March 2010 Archives

MAKING A NEW BUDGET
It looks like we are within two weeks of the end of the 2011 session so the budget bills are starting to move. There will be several bills for the major departments of state government. It is apparent that we are continuing to go down the same path that we have for the past three years. We again do not have a balance sheet which would simply tell us how much we will spend after the budget is complete. Instead, we are asked to pass a budget without a total budget target. The practice of spending more than we take in without a locked in budget target is the major reason we are in trouble with the state budget.

The Revenue Estimating committee (REC) on Thursday reported a slight increase of nearly $33 million for the FY11 budget. By law, we must use the December number provided by the REC and $33 million for a $1b overall budget deficit doesn't do much. The overall effect of this budget may force local increases in property taxes depending on school financial conditions and their possible need to raise taxes to cover their budgets. House Republicans are maintaining the position that we will not support spending that appropriates more than we take in. It is not responsible to pass a series of department budgets without an overall budget target.

TEXTING
The texting while driving ban has become a bouncing bill since the Senate amended the original House bill. The bill left the House originally with a ban on texting but not reading a text message for all drivers. When the bill returned from the Senate it had been amended to include reading a text message. When the House again took up the bill it was re-written by amendment to provide a ban on texting for only those with a graduated driver's license, i.e. teens up to 18 years. It's uncertain at this point whether the Senate will go along with the House amendment.

LARGER TRUCKS
A bill was passed through the House Agricultural Committee this week to eventually increase the total weight allowed for certain trucks from 80,500# to 90,000#. Each truck would be required to have additional axles to handle the weight, which would have minimal or less additional impact on the roadway. If the higher loads are allowed, each truck could haul an approx. 25% greater load with only 10% increase in fuel use. The County Engineers Association and others are supporting the measure. It still has to pass the House and the Senate before it would go into effect. The trucks with the higher capacities would look the same as we commonly see now except they would have one or two additional axles in their undercarriage.

NEXT FORUM: Saturday, March 20, 9:30a at Waukee City Hall.

Small Change in Revenue Projections
The Revenue Estimating Conference (REC) met today and made very small changes to the state revenue projections. They estimated an additional $1 million for the current year and an increase of $33 million for FY 11. Remember, the budget is over $5 billion, so this amount is really insignificant. The legislature is bound by law to use the estimate of revenue from last December to craft the FY 11 budget. However, I would guess the Democrat majority will just spend more of the Cash Reserve Fund because of this new estimate.

It looks like we are nearing the end of session, and we still don't know the total amount to be spent. Schools are trying to set their budgets without knowing how much they will receive in state aid. We will finally start debating the budget bills next week.

Democrats Propose Special Deal for Teachers
Teacher salaries will be exempted from across the board (ATB) cuts - now and in the future - through an unprecedented move by legislative Democrats. The special exemption is contained in the education budget bill yet to be debated. The implications of exempting teacher pay from ATB cuts are far reaching.

First, it creates a $24 million statewide property tax liability because Iowa school districts will have to go back and pay teachers the $24 million yet this fiscal year. With just three months left in the fiscal year, districts will be looking to the property taxpayer to pick up the cost.

Second, the obvious question: the custodian, the food service worker, the teacher's associate, and the principal's secretary take a pay cut but not the teacher they work beside? It's safe to say that the 110,000 unemployed Iowans, many in the private sector, would gladly take a pay cut in lieu of a layoff.

Third, exempting teacher pay from any ATB cut is just flatly preferential. In doing this, Democrats are effectively sending the message that hard times shouldn't be shared by all and should never be shared by teachers.

Finally, passing a law exempting any one program from an ATB cut is a reckless fiscal practice. State law allows the governor to make across the board cuts or call the legislature into special session to make selected cuts. Carving out exceptions to an ATB cut takes elected officials out of the very decision making process that Iowans elected them to do.

In addition, Senate Study Bill 3248 makes teachers the only professionals in the state that will immediately get the name of a person filing a complaint against them. Iowa's 32 other licensing boards don't release the name unless it becomes a founded complaint.

