POSTED:
Wednesday,
April 25, 2001

GOP breaks off talks with governor


By MADHUSMITA BORA
Courier Staff Writer

DES MOINES

Republican leaders outlined their final state budget proposal Tuesday, but the governor says they still haven't gone far enough.

GOP leaders increased spending plans by $48 million for next fiscal year. They want to pass the budget and go home next week, and said they are ending negotiations with Gov. Tom Vilsack.

"We are going to go ahead and run the budget bills," said Senate Majority Leader Stewart Iverson, R-Dows.

Vilsack says the plan is a good start, but held out the threat of a veto.

"This is obviously a matter of negotiation and compromise. We are willing to sit down with legislative leaders in the course of the next week to look at where additional cuts could be forthcoming."

The governor said he will reject the budget if the numbers are inadequate.

The proposal restores $10 million to education, including $4 million for community colleges and $6 million for existing teacher professional development programs. An additional $17 million has been allotted to fund public transportation and $200,000 more has been added to public school transportation costs.

The Republican plan also restores $8 million to the Department of Human Services budget.

Senate President Mary Kramer, R-West Des Moines, said by releasing the proposal, Republicans met the governor part-way.

"At least we see our plan, we know what we want to do and now we can move ahead," Kramer said. "Don't think we like being accused of having children for lunch or not putting a face on people who are troubled. These things are hard to do, but what we did is the responsible thing."

Vilsack and the Republicans have been squabbling over the budget for weeks after a sluggish growth in state revenues left a $300 million shortfall. Vilsack wants to dip into the state's rainy day fund, but Republicans have vehemently rejected the proposal.

"We have to cut spending," said House Speaker Brent Siegrist, R-Council Bluffs. "Using the Economic Emergency Fund is the wrong answer. It's a Band-Aid on a wound that won't heal."

The governor Tuesday offered to find an additional $50 million in spending cuts, but that still leaves a $100 million gap between the two sides. Republicans said they would not budge from their position.

"There's no more money to give and I don't care how many umbrellas pop up on the front porch of the Capitol, we cannot use the Economic Emergency Fund," said House Majority Leader Christopher Rants, R-Sioux City. Rants referred to protesters who rallied outside the Capitol encouraging increased spending.

"We are going to pass a responsible budget," Siegrist said. "If he vetoes it, we will be back in a special session."

The governor termed Tuesday's developments as positive, but criticized Republicans for reneging on promises to boost teacher pay.

"The GOP proposal still does not fund the teacher compensation and student achievement plan," Vilsack said.

Republicans have set aside $8 million toward the teacher pay hike. Initially they had promised to make $40 million available. Vilsack still wants to put $40 million as a down payment for this year.

"It's a promise that I intend to keep," the governor said.

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