Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
The Revenue Estimating Conference (REC) announced Wednesday state revenue for the 2010 budget year will be $5.438 billion, down $415 million since March.
Holly Lyons, a member of the panel of financial experts, called the figures “probably the worst I’ve seen.”
Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the state is still reeling from “economic earthquake caused by the biggest recession since the Great Depression.
“It’s clearer than ever that the aftershocks of this deepening national recession will require quick action to balance the current state budget,” he said.
Republican lawmakers put the blame squarely on the shoulders of the Democrats.
“The news from the Revenue Estimating Conference, while troubling, is not surprising,” House Republican Leader Kraig Paulsen, R-Hiawatha, said. “Gov. [Chet] Culver signed the largest budget in the history of Iowa and his $1.7 billion borrowing plan has not worked. The out-of-control spending and lack of fiscal discipline expressed by legislative Democrats has caused the economic mess Iowa is currently in.”
Republican gubernatorial hopeful Chris Rants said the state must prepare for at least a 5.4 percent across-the-board budget cut, although he called this a “a dumb and lazy way to handle the problem.” Rants would prefer Culver call special session of the legislature to make a series of targeted cuts to the budget.
Also calling for a special session is the Iowa Farm Bureau Federation, who worry that because across-the-board cuts reduce state spending, they also will lead to an increase property taxes on all Iowans, IFBF President Craig Lang said.
“The funding of K-12 education is a partnership between state government and local property taxpayers, so when an across-the-board cut is ordered, the state’s share is reduced, which means property taxpayers have to pick up the shortfall,” Lang said. “An across-the-board cut of 7 percent to meet the decline in revenue could raise property taxes for Iowans by $195 million.”
Culver is expected to meet with reporters at 3 p.m. to share his reaction to the new REC numbers.
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