Iowa Auditor of State

David A. Vaudt, the Iowa Auditor of State, spoke about “Budgeting – Iowa’s Future”.  David is in his second term as auditor, beginning in 2003.

David showed where the General Fund Budget in Iowa has only balanced in the years since FY2000 by shifting funds from other funds.  For example, the Tobacco settlement fund was created with money from the Tobacco companies to cover the costs of  smoking related illnesses.  This fund should have $1 billion dollars in it for future use.  It has been depleted by the General Fund and now is empty.  The Senior Living Trust Fund, established to help Senior citizens stay in their home, should have $600 million, but is also empty.

David said that state school aid is underfunded by $170 million, even if you include the Governor’s “additional $100 million” spending for schools from the Cash Reserve Fund.  The state Cash Reserve Fund should have $600 million in it, but will actually be close to $200 million.

David Vaudt thinks the only way to control Iowa state spending is to start on the expenditure side of the budget.  If you raise taxes, the money will quickly be spent.  The next Governor will have to make some hard decisions to control spending.

David has given about 500 presentations around the state in recent years, explaining the Iowa budget, from an auditor’s viewpoint.  Politicians are starting to listen, but many don’t want to help make the difficult decision to control the budget.