In a striking contrast to the $16 trillion federal debt so frequently mentioned in political advertising, the state of Iowa “officially closed the fiscal 2012 ledger with a $688.1 million budget surplus after its cash reserve and economic emergency funds were filled to the statutory maximum of nearly $596 million.” That’s the largest surplus in state history, according to David Reynolds, a fiscal analyst with the Legislative Services Agency.

Governor Terry Branstad (who wrongly claimed Iowa could not afford to give public employees a 3 percent raise) is already using the surplus to justify deep income tax cuts for corporations and wealthy individuals, in addition to a major commercial property tax cut. An earned income tax credit that would benefit hundreds of thousands of low-income workers will be a bargaining chip again.

Meanwhile, children in thousands of Iowa public schools have been dealing with larger classroom sizes and program cuts, because the governor and Republican state legislators insisted the state couldn’t afford any allowable growth for K-12 budgets in the 2012 fiscal year, and just 2 percent allowable growth in the current year. (In past decades, Iowa legislators routinely agreed on 4 percent allowable growth for school district budgets.) For statehouse Democrats, the record surplus shows that Iowa doesn’t need to “starve” state programs, especially education and human services.

This is an open thread. All topics are welcome, particularly any comments on state budget priorities.

UPDATE: Rest in peace, George McGovern. After the jump I’ve enclosed a famous passage from his book, What It Means to Be A Democrat. John Deeth recalls meeting and interviewing McGovern in Iowa. SECOND UPDATE: Added statements from Senator Tom Harkin and Iowa Democratic Party Chair Sue Dvorsky below.

Former Senator George McGovern, 1972 Democratic nominee for president, in his 2011 book What It Means to Be A Democrat:

During my years in Congress and for the four decades since, I’ve been labeled a “bleeding-heart liberal.” It was not meant as a compliment, but I gladly accept it. My heart does sometimes bleed for those who are hurting in my own country and abroad. A bleeding-heart liberal, by definition, is someone who shows enormous sympathy towards others, especially the least fortunate. Well, we ought to be stirred, even to tears, by society’s ills. And sympathy is the first step toward action. Empathy is born out of the old biblical injunction “Love the neighbor as thyself.”

Statement from U.S. Senator Tom Harkin:

“George McGovern came from America’s heartland.  He was a war hero who went on to win his party’s nomination for president.  In his long and storied career in the Senate, there was no finer moment than when he joined with Senator Bob Dole to pass the Food Stamp Act.  This was visionary legislation that represented the most important anti-hunger legislation in American history.  It allowed tens of millions of the neediest people in this country to receive critical food assistance and it represented Midwestern values at their very best.  Today, Ruth and I extend our heartfelt condolences to the entire McGovern family.”

Statement from Iowa Democratic Party Chair Sue Dvorsky:

“With the passing of Senator George McGovern, America has lost a true patriot and a dedicated public servant. During his time in office, he worked tirelessly for farmers and low-income families all across the county. And for nearly 30 years after he left public office, Senator McGovern continued his work to serve the country and the world.

“Senator McGovern is probably best known for his 1972 presidential campaign, but his true legacy was the way he inspired a generation of political activists and his tireless work to feed starving people in the U.S. and around the world. From his time as director for President Kennedy’s Food for Peace Program, to the George McGovern-Robert Dole International Food for Education and Nutrition Program, to being named as the first UN Global Ambassador on World Hunger, Senator McGovern’s dedication to feeding those in need should be admired and emulated.

“Senator McGovern dedicated his life to making the United States a better, more compassionate country. We appreciate those efforts and mourn the loss of one of America’s leaders. Our thoughts and prayers go out to the entire McGovern family.”