IOWA HOUSE OF REPRESENTATIVES



House

Republican

Newsletter

April 18, 2007

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Appropriations

Fiscal Services: Built-In Spending for

FY 2009 Approaches $700 Million

As everyone knows, the majority party’s budget targets increase spending in FY 08 by $500 million, or 10 percent compared to enacted FY 07. Now comes even more bad news for taxpayers. According to figures recently released Fiscal Services, the built-in expenditures for FY 2009 approach $700 million.

According to Fiscal Services, this the list of built-in and anticipated expenditures for FY 2009:

Incremental Built-in Changes LSA Estimates*

• Revenue - Homestead Tax Credit $133.9

• Education - K-12 School Foundation Aid 113.0

• Education - Teacher Quality/Student Achievement Act   75.0

• Human Services - Medical Assistance 45.2

• Revenue - Agricultural Land Tax Credit 39.1

• Revenue - Elderly and Disabled Credit   19.8

• Education - Preschool Foundation Aid - SF 350/HF 877 15.3

• Education - Shared Weighting - SF 447 8.9

• Human Services - Mental Health Growth Factor   8.1

• Management - State Appeal Board Claims 3.0

• Revenue - Military Service Tax Credit 2.8

• College Aid - College Student Aid Work Study Program   2.4

• Human Services - State Children’s Health Insurance Prog. (Hawk-I) 2.5

• Public Health - Substance Abuse 2.0

• Education - Educational Excellence   1.4

• Education - Instructional Support 0.4

Subtotal $472.8

Incremental Anticipated Expenditure Changes LSA Estimates

• Collective Bargaining Salary Costs $100.6

• Iowa Power Fund 25.0

• Healthy Iowans Tobacco Trust Fund Programs 22.0

• Human Services - MHI - Iowa Care Loss   17.0

• Judicial Branch - Retirement Fund Contribution 4.7

• Targeted Small Business Programs - HF 890 4.0

• Skills Iowa Technology Grant Program   3.0

• Human Services - Adoption Subsidy 2.4

• Inspections and Appeals - Indigent Defense and Public Defender 2.0

• Corrections - Sex Offender Supervision & Treatment   1.7

• Human Services - State Resource Centers 0.6

• Human Services - Civil Commitment Unit for Sexual Offender 0.4

Subtotal $183.4

TOTAL PROJECTED EXPENDITURE CHANGES $656.2

* (in millions)

Note: the built-in funding requirement for property tax credits totals $195.6 million. From FY

2004 through FY 2007, the state has funded the credits at approximately $160.0 million.

These figures do not include probable increases for the Board of Regents ($25 million), community colleges ($12.5 million), private colleges ($2 million), mental health expenditures ($12 million), nursing home rebasing ($10.4 million) and the dental home for kids ($9 million).

When these likely expenditures are included, the spending increase for the FY 09 budget balloons to a whopping $727 million, or an increase of 12.5 percent over FY 08.

This level of funding (a 22.5 percent increase over two fiscal years) is simply not sustainable and will require significant budget reductions or a gigantic tax increase in future years.

(Contact: Lon Anderson, 1-5184)

Agriculture

Senate Violates Joint Rules, House Democrats Look the Other Way

On Monday, April 9, and in violation of Joint Rule 20.3, the Senate amended and passed Senate File 551 by a 47-3 vote. Despite the violation of the joint rule, the Speaker of the House, chose to knowingly disregard the rule and assigned the bill to the House Appropriations Committee for its consideration. Paragraph three of Joint Rule 20 is part of the funnel rule; it specifies that during the 14th week of the first session only files from the opposite chamber or on unfinished business calendar can be considered. SF 551 was considered by the Senate in the 14th week and had not been placed on the unfinished business calendar.

In the House Appropriations Committee, Republican members first offered to substitute the last version of the bill (TLSB 1127 JA) that was considered in compliance with joint rules, but that proposal was rejected by Democrats. Republican members refrained from debating the bill that was before the committee in contradiction with joint rules and chose instead to refrain from voting in an attempt to comply with the rules. The committee chair invoked House Rule 53 to compel Republicans to vote aye or nay on the measure. Unlike the Speaker, Republicans chose to obey the rules and subsequently voted nay. Consequently, SF 551 was approved by a party-line 14-11 vote, with Republicans members noting that SF 551 was previously considered in violation of paragraph three of Joint Rule 20.

SF 551 is the budget bill that that would fund Iowa Department of Agriculture and Land Stewardship (IDALS), the Department of Natural Resources (DNR) and appropriates IDALS and DNR Environment First funds for fiscal year 2008. The measure as passed by the Senate proposes a General Fund appropriation of $41,559,167, which is $1.483 million (+3.7%) above the level recommended by the Governor. The bill is $5 million above the Governor’s level for other funds, principally because the bill increases the amount being appropriated from the Environment First Fund (EFF) by an additional $5 million above the statutory $35 million specified in Iowa Code section 8.57A.4, for a total EFF allocation of $40 million.

The measure initially passed the joint appropriations subcommittee by a unanimous 14-0 vote. The bill funds the Governor’s General Fund recommendations and provides for an additional $1,483,000, which is split to provide an additional:

• $1 million for further expansion of funding for the Iowa State University Veterinarian Diagnostic Laboratory;

• $50,000 for the Emerald Ash Borer Public Awareness program, split evenly between IDALS & DNR;

• $100,000 to DNR for Honey Creek Rangers;

• $283,000 for the Grape & Wine Development Fund, which was added in the Senate; and

• $54,671 for an organic specialist with a small offset being an elimination of funding for the Missouri River Authority state dues.

