomorrow (Tuesday) to be a voice in the process!

See you tomorrow (Tuesday) at the Des Moines Embassy Suites at 12:15pm.

If you want to RSVP or have questions about the event please email iowarevereamerica@gmail.com.

3 Things to Know About Saturday’s Iowa Taxpayers’ Day

Wed, 14 Apr 2010 00:00:00 -0500

3 Things to Know About Saturday's Iowa Taxpayers' Day

1)Twitter Event Hashtag #itrtaxday 2)Event Line Up 3)Upcoming Media Interviews

Iowa Taxpayers' Day is hosted by Iowans for Tax Relief on Saturday, April 17, 2010 from 3:00pm to 5:00pm at the Holiday Inn Northwest at 4800 Merle Hay Road in Des Moines. (Map)

1. Social Media Fans! The Twitter event hashtag is #itrtaxday

Follow all of the event speakers on Twitter:

@ITRwatchdog, @timpawlenty, @KObradovich, @Bobvanderplaats, @GovBranstad2010, @NarcisseforIowa, @Drericcooper, @RepRodRoberts, and Iowans for Tax Relief is the 'TaxpayerWatchdog' on facebook.

Attending? Make your status count today using #itrtaxday and your tweet will automatically be added to the larger conversation.

What is Twitter? Go to Twitter.com and in the search box type #itrtaxday to follow the live conversation.

2. Event Line Up For Iowa Taxpayers' Day

Doors open at 2:00pm

Welcome at 3:00pm

Keynote Speaker Minnesota Governor Tim Pawlenty

Introduction of the event M.C. Kathie Obradovich

*Iowa Governor Candidates Speaking Order*

Bob Vander Plaats, Terry Branstad, Jonathan Narcisse, Eric Cooper, Rod Roberts

Iowans for Tax Relief member meeting

Adjourn at 5:00pm

*Candidates for Governor drew names for speaking order.

3. Upcoming Media Interviews

Friday, April 16 at 10:07am:

Minnesota Governor Tim Pawlenty will be on the Jan Mickelson Radio Show on WHO 1040AM.

Friday, April 16 at 5:10pm:

Ed Failor, Jr., will be on the Steve Deace Radio Show on WHO 1040AM.

Need more information? Visit www.taxrelief.org today!

Join us at Iowa Taxpayers’ Day on Saturday

Mon, 12 Apr 2010 00:00:00 -0500

Join us at Iowa Taxpayers' Day on Saturday

Saturday, April 17, 2010 from 3:00pm- 5:00pm at the Merle Hay Holiday Inn

Saturday is Iowa Taxpayers' Day!

We have a great line up of speakers for you to listen to at the Merle Hay Holiday Inn on Saturday, April 17 from 3:00pm-5:00pm. (Map)

Click here to RSVP your seat today!

View the invitation and listen to our radio commercial.

Media personnel request your credentials here.

Iowa Taxpayers' Day Program

Welcome at 3:00pm

Keynote Speaker

Minnesota Governor Tim Pawlenty

Event M.C.

Kathie Obradovich

*Iowa Governor Candidates Speaking Order*

Bob Vander Plaats

Terry Branstad

Jonathan Narcisse

Eric Cooper

Rod Roberts

Iowans for Tax Relief member meeting

Adjourn at 5:00pm

*Candidates for Governor drew names for speaking order.

Iowans for Tax Relief (ITR) started more than 30 years ago as a member driven organization to protect the taxpayer and today we have more than 54,900 members, making ITR the largest taxpayer protection organization in the state. Visit our website for additional details on the event at www.taxrelief.org.

Twitter @ITRwatchdog Facebook at taxpayerwatchdog

RELEASE: Fort Dodge City Officials Irresponsibly Spending Taxpayer Dollars

Tue, 06 Apr 2010 00:00:00 -0500

Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761

Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

For Immediate Release: Tuesday, April 6, 2010

Fort Dodge City Officials Irresponsibly Spending Taxpayer Dollars

MUSCATINE, IA - Taxpayers of Fort Dodge are being disregarded and disrespected by city officials who decided to allow city employees to take paid time off to support the proposed Diamond Jo casino in front of Iowa Racing and Gaming officials on Wednesday.

