Where has our Power Gone?

By Deborah D. Thornton

A year ago, in the May 2008 Public Interest Institute Iowa Economic Scorecard, I encouraged our readers to have the courage to use the power already in our hands. I would reiterate that sentiment, but I’m not sure we still have that power. Federal and State govern­ments are out of control, spending every penny they can find. The federal budget this year? $3.9 trillion, double the level of spend­ing in eight years, with over 1,800 subsidy programs. Their attitude in Washington, D.C. is: “What’s a deficit? We’ll make it up in four, no five, no seven years.” In all likelihood, it will never be made up. Our children will be paying for the rest of their lives. 

At the state level, Governor Culver just signed the largest state budget ever. Of this, over $530 million is coming from federal stimulus money. In addition, there is a bonding (read “borrowing”) plan of another $830 million. The interest on these bonds will cost millions, over the next 20 years, at current rates. By the time these bonds are paid off, the infra­structure will be worn out and need to be replaced again. State government will just use more loans, I guess. Governor Culver isn’t worried; someone else will be Governor in 20 years. Meanwhile our population, and therefore taxpaying workers, continues to age.  Our children continue to move elsewhere and our schools are shrinking. 

For Fiscal Year 2008 the Iowa General Fund budget was $5.9 billion, in FY 2009 it increased, and the FY 2010 budget just passed and signed is for at least $6.2 billion. Meanwhile, March 2009 Revenue Estimating Conference estimates are only $5.7 billion. Without the federal money the budget would not be balanced, as required by law. At the same time, over $232 million in savings proposed by the minority party were voted down in a straight line Democrat (majority) versus Republican (minority) vote.

The power even to be listened to is certainly not in Republican hands. This was clearly demonstrated when Speaker of the House, Pat Murphy, threw over 500 taxpaying citizens out of the gallery during a “public” hearing they had every right to attend. His premise was that you were supposed to be quiet when in the House gallery, though this was not an official legislative session.  Even though they were talking about a major change in Iowa tax law, the repeal of federal deductibility, the people were not important enough to be heard.

On April 23 Dave Ramsey, promoter of the financial philosophy of being “Debt Free!!” and proud of it, had a nation­wide “Town Hall for Hope” in 112 locations in Iowa and thousands more nationwide. Over 100,000 enthusiastic Americans gathered to focus on their personal fiscal literacy, accountability, and responsibility, and discuss the current economic situation. Even more listened on the radio and TV.  The idea is that financial discipline coupled with long-term focus will pay off in large dividends. Every elected official in Iowa should have been required to attend. Ramsey’s definition of “Hope” is having a financial plan and following it, not counting on the govern­ment. He and his followers are about true change. 

Unfortunately, our elected officials have not attended his seminars, and understand neither “debt free” nor “hope.” For example, the Iowa City City Council recently voted to buy an $80,000 metal sculpture of trees for a field, instead of building and staffing a new fire station. Even real trees could have been planted instead.  They obviously have no idea who Dave Ramsey is.  Being debt free appears to be a foreign concept.  

Interestingly enough, State Senator Joe Bolkcom, Democrat from Iowa City, introduced Senate Study Bill 1308 this year, allowing for the imposition of a local “city” income tax, in addition to federal and state income taxes. Maybe the City Council is “hoping” for new taxes so they can fund the real needs of the community.

The power over our personal budgets and spending is still in our hands, but our power over our government and elected officials is rapidly diminishing, along with their accountability. We must hang onto both our personal power and our power over our government.  If you are also concerned, express your opinion, vote, and finally run for office.  We need people like Dave Ramsey in office.  Iowa needs people who work to pay off their debts and who proudly holler on the radio, “I’m debt free and proud of it!”  Then we need them to take that commitment and dedication to the halls of our government and make the same changes there.    

The views expressed in this column are those of the author and not necessarily those of Public Interest Institute.  They are brought to you in the interest of a better-informed citizenry.

Deborah D. Thornton, Research Analyst, Public Interest Institute, 600 North Jackson Street, Mount. Pleasant, IA 52641-1328.  Phone:  319-385-3462.  Web site: www.limitedgovernment.org.

E-mail: public.interest.institute@imitedgovernment.org.