DES MOINES - U.S. Sen. Charles Grassley, R-Iowa, said Wednesday that his party is not governing effectively, which he fears will lead to losses at the ballot box next year.

"A lot of people want to say Republicans are having problems because of stands we take on specific issues. I've seen polls where that's not the reason. The reason is we're not governing," he said in a conference call with reporters.

Despite a majority in the House and Senate, Republicans have not been able to pass a package of tax cuts and spending reductions.

Grassley said he doubts the problems are bad enough for Republicans to lose control of the Senate next year, but he didn't comment about the possibility of losing control of the House.

"The best thing we can do to assure the control of Congress by Republicans after the 2006 election is to show that we can govern," he said.

The current budget debate is especially important to U.S. Rep. Jim Nussle, R-Iowa, who chairs the House Budget Committee and is also seeking the Republican gubernatorial nomination.

Eric Woolson, a veteran Republican activist in Iowa, said there is reason for concern, but there is also plenty of time for the situation to change.

"I think Grassley is making a point to Republicans so they're focused on what needs to get done now and what needs to get done next year," he said.

Also, Woolson thinks Democrats haven't put forward a clear enough agenda to be a serious threat.

Gordon Fischer, a former chairman of the Iowa Democratic Party, thinks his party is primed for a great year in state and national races. But he added that party leaders know they will need more than just a strong start.

"There's no question that things could change in a year rather dramatically," he said.

Contact Dan Gearino at (515) 243-0138 and dan.gearino@lee.net.