DES MOINES - Gov. Chet Culver signaled that more spending cuts and government streamlining likely will be coming as early as this fall to meet the budget challenges posed by a prolonged recession.

Culver also acknowledged he likely will have to use surplus funds to balance the fiscal 2009 budget when the books are closed in September, but he assured Iowans there is no cause for alarm being fanned by political foes - noting that an independent financial analysis this week gave Iowa its highest rating for fiscal management and stability.

"What a timely testimonial," Culver said in announcing that Standard and Poor's has given Iowa's fiscal house a AAA credit rating - a distinction State Treasurer Michael Fitzgerald hailed as a "gold star" indicator the state is on solid ground financially.

The first-term Democrat said lower-than-expected revenues and other factors could result in a shortfall for the fiscal period that ended Tuesday. Whatever imbalance might emerge could be erased with a $45 million ending balance and up to $50 million he has the authority to temporarily transfer from the state's cash reserve.

"I am very confident that we are going to balance the budget, close the books on '09 without having a special session," Culver said.

The governor said there is a difference of opinion between budget experts within the legislative and executive branches over the size of the potential fiscal 2009 imbalance. Those differences are being exacerbated by rival Republicans who are trying to "scare" and "mislead" Iowans for political gain.

Jeffrey Boeyink, Republican Party of Iowa executive director, countered that balancing the state budget is an issue that crosses partisan lines.

Boeyink accused Culver of staging a media event that showed Iowans "how out of touch he really is" in defending Statehouse Democratic actions that spent too much, borrowed too much and saved too little in a time of serious recession.

"No matter how many times Gov. Culver turns on the spin cycle, like he did today, he cannot change the facts. Iowa's financial mess is not a myth created by Republicans for political gain," according the Republican Party statement.

Culver said he planned to monitor budget numbers closely in the coming months and expected to ask the state Revenue Estimating Conference to move its quarterly meeting ahead to August to give an earlier assessment of the state's revenue picture.

Culver noted he ordered a 1.5 percent across-the-board cut last January and took other steps to reduce spending in light of the deteriorating economy. He indicated he was prepared to order similar measures if warranted to keep spending in line with resources.

"It is very possible that I'll have to do additional cuts. We're going to take that step as quickly as we know the facts," he said.

At the same time, the governor said he was optimistic Iowa is positioned to come out of the national recession quicker and stronger than some other states - in part because $8 billion worth of infrastructure investments are slated to take place within the next 12 to 24 months through a variety of federal and state sources.

However, top Republican lawmakers said Culver continues to miss the point that he and legislative Democrats have spent too much and are relying on borrowed money to grow government rather than takes steps needed to create sustainable private-sector jobs and avoid future tax increases.

"Bond ratings are not what will help put Iowans back to work," said House GOP Leader Kraig Paulsen of Hiawatha. "Iowa needs a economic growth plan - not a government growth plan.