"This is an outrageous abuse of taxpayer funds," Ed Failor, Jr. said. "The citizens of Fort Dodge pay taxes for police, fire, and other essential public services. Encouraging city employees to take paid time off to attend a pep rally for a casino is not why people pay taxes."

Failor said he was shocked a number of the city's elected officials seem to think it is okay to allow city employees to attend a pro-casino rally while being paid by taxpayers. Only Councilmen Robert ''Barney'' Patterson and Don Wilson have been quoted in news articles opposing to paying the employees who go to the casino event.

"These elected officials are supposed to be protectors of the public treasury. Sadly, it looks like they are more interested in spending tax dollars creating an illusion instead of doing the peoples' business."

"The citizens of Fort Dodge should be asking what essential city services won't be getting done during this time. Logically, taxpayers need to also ask how essential are these services and employees if they are expendable for a day."

Unfortunately, the Fort Dodge City Manager has lost all perspective on whose money he is spending. Mr. Fierke had the utter audacity to say to the media, "City employees are going if they want to go,'' he said. ''If they want to go they can go on the city's clock."

Mr. Failor finished, "It is not the city's clock, it is the taxpayers' clock. The very taxpayers who pay all the bills. The people have the final voice and should not tolerate this failed leadership."

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Kathie Obradovich is the M.C. for the 2010 Iowa Taxpayers’ Day and Eric Cooper has joined the lineup of Governor Candidate speakers

Wed, 10 Mar 2010 00:00:00 -0600

Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761

Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

For Immediate Release: Wednesday, March 10, 2010

Kathie Obradovich is the M.C. for the 2010 Iowa Taxpayers' Day and Eric Cooper has joined the lineup of Governor Candidate speakers

MUSCATINE, IA-Iowans for Tax Relief announced today Kathie Obradovich, political columnist for the Des Moines Register, will be the Master of Ceremonies (M.C.) at the 2010 Iowa Taxpayers' Day on Saturday, April 17, 2010 from 3:00pm - 5:00pm at the Holiday Inn Hotel Northwest in Des Moines.

Ed Failor Jr., President of Iowans for Tax Relief, said today, "Kathie Obradovich is a great addition to Iowa Taxpayers' Day and we are pleased she will bring her insight of the political process to our members."

The lineup for the 2010 Iowa Taxpayers' Day now includes Eric Cooper, Libertarian Candidate for Iowa Governor. The keynote speaker is Minnesota Governor Tim Pawlenty who is also the Vice Chair of the Republican Governors Association. The following five candidates for Iowa Governor will be speaking at the event; Terry Branstad, Eric Cooper, Jonathan Narcisse, Rod Roberts, and Bob Vander Plaats.

Governor Culver was invited but declined to respond by the set confirmation deadline. Multiple contacts were made to the campaign with no return response.

Visit our website for additional details on the event at www.taxrelief.org. Invitations will be mailed to our members in the coming weeks. Follow ITR on facebook @taxpayerwatchdog and on twitter at @ITRwatchdog.

The press is invited to attend, please request credentials from Katie Koberg at kkoberg@taxrelief.org.

Governor Tim Pawlenty and four Iowa candidates for Governor will speak at the 2010 Iowa Taxpayers’ Day

Fri, 26 Feb 2010 00:00:00 -0600

Iowans for Tax Relief, 2610 Park Avenue, Muscatine, IA 52761

Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

For Immediate Release: Friday, February 26, 2010

Governor Tim Pawlenty and four Iowa candidates for Governor will speak at the 2010 Iowa Taxpayers' Day

MUSCATINE, IA-Iowans for Tax Relief announced today the line up for the 2010 Iowa Taxpayers' Day on Saturday, April 17, 2010 from 3:00pm to 5:00pm at the Holiday Inn Hotel and Suites Northwest in Des Moines. The keynote speaker is Minnesota Governor Tim Pawlenty who is also the Vice Chair of the Republican Governors Association. Also speaking at the event will be the following candidates for Iowa Governor; Terry Branstad, Jonathan Narcisse, Rod Roberts, and Bob Vander Plaats.

