Advertisement
Senate Update: Iowa ranks high for fiscal responsibility
by Bob Dvorsky, State Senator · Op-Ed · September 18, 2014


A perfect credit rating and strong budget make Iowa one of the best-run states in the country.


As chair of the Senate Appropriations Committee, I help determine each year’s budget and am committed to keeping Iowa’s finances in good shape.

I am proud of the bipartisan efforts of the legislature to balance the state budget without raising taxes and set aside money for a rainy day. We use caution when determining how much to spend by looking at recent revenue estimates from a nonpartisan panel of experts and budgeting in a conservative manner.

With this approach, Iowa is expected to have a budget surplus of about $735 million when this fiscal year ends on June 30, 2015. We also have $696 million in our Cash Reserves and Economic Emergency funds, the largest amount in state history. These rainy day funds — equal to about 10 percent of our state budget — are among the strongest in the country, according to the Tax Foundation.

State Auditor Mary Mosiman noted Iowa’s strong fiscal condition in her review this summer of state finances. Auditor Mosiman stated: “Not only has the spending gap been reduced to $171 million, but we now have a surplus of almost $750 million, in addition to our reserve funds which are full. The fiscal discipline of the last few years is paying off, and we need to ensure it continues.”

Iowa consistently earns the best-possible credit rating from Standard and Poor’s, which means the state has an “extremely strong capacity to meet financial commitments” in full and on time. This strong credit rating, in addition to our well-managed budget and low debt, put Iowa among the top three best-run states in the nation, according to 24/7 Wall Street.

Iowa does pretty well compared to other states, but there is always room for improvement. This fall, I will be reviewing the state’s finances as co-chair of the Legislative Fiscal Committee, a bipartisan group of five state senators and five state representatives. My goal is to come up with new ideas that will make a difference for the better by improving state government and the services provided to the people of Iowa.



To contact Senator Dvorsky during the week, call the Senate Switchboard at 515-281-3371. Otherwise he can be reached at home at 319-351-0988. E-mail him at bob.dvorsky@legis.iowa.gov.