Big Problems Ahead for Medicaid
The FY11 Health and Human Services appropriations bill reflects a $172 million cut in state spending. While the focus will be on the pain being felt this year, the real problem with this budget is what happens to Medicaid next year.

While overall state spending grew by 19 percent the last three years, Governor Culver and legislative Democrats were only able to find money to give Medicaid providers a one percent increase in reimbursement rates. Instead of properly funding the program, Medicaid has been transformed into an easily accessed bank account to fund other programs and new ideas.

In FY 2010, just $606 million of the $984 million spent on Medicaid comes from the state's income and sales tax revenues. Another $100 million comes from the 2007 cigarette tax hike. The rest comes from a variety of sources of non-recurring funds, like one-time federal stimulus funds and the continuing raid on the Senior Living Trust Fund.

The proposed FY 2011 budget marks a dramatic shift in how the state funds Medicaid. Next fiscal year, the state will use almost as much one time and non-recurring funding for Medicaid as it will from the General Fund and the 2007 cigarette tax increase. Among the sources will be $225 million of federal stimulus funds, $187.8 million taken from the state's Cash Reserve Fund, and the final dollars out of the Senior Living Trust Fund.

This may get the state through FY 2011, but it creates a huge problem in FY 2012. With normal growth factor for the program at six percent, Iowa would need $1.071 billion to maintain the current program. The recurring revenue that would be spent on Medicaid is $534 million. This means the next governor and the 84th General Assembly will have to find $537 million in new money to maintain Medicaid as it is today.

Legislative Forum
Please join us at 9:00 a.m. on Saturday, March 27 at the Farmers and Merchants State Bank on the Winterset square.

How to Contact Me
I can be reached at jodi.tymeson@legis.state.ia.us, or by telephone at the Capitol 515-281-3221, directly to my desk in the House Chamber 515-281-7615, or at home 515-462-5081. Please send mail to my home at 1524 Highway 169, Winterset, IA 50273, or the State Capitol Building, Des Moines, IA 50319. I appreciate hearing from you.

 

Sometime, when you get a chance, read Article 7 of the Iowa Constitution. Focus on Section 5. It provides a very clear criteria that must be adhered to in order for the State of Iowa to incur debt.

With that in mind, just what is debt? You and I would probably agree that if you give me a certain amount of money, and I agree to pay you that money back over a specified time, with a specified payment, then I am in debt to you. If the state of Iowa gets a specified amount of money that must be paid back over a specified amount of time, then you and I would probably agree that the state of Iowa is in debt too.

Webster's 3rd New International Dictionary defines debt as the "common law action for the recovery of a certain specified sum of money held to be due or of a sum that can be simply and certainly ascertained."

Where am I going with all of this? Yesterday, I offered an amendment on the Administration and Regulation budget that would have prohibited the sale and lease-back of state property. In my February 4th article, I expressed my concern with the sale and lease-back of state property and that literally, the Capitol or the new Supreme Court building could be sold and then leased back in order to generate one time cash. It is a way to go into debt without calling it debt. It is a terrible budget technique and is actually an act of budgetary desperation. Amazingly, the proponents of the sale & lease-back option did not dispute my assertions, but only stated that this was simply another tool for the Department of Administrative Services to help government be more efficient!

The Constitution's prohibition on debt, without a vote of the people, was deliberately meant to protect the people from having their own government, bind them and future generations, from owing money without their consent.

When politicians do not uphold the Constitution, that they swear to uphold, you have the power to fix it. It is up to you.

As always, I want to hear from you. My Senate number is (515) 281-3371 and my home number is (515) 432-7327 or write me at: State Capitol, Des Moines, IA 50319 or at my home address: 1313 Quill Avenue, Boone, IA 50036 or email me at jerry.behn@legis.state.ia.us.

Regulating Mixed Martial Arts Contests
The House Labor Committee unanimously approved Senate File 2286 placing the regulation of amateur and professional mixed martial arts (MMA) matches and events under the authority of the labor commissioner.  The labor commissioner already oversees boxing and wrestling matches.  