Ed Failor Jr., President of Iowans for Tax Relief, said today, "We are excited to have Minnesota Governor Tim Pawlenty speak to our members as he has a record of balancing budgets without raising taxes in Minnesota. The Iowa candidates for Governor will provide their vision for the fiscal future of our great state. Iowa Taxpayers' Day continues our mission to educate and inform Iowans on tax and spending issues."

Governor Culver was invited but declined to respond by the set confirmation deadline. Multiple contacts were made to the campaign with no return response.

The press is invited to attend, please request credentials from Katie Koberg at kkoberg@taxrelief.org.

RELEASE: Protect Federal Deductibility And Fix The Budget

Thu, 14 Jan 2010 00:00:00 -0600

DES MOINES, IA-Today Iowans for Tax Relief showed continued growing support from Iowans to protect federal deductibility and support the introduction of nine budget saving solutions by state legislators.

Ed Failor, Jr., said today, "In 2009, the voices of everyday Iowans were heard loud and clear, and the Legislature showed the common sense to maintain federal deductibility in the Iowa income tax code. With each day, Iowans continue to hold their breath waiting to see if Governor Culver and Legislators will increase taxes, but we are standing here today to tell them that is not necessary."

A just released poll shows 77.2 percent of Iowans support keeping federal deductibility*. Taxpayers successfully defeated the proposal to repeal federal deductibility last year, yet it will likely be introduced again this year. The way to fix the state budget is not a six-hundred million dollar tax increase; it is through changing Iowa government.

Speaking at the press conference today was David Dickey of Dickey Transport in Packwood, IA. "Our family runs a trucking company in Packwood, with employees who have been with us for a long time. For many, federal deductibility is their largest deduction. We all understand we must pay taxes, but paying taxes on dollars we never see is just unfair."

David Overholtzer, a Certified Public Accountant (CPA) and small business owner from Council Bluffs, IA, stated, "A repeal of federal deductibility will increase the tax burden of nearly every client of mine. My business clients are frequently asking me for ways they can cut their tax burden and these ideas almost always involve exploring a move to another state. In a time of economic uncertainty removing the Iowa tax deduction of the federal tax burden, is unconscionable."

Failor continued, "In October when the amount of taxes collected was not keeping up with the massive spending increases Governor Culver approved, I like many other Iowans, thought it was time for the Legislature to look at ways to be more fiscally responsible. While the Governor took the simple approach of just a flat ten percent across the board cut, I thought it was time for some innovative, and unconventional ideas for reshaping Iowa government.

Therefore, we chose to suggest budget savings measures with the following criteria for each of the nine recommendations: Cumulatively reduce state spending by 10%, hold K-12 education funding harmless, hold public safety funding harmless, no mass layoffs, no property tax or any other tax increases. With our nine proposals to trim the budget by $762.8 million, we protect federal deductibility for Iowans so they are not forced to pay a tax on a tax."

These suggestions are being drafted into legislation to be considered for debate. Our lawmakers need to implement, not just talk about; increasing government efficiency, reducing redundancy, and getting government out of the way of Iowa families and businesses to grow and prosper.

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*NTU Poll: www.ntu.org

Budget Savings Bills and Bill Sponsors

Budget Savings Measure #1:
Eliminate the Iowa Values Fund and the Iowa Power Fund, consolidate within the Department of Economic Development, and gradually reduce the personal and corporate income tax rates, with eventual elimination of both.

Bill Sponsor: Rep. Tom Sands
Budget Savings: $87.5 million

Budget Savings Measure #2:
Begin to align state employee wages with private sector wages by a five percent salary reduction and not allow a pay increase this year for state employees.

Bill Sponsor: Rep. Jason Schultz
Budget savings: $261 million

Budget Savings Measure #3:
End taxpayer funded lobbying.

Bill Sponsor: Rep. Steve Lukan
Budget savings: $4 million

Budget Savings Measure #4:
Charge for state employee's health insurance.

Bill Sponsor: Rep. Renee Schulte
Budget savings: $24 million

Budget Savings Measure #5:
Sell Iowa prisons to the private sector.

