Branstad, Gronstal wrangle over budget

DES MOINES – Gov. Terry Branstad has a word for Democrats who are frustrated with the lack of progress in negotiations over budget differences that are sending the 2011 session into overtime: Patience.

Lawmakers are about $150 million apart in settling on a fiscal 2012 budget. That's only half the battle because Branstad is insisting they approve a 2013 budget, too.

“We'll do whatever we need to do, but there are certain principles I think we need to adhere to,” the fifth-term Republican said in Ames April 28. A two-year budget is one of them because it will provide “stability and predictability and something that is sustainable for the long-term.”

It's a way to avoid the across-the-board budget cuts and use of one-time funding for ongoing expenses, practices the governor said have led to the “financial mismanagement I inherited” and promised to correct.

“I just ask him to just be patient and work with us,” Branstad said, referring Senate Majority Leader Mike Gronstal, D-Council Bluffs, “I'm going to be patient and we're going to persevere.

Back at the Capitol where the legislative session will continue next week despite the April 29 scheduled adjournment. Gronstal said he's getting tired of trying to bridge the budget differences.

“I've grown weary of offering olive branches,” Gronstal said. “My arms are tired from carrying the olive branches.”

There have been few conversations with the governor since Branstad vetoed Democrats' tax relief measures for low-income workers and small business, he said.

Branstad schedules at least an hour a day to meet with lawmakers, but “they don't show up at least half the time,” he said. “I can't help it if they choose not to meet with me.”

Branstad said he understands that after four years of Democratic majorities and Democratic governor, Gronstal faces a different arrangement at the negotiating table.

“Sen. Gronstal now has to deal with a Republican governor and Republican House,” Branstad said. “We all need to work together.”

At the same time, Branstad made clear he's built a budget on “real numbers … something that is sustainable” and he's not about to play the “shell games” Democrats have used to build their budgets in recent years.

He rejected Gronstal's argument the state is flush with $600 million in cash reserves, a $300 million ending balance and state revenues growing by 4.4 percent.

“We have all this one-time money that was used last year that we have to pick up - $540 million in Medicaid alone” and an indigent defense budget deliberately underfunded by Democrats last year, Branstad said. “I'm not going to let them do that again this year. We're going to make sure we are controlling spending and what we are doing is sustainable for the long-term.”