February 9, 2012

Cuts at state universities impacting cities

The ten-percent across-the-board cut in state government spending is having a big economic impact in the counties where Iowa’s three public universities are located. In Iowa City, Plumbers Supply Company CEO John Balmer says his business has definitely taken a hit from the belt-tightening at the University of Iowa.

“Since January, we’ve noticed a reduction of about 28-percent and in real dollars, that’s significant,” Balmer said. “The University of Iowa is our largest customer.” The universities have cut their spending on supplies and implemented pay freezes. Dean Hunzinker is a realtor and home builder in Ames. He says the market has softened, but he credits the overall economy more so than the cuts at Iowa State University.

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Fruitcakes turn out to be popular fundraiser for Camp Courageous

The eastern Iowa camp that serves thousands of Iowans with disabilities every year is launching one of its largest annual fundraisers. Charlie Becker is executive director of Camp Courageous and he admits, he initially thought the idea of selling fruitcakes would be a tremendous flop.

“Back over 20 years ago, one of our board members came to me with the idea of baking fruitcakes and thought to myself, ‘What food has a worse reputation than fruitcakes?’ but lo and behold, it took off and has just done wonderfully.” Some years, as many as ten-thousand fruitcakes are sold at $10 each.

The camp is located near Monticello in eastern Iowa’s Jones County and is an annual respite for about 5,000 Iowans with visual, mental, physical or other disabilities. Becker says the camp is kept running, in part, thanks to holiday fruitcake sales.

“Once somebody eats one of these, they want to make sure they have one year after year,” he says.

Becker says the fruitcakes are hot sellers all over Iowa and far beyond the state’s borders. He says they sell to all 50 states, with a large bundle going to Hawaii, and to many foreign countries. A complete listing of Camp Courageous fruitcake dealers and how to order online can be found at “www.campcourageous.org” or by calling (319) 465-5916.

Camp Courageous was founded in 1972 when 40 acres of Jones County land was donated to establish a camp for people with disabilities near Monticello. In 1973, five buildings were built from donated labor and materials. By 1974, the camp was ready for its first campers, which totaled 211. Today, the camp is open year-round and has over 150 acres of land with 16 buildings. Annually, Camp Courageous serves over 5,000 campers ranging in age from one to 105.

Contirbuted by Pat Powers, KQWC, Webster City

Experts talk about raising state taxes, cutting spending

Budget and policy experts speaking at a conference in Des Moines say it may be time for the state to raise taxes. Iowa lawmakers are facing a projected shortfall of one billion dollars in revenue when the legislature convenes in January. Governor Chet Culver has said he opposes raising tax during a recession but the project director for a Washington think tank says spending cuts alone won’t solve the problem.

Jon Shure is with the Center on Budget and Policy Priorities. “Over 30 states raised taxes this year — every one of them also cut spending. We’re way past either or solutions here. We need a balanced approach that includes revenue because people’s needs are rising and in this recession states’ ability to meet those needs are going down,” Shure says. Shure advocates a small increase in income taxes on households earning over half-a-million dollars year.

Shure says a few states have raised the income tax on the highest earning households in the state. He says if the state raised the income tax one percent for those making over 500-thousand dollars, it would raise seven billion dollars for the state. But a former advisor to Governor Terry Branstad says to win public support, tax increases must be accompanied by a thorough review of state spending.

David Fisher is a Des Moines businessman who headed up a commission in the 1990’s that resulted in new spending limits for the state.

“You’ve got to get the horse before the cart. You’ve got to show the public that you are restructuring and reducing expenditures and it’s got to be real. It can’t be phony stuff,” Fisher says. Fisher says Iowa lawmakers seem to have forgotten about the spending limitations the legislature approved in the early 90’s that were accompanied by a one cent increase in the sales tax.

Fisher says the public accepted the tax increase because the was a “good housecleaning” of expenditures and costs and that was done and implemented and then they were prepared to look at some tax revenue increases. Fisher and Shure spoke Friday at a conference hosted by the Iowa Fiscal Partnership