Second in a series of stories on state legislative races in the November election.

CEDAR FALLS -- Opposing views on the state's budget and state employee union negotiations will collide in the race for Senate District 10.

Republican challenger Walt Rogers called current state spending unsustainable "credit card budgeting."

The legislature has raised the state budget by 13 percent in the past two years.

"We think the budget is out of whack," Rogers said.

However, a recent increased credit rating for Iowa from a well-respected independent agency directly contradicts those criticisms.

In defending the budget, Democratic incumbent Jeff Danielson said revenues increased last month by 9.5 percent, and the state enjoys a record $620 million in reserve funds.

"Iowa's economy is in pretty good shape, thank goodness," he said.

Last week, Standard & Poor's increased Iowa's credit rating to its highest level, one of 10 states to receive a AAA rating.

The agency wrote that it based its decision on the state's good fiscal management, willingness to restrain spending, strong reserves, good income levels and low debt burden.

Another fear voiced by Republicans is that a recession could wipe out the state's reserve funds. But Danielson said such worries demonstrate a lack of understanding of how budgets are constructed.

"If it's a hypothetical, it's akin to arguing about nothing. They ought to know there's a one year budget passed based on revenues," he said.

However, a stalling national economy could suddenly impact Iowa, a possibility Danielson acknowledged. In that case, he said, mid-year adjustments to the budget will be made.

A willingness to make mid-year corrections to the budget was noted as a strength in the state's credit evaluation.

Both candidates expressed a desire to improve education. Danielson pointed to bills passed by a Democratic legislature. They include increasing teacher pay, expanding childhood education and keeping college tuition in check.

He noted University of Northern Iowa experienced its lowest tuition increase in 27 years.

"None of that was an accident. A growing economy provided the resources it took to invest in education," he said.

Rogers said one key to improving performance in education is finding a fairer balance between the power of teachers unions and government.

"It's very hard to get rid of bad teachers. A local principal needs to have the authority to ask a teacher, very kindly, that maybe you shouldn't be doing this," he said, echoing a statement made recently by Republican presidential candidate John McCain.

Rogers said a bill Danielson voted for to allow state employees to bargain over a wide array of issues would have swung the pendulum of power to much towards unions.

Gov. Chet Culver, a Democrat, bucked his own party and vetoed the bill.

Danielson, for his part, said he does not regret his vote. Professionals should be able to negotiate with their employer at the bargaining table.

"We have to put aside the old us versus them, labor versus management, divisions we create for ourselves. Everybody has to work together; everybody's voice matters," he said.

Rogers, a social conservative, said he supports a constitutional amendment banning same-sex marriage.

During the last legislative session, Democrats squelched efforts by Republicans to bring up the measure.

"I would like to see Iowans vote on that," Rogers said.

Contact Jens Manuel Krogstad at (319) 291-1580 or jens.krogstad@wcfcourier.com.