The major difference between the Governor’s budget recommendation and SF 551 is that not only does the proposed budget expand the EFF appropriation above its statutory level of $35 million (to $40million), but it scales back a number of existing allocations of EFF below the Governor’s recommendation. Most notably, the measure reduces the increase to Soil Conservation Cost-Share $850,000 below the Governor’s recommended level of $7.85 million, to $7.0 million. The measure increases the EFF appropriation for the Resource Enhancement and Protection Program (REAP) by an additional $4.5 million, to a total of $15.5 million, and expands the EFF appropriation to DNR for park operations and maintenance by an additional $490,000, for a total of $2.49 million. The bill also reduces the EFF appropriation for Watershed Protection by $150,000, and for Conservation Reserve Program incentives by $500,000. SF 551 also increases the EFF appropriation for Ag Drainage Well closure by $1 million above current year funding and the Governor’s recommendation, for a total of $1.5 million. Another reductions made to EFF funding includes zeroing-out funding for lake dredging (previously funded at $975,000). The budget also proposes to move funding for several DNR operations to the EFF by including new appropriations out of EFF. These include $400,000 for enhanced livestock regulations, and $50,000 for DNR livestock database expenses. The bill continues funding for livestock air monitoring to complete a the three-year study at $235,000. The measure shifts funding for Resource Conservation and Development from federal funds to the EFF at the $300,000 amount, and provides additional funding for water withdrawal and use regulation by adding $500,000 of EFF funds, in addition to ongoing funding from user fees and unspecified general funds.

The measure provides static funding for a number of IDALS and DNR programs funded with EFF monies at FY 2007 levels such as:

• $1.5 million for Conservation Reserve Enhancement;

• $850,000 for Farm Management demonstration efforts with a internal allocation of $400,000 to the Iowa Soybean Association agricultural and environmental performance program;

• $300,000 for the South Iowa Conservation and Development Authority;

• $500,000 for Brownfield Redevelopment Program;

• $100,000 for Volunteer/Keepers of the Land;

• $195,000 for Geographic Information System;

• $2.995-million for Water Quality Monitoring;

• $500,000 for Water Quality Protection (drinking water supply regulations);

SF 551 also appropriates some other non-General Fund monies, most at existing FY 2007 levels such as:

• $305,516 from unclaimed track winning for the Iowa foaled/whelped program;

• $50,000 from the agrichemical remediation fund to support open feedlot research at Iowa State University;

• $3,455,832 from the Groundwater Protection Fund to DNR to support groundwater protection programs;

• $100,000 from the snowmobile registration fees to the Fish and Game Division for enforcement of snowmobile regulations; and

• $200,000 from unassigned Underground Storage Tank fund monies to DNR to fund UST administrative functions;

SF 551 increases the Fish and Game Protection Fund appropriation to the DNR Fish & Wildlife Division by an additional $1 million, to a total of $36,371,314, with the additional monies being used to implement habitat improvement programs.

SF 551 proposes a number of changes the Code. The bill transfers duties related to the Iowa Emergency Response Commission from the Department of Workforce Development to DNR. It also repeals language that appropriated 5% of the revenues collected from the wine gallonage tax to support the Wine and Grape Development program. The measure adds Guthrie County to the list of counties in the Loess Hills Development Conservation Authority. SF 551 adds new language that allows interest earned in the Marine Fuels Tax Fund to stay with this fund, rather than accruing to the General Fund. The bill also eliminates Code Marine Fuels Tax Fund language that specifies that these funds will be appropriated by the General Assembly and replaces it with verbiage that allows DNR to decide how the monies will be spent. The bill further creates new session law language that directs directors of departments that receive funds in this bill to assess the feasibility and cost-effectiveness of implementing a telecommuting policy. The House Appropriations Committee adopted an amendment that would further restrict participation in the Iowa Horse and Dog Breeder Fund to only those dogs that have been raised for the first six months of their existence in a state-inspected and licensed facility.

(Contact: Lew Olson, 1-3096)

Commerce

Cable Franchise Bill Moves Closer to Reality – What Will it Mean for Consumers?

Last night (April 17), the Iowa House adopted major revisions to the way cable television services are provided throughout Iowa. After the adoption of a major revision to the bill, the House approved Senate File 554 on a vote of 77-19. Senate adoption of the House changes is expected to occur rapidly and the bill will be headed to the Governor’s desk within days.

With the bill about to become law, one major question is being asked by consumers across the state – how will this help me?

More choices – Many legislators over the past few years have been hearing from the constituents that they want more choices in terms of the cable package they could acquire. While mandatory optional tiering of channels will have to be handled at the federal level, the addition of competition should bring about new options for the consumer as to the cable package they purchase. To attract the widest array of customers, the cable companies will have to diversify their offerings.

Lower prices – Since incumbent franchise holders have no competition for Iowans’ cable service, the monthly subscription rate never goes down. With the introduction of competition into the cable market, it would seem logical that rates would start going down to maintain or increase market share. While some fear the injection of competition will bring about predatory pricing in parts of the state, many customers who are facing relentless increases in their cable bills are going to see some relief.

New services – Ten years ago, the introduction of fiber optics to the cable market had just begin. No one thought it was possible for people to have video on demand or to have phone service over cable lines. These changes are now reality, with new technology on the way. By making Iowa’s cable market competitive, providers will have the incentive to bring new services and new technology to the state to keep their customers and attract new ones.

(Contact: Brad Trow, 1-3471)

Economic Growth

Economic Development Budget Bill Passes Out of the House

SF 562, which passed out of the House on April 17 by a 64-35 vote, increases state spending by 8.6% (which is a total of $40.1 million) for the Department of Cultural Affairs, the Department of Economic Development, certain Board of Regents’ institutions, the Department of Workforce Development, the Iowa Finance Authority and the Public Employment Relations Board.