Bill Sponsor: Rep. Erik Helland
Budget savings: $39 million on operations (plus one time infusion for selling the actual prison)

Budget Savings Measure #6:
Combine the Regents Universities.

Bill Sponsor: Rep. Linda Upmeyer
Budget savings: $62 million

Budget Savings Measure #7:
Constitutional spending limitation.

Bill Sponsor: Rep. Chris Hagenow
Budget savings (had this been in place since 2007): $179 million

Budget Savings Measure #8:
Consolidate state government, specifically Information Technology.

Bill Sponsor: Rep. Nick Wagner
Budget savings: $14 million

Budget Savings Measure #9:
Curb illegal immigration.

Bill Sponsor: Rep. Matt Windschitl
Budget savings: $92.3 million

State Budget Savings Measures

Wed, 06 Jan 2010 00:00:00 -0600

On Monday, the Iowa Legislature will convene for the 2010 Legislative Session, and Iowans across the state will hold their breath, waiting to see if Governor Culver and Legislators will increase taxes. Iowans are all painfully aware the state budget is in terrible shape with a billion-dollar spending gap.

In October, the Governor issued a simplistic ten percent across the board budget cut, subjecting Iowans to property tax increases, reductions in services, and a bigger budget disaster for next year. The state budget cannot be fixed by short-term reactionary measures; I chose to suggest state budget savings measures to Governor Culver and the Legislature, with the following criteria for each recommendation:

* Cumulatively reduce state spending by 10%.
* Hold K-12 education funding harmless.
* Hold public safety funding harmless.
* No mass layoffs.
* No property tax or any other tax increases.

My first recommendation was to eliminate the Department of Economic Development, Iowa Values Fund, and the Iowa Power Fund, then gradually reduce both the personal and corporate income tax rates, with eventual elimination of both taxes. The 2007 "Rich States, Poor States ALEC-Laffer State Economic Competitiveness Index" found greater economic growth in the states with no income tax; these states saw a 23 percent growth in jobs, where the highest income tax states only saw a 12 percent job growth. Iowans cannot afford to allow government to pick winners and losers for economic development; it is time the Governor and the Legislature make a significant change to the way our state does business, accelerate job creation and growth by lowering, then eliminating income taxes. This recommendation would be a budget savings of $87.5 million.

Another problem facing our state is the substantial pay gap between state employees in Iowa and Iowans in private sector employment. According to the U.S. Department of Labor, Bureau of Labor Statistics, the average annual wages for Iowa private sector workers is $35,256. In the state government sector, average annual wages are $51,688. I suggested Governor Culver should implement a state employee pay reduction of five percent, and no pay increase this year. This would help bring state employee salaries more in line with the private sector. Governor Culver and the state employee union agreed to a short-term pay reduction in December. While this is a good first step, it does nothing to correct the considerable pay gap between Iowa state employees and Iowans in the private sector, which needs to be addressed. This measure would save $261 million in the state budget.

Today, 138 of the registered lobbyists (nearly 20% of the entire registry) are taxpayer funded. Iowa taxpayers are actually paying for state employees to lobby Iowa Legislators for more taxpayer dollars. While most Iowans believe they are sending their hard-earned money to fund essential government services, part of it is to pay for state government employees to lobby for more of our tax dollars. Ending the current practice of taxpayer funded lobbying would save $4 million taxpayer dollars.

Lawmakers could see further budget reduction through changing state employee health insurance benefits. Today, many state employees with a single coverage health insurance plan and a fair number of state employees with family coverage pay no premium. This is a tremendous benefit to our state employees; however the state-run hawk-i program, which is designed to provide health insurance coverage for lower-income Iowa children, requires families to pay a monthly premium based upon their income. Some lower-income Iowa families pay as much as $40 a month for hawk-i coverage for their children. Lawmakers should change the current system and ask state employees to pay an additional $40 a month for their health insurance premium. This could save as much as $24 million in the state budget.

To maximize our state tax dollars, selling Iowa prisons to the private sector would take away the built-in structural inefficiency of government and save as much as $39 million from the operation of private prisons. Both cost savings and more efficient operations are excellent reasons for state leaders to look at significantly changing the way Iowa government functions.

