State ‘surplus’ should be used to increase EIC, school aid, lower property tax burdens

This all sounds like a neat idea, but hopefully common sense will prevail and allow the legislature to use the “surplus” not by boldly endorsing a tax credit, but rather use the available funds to 1) protect Iowans from property tax increases resulting from boosting basic state aid for Iowa school districts by 4 percent; 2), increasing the Earned Income Tax Credit, which is a pro-family and pro-economic growth tax cut; and 3), cutting property taxes for all Iowa businesses, with a special emphasis on small businesses.

All this comes about because we learned on Wednesday from the Legislative Fiscal Bureau that the state coffers have approximately $850 million in addition to the $500 million contained in the Economic Emergency Fund and the Rainy Day Fund.  This was quite a surprise to everyone in the legislature, and probably even the governor’s office.

Personally, I have never been a fan of extra revenue being returned to the taxpayers in the form of a check, or by a credit on the income tax form.  I’ve experience this twice before, once on the state level during the Ray administration, and again by the feds just a few years ago.  Far, far better that the excess funds be available to meet the absolute needs of the greatest number of our citizens.

Certainly, an example of that is my previously mentioned support for education funding.  Our path to a high-wage Iowa future depends on the quality of our local schools.  Our children need the skills to take on available jobs, and we must assure new and expanding businesses that our state is committed to education and job training that will build the strongest possible workforce.