Iowa Republicans are proving once again how much the Republican party values workers by offering Iowa state employees a 1% pay increase for each of the next two years:
Iowa is offering 1 percent across-the-board wage increases for each of the next two years to unions representing thousands of state employees in contract talks.
Kim Reynolds, the Republican Governor of Iowa, took the chance to talk about how grateful she was for the work done by state employees:
Gov. Kim Reynolds, a Republican, didn’t comment directly on the contract negotiations when she met with Statehouse reporters earlier this week. But she said she was “grateful” for public employees who are “the boots on the ground” in state government. Reynolds said that in putting together a state budget she would “do the best that we can with the resources that we have.”
The current rate of inflation has been about 2% for the last 3 years. A 1% pay increase would mean that in inflation adjusted terms, Iowa state employees would be receiving a pay cut for the next two years.
Apparently, Kim Reynolds is not grateful enough for the work done by state employees to actually pay them halfway decently. And notice her comment about doing the best with the resources they have. If Iowa’s government has limited resources to tap to pay state employees enough to keep up with inflation, it is because of actions taken by Kim Reynolds and the Iowa GOP.
In May of 2018, Iowa Republicans wanted to cut taxes for the wealthy, so that’s what they did.
The changes in Iowa’s tax code will end federal deductibility, create sales taxes on digital goods and services and reduce both individual and corporate income taxes.
A married couple with two children making $96,000 can expect to save $347, or 8 percent.
Tax filers whose adjusted gross income is more than $1 million per year will see a 19.4 percent savings — a savings of $24,636 on average.
As usual, Iowa Republicans claimed at the time that the tax cut would actually generate additional tax revenues for the state, despite decades of history showing that never, ever happens:
Republicans insisted the legislation is fiscally sustainable and that Iowa’s economy is on sound footing that will generate additional growth of state revenues.
Now, a new state budget forecast has been released for Iowa, and predictably, it shows that state revenues are growing significantly slower than state incomes:
State budget experts say revenue projections for the current fiscal year are running slightly ahead of their October predictions, but the growth for the 2020 budget is expected to be considerably slower.
The three-member Revenue Estimating Conference says state income is up about 4.7 percent from the previous year but the group anticipates only a 1.7 percent increase in revenue for next year.
The Iowa GOP busted the budget giving tax cuts to the rich, so no money is available for Iowa state employees to be paid enough to keep up with inflation. But, Republican Governor Kim Reynolds would like everyone to know that she is “grateful” for the jobs done by Iowa state employees. She just doesn’t think they should be paid decently for that work.