The most notable increases are as follows:

Department of Cultural Affairs

- $185,768 for rent on a new records center

Department of Economic Development

- increase of $500,000 for support of the Main Street Program

- increase of $250,000 for support of tourism operations

- increase of $250,000 for support of the World Food Prize

Regents Institutions

- increase of $250,000 for Iowa State University’s administration of the Small Business Development Centers

- increase of $300,000 to support Northern Iowa’s Myentrenet Internet application

Department of Workforce Development

- increase of $528,000 for support of health and safety programs for Occupational Safety and Health Administration (OSHA) inspectors

- increase of $975,000 for additional support of the IWD field offices

- appropriates an additional $1.8 million from the Unemployment Compensation Reserve Fund interest for the Field Office Operating fund.

o Total amount appropriated to the Field Offices is $2,775,000

Public Employment Relations Board

- increase of $97,000 for an administrative law judge.

Governor Culver Names Tramontina to Head Department of Economic Development

 

Governor Chet Culver has appointed Mike Tramontina as director of the Iowa Department of Economic Development. Tramontina has served as interim director of the agency since January of this year.

 

Prior to working at IDED, Tramontina served as the director of the Department of Management for two years during the Vilsack/Pederson administration. He moved into that position after serving four and a half years as executive director of the Iowa Finance Authority, where he coordinated the state’s housing policy. Tramontina has spent his career in the areas of government and finance. He has served in the U. S. Department of Housing and Urban Development as Secretary’s representative for the Great Plains region, as deputy state treasurer, as a research analyst in the Iowa Senate and as a congressional district aide. He also worked in the private sector as an investment banker in public finance. Tramontina is a native of Sioux City and a graduate of University of Iowa.

(Contact: Kristin Gray, 1-3026)

Education

Big Spending Education Appropriations Bill Coming Your Way

Today (April 18), the Senate debates SF 588, one of the three bills that make up the Democrat’s $140 million – 14% increase in Education appropriations. Here’s a run down of the three bills and talking points you may want to pass along to your constituents.

The Spending Bills:

Bill #1: You saw $70 million of that increase in the Teacher Quality bill, SF 277.

Bill #2: This bill, SF 588, furthers the Democrats’ Education appropriation spending target by spending another $68 million. The bill appropriates $961.6 million to 12 education-related entities for FY 08.

Bill #3: The Standings bill will include the remaining $2 million by restoring $750,000 to the AEAs and $1.25 million to restore the appropriation to the Child Development Coordinating Council.

Senate File 588- Education Appropriations

1. 15 new line items cost a NEW $48 million.

2. 20 existing line items are increased by a NEW $20 million.

3. Includes three bills that failed to make it through the process.

a. House File 804 - Model Core Curriculum and State Standards. Language in the education appropriations bill makes school district adoption of a model core curriculum voluntary instead of mandated, as in HF 804. The Department of Education (DE) is to study district readiness to adopt the curriculum. The bill strikes current law requiring the goal of 80% of Iowa’s high school students graduating having met the ACT core class load. SF 588 also sets Iowa’s state educational standards as those that Iowa uses for NCLB compliance. Criticism of this provision is that it sets mediocre expectations.

b. New Supplementary Weighting for ICN courses – HF 714 look-alike. Section 16 of SF 588 allows supplementary weighting for ICN courses offered between districts or between a district and a community college. The language gives 50% of weighting to public school teachers. It is unclear whether this provision applies to community college teachers. A very conservative fiscal impact to the school aid formula in FY09 is $140,000.

c. Senate File 81 from 2005 - Student Advancement Policy. All school districts are required to adopt a student advancement policy and provide supplemental services for low performing students. Students in grades 6-8 that fail one or more “core” courses SHALL “make up deficiencies before advancing to the next level in the subject area.” In deciding placement and advancement, the school board shall make every effort to reach agreement with the parents. While SF 588 gives $3 million for a grant program for districts for supplemental services, this is an unfunded mandate on Iowa’s public schools.

4. New Programs/Studies/Code language

a. Before and After School Grants. $300,000 for competitive grants and $100,000 to the DE for a contractor to work on the statewide coordination and technical assistance. School districts and other public and private organizations can apply for grants to expand their existing before and after school programs, including summer programs. The grantee must meet certain criteria, including partnership and collaboration with not-for-profit community organizations. The DE shall try to award grants to urban and rural applicants. No age group of students is targeted.

b. State Employee Telecommuting Policy. SF 588 requires the department and agencies covered under the Education appropriations bill to assess, develop and implement a state employees telecommuting policy. The director of the agency evaluates which positions are appropriate for such activity. The policy shall be in place by January 1, 2008. This seems to be applicable to union and nonunion employees.

c. Community College Faculty Study SF 588 requires the DE to convene a working group to study community college faculty issues. The working group is to have equal numbers of community college faculty and administrators. The Community College Trustees and ISEA appoint the college faculty and administrators. Nonunion faculty are not mentioned in the bill. This section does allow the DE to appoint “other education stakeholders.”

d. Allow Regents to keep student fees. Section 28 allows the Regents to keep and not revert student tuition and fees. Interestingly, the provision takes effect upon enactment and may be related to the $200 per student fee increase imposed last fall. The purpose of the fee increase was to cover budget shortfalls.

Iowa Teacher Union Dues Higher than Other States

According to a recent article in a state NEA affiliate newsletter, The Communique, Iowa is up there in terms of union dues. Here are the proposed 2007-08 state dues levels for some affiliates:

Arizona – up $15 to $281

Iowa – up $12 to $410

Kansas – up $6 to $337

Massachusetts – up $9 to $373

Minnesota – up $9 to $385

Missouri – up $5 to $321

Nebraska – up $14 to $322

New Mexico – up $10 to $312

North Dakota – up $7 to $279

South Dakota – up $12 to $303

Texas – up $12 to $258

Utah – up $5 to $304

House Republicans Require Background Checks

House Republicans have taken major steps towards keeping your kids safe in schools. A Republican amendment offered to the Teacher Quality bill, SF 277, was adopted unanimously. The amendment requires school districts to do a background check for all teachers new to the district.

