Gov. Terry Branstad started his 2011 Iowa budget address to the Legislature this morning in no-nonsense fashion: “I think we need to start with a stern talking-to,” he said.

“It is our responsibility, as servant-leaders, to pass a budget as honest, frugal and balanced as the people it serves,” Branstad said. “And now is the time to do it.”

He stressed that when he started budget preparations, he was handed a list of 89 programs that had been funded by $900 million worth of one-time funds.

“So the budget I present to you today cleans up the budget mess that has been made,” Branstad said. “It sets Iowa on a new course with smaller, predictable, sustainable government.”

His proposals, as outlined in his speech:

-Move $770 million of one-time revenues back into the general fund.

-Lower property taxes by providing nearly $160 million in direct property tax relief. “It fully funds the state’s share of our school funding commitments, erasing the need for local school districts to make up the difference in property taxes,” Branstad said.

-Find ways to lower the 12 percent income tax rate for businesses, which is the highest in the nation, to 6 percent. Branstad wants to reduce commercial property taxes by 40 percent over five years. He wants to do this by using new revenues coming to the state due to economic growth, revenues generated by the Bush tax cuts and raising the gaming tax level.

-Reduce the size and scope for government. Branstad said last week that recently hired government workers could be facing layoffs.

-Budget for the long term. “Every area of state government will be asked to share in this sacrifice,” Branstad said. He specifically addressed education, saying there will be no change in the next two years in school spending, noting that the state under-funded its commitment to education by $156 million last year. Branstad also proposed a $43 million annual investment in providing preschool assistance to families with the greatest need.

“My fellow Iowans, none of what I have brought forward today will be easy,” Branstad said. “But all of it is necessary.”