Combining the administration system of the Iowa Regent Universities, to reduce the bureaucratic burdens, merging three different payroll and information technology systems, and eliminating duplicative administrative functions could trim as much as $62 million from the state budget. Although there is limited empirical data on the cost savings of merging public universities, this savings is easily attainable through reducing duplication and administration.

Unfortunately, the state budget chaos did not happen overnight. It is the result of several years of bypassing the spending limit; accelerating the rate of state spending and growing government at a pace faster than Iowa taxpayers could actually afford. Had there been a stronger spending limitation in place, the additional $179 million would have been spent in the proper budget year, not building up large state budgets to a level which could not be maintained. I recommend to our state leaders to amend the Iowa Constitution with a strong spending limit; one which limits state government spending to 99 percent of tax revenues from the previous year. This would prohibit a backdoor way around the spending law, and would help to stabilize the state budget by spending Iowans' tax dollars in proportion with revenues.

This year, Governor Culver and the Legislature should not pass up the opportunity to make state government better for Iowa taxpayers. Another area lawmakers need to address to shrink the expense of state government is to move to a centralized structure for Information Technology. Today, Iowa's state government has twenty-five different email systems, dozens of different storage systems, and 2,000 servers on the Capitol Complex and around the state for state government operations. In 2005, the State of Indiana transferred the state's various e-mail systems to a single consolidated system, saving Indiana taxpayers over $14 million.

While illegal immigration is a highly controversial topic in our state, it is also an issue which has a financial cost to Iowa taxpayers. A 2007 Issue Review by the Legislative Services Agency estimates the total cost of 70,000 illegal immigrants to the State General Fund at $107.4 million. With a high cost to Iowa taxpayers, something must be done to begin to reduce the cost. To achieve state cost reduction, the state should require all parents to show proof of legal residency when they enroll their children in Iowa schools. If parents are unable to show documentation proving they are legal residents, authorities would then take the appropriate steps to enforce the law on the parents only.

Our lawmakers need to go into the 2010 Legislative Session with the goals of increasing government efficiency, reducing redundancy, and getting government out of the way of Iowa families so we all can prosper. These suggestions will help Iowa climb out of the economic hole; shrinking the budget deficit, without increasing taxes, and curb state spending by $762.8 million.

To read the Opinion series visit http://www.taxrelief.org/articles/opinions

Press Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

Ed Failor says recipients of stimulus dollars understand it's not about long term job creation

Wed, 16 Dec 2009 00:00:00 -0600

Opinion: Curb illegal immigration; curb state spending.

Wed, 16 Dec 2009 00:00:00 -0600

In less than one month, the Iowa Legislature will return to Des Moines for the 2010 Legislative Session, and lawmakers will face the largest budget gap in state history, adding up to more than one billion dollars.[i] How Governor Culver and our Legislators choose to manage this financially devastating budget mess will shape our state for years to come. It is time to look at every single area of state spending.

Illegal immigration is a very controversial topic in our state; it is also an issue which has a financial cost to Iowa taxpayers. A 2007 Issue Review by the Legislative Services Agency estimates the total cost of 70,000 illegal immigrants to the State General Fund at $107.4 million.[ii] Of those 70,000 illegal immigrants, 60,200 are adults and 9,800 are children.[iii] This report estimates each illegal immigrant receives a benefit from the state of $1,534.

The volunteer-driven Toys for Tots program asks parents when registering for their program for; a picture ID, Social Security number of the parent, proof of home address, and children's birth certificate. On the other hand, parents enrolling their children in Iowa schools must only present some type of proof of the child's birth date, guaranteeing the child is the appropriate school age.[iv] There is no requirement on parents to confirm they are legal residents. It is unfortunate to see our public school system, funded through our tax dollars, has fewer requirements than enrolling a child in a charitable program. I recommend requiring all parents enrolling their children in Iowa public schools to provide the same documentation to the school as the Toys for Tots program requires for registration.