Current law only requires such a check by the Board of Educational Examiners when a teacher gets a license for the first time. No check is required upon renewal and districts may conduct background checks at any time.

Recent incidents in Iowa and across the nation tell the story of a teacher gets in trouble in one district and agrees to leave instead of being fired. Another district hire that teacher within knowing about the incident.

Language in SF 277 safeguards our children by requiring districts to do a background check any time a teacher is new to the district. This means a veteran teacher or a first year beginning teacher.

(Contact: Ann McCarthy, 1-3015)

Environmental Protection

House Funding Panel Approves Waste Tire Program Funding Extension

On Thursday, April 12, the House Appropriations Committee amended, and passed House File 511, which became House File 900, by a unanimous 24-0 vote. HF 900 extends the current diversion of 20% of the $5 surcharge on certificates of title from the Road Use Tax Fund, currently scheduled to expire on July 1, 2007, by one additional year (to July 1, 2008) and reduces the amount diverted to $500,000.

The bill then reallocates the smaller amount of money (the current system generates about $1 million per year) by eliminating the 30% allocation of funds for market development initiatives, and reallocating this 30% to three other category allocations. Hence, the proportion used to support DNR administration of the program increases from 30% to 45%, which actually decreases the dollar amount, but slightly expands the full-time equivalent authority by 0.25 FTEs above the current effort. The measure will increase the proportion of the moneys used to support education from 5% to 15%, which will actually increase the amount of funding for this aspect of the program. The third category allocation change will be to increase the proportion (from 30% to 40%) of available fund monies used to support waste tire stockpile abatement activities. This is actually about a one-third reduction in the monies available for this function because of the smaller base of funds. HF 900 directs DNR to convene an advisory committee of interested parties to recommend a future funding source for the program. The bill was substantially reworked by an amendment adopted in committee that reinserts a funding mechanism for the waste tire program that was stripped out earlier by the House Environmental Protection Committee. The bill, as initially drafted as House Study Bill 82, proposed to broaden the use of moneys generated by the 5% surcharge on title transfers to include DNR administration of both recycling efforts involving automotive mercury switches, other automotive wastes, and illegal waste disposal. HSB 82 also increased the number of full-time equivalents the department could hire with this money from 2.5 FTEs to 4.25 FTEs.

(Contact: Lew Olson, 1-3096)

Human Resources

United States Supreme Court Upholds Partial Abortion Ban

In a landmark ruling today (April 18), the United States Supreme Court upheld a national ban on partial birth abortions. The 5-4 decision marks the first time the court has upheld a prohibition of a specific procedure in the long battle over abortion.

The law, adopted by the Republican-led Congress and signed by President Bush in 2003, banned the procedure, which is performed in the final trimester of pregnancy. This action was taken in response to the Supreme Court’s decision in 2000 overturning Nebraska’s state ban on the procedure. That law was the same as Iowa’s ban, which was adopted in 1998 and summarily ruled unconstitutional by Judge Robert Pratt.

The court’s objection at that time was that the ban did not make exceptions to protect the health of the mother and thus placed an undue burden on the mother’s right to make to choose. The 2003 act asserted the procedure is gruesome, inhumane and never medically necessary to preserve a woman's health, which was intended to help the law overcome the health exception to restrictions.

The opinion upholding the Partial Birth Abortion Ban Act of 2003 was written by Justice Kennedy, who was joined by Chief Justice Roberts and Justices Scalia, Thomas, and Alito. When the Nebraska partial birth abortion ban was struck down in 2000, Justice Kennedy wrote a strong dissent to the court overturning that state’s law.

In her lead dissent, Justice Ginsburg claimed that the majority opinion was “alarming” and that the majority had refused to take previous court decisions seriously.

Because the upheld law is a national ban, the Iowa Legislature does not have to take any action to prohibit the performance of partial birth abortions in the state of Iowa.

(Contact: Brad Trow, 1-3471)

Judiciary

List of Judiciary Bills Still Eligible for Debate

SF 373 – allows unmarried persons who have children to request post secondary education subsidies from the courts.

HF 786/SF 430 – relates to a civil judgment, decree, or order of a court of a federally recognized Indian tribe.

SF 546 – dealing with hospital liens for non payment of services.

SF 505 – relating to civil liability for damages relating to the use of a defibrillator in sudden cardiac arrest emergencies.

SF 340 – concerns inherited or gifted property in dissolution of marriage property proceedings.

SF 538 – relating to a parent’s cause of action for the recovery of expenses and actual loss of service and companionship of the death or injury of a child of any age.

SF 429 – relating to removing conciliation proceedings in a dissolution of marriage case involving domestic abuse.

(Contact: Kristin Gray, 1-3026)

Local Government

Update on Local Government Bills

Here’s an update of Local Government Committee bills that have seen recent action:

SF 155 – Local Government Innovations Commission - To the Governor - This bill sets up a Local Government Innovation Commission comprised of fourteen voting members. Legislators are included as non-voting members. The commission hands out grants for local governance plans that result in cost savings to citizens in terms of property tax relief and eliminates duplication of governmental administration.

The grants will go to “community wide areas” which are voluntarily formed collection of counties, cities or townships. State agencies and school districts may also be part of the community-wide area. The commission also awards funding to create a Tim Shields Iowa Center for Governing Excellence.

SF 212 - Deputy Officers Salary – To the Governor - This bill increases the potential salary of a deputy county official from 80 percent to 85 percent of that of the auditor, treasurer, recorder, or person in charge of motor vehicle registration and motor vehicle licensing.

