I strongly support the Debt Prevention Amendment and 60% amendment to the I…

By Sandra H. Greiner

Dear Editor,

I strongly support the Debt Prevention Amendment and 60% amendment to the Iowa Constitution and urge the Kalona Chamber of Commerce to endorse these two common-sense measures.

The Debt Prevention Amendment will stop the state from sliding back into debt by allowing the state to spend only 99% of their estimated general fund revenue. It also requires the state to maintain a rainy day fund that can be spent only by a 60% vote of the Legislature. It also requires the state government to use generally accepted accounting principles.

The 60% Amendment will make it harder to raise taxes by requiring a 60% vote of the Legislature to pass any new state tax or any increase in the state income or sales tax.

It won’t prevent all tax increases, but it will make raising taxes a last resort. Lawmakers will have to look at cutting wasteful spending and making government efficient before they look to the taxpayers to make up their shortfall. In order to reach a 60% majority, there will have to be bipartisan support and a genuine need.

These two amendments are good for Iowa’s economy and good for jobs. By protecting us against debt and higher taxes, we can encourage more Iowans to stay and more businesses to expand.

Opponents of these amendments claim the state will shift costs to local governments, forcing an increase in property taxes. This is not likely.

The Debt Prevention Amendment and 60% amendment will help hold down property. When the state was $408 million in debt in 1992, the state did not pay the full cost of the homestead credit and other tax credits against property taxes. State debt actually caused higher property taxes. If the Debt Prevention Amendment and 60% Amendment are adopted, this can never happen again.

In fact, the actual experience of 13 other states with amendment like our 60% shows a slower rate of growth in property taxes than states without the protection!

Other opponents claim the amendments will be harmful to education. However, when the state was in debt, school aid payments were delayed and teachers were laid off. School districts either had to make due without their aid payments, or had to borrow the money to make up the difference. Dollars needed for education were wasted on interest payments. In contrast, the states with amendments like the 60% Amendment had slightly higher growth in education funding.

Only by amending the Iowa Constitution can we have permanent protection against debt and higher taxes. Laws can be repealed of changed at any time. Amending the Constitution requires the approval of the Legislatures in two different General Assemblies, and then a vote of the people.

The Kalona Chamber of Commerce represents the most influential people in this community. Your endorsement will influence many voters in this community. I urge you to promote the Debt Prevention amendment and 60% Amendment with your formal endorsement.

Thank you.

Sincerely,

Sandra H. Greiner

State Representative