To the Editor,

Let’s accomplish the long overdue reform of corporate tax subsides.

Iowa has a $500 million shortfall in state revenues, a shortfall due almost entirely to the national recession caused by Wall Street.

This unprecedented drop in income led Governor Culver to impose a ten percent across the board cut in all general fund spending. Almost $600 million was cut from education, health care, public safety and clean air and water programs. These cuts hurt important basic services that provide educational opportunity, medical care, and improved quality of life. .

Meanwhile, on the tax spending side of the state budget, absolutely no cuts have been proposed for the $400 million we give to corporations each year through tax subsides.

This state spending, which includes corporate tax credits, has increased by 350 percent over the past five years. That means it is fastest growing part of state spending. And unlike the intense scrutiny that education, health care, public safety, natural resources and environment budgets receive each year, this sort of spending receives virtually no regular oversight.

There, for example, are no performance measures or regular reports to the legislature or Governor on whether these programs are working. The few examinations that have occurred have show that of these programs are excessively generous or ineffective or both

When we are forced to cut educational opportunity, health care for those in need, and law enforcement, why aren’t we insisting that corporate tax credits and similar corporate spending receive not only far more scrutiny, but also take it’s fair share of across-the-board cuts?

It is time to follow the lead of other states by also cutting spending on corporate subsides. It is time to replace the blank check approach with a spending cap on all corporate tax subsides. We should sunset all the tax credits subsides and regularly evaluate every dollar spent in this area for results.

Difficult times force everyone to establish priorities. Corporate tax subsides should no longer trump educating our kids when it comes to our public spending priorities. I support effective economic development programs, but it is time that they become far more transparent and accountable for creating good paying jobs.

Now is the time to make long overdue reforms.

Joe Bolkcom

Chairman,

Senate Ways and Means Committee

Iowa City