Thursday, September 17, 2009

Fact Chet!

Governor misleads Iowans about state spending—AGAIN!

Statement from Governor Culver

Discussing the state budget, Governor Culver said: “We’re actually spending less in 2010–two-and-a-half percent less than we did in 2008.”

Source: Des Moines Register, 9-17-09. Click here.

Fact Check

Governor Culver’s statement is deceptive and misleading. Due to the receipt and expenditure of one-time federal stimulus money to backfill shortfalls in general fund revenue, state spending in 2010 is actually higher than in 2008.

State general fund appropriations in 2008 (understanding there was no federal stimulus aid to the states in 2008) totaled $5.9 billion.

State general fund appropriations in 2010 (including the $530 million in general fund expenditures being funded by federal stimulus receipts) totaled $6.3 billion.

The loss of this one-time stimulus money is a major portion of the projected $900 million general fund budget hole Governor Culver and Democratic lawmakers have created in the upcoming budget year (FY11).

Source: Legislative Services Agency, 2009 Fiscal Report, July 2009, p. 17 (click here); Auditor of State, David Vaudt, August 2009, p. 20 (click here)

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