SF 416 - Satellite Absentee Voting in Certain City Elections and City Council Vacancies - To the Governor. This bill provides that a nomination petition for a special election called to fill a vacancy on a city council must be filed not less than 25 days before the date of the special election. For those cities where a primary election may be required, the nomination petition must be filed not less than 52 days before the date of the special election.

This bill adds a provision permitting satellite absentee voting in primary elections and run-off elections.

(Contact: Ann McCarthy, 1-3015)

Natural Resources

Remaining Natural Resources Bills Still Available for Debate

SF 48 – The bill concerns the limitation of action for prosecution of violations under certain statutes administered by the Natural Resource Commission. This bill allows the Natural Resource Commission additional time to prosecute violators after they have left the state and returned.

SF 304 – This bill allows the exercise of regulatory authority by the Department of Natural Resources and the Natural Resource Commission within the boundaries of the Sac and Fox tribe settlement in Tama County, as long as there is a written agreement between the parties.

SF 435 – This bill allows a person who is issued a youth deer hunting license for the youth deer hunting season, and who does not take a deer, to use that license and the unused tag during any other firearm season that is established by the Natural Resource Commission to take either an antlered or antlerless deer. Youth deer hunting licenses, which are available for issuance to any resident who is not over 15 years old on the day the license is obtained, allow licensees to take a deer of either sex, pursuant to 571 IAC 106.10. The youth deer hunting season is a 16-day period that ends on the first Sunday in October.

SF 558 – The bill increases the wildlife habitat fee and creates a Game Bird Habitat Development program.

SF 49 – This measure provides for a .08 blood alcohol limit for motorboat or sailboat operating while intoxicated offenses.

SF 308 – This bill allows the Governor to designate April as Aldo Leopold month.

HF 562 – The bill relates to civil damages payable for unlawful taking of certain animals and fish.

SF 203 – The bill requires children under the age of 13 to wear personal floatation devices while on board certain vessels operated on state waters.

(Contact: Kristin Gray, 1-3026)

Public Safety

SF 457, Priority of the Teamsters, on Debate Calendar

On April 5, the House Public Safety Committee approved Senate File 457, the peace officers’ bill of rights, on a party-line vote. SF 457 is a major priority of the Teamsters union. The bill is now on the list of bills eligible for debate on the House floor.

The bill defines "officer" to mean a certified law enforcement officer, fire fighter, emergency medical technician, corrections officer, detention officer, jailer, communications officer, or any other law enforcement officer certified by the Iowa Law Enforcement Academy and employed by a municipality, county, or state agency. In addition, the bill provides that an officer shall not be compelled to submit to a polygraph examination against the will of that officer. It states that prior to being interviewed about a complaint against the officer, the officer shall be provided a copy of the complaint.

Furthermore, the bill provides that an officer being interviewed about a complaint filed against the officer shall be compelled to answer any questions and shall be advised that any answers provided will not be used against the officer in any criminal proceeding. The bill provides that an officer shall have the right to have legal counsel or a union representative present when the officer is being interviewed about a complaint filed against the officer.

This appears to be a scaled-down version of the original bill that would have given peace officers special rights, including refusing searches. However, local governments are united in opposition to the bill, primarily because a lot of provisions are already accounted for at the bargaining table.

The bill is currently on the Daily Debate calendar. The bill’s floor manager told the committee that he would not move the bill on the House floor without a “compromise” amendment being filed to the bill. He did not say what a supposed compromise amendment would look like.

Unless an acceptable compromise can be reached, House Republicans will continue to oppose this unnecessary bill that is being done for the benefit of one union.

(Contact: Lon Anderson, 1-5184)

State Government

House Votes to Expand Gambling

This week, the House approved SF 414 on a vote of 54-44. Below is a description of the bill and its amendments.

Veterans Weekly Card Game Nights

A veterans’ group may choose from two different options regarding prizes and number of participants. However, under both options, the organization must meet the following requirements:

• The veterans’ organization must have at last 12 members

• The organization must have a license

• Card games must be conducted on the premises of the veterans’ organization

• Certain requirements regarding how the proceeds are spent

• Only those individuals that are at least 21 years of age may participate

• The total number of participants shall not exceed the occupancy limit of the premises where the card game tournament is conducted

• No more than two card game tournaments may be conducted per month and a card game tournament shall not be held within seven calendar days of the previous tournament conducted by that veterans’ organization.

Under the first option, the following requirements apply:

• Participants may include the members and as many guests as possible as long as the number of occupants doesn’t exceed the occupancy limits.

• The cost to participate is $25 and shall be the same for every participant.

• Cash or merchandise prizes may not exceed $300 in total and no participant shall win more than $200.

Under the second option, the follow requirements apply:

• Participants may include members and one guest

• The cost to participate shall be limited to $100 and shall be the same for every participant.

• Cash or merchandise prizes may not exceed $1,000 in total and no participant may win more than $500.

If an individual under age 21 participates in a card game tournament, a $500 fine is assessed. In addition, the Department of Inspections and Appeals shall revoke, for a period of one year, the license of a veterans’ organization to conduct card game tournaments under this section if the licensee knowingly permits a person under the age of twenty-one years to participate in a card game tournament.

Cash Prize Awards for Certain Organizations that Hold an Annual Game Night License

The bill also allows certain organizations to award cash prize for participation in any game of skill, game of chance or card game conducted during an annual game night. The cash prize in total shall not exceed $10,000 and no one individual shall be awarded more than $5,000. Under current law, cash prizes are not allowed.

Those organizations that may offer cash prizes include:

• Veterans’ Organizations – There are 8 nationally-sanctioned veterans’ organizations. Some counties have multiple chapters of each of these organizations, others may only have one, and all eight organizations may not be represented in a county.