The bill requires that a person shall not promote a mixed martial arts match without first obtaining a license from the labor commissioner. It requires the promoter of a mixed martial arts match be responsible for the conduct of all officials and participants. It allows the commissioner to suspend the license of a contestant if the contestant fails a pre-fight physical or cannot produce proof of being at least 18. The bill allows the license suspension of a promoter or contestant that violates the rules adopted pursuant to Chapter 90A.7.  The bill requires the promoter to file a report within 20 days after the event.  The report shall include number of tickets sold, amount of gross admission proceeds and other items the commissioner may require by rule.

The bill outlines when the commissioner may issue a cease and desist order against a promoter of a mixed martial arts match or event.  It also provides a civil penalty for violating the rules of this Chapter.  

Another Unfunded School Mandate
Another bill in the long list of ridiculous legislation this session is House File 823. Instead of talking about jobs and the budget, we're debating "green cleaning products." This bill passed with a vote of 52-47. I voted NO. The bill requires state and public education buildings to use green-clean building products except for certain pest control and disinfectant cleaning processes. The bill was amended by floor action to include Regents universities and community colleges.

The bill includes a provision to allow state and local educational facilities to opt out of the green-clean requirement if they do so by July 1, 2012. In my experience, anytime you have an opt out clause; there is something wrong with the legislation. For a school district to opt out, a majority of the school board must make an affirmative vote.  HF 823 additionally provides that the Department of Administrative Services is required to provide green-clean information on its department internet site that can be accessed by the public. The bill now goes to the Senate for consideration.

Agriculture and Natural Resources Budget
House Study Bill 733 appropriates $35.9 million in General Fund monies and 1,621 full-time positions for the Fiscal Year 2011 to the Department of Agriculture and Land Stewardship and the Department of Natural Resources.  This is a decrease of $341,000 and an increase of 19.6 positions compared to net FY10 budget following the Governor's across the board reduction.

The bill also appropriates $76.2 million in other funds, mostly Fish & Game for $38.8 million and $33 million in Environmental First Funds (EFF).  The bill omits funding for soil conservation cost share which in previous years was funded at the $7 million amount from the EFF. The majority party co-chairs claim funding for this will come from the infrastructure fund.  The Governor recommended a $6 million cut to REAP (from $18 to $12 million), but the subcommittee decided to fund REAP at $15 million.
The bill eliminates both the DNR Law Enforcement Chief and the Assistant Bureau Chief that were recently hired by DNR.  The bill extends a provision enacted last year that prohibits ISU from reducing other funding to the Veterinary Diagnostic Laboratory if such a reduction is greater than what is imposed on all other ISU budget units.  The bill includes session law language that declares the intent of the General Assembly is that any funds deposited into the REAP fund shall not be used for Honey Creek State Resort bond obligations.

Nearly $11 Billion in 2009 Tax Collections
Each year, the Iowa Department of Revenue (IDR) compiles data on tax collections and compliance statistics, and produces a report available to the public.  http://www.iowa.gov/tax/educate/statreports.html#AnnRep.

In 2009, IDR processed more than 1.5 million individual income tax returns. Of those returns, 74% were filed electronically.  According to the report, IDR collected a net total of $6.87 billion from taxpayers in 2009.  This statistic is calculated after refunds were issued.

A net total of $3.1 billion was collected from income taxes as follows: 1) Individual Income Tax $2.82 billion, 2) Corporation Income Tax $ 253 million, and 3) Franchise Tax $28 million. In addition, Iowa taxpayers paid more than $2.88 billion in sales, use and motor vehicle use tax as follows: 1) Sales Tax $2.29 billion, 2) Use Tax $355 million, and 3) Motor Vehicle Use Tax (registration fees) $239 million.

A number of other taxes are levied to fund government activities.  They include: 1) Consumption Tax (motor vehicle fuel tax, cigarette tax and tobacco tax): $678 million, 2) Inheritance Tax: $73.6 million, 3) Miscellaneous Tax (environmental protection charge, motor vehicle use 25% EPC deposit, real estate transfer tax, hazardous materials permit fees, insurance premium tax, motor vehicle title surcharge): $126 million.

