Reflections from some of the Midwest’s legislative fiscal leaders

ILLINOIS SEN. CRISTINA CASTRO | CLASS OF 2019
CHAIR, REVENUE COMMITTEE

How can a state best prepare for occasional fiscal downturns? “Set the state up so that it’s in a position to be able to cope with situations [like now] with better investments in schools,
social services, health care, etc. A lot of these institutions found themselves overwhelmed. … Had they been more adequately funded, it’s possible that some of these hardships could have been avoided.”

What can be done to improve long-term fiscal planning? “Invest better. Smarter investments in state services, and particularly into evaluative practices from those services, make it easier in the future to determine where money is being spent well and where there may be room for improvement.”

How can legislatures ensure sound fiscal decisions will be made? “Take time and don’t rush things. We do this by taking the time to hear from the state agencies, from people who rely on state agency services, and also from colleagues on both sides of the aisle during the committee process so that we can obtain a better understanding of where the needs are, where excess exists, and how to best allocate the funding in order to address both of these.”

KANSAS REP. TROY WAYMASTER | CLASS OF 2015
CHAIR, APPROPRIATIONS COMMITTEE

How can a state best prepare for occasional fiscal downturns? “I have consistently advocated that when the state was experiencing a surplus in our budgeting process, that a portion of those funds be transferred to our budget stabilization fund to be utilized when the state was experiencing a downturn.”

What can be done to improve long-term fiscal planning? “We must be cognizant of the revenues coming into the state and the forecasting models for the outlying years, and appropriately ensure that the budget expenditures do not exceed the projected revenue in the future. We must also be aware that at any moment, there may be a situation [like now] that can drastically alter those projections and always have a plan in mind for when those situations occur.”

What are the attributes of an effective fiscal leader? “Negotiation skills are essential during the conference
committee process, and it is imperative to learn the ‘give and take’ strategy. … Communication is key. Be prepared to explain [to colleagues] the rationale and what occurred during the negotiating process.”

WISCONSIN REP. AMY LOUDENBECK | CLASS OF 2014
VICE CHAIR, HOUSE FINANCE AND JOINT FINANCE COMMITTEES

What are the most important legislative strategies to weather a difficult fiscal period? ”Managing expectations is critical; now is not the time to make promises we can’t afford. We have to take care of funding our current obligations before growing government with new programs or projects.”

What can be done to improve long-term fiscal planning? “States must have a good handle on their retirement systems to ensure long-term solvency. In addition, states should not rely too heavily on bonding or borrowing, and should not routinely push off expenses into a future budget to make the current one balance.”

What are the attributes of an effective fiscal leader? “It is important for me to understand that my priorities may not be the same as those of my colleagues. I know politics is local and legislators need to be advocates for their districts, but our Joint Finance Committee members have to weigh the best interests of the entire state.”

IOWA REP. CHRIS HALL | CLASS OF 2013
RANKING MINORITY MEMBER, APPROPRIATIONS COMMITTEE

What can be done to improve long-term fiscal planning? “We should recognize that what may be a good idea today may no longer work in 10 years. Staggering programs for review and sunset can help to prevent the natural inertia of a cost to automatically become permanent. A nimble budget allows a state to react to what’s needed next.”

How can legislatures ensure sound fiscal decisions will be made? “It’s important to focus on nonpartisan advice and make sure the math works, and that something can be proven on paper before signing the concept into law. … It’s important to listen to alternate viewpoints and the minority party when making big decisions. It may not ultimately add to the vote count, but listening is free and it will make for better policy.”

What are the attributes of an effective fiscal leader? “Vision and communication skills. It makes a tremendous difference to your caucus and the public if you can explain how individual pieces of a budget work together to advance a goal, so they’re not viewed as isolated lines on a spreadsheet. Effective communication helps connect the dots. It fosters better understanding of how state government impacts one’s family, business and well-being.”