Governor Chet Culver likely will have to tap State's Cash Reserves to balance budget

"I would say that it's highly unlikely that he wouldn't have to tap the cash
reserves for his authority at least to balance the budget for '09." - State
Auditor David Vaudt

Governor Chet Culver will likely tap cash reserves. Culver and the Democrat controlled Iowa Legislature unveiled a strategy of bonding to help fund Iowa's record budget.

"The rating agencies also gave Aaa credit ratings to Enron, Freddie Mac and
Fanny Mae, and we know what happened to them. So I don't place a great deal of
reliance on what the credit agencies are doing from a due diligence standpoint."
- David Vaudt

The Thursday, July 9, 2009 edition of The Quad City Times features an article titled, "Reserves likely needed to balance Iowa's budget." For more on this issue, read Public Interest Institutes's brief titled "Iowa's State Budget: Spending Our Way to a Crisis Again."

“The governor is acting like this was an accident or an oversight. That
is not what happened. The governor and Legislative Democrats made a
calculated decision to not couple with federal law and force Iowans to
payback tax returns because they needed the money for their spending plans.
House Republicans stand ready to correct this error.” - Iowa Minority
Leader Kraig Paulsen

Democrats Made Calculated Decision to Tax Iowans - Iowa House Republicans

Governor Chet Culver and the Democrat controlled Iowa Legislature unveiled the a strategy of bonding to help fund Iowa's record budget.

"The rating agencies also gave Aaa credit ratings to Enron, Freddie Mac and
Fanny Mae, and we know what happened to them. So I don't place a great
deal of reliance on what the credit agencies are doing from a due diligence
standpoint." - David Vaudt

Plunging revenue causes new problems -Stateline.org - Stephen C. Fehr
The Legislature already cut spending 7 percent for the budget year that started July 1. Iowa finished the 2009 budget year as much as $161 million in the ...

Budget tsunami warning - Denver Daily News

State Tax Surprise: Some Have to Pay Back Refund -KCRG - Rod Boshart
“It was a hit to the budget that, frankly, was not an option. “ he said. Sen. Randy Feenstra, R-Hull, who tried unsuccessfully to raise the issue in floor ...

peace