To achieve state cost reduction, if parents are unable to show documentation proving they are legal residents, authorities would then take the appropriate steps to enforce the law on the parents only. The parents are the individuals who are committing a crime by living here illegally. There would then be two options for the parent to make on behalf of their children. The first option would permit the children only to remain in Iowa and be educated in our public school system. The second option would return the whole family to their country of origin. Using the data from the 2007 Issue Review, by ending benefits to only adult illegal immigrants, there would be a taxpayer savings of $92.3 million.

Our state is in a fiscal crisis, and a continued careful and thorough examination of how our tax dollars are spent is necessary. Every Iowan knows, the financial status quo is no longer acceptable, and difficult decisions need to be made. Not all spending reductions are easy, but a budget gap of the magnitude our Legislators will face in January demands difficult policy changes. Requiring all parents to show proof of legal residency upon school enrollment will begin to reduce some of the costs to Iowa taxpayers.

State leaders need to remember there is no magical government money tree - every dime state government takes in is collected from Iowans. If our leaders are serious about reducing the state budget, they should do so by avoiding the fiscal costs of illegal immigration and enforce the law.

Press Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

[i] http://www.legis.state.ia.us/lsadocs/IssReview/2010/IRDLR000.PDF

[ii] http://www.legis.state.ia.us/lsadocs/IssReview/2007/IRKRJ002.PDF, Page 3.

[iii] Ibid. Page 2.

[iv] http://www.iowa.gov/educate/index.php?option=com_content&view=article&id=1135:registration-issues&catid=411:legal-lessons

Opinion: Time to Change and Consolidate State Government

Tue, 08 Dec 2009 00:00:00 -0600

While the economy continues to struggle, state lawmakers have a rare and valuable opportunity for major change and reform within state government. Governor Culver and Iowa Legislators must not pass up this chance to completely change the way the State of Iowa does business. There is no better time to evaluate and make state government better for Iowa taxpayers.

I recommend to Governor Culver and the Iowa Legislature, take this time to make sweeping changes to state government; consolidate duplicative departments, agencies, and programs. Even though our state is in the middle of a fiscal emergency, I am unable to see the gloom and doom; a time such as this presents our state leaders with the opportunity to improve our state government.

Too often, politicians forget government works for the taxpayers, not the other way around. A major overhaul of state government would turn around our overbearing system, making it more accountable to us, Iowa taxpayers.

Over the past few years, we have seen our state government grow out-of-control. Currently, there are over 45 state departments, bureaus, and authorities. This number does not include the many boards and commissions within state government. Our state leaders should carefully examine Iowa government for duplication and overlap. Taxpayers deserve an explanation. Why do we have both the "Bureau of Professional Licensing" and the "Professional Licensing Division?" Why not one agency to handle all of the professional licensing?

Consolidation is not always easy but it is long overdue. Even state agencies have recommended some consolidation.[i] Merging the Alcoholic Beverages Division into the Iowa Department of Revenue would save taxpayers $690,317.[ii] To move the Governor's Office of Drug Control Policy and the Iowa Law Enforcement Academy under the Department of Public Safety would reduce the state budget by $333,187.[iii] If the Department of the Blind were to be merged into the Department of Education, Iowans would save another $118,520.[iv]

There are simple things Iowa Lawmakers can do to shrink the expense of state government, such as move to a centralized structure for Information Technology. Today, Iowa's state government has twenty-five different email systems, dozens of different storage systems, and 2,000 servers on the Capitol Complex and around the state for state government operations[v]. This approach to Information Technology is similar to having every member of your family do their own weekly meal planning and grocery shopping independently of the rest of the family. It increases confusion and dramatically increases the cost. In 2005, the State of Indiana transferred the state's various e-mail systems to a single consolidated system. This combined with other improvements to the state's Information Technology infrastructure saved taxpayers in the Hoosier State $14 million.[vi]

Over the past two months, I have suggested ways for our state government to become more efficient. These suggestions are ideas to help Iowa climb out of the economic hole, a way to reverse the budget deficit, without raising taxes. Governor Culver and the Legislature need to fundamentally reevaluate the way Iowa does business and lower the cost of government for taxpayers over the long term.

It is overdue for state government to work for Iowans, and our lawmakers should go into the 2010 Legislative Session with the goals of increasing government efficiency, reducing redundancy, and getting government out of the way of Iowa families, so we all can prosper.

