Revelations last fall about the mismanagement of Iowa's film-tax-credit program came at a convenient time for the governor and the state legislature, as they provide an opportunity to evaluate tax credits at a time when the state budget is tight.

Governor Chet Culver has included two major cost-cutting features in the budget proposal he released last week: reorganizing state government (saving $341 million) and making changes to the state's more-than-two-dozen tax-credit programs (saving $52.5 million). The governor's budget proposal reads: "In Fiscal Year 2011, state tax credits are expected to cost the state $525 million if no legislative changes are made. ... [T]he Culver-Judge Administration believes that state tax expenditures must ... be scaled back in light of declining state revenues."

Culver did not specify how he wanted the legislature to achieve cost savings by $52.5 million, only referring to seven recommendations of his Tax Credit Review Panel, which released its report on January 8.

The legislature has one easy option to achieve the governor's cost-saving target. The review panel estimated that following its recommendations would result in first-year savings of $55.2 million and second-year savings of $106.3 million. Basically, lawmakers could rubber-stamp the report.

But this is also an opportunity for the state to re-think the way it does economic development through tax credits. If it's so inclined, the General Assembly could do a more-comprehensive overhaul of tax credits, making them better tools.

Governor Chet Culver has proposed a $5.3-billion state spending plan for Fiscal Year 2011 that uses more than $200 million from the state's cash reserves and $48 million in federal stimulus money, while reducing tax credits by $52.5 million and saving $341 million from state-government reorganization.

Culver said the budget would leave an ending balance of $117.3 million and would leave $265.2 million in the state's cash reserves.

"We have achieved this lower budget by continuing the 10-percent across-the-board budget cut made last fall in Executive Order 19 for most of the General Fund budget," Culver said. "Only 31 percent of programs or agencies would receive any increases over the revised FY 2010 budget ... reflecting the need to reduce state-government spending while preserving critical services for protecting vulnerable adults and children."

Culver's budget recommendations include a $6.9-million increase for the Department of Public Safety to prevent potential layoffs of up to 122 people, and a $25-million increase for the Department of Corrections to avoid layoffs at state prisons.

OBITUARY................

Today we mourn the passing of a beloved old friend, Common Sense, who has been with us for many years. No one knows for sure how old he was, since his birth records were long ago lost in bureaucratic red tape. He will be remembered as having cultivated such valuable lessons as:
- Knowing when to come in out of the rain;
- Why the early bird gets the worm;
- Life isn't always fair;
- and maybe it was my fault.

Common Sense lived by simple, sound financial policies (don't spend more than you can earn) and reliable strategies (adults, not children, are in charge).

His health began to deteriorate rapidly when well-intentioned but overbearing
regulations were set in place. Reports of a 6-year-old boy charged with sexual harassment for kissing a classmate; teens suspended from school for using mouthwash after lunch; and a teacher fired for reprimanding an unruly student, only
worsened his condition.

Common Sense lost ground when parents attacked teachers for doing the job that they
themselves had failed to do in disciplining their unruly children.

It declined even further when schools were required to get parental consent to
administer sun lotion or an aspirin to a student; but could not inform parents when a student became pregnant and wanted to have an abortion.

Common Sense lost the will to live as the churches became businesses; and criminals received better treatment than their victims.

Common Sense took a beating when you couldn't defend yourself from a burglar in your own home and the burglar could sue you for assault.

Common Sense finally gave up the will to live, after a woman failed to realize that a
steaming cup of coffee was hot.. She spilled a little in her lap, and was promptly awarded a huge settlement.

Common Sense was preceded in death, by his parents, Truth and Trust, by his wife,
Discretion, by his daughter, Responsibility, and by his son, Reason.

He is survived by his 4 stepbrothers;
I Know My Rights
I Want It Now
Someone Else Is To Blame
I'm A Victim

Not many attended his funeral because so few realized he was gone.

In Liberty,

Chris

http://www.restoretherepublic.net/

http://www.cc2009.us/

http://givemeliberty.org/

http://www.facebook.com/Chris_InMaryville/

Iowa Democratic legislative leaders on Thursday promised to act "extremely quickly" to maintain the state's ban on corporate contributions to campaigns, following the U.S. Supreme Court's 5-4 decision to strike down the central part of the McCain-Feingold campaign finance law and allow corporations to spend as much as they wish to support or oppose candidates for president and Congress.