In 2009, Iowa property owners paid more than $4 billion in property taxes to various local taxing authorities.  The following taxing authorities and the total amount of taxes they levied are as follows: 1) K-12 Schools: $1.68 billion, 2) Counties: $874 million, 3) Cities: $1.2 billion, 4) Merged Area Schools: $86 million, 5) Hospitals: $80 million, 6) Assessors: $46 million, 7) Townships: $23.9 million, 8) Ag Extension: $15.4 million, and 9) Miscellaneous: $15 million.

How to Contact Me
I can be reached at jodi.tymeson@legis.state.ia.us, or by telephone at the Capitol 515-281-3221, directly to my desk in the House Chamber 515-281-7615, or at home 515-462-5081. Please send mail to my home at 1524 Highway 169, Winterset, IA 50273, or the State Capitol Building, Des Moines, IA 50319.  I appreciate hearing from you.

FUNNEL WEEK
This week marks the close of the 2nd funnel that is designed to cull the number of bills available for debate in the few remaining weeks of this year's session. Any bill that hasn't been passed out of committee in both chambers is automatically thrown overboard and is ineligible for further consideration --- unless the leadership decides they want to resurrect it. So, it appears the job-killing labor bills are dead unless the leadership decides to play games with them somewhere in the last bills out of the session. The prevailing wage, choice of doctor, and the Fair Share (Right to Work) efforts by the unions have hung over this session like a wet blanket and would close the door for many businesses to consider expanding or opening a factory in Iowa. Let's hope the leadership doesn't get cute and decide to piggy back them onto a mess of bills in the last days of the session, similar to what happened last year.

As a result of the funnel we can now see what is really important for Iowans as viewed through the worldview of our current legislative leadership. Painfully absent from the list are any initiatives whatsoever designed to encourage private sector businesses to add employees to stimulate our economy. So far, the only initiative designed to add jobs is the five inspectors that will be hired for inspection of puppy mills. Instead there are many issues that poke the state finger in the eyes of employers. For some reason the majority members of the legislature have decided that it's important to require all employers to provide a separate room to accommodate breast feeding mothers to pump milk. Another measure would make it unlawful to feed wildlife on public or private land, unless of course you're a farmer that has no choice but to give up a chunk of your hay crop to feed the deer. Since we don't trust local school authorities to do the right thing we now have a bill that requires all school districts and state agencies to use green cleaning products.

SMART PLANNING
For several years the activist environmental community has been pushing for using "SMART" planning in a wide variety of their favorite issues, such as land use planning, energy development, city and county planning and a host of others. Unless used with a heavy dose of common sense, "SMART" planning can be anything but smart. It is merely another angle for radical environmentalists to influence public policy. As a general rule, it results in the compromising of land rights by imposition of regulations on the landowners as well as cities and counties.

Now that the intensity of the 2008 flood is over, the Rebuild Iowa Office (RIO) office is turning its attention to statewide planning and they have developed a bill creating a permanent 31 member comprehensive planning task force. The bill also codifies "SMART" comprehensive planning principles for state, regional, county and city planning. The bill creates a 31 member permanent unpaid task force in order to keep the momentum in place to push the agenda. This is a totally unnecessary initiative since most of the cities and counties are considering their own versions of what seems to fit in their jurisdictions themselves. In this case it would be preferable if the state kept out of comprehensive planning for everyone.

NEXT FORUM: Waukee City Hall; March 20 at 9:30a.

This week is the second funnel week of the 2010 session. The funnel is the self-imposed deadline for bills to make it out of their respective committees of both the House and Senate, or they are no longer eligible to be addressed in this year's session. Those that do survive the funnel are then eligible for full floor debate. Many bills are now eligible to be debated and I'll try to keep you up-to-date on the ones that are controversial.

With all the talk at the federal level about health insurance and health care reform, here are some ideas I have been pushing.

Low-cost catastrophic health plans for those under 30. There are about 106,000 Iowans in this age group who do not have health insurance and account for roughly half of all the uninsured in the entire state. Low cost catastrophic insurance products could provide base care for younger Iowans.

The Patients Right to Know Act. Cost and quality transparencies will empower consumers to make better health care decisions in a way that maximizes quality while minimizing cost.

Prevention credits: putting a premium on wellness. Offer prevention credits to individuals and employers that could be used to reduce health insurance rates for those individuals and employers that demonstrate a commitment to wellness and prevention.

Tort and lawsuit abuse reform. Raise the burden of proof on medical malpractice claims and place reasonable limits on payment for damages.

Expand health insurance tax deductibility to individuals and small business. If it is good enough for Wall Street, it's good enough for Main Street.

No pre-existing exclusions when changing plans with the same insurance provider. You should be able to move from one plan to another plan offered by the same insurance company without penalty.

No unfunded federal mandates. You should not be forced to buy what you do not need.

Purchasing Across State Lines. Change federal law that currently prohibits this action.

These simple changes could dramatically save money for Iowans and provide even better care.

As always, I want to hear from you. My Senate number is (515) 281-3371 and my home number is (515) 432-7327 or write me at: State Capitol, Des Moines, IA 50319 or at my home address: 1313 Quill Avenue, Boone, IA 50036 or email me at jerry.behn@legis.state.ia.us.

The Dallas County Republican Party -- the fastest growing Republican county in the state -- today released more details for its upcoming Gubernatorial Straw Poll and featured speakers on Friday night, March 5, 2010, at the Dallas Center Elementary School -- the same location for the GOP's County Convention on Saturday, March 6th.

What: Dallas County Republican Gubernatorial Straw Poll at Pre-Convention Chili & Soup Supper Political Rally

When: Friday evening, March 5, 2010

Time: 6:00pm-8:30pm

Where: Dallas Center Elementary School, 1205 13th Street, Dallas Center, Iowa 50063

Run of Show:

6:30pm Republican Gubernatorial Candidates/Campaigns Speak (Rod Roberts, Bob Vander Plaats & Marcus Branstad CONFIRMED)

6:55pm Straw Poll Balloting Begins

7:00pm Congressman Tom Latham Speaks

7:15pm Straw Poll Results Announced & Trophy Presentation to Winning Campaign

Background:
At a Pre-County Convention Rally on March 5th, the night before all Republican County Conventions across the state, the Dallas County GOP Central Committee will conduct a Straw Poll for those attending the Rally, which includes a Chili & Soup Supper.  Confirmed gubernatorial speakers include (in alphabetical order) Marcus Branstad, Rod Roberts, and Bob Vander Plaats.  In addition to the governor's race, all Republican statewide elected officials/candidates running for statewide office in 2010 have been invited to the Dallas County event as well as federal officials representing Dallas County, such as Congressman Tom Latham (R-Ames), who is confirmed to speak at 7:00pm.

Other Republican statewide elected officials/candidates confirmed to speak following the Straw Poll on Friday night include:

• Iowa Agriculture Secretary Bill Northey
• Iowa Auditor Dave Vaudt's Chief of Staff Bernardo Granwehr
• Iowa Attorney General Candidate Brenna Findley
• Iowa Secretary of State Candidates George Eichhorn and Matt Schultz

"The Dallas County Republican Pre-Convention Rally & Supper traditionally has proven to be a great hit for candidates, elected officials and GOP voters," according to County Chair Mitch Hambleton. "This year, we wanted to provide additional incentive and excitement for the candidates and the crowd by holding a County Straw Poll on the Republican Governor's race. Not only will this give folks a quick check on where the Republican gubernatorial candidates stand with primary voters, it also provides a great Republican forum for all of the statewide GOP candidates to come speak to our volunteers and activists the night before they're pushed and pulled all across the state at the 99 county conventions."

The low-cost Rally & Supper is $10 per person or $25 for families. Supper tickets include Straw Poll Ballots for those who will be 18 or over on November 2, 2010. The event will be held from 6:00pm-8:30pm at the Dallas Center Elementary School, the same location at the County Convention on Saturday morning, March 6th. Republican County officials expect gubernatorial candidates/campaigns to speak from 6:30pm-6:55pm, when Straw Poll voting begins. Results are expected to be announced at 7:15pm.

RSVPs for the Chili & Soup Supper should be directed to Publicity Chair Christi Taylor christi.taylor@dallascountygop.org. For more information about candidate confirmations, please contact Finance Chair Pete Jeffries or County Chair Mitch Hambleton.