Press Contact: Katie Koberg, (563) 288-3600 or kkoberg@taxrelief.org

[i] http://www.legis.state.ia.us/lsadocs/IntComDoc/2010/IDTCM005.PDF. FY 2009 Proposed Reductions, Department of Management, September 2009.

[ii] Ibid, Page 2.

[iii] Ibid, Page 3 and 13.

[iv] Ibid, Page 7.

[v] http://www.legis.state.ia.us/lsadocs/IntComMin/2010/IMTCM000.PDF. State Government Reorganization Commission Minutes, September 9, 2009, Page 6.

[vi] http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?CaseStudyID=4000001697. Microsoft Case Studies: State of Indiana.

Opinion: Stronger Spending Limit Would Save Iowa Taxpayers Millions

Wed, 02 Dec 2009 00:00:00 -0600

Iowa taxpayers were dealt another crushing blow last week when the non-partisan Legislative Fiscal Services Division announced the state is facing a budget gap totaling more than one billion dollars.[i] This number estimates the amount by which state spending will exceed expected tax revenues. There is no doubt, the Iowa budget is in bad shape - but there is a way out of budget chaos.

I have been suggesting ideas for Governor Culver and Iowa Lawmakers to consider next year because I know Iowa can once again grow and prosper. We live in a great state, which will come out of this economic downturn but in order for our state to be on the right track, our state leaders need to employ serious fiscal discipline.

Unfortunately, based on recent history, fiscal discipline may be hard to come by.

Currently, there is a provision in Iowa law which limits lawmakers to spend only 99% of tax receipts, this is commonly referred to as the Iowa 99% Expenditure Limitation. Unfortunately, because the Expenditure Limitation is not in the State Constitution, there are ways around this limit. Over the past several years, the spending limit has been temporarily suspended, as a result the state budget grew more than the law allows. The desire for bigger government has led our state down this rocky course which is culminating in the current budget disaster.

In State Budget Years 2006 and 2007, the spending limit was suspended to spend an additional $84.2 million in 2006 and $45.7 million in 2007[ii]. During the 2008 Legislative Session, the 99% Expenditure Limitation was suspended again, this time lawmakers overspent an additional $49.1 million.[iii]

Bypassing the spending limit accelerated the rate of state spending and grew government at a pace faster than Iowa taxpayers could actually afford. Years of going around the law contributed to the budget mess our state now faces. Had there been a stronger spending limitation in place, the additional $179 million would have been spent in the proper budget year, not building up large state budgets to a level which could not be maintained.

I recommend to our state leaders it is time for a constitutional spending limitation; one which does not allow for a temporary suspension when lawmakers want to spend more. I suggest an amendment to the Iowa Constitution specifically limiting state government spending to 99% of the tax revenues from the previous year. A spending limit such as this in the Iowa Constitution would prohibit a backdoor way around the law.

Hard-working Iowans do not have the luxury to temporarily suspend reality when budgeting family expenditures. Lawmakers need to play by the same rules.

Spending limits offer protections both for state budgets and for taxpayers. With a constitutional spending limit, lawmakers would be prevented from massive state spending increases, and would help to stabilize the state budget. Most importantly, Iowa taxpayers would benefit from a constitutional spending limit; instead of rapid state government growth, Iowans' tax dollars would be spent in proportion with revenues.

While we are unable to go back in time and have the Governor not spend the $179 million from the past budgets, we must seize the fiscal crisis to demand future fiscal restraint and responsibility. Our leaders need to craft a state spending limitation which will set us on the right course for economic growth and prosperity.

With every dollar spent on Iowa government coming from Iowa taxpayers; Governor Culver needs to spend our tax dollars wisely, but we could certainly use a constitutional spending limit to make certain it happens.

[i] http://www.legis.state.ia.us/lsadocs/IssReview/2010/IRDLR000.PDF

[ii] http://www.legis.state.ia.us/lsadocs/IssReview/2007/IRDLR001.PDF

[iii] http://staffweb.legis.state.ia.us/lfb/docs/graybook/GB2008.pdf