Lt. Governor Gregg touts fiscal responsibility with $289 million surplus

MASON CITY — Governor Reynolds’ office announced earlier this week that the State of Iowa’s last fiscal year ended with a surplus of nearly $290 million, but Reynolds’ Lieutenant Governor says that doesn’t mean it’s time to spend more money.

Adam Gregg says the news of the surplus shows the importance of fiscal responsibility.  “It’s something that we shouldn’t take for granted. All we have to do is look to our neighbor to the east in Illinois and you know that not every state practices that kind of fiscal responsibility. Iowans expect us to live within our means as a state government because Iowans live within their means in their own personal lives. We’re very encouraged that we have managed a state budget along with the legislature in a way that allowed us to have a balanced budget, cash reserves that are full, and a $289 million surplus.”

Gregg says a potentially slumping economy means the state needs to be fiscally responsible.  “It’s especially important as we look at potentially some economic headwinds in the near future that we continue to be very circumspect in state spending and makes wise decisions, and frankly make healthy decisions. We want to not only be the healthiest state physically, we want to be the healthiest state financially as well.”

A number of people on social media said after the announcement that some of the extra money should be funnelled into education. Gregg says he’s proud of the fact that even with a balanced state budget and a $289 million surplus that they were able to approve the highest-level investment in education in the state’s history.   “Out of a roughly $7.6 billion budget, about 45-percent of that goes to K-12 education.  When you factor in higher education on top of that, so our support for the Regents universities, the community colleges, and the support for the private colleges, 55% of our state’s general fund budget goes to education. We are proud to make education a major priority for our administration, but we also can’t print money like they do at the federal government. We just need to live within our means, and I think it’ll take some leadership to do that, and that’s the kind of leadership that Governor Reynolds has provided.”

Gregg made his comments during a stop in Mason City earlier this week.