When average people have less money, they either find a way to earn more, spend less or borrow to make up the shortfall. That's the way budgets work.
Locally, our three governmental bodies: the City of Le Mars, Le Mars Community School District and Plymouth County have all pretty much finalized their budgets. Budgeting this year was brutal for all three bodies, with cuts being made and taxes being raised. We all can remember the brutal battle that ensued over the Instructional Support Levy, the cuts the city and school had to make, as well as the opposition to the supplemental levy that the county added.
So we are more than a little baffled that the Democrats, the majority party in the Iowa Legislature waited until less than two weeks before their scheduled adjournment to finally release details of the state's budget.
Much in the manner that the changes to the state's collective bargaining agreement were done (behind closed doors and released at the last minute), the details of the budget are finally public, and it's not a pretty picture.
The budget will grow to $6 billion for next year, with spending growing 4%. The Revenue Estimating Conference (REC) has projected revenues to grow at a higher rate than expected: $78.8 million for this fiscal year and $49.1 million for the next fiscal year. That money, and more will be spent.
Instead of shifting money from the general fund to improve roads, legislation is moving through the chambers that will increase the fees paid by owners to register their vehicles. Car and SUV owners' rates, which decline as the vehicle ages, would take an extra three years to bottom out to a minimum, flat fee when the vehicle is 12 years old. That minimum fee would be increased to $50 from $30 under the bill. The legislation would end a longstanding break for most pickup truck owners, who currently pay a flat registration fee much lower than cars' rates.
We'll need to keep an eye on what's going on in Des Moines in the coming weeks or we will end up paying the price.

