Conundrum:
"A complex or perplexing problem that generally has no clear solution."
Don't believe the spin folks; we all saw this coming!
Flashback: Fall of 2008...I'm attending a house party for then candidate Renee Schulte at the home of Christian and Jenelle Fong here in Cedar Rapids. The guest speaker for this event is State Auditor David Vaudt who articulated his concerns to a packed room about the impending problems with the state budget. In fact, you can read the official report posted on his department web site on May 28th, 2008.
Here's a prescient excerpt for you to read:
Poor Financial Practices Continue
Auditor Vaudt stressed, “The key to responsible budgeting is to bring expenditures in line with revenues.” He noted total spending in the adopted Fiscal Year 2009 budget exceeds total available revenues by over $370 million. Despite almost 10% revenue growth over a two-year period, expenditure growth outpaced revenue growth by 52%.
“If we can’t make ends meet with nearly 5% average annual revenue growth, how will we make it if revenues flatten out or decline, as they do in a recession?” (Emphasis added)
David Vaudt is now a front row witness to the validation of his prophetic analysis.
Now let's contrast Vaudt's statement with Culver's own words from his media availability held just yesterday afternoon:
"This isn’t about partisanship. No one could have predicted that we would see this type of decline, Culver says. What we really need to do at this time is come together and put the partisan politics aside and do what’s in the best interests of our constituents and they expect that we’ll resolve this budget challenge.”
"This great recession was caused by bad policies in Washington and bad practices on Wall Street."
Again how ironic...the two people in the room at the Schulte fundraiser that night are in my opinion, the dynamic duo that can fix this budget mess. State Auditor David Vaudt and now candidate for Governor Christian Fong!
On February 2nd of this year, Christian posted an excellent analysis here on HawkeyeReview predicting that the Iowa recession would "lag behind the general economy." You can read that article here and the entire index of Christian's contributions to "HR" are available for your study here.
I won't break your arm, but I highly recommend you evaluate the writings of an Ivy league-trained economist who just also happens to be applying for the job to serve as our next Governor!
How about some additional predictions? The 24-Hour Dorman had two posts from February and June of this year...here are the excerpts with links to the full articles for your review:
"It’s a critical stretch of Culver’s governorship. The budget could be his biggest vulnerability. And someone needs to tell him that it’s way too late for “everything’s just dandy!” We expect a reality-based response when it comes to our government and our money."
Dear Dr. Compassion, Last year was so great, but this year stinks. Legislative leaders kicked my great can deposit idea, poked fun at my weight-loss challenge and badmouthed my budget. Now people say I shouldn’t have spent $90,000 on a big fun voter party, with cake and stuff, when I was secretary of state. What do they know? I’m the governor. How do I make them shut up and do it my way?
Sincerely, Ticked at Terrace Hill.
Dear Ticked, Sounds like someone needs a long winter’s nap.
***************
It appears Dorman knew about the HAVA problem well before it hit our radar screens!
I suggest the most damning prognostication was from Culver's own lips...
"My Administration has stayed ahead of the changing economic conditions by taking effective steps to ensure a balanced budget and maintain strong fiscal management."
Governor Chet Culver: Friday, March 20th 2009
(I can't wait for our nominee to read this back to Culver at a future debate!)
Now to be fair to Chet Culver, he did have some help from Pat Murphy and Mike Gronstal. Together the dynamic "trio" forged ahead with a 21% increase in state spending over the last 24 months which accounts for almost $1 billion in new expenditures. Now, couple this with an additional billion plus in borrowing and bonding and we find ourselves with a state government that created a SPENDING PROBLEM long before we encountered a REVENUE PROBLEM.
Governor Culver - There were many professional, competent experts who told you and the Democrat party leadership this problem was looming on the horizon long before it materialized. Instead of accepting your duty and responsibility to protect the Iowa taxpayer, you framed all this excellent advice as "partisan politics" and you continue to do so to this very day.
This was no accident...this was failure to lead and the blame leads us back to Terrace Hill!