Published: November 03, 2009 09:08 am      

Iowans still feeling pains from economic downturn

There’s no doubt that Iowa and the rest of the country are facing tough times.

Since the Legislature approved a balanced budget last spring, state revenues have plunged dramatically. Recent revenue estimates came in $415 million below March projections.

While Iowa contributed little to the financial greed and recklessness that caused the national economic crisis, we are sharing in the pain. Last month, for example, Iowa’s unemployment rate hit 6.8 percent. That’s the highest level in more than 20 years.

This kind of economic disruption affects every individual, every community, every business and every organization, including state government.

State agencies and departments are now prioritizing as they consider how to cut 10 percent from their budgets. They’ll be eliminating non-essential costs, including bonuses, and requiring employee furloughs. If layoffs are necessary, management should be decreased—not employees providing direct services to Iowans.

The Legislature is cutting its own operating expenses by 10 percent — just like all other areas of state government. We’re shortening the 2010 session, freezing pay and requiring furloughs for staff, reducing hours and cutting positions, eliminating in-state and out-of-state travel during the legislative interim, and decreasing expenses for legislators.

When session rolls around in January, the Legislature will have to say “no” to many good ideas so that we can protect Iowa’s most critical services while balancing the budget.

Nevertheless, Iowa’s future looks bright. In fact, we have the eighth-fastest growing economy in the nation, according to the Bureau of Economic Analysis.

We’ve earned this position by laying a strong foundation for long-term economic success well before the recession began. Each year, we balance the state budget according to the best, nonpartisan estimates of future revenue.

At the same time, we’ve stayed focused on Iowa’s priorities. We’ll continue to work hard to protect our excellent education system, lead the nation on health care reform, and create jobs by putting federal and state stimulus dollars to work in our communities.

When the Legislature convenes in January, we’ll balance the budget without raising taxes. And I’ll continue listening to your concerns and working with everyone interested in building a better future for all Iowans.

How can state government be more efficient?

Do you have ideas for how state agencies and departments can operate more efficiently and effectively?

The Legislature’s State Government Reorganization Commission is seeking your suggestions. I encourage you to submit your comments at www.legis.state.ia.us/aspx/SurveyForm/Improving_StGvt/. All submissions are anonymous.

Health care leadership continues to draw attention

Another national study is giving Iowa high marks. The Commonwealth Fund recently ranked Iowa No. 2 for Health System Performance.

The Commonwealth Fund rated states on access to health care, prevention and treatment, potentially avoidable hospital costs, health care differences among various groups, and healthy lifestyles.

Iowa earned a high ranking by being near the top in many of these categories. For example, we’re second only to Massachusetts when it comes to making sure children have health insurance.

You can see for yourself how Iowa stacks up at www.commonwealthfund.org/Charts-and-Maps/State-Scorecard-2009.aspx.



Roger Stewart, a Democrat from Preston, is a member of the Iowa Senate representing District 13.