• Volunteer Emergency Service Providers - this includes volunteer firefighters and volunteer EMS groups

• Any qualified organization that is exempt from federal income tax under section 501(c)(3) that have conducted an annual game night during the period beginning January 1, 2001 and ending on December 31, 2001. – 501(c)(3) organizations operate exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, to foster national or international amateur sports competition, or prevention of cruelty to children or animals. The DIA is unsure how many organizations will meet these qualifications and who will be excluded.

Amendment H-1604, offered by Rep. Raecker, states the total cash prizes shall not exceed $5,000, rather than $10,000, and no participant shall win more than $2,500, rather than $5,000 in cash prizes. Currently, cash prizes are not allowed. This amendment lost on a division vote.

Amendment H-1605, offered by Rep. Raecker and Rep. Quirk, states the cash prizes shall not exceed $10,000 in aggregate, rather than per game conducted. This is current law for non-cash prizes. This amendment was adopted on a voice vote.

Amendment H-1606, offered by Rep. Raecker, allows an 18 year-old veteran to participate in card games conducted at organizations where they are members. This amendment was defeated on a division vote.

Amendment H-1650, offered by Rep. Dick Taylor, is a strike after amendment which takes the bill back to what HF 538 was when it passed out of the Veterans Affairs Committee. This amendment was withdrawn.

The Senate has concurred with the House amendment and passed the bill.

Senate Amendment Eliminates the Ballot Courier Program

HF 844 requires county auditors to open all ballots received by 5:00 on the Saturday before elections and 5:00 on the Friday before all other elections to review the affidavit for deficiencies. If the affidavit contains a deficiency that would cause it to be rejected, the commissioner of elections is required to contact the voter and inform them that they may correct the deficiency by 5:00 the day before the election. In addition, if the affidavit envelope is open, opened and resealed or the ballot is not enclosed, the auditor is required to notify the voter their ballot shall not be counted unless they apply for a replacement ballot and return it in the time permitted. This section further places requirements for the auditor regarding the replacement ballot and the “defective” ballot. This bill went through the House smoothly and was passed on a 99-0 vote.

However, on the Senate floor, Sen. Connelly filed an amendment to eliminate certain ballot courier requirements. The requirements that remain in place include requiring the ballot to be returned within 72 hours of retrieving it. The voter may also request a ballot courier to provide a receipt, and the ballot courier shall then provide the receipt. Under current law, the ballot courier is required to proactively provide the receipt. Ballot couriers were put in place several years ago to protect the integrity of elections. At that time it was unknown who was picking up absentee ballots, there was no process to ensure that they were promptly being turned in, and there was no training on what to do if something happened to the ballot.

One example from this past election cycle showing why ballot courier requirements are necessary comes from Woodbury County. The day after the 2006 election, 14 absentee ballots were discovered at the county Democrat Party headquarters. The local newspaper reported a party volunteer apparently left them there. Unfortunately, those ballots were not counted and they could not have made a difference in any of the elections. However, you never know the possible outcome in another county in another election.

The ideal situation would be to oppose the Senate amendment. If that is not possible, then a compromise that does the above is the second best option. Senate Republicans offered two amendments to Sen. Connelly’s that were defeated. Rep. Jacobs has drafted those same amendments. They do the following:

• The first amendment requires the return carrier envelope to contain spaces for the printed name and signature of the voter’s designee should the voter designate a person to return the completed absentee ballot.

• The second amendment requires the voter’s designee to complete a receipt when retrieving the ballot. It also requires the commissioner, within 14 days after the date of the election, to notify each person who requests an absentee ballot if the person failed to return a completed ballot and if the person did not vote at the polls.

This is just another way Democrats are taking steps to eliminate controls that ensure that Iowa’s elections are considered safe and honest.

(Contact: Kelly Ryan, 2-5290)

Transportation

Democrats Release Infrastructure Bill

The Infrastructure bill, which includes several funding sources, was released earlier this week. As a refresher, money in this bill is appropriated from four different funds. Those funds include the Rebuild Iowa Infrastructure Fund (RIIF), the Tobacco Settlement Trust Fund (RC2), the Technology Reinvestment Fund (TRF), and the Vertical Infrastructure Fund (VIF) and State Aviation Fund. In previous years, money was also appropriated from the Environment First Fund (EFF); however, this year the Agriculture and Natural Resources budget subcommittee was given jurisdiction over this fund. Money was also appropriated from the Restricted Capital Fund (RCF); the money for this fund came from the tobacco bonds and all of the money had to be spent by a certain amount of time. This was accomplished earlier this year in the supplemental bill.

Most of these funds have specific restrictions regarding how they may be spent. For the RIIF and the VIF, the projects are required to meet the definition of vertical infrastructure in the Code. However, with a simple notwithstanding clause, other projects could be funded. The RC2 faces much stricter requirements. The money for this fund comes from the refinancing of the tobacco settlement bonds and therefore must meet the IRS definition of vertical infrastructure. If the project does not meet these requirements, the state would violate IRS requirements. The TRF was established last year and these projects must be technology related. The Legislature created a broad definition of technology when creating this fund because of the many differing needs of the state and local entities.

Some of the more interesting new projects included in the infrastructure bill include:

• Iowa Center For Regenerative Medicine - $10,000,000 in FY 08/$30,000,000 over three years

• Bioscience Program Infrastructure - $5,647,000/$32,000,000 over three years

• Gold Star Museum - $1,000,000/$5,000,000 over three years

• Targeted Industrial Infrastructure (Battelle Report) - $1,750,000 vs. the $10,555,000 the Governor recommended

• West Terrace Decorative Planter - $120,000

• Workers’ Monument - $200,000

• Vehicle Dispatch Fleet Relocation - $350,000

• Correctional Institution Improvements - $5,795,000

• Nursing Home Facility Financial Assistance - $1,000,000

• Agriculture Exhibition Center at the State Fair - $3,000,000

• State Fire Training Facility - $2,000,000

Transportation Budget Bill Bounces Back

House members received an opportunity to take two votes on the Transportation budget bill this year. In general, Republicans voted yes the first time and no the second time.

An amendment was offered and adopted in the Senate Appropriations Committee which requires the DOT to assess the feasibility and cost-effectiveness of implementing a telecommuting policy. The amendment then lays out what the assessment shall include. A report summarizing the assessment is required to be submitted to DAS by November 7, 2007. Based on the assessment, the DOT is required to develop a telecommuting policy, a timeline for implementation, and plans to expand the number of telecommuting employees. Directors are required to transfer employees by January 1, 2008, and provide a report to DAS and the Legislature beginning January 1, 2009. This language is similar to what is being added on to other budget bills.

Rep. Rants filed an amendment to the Senate amendment to strike language in SF 403, the supplemental bill. It would have struck the language related to the sale or transfer of DOT property worth more than $5.0 million. This would have taken effect upon enactment.

The House Democrats ruled Rep. Rants’ amendment not germane. As a result, Republicans voted not to concur with the Senate amendment (50-43) and the bill as amended by the Senate (51-44).

Correction

Last week’s newsletter article regarding red light cameras indicated that the courts ruled them illegal. The courts actually ruled the fines were in conflict with, contrary to, and inconsistent with the provisions of the Iowa Code.

(Contact: Kelly Ryan, 2-5290)

Veterans Affairs

Veterans Cemetery Update

As many of you may recall, the state last November broke ground for a new Veterans Cemetery. The new cemetery will be located outside of Van Meter along Interstate 80. Recently, there have been some updates related to the cemetery.

Last week, the Governor appointed Steve Young to serve as the director of the State Veterans’ Cemetery. Young has long been a member of the United States Air Force and Iowa Air National Guard, having first joined the service in 1972. He has served in the United Kingdom and Germany, and at several bases within the United States. In 1998, while on leave from his job as an Assistant Iowa Attorney General, Young was deployed for six months to Bosnia. He is still associated with the Iowa Air National Guard and is the state’s senior military attorney. He performs his military duty in Colorado Springs for the United States Air Force Space Command, providing legal advice on Guard matters to the command’s senior military lawyer. Young serves in the rank of colonel.

In addition to Young’s hiring, the construction documents were approved by the VA and the National Cemetery Administration. As a result, the Department of Veterans Affairs (DVA) has begun the bid process, with the bid opening scheduled for April 25, 2007. The DVA is hoping to award in the bid in late June and begin construction as soon as possible after that. At this time, the DVA believes the cemetery the cemetery will be complete and the ribbon cutting will occur the spring of 2008.

In addition the DVA has offered to make a presentation with all the drawings and designs of the buildings and grounds and answer any questions yet this session. There is a lot of work included in this project. If you are interested in a presentation, please let staff or DVA officials know.

Senate Confirms Veterans Appointments

The Senate was asked to approve several individuals for veterans-related appointments. Those individuals made their way through the process and have been confirmed by the Senate by the required deadline. Most of these names are familiar faces to those individuals that deal with veterans issues because they have held those appointments in the past. The appointments include:

Patrick Palmersheim – Executive Director of the Department of Veterans Affairs. Palmersheim held the same position in Governor Vilsack’s administration.

Daniel Steen – Commandant of the Veterans Home. Steen held the same position in Governor Vilsack’s administration.

General Ron Dardis – Director of the Department of Public Defense. He became Adjutant General for the Iowa National Guard in 1999 and provides command and control for 104 Army and Air National Guard units and over 9,600 Army and Air National Guard members in the state of Iowa.

Steve Mulcahey – Member of the Commission of Veterans Affairs. Mulcahey is a Democrat and is from Ottumwa. He represents the VFW appointment and was nominated by his organization to serve. Mulcahey held the same position in Governor Vilsack’s administration.

Donald Delamore – Member of the Commission of Veterans Affairs. Delamore is not affiliated with a political party and is from Cedar Falls. He represents the Order of the Purple Heart appointment and was nominated by his organization to serve. Delamore is a new appointee.

Rosetta Waychus – Member of the Commission of Veterans Affairs. Waychus is not affiliated with a political party and is from Rockford. She represents the public member at large. Waychus held the same position in Governor Vilsack’s administration.

(Contact: Kelly Ryan, 2-5290)

Ways and Means

Democrats Introduce Bill to “Abolish” Property Taxes

On Monday April 16, Rep. Wise filed House File 905, which would completely abolish the property taxes levied by cities, counties, schools and community colleges – with no replacement system in place.

You might want to read that sentence again to make sure you understand HF 905.

Although the abolishment of property taxes levied is the most headline-attracting item, House File 905 makes other significant changes to the tax system.

Division I of the bill provides for a $320 individual or corporate income tax credit for commercial property taxes paid on “improved commercial property”, provided that the taxpayer owns less than $300,000 of improved commercial property in the aggregate statewide. In the bill, “improved commercial property” is defined as “land containing one or more structures that are being put to productive use”.

Division II of House File 905 applies a one percent assessment limitation to commercial and industrial property. Essentially, a one-percent assessment limitation would give commercial property an immediate rollback and by 2011, commercial property would be taxed at 88% of the assessed valuation. This would also apply a rollback to industrial property; however, the rollback on industrial property would not happen as rapidly as that on commercial.

Division III of the bill removes the authority of cities and counties to levy property taxes for fiscal years beginning on or after July 1, 2011, except for purposes of paying debt incurred by a city or a county.

Division IV of House File 905 removes the authority of school district boards of directors and community college boards of directors to levy property taxes for budget years beginning on or after July 1, 2011, except for purposes of paying indebtedness incurred by a school district or a community college.

Division V of House File 905 increases the hotel/motel tax from 7% to 9%.

Division VI of the bill provides that the amount of the state appropriation to the statewide fire and police retirement system equals 3.79% of the covered earnable compensation of the members. Under current law, there is a standing unlimited appropriation that does not have a specified dollar or percentage amount. This division also appropriates $8,541,814 as the state's cost of police officers' and fire fighters' benefits for FY 2008.

Division VII of House File 905 establishes a legislative property tax study committee to conduct a comprehensive review of property taxation in Iowa. Essentially, this committee will likely make the recommendations to the Legislature on what the new property tax system should be when the all of the property tax levies are abolished.

In the end, this bill gets rid of the current property tax system and punts to an interim committee to do the heavy lifting.

(Contact: Mary Earnhardt, 1-3298)

House Republican Talking Points

Building a Tax Increase

The budget Democrats are about to pass in the next two weeks will be 10% larger than the budget that Republicans passed the year before.

 

Don’t take our word for it.  Look at the balance sheet that was prepared by the non-partisan Legislative Service Agency. Here is the link:

 

If you are unfamiliar with reading a balance sheet – pay attention to the areas highlighted.  The budget from last year is $5,301.5 (5 Billion, 301 Million).  Your proposal is $5,830.2 (5 Billion, 830 Million) for FY 2008. 

 

House Democratic leaders aren’t even aware of how much they are spending. The chair of the House Appropriations Committee said publicly on the House floor she believed is was maybe  

$400 Million.

 

That’s wrong.  Thus far Democrats are committed to a $656.2 million spending increase in FY 09.  Another 10% + increase.

 

If you want to see the 10% increase in next year’s budget, click here: .

 

That’s 20% in two years.

 

Democrats had to raise taxes over $150 Million to make this years budget work.  Whose taxes do they plan on to raising next year?

 

This course of action will lead to huge tax increases. Without an infusion of new revenue to maintain this reckless level of spending, Democrats will have to make across the board budget cuts. Tax increases or budget cuts – that is the future facing Iowans if Democrats continue this rate of spending.

That isn’t political spin – it is fact according to the latest Revenue Estimating Conference report. According to the REC, revenues are not keeping pace with the Democrats appetite for spending. It is available here:

report? 

 

Here is an example of why the numbers simply don’t work for the Democrats budget. They are only leaving an ending balance of only $77.8M (bottom right hand corner of the balance sheet).  The House Democrat budget plan calls for paying the property tax credits out of the ending balance.  The Homestead Credit alone costs over $134 M.  If you only have $77M, how are you going to pay for it next year?

 

Teacher Quality Bill

Both Republicans and Democrats campaigned on raising teacher salaries. The difference is that while Democrats want to pay teachers more, Republicans want to pay our best teachers more. The Democrat’s plan dumps $145 million into teacher salaries without any accountability surrounding the money. Republicans don’t believe that higher pay equals better teachers or high student achievement. This bill isn’t about teacher quality, it is about payback to the powerful teacher’s union.

The fact of the matter is that this bill represents genuine difference between Republicans and Democrats when it comes to education policy. The largest of those differences are the following:

1- Democrats are shifting power away from locally elected school boards to the teacher’s union.

2- Democrats continue to pass legislation that will raise property taxes.

3- Nothing in the Democrat’s plan increases student achievement.

Shifting Power Away From School Boards and to the Teachers Union

Under the Democrat’s plan, the teacher’s union will negotiate terms of evaluation and how the teacher quality money is dispersed. We seriously doubt the teacher’s union will negotiate a plan that makes it harder for teachers to get pay raises. The union is going to make it as easy as possible for its members to make more money.

The Democrats also make it harder to terminate bad teachers and makes it easier to give bad teachers a raise. Most Iowans don’t agree with that. Where is the incentive for poor performing teachers to improve? If the Legislature is going let the teacher’s union, instead of administrators and school boards, dictate the terms of teacher evaluation and make it easier for the poorest performing teachers to get raises, why improve?

Raising Property Taxes

This bill is just the latest example of a shift in policy that is leading down the path of increases taxes – especially property taxes. The preschool bill we did last week allowed school districts to take funding currently allocated to K-12 needs and spend them on preschool instead. Any kind of shift will open a funding gap that will need to be filled.

The two PPEL bills that are currently on the debate calendar allows school districts to spend cash currently restricted to infrastructure needs on non-infrastructure items. Any kind of shift will open a funding gap that will need to be filled.

Now we have this, the teacher’s union payback bill. The bill plows $145 million into teacher salaries without tying the increase to improved teacher performance to higher student achievement. The Democrat’s plan removes a restriction that prevents property taxes from being used to pay for salaries. As salaries increase, what do we think will happen to property taxes.

Student Achievement Ignored

Research proves that paying teachers more does not appear to be associated with higher student achievement. Which means that this bill has nothing to do with helping our children become better students but has everything to do with paying back the teacher’s union for hundreds of thousands of dollars it poured into Democratic campaigns.

There needs to be accountability built into the system. This bill does just the opposite. It provides a disincentive for teachers to improve, it empowers the teacher’s union to set evaluation standards, it takes power from our locally elected school boards and finally it is yet another example of an agenda that will lead to higher taxes.

Democrat’s Agenda So Far

Raised the minimum wage from $5.15 to $7.25 per hour by 1-1-08. During the fall elections, House Democrats promised to raise the minimum wage in Iowa from $5.15 an hour to $7.25 an hour by 2009. While that’s good for low wage earners, it is bad for small employers.

Democrats are more than happy to tell constituents they have raised the minimum wage, however they failed to provide a pay hike to those Iowans who serve our youngest citizens. In FY 2006 and FY 2007, House Republicans made sure that state childcare assistance payments were increased. House Study Bill 301 does not include any funding to implement the 2006 childcare rate survey