At two o’clock Thursday afternoon Governor Chet Culver will announce which option he’s chosen to balance the state budget. A panel of state financial experts significantly reduced their projection of state tax collections this afternoon. Culver says he could order an across-the-board cut in state spending or call lawmakers back to Des Moines for a special legislative session.
“I think all Iowans understand that we’ve got to tighten our belt, just like most Iowa families right now. We’ve got to live within our means. We’ve got to make some tough cuts,” Culver says. “I’ve done it before and I’ll do it again.”
Last December, Culver ordered a one-and-a-half percent cut in state spending. The cut Culver may order today would be significantly higher, as the three-member panel of financial experts who met today reduced their official estimate of state tax collections by more than seven percent. Culver says the “first place” he and top managers in state government will look to save salary money is by leaving unfilled positions empty, but Culver says it’s “premature” to talk about state worker layoffs.
“Every option is on the table. Obviously, across the board cuts of up to 8.4 percent is an option,” Culver says. “A special session is an option.”
Republicans say Culver and his fellow Democrats in the legislature crafted an extravagant state budget that spent way beyond the state’s means and the need for budget cuts is a predicament of their own making. Culver rejects the criticism.
“This isn’t about partisanship. No one could have predicted that we would see this type of decline,” Culver says. “…What we really need to do at this time is come together and put the partisan politics aside and do what’s in the best interests of our constituents and they expect that we’ll resolve this budget challenge.”
According to Culver, the recession has reached depths not seen since the Great Depression. “This great recession was caused by bad policies in Washington and bad practices on Wall Street,” Culver said in a prepared statement he read to open a news conference held in his office this afternoon.
Culver, for the first time, addressed in public a federal audit which raised questions about how he spent federal money while he served as Iowa’s secretary of state. “We will work with the Election Assistance Commission to resolve any and all questions,” Culver said. “I think what’s important in the report is what the staff member said at the Election Assistance Commission, that they look forward to working with us and we’ll have an opportunity to answer any and all questions that they might have.”
The audit found “questionable” spending for a “Celebrate Voting” initiative in 2005 that involved a dance and concerts. The audit faulted Culver for failing to keep adequate personnel records and for failing to solicit bids from more than one vendor before awarding contracts. Culver did not specifically address those complaints.
“I tell you one thing, I’m not going to apologize for spending $300,000 or $400,000 to build ramps, to widen doors and to make every polling site in our state accessible to people with disabilities,” Culver said, “which is one of the areas where we had disagreement.”
Culver also addressed the mess in the state Film Office, saying “everyone” who abused the system of applying for state tax credits for film making in Iowa would be “held accountable.” “I think it’s just outrageous that in a number of cases individuals exploited the program, buying luxury vehicles, for example,” Culver said. “The abuses really angered me, as a taxpayer, as a governor.”
Culver suspended the state tax credit program for film and T.V. productions on September 18. Culver has also ordered a review of all state tax credits.
“We need to see results. We need to see data that will guarantee the taxpayers of Iowa a benefit with any tax credit, any program, whether it’s film, research and development or otherwise. That’s going to be the bottom line,” Culver said. “And I’ll guarantee you we will never, ever again be taken advantage of like we were with this film program.” Top legislative leaders say the program could be suspended for more than a year, and may not be revived.
Hear the entire press conference here: Culver on revenue figures. 23:00 MP3