Des Moines - The Iowa Taxpayers Association (ITA), the state's leading nonpartisan business tax policy advocacy organization founded in 1935, released their review of the Governors and Iowa State Legislature's budget today. The review highlights the more significant deviations and convergences from the group's established sound budgeting principles. To view both reports, simply click here.

"As we begin a new fiscal year this month, it is important to remind policymakers of the need for Iowa to be sound in its budgeting principles, said Iowa Taxpayers Association President Ed Wallace. "The Legislature failed to align revenues and expenditures within the same fiscal year and that is an important part of sound budgeting,"

"Spending occurring in a given fiscal year should be financed with revenue generated in that fiscal year. To establish a program that will not begin until a subsequent fiscal year creates another "built in" increase and does not constitute a sound budget," added Iowa Taxpayers Association Accountable Government Committee Chair Tom Wagner (CFO, Republic Companies - Davenport).

The Association's review also highlights a number of multi-year accelerating commitments. "In making these types of commitments, decisions are being made without knowing what the trade-offs will be in those future budget years. Multi-year accelerating commitments create more built-in increases and does not signify a sound budget," stated Wagner.

"The Governor and Legislature did build upon a performance based budgeting process, which in theory will help efforts to align expenses" stated Wallace. "This is a positive step towards an accountable budget in future years." The Iowa Taxpayers Association will continue to encourage Governor Culver and the Iowa Legislature to adhere to these sound budgeting principles.

*  *  *  *  *  *  *

In 2001, Iowa Taxpayers Association developed a Committee on Accountable Government. The work of this group complements and reinforces the goals of the Accountable Government Act passed in 2001. By focusing on what Iowa Taxpayers Association believes are sound budgeting and financial practices, the Office of the Governor and members of the General Assembly are offered tools by this Committee through which they can provide more accountability in the practice of government.

The purpose of these reviews is not to provide subjective judgment or declaratory comment on the merits of individual State programs. The hope is to complement the standards set forth in the Accountable Government Act of 2001.