CEDAR FALLS -- Candidates at a legislative forum Tuesday repeatedly returned to the issue of the state's fiscal health.

The issue produced the most lively debate of the evening.

The topic was in the news last week when a revised budget forecast estimated revenues will be down $400 million from original projections.

Republican Walt Rogers, who is challenging Sen. Jeff Danielson, D-Cedar Falls, in District 10, spoke broadly about bringing leadership to the budgeting process.

He cited a report by state auditor David Vaudt, who is a Republican, that criticized the legislature for balancing the budget by borrowing from funds allocated for specific needs, like the Senior Living Trust Fund, which provides housing assistance for seniors.

"Let's just be honest. We went into some fund reserves for other things," he said. "Let's not spend more than we take in. That's a very simple thing."

Danielson, in defending the budget he helped pass, cited a recent report by Standard and Poor's, an independent credit rating agency, which recently increased Iowa's standing to its highest level.

It lauded the state's good fiscal management, willingness to restrain spending, strong reserves, good income levels and low debt burden.

"You don't get a credit upgrade unless you've been a good money manager," Danielson said.

Rep. Bob Kressig, D-Cedar Falls, in praising the state's AAA credit rating, criticized the auditor's report as partisan.

"Let's get that partisan view out of that and just look at an independent group. I think that's key," he said.

His Republican challenger in House District 19, Carlin Hageman, challenged that assessment.

He argued the auditor simply pointed out the state's revenues are not keeping up with expenditures.

The report said the state's spending exceed revenues by $370 million.

"I think that's a very pressing problem to deal with," he said.

Rep. Tami Wiencek, R-Waterloo, attempted to float above the partisan fray by pointing out the state is in relatively good shape because of a strong economy and fiscal responsibility by the Democratically controlled legislature and Gov. Chet Culver, a Democrat.

The state has a record $620 million in reserves.

"Especially compared to some other states, Iowa is doing better," she said.

But she also said a top budget priority for her would be to hold the line on spending, because "we need a budget Iowa can afford."

Democrat Kerry Burt, who is challenging Wiencek in House District 21, defended the Democrats' spending on education and health care by comparing it to his financial services business.

He said businesses sometimes invest in technology to ensure its long-term health, even if it hurts the bottom line in the short term.

"The state of Iowa is no different," he said.

Republican Vic Mokricky, who is challenging Rep. Doris Kelley, D-Waterloo, in House District 20, said taxes remain too high for property, savings and retirement benefits.

"When you lump those all together, the taxation system is pretty high," he said.

Kelley, though, said taxes are relatively low in Iowa. She cited a report from the Tax Foundation that ranked Iowa 31st in the nation in tax burden.

"Yes, we do need to look at taxes, but it's not as bad as people want you to think," she said.

Contact Jens Manuel Krogstad

at (319) 291-1580 or

jens.krogstad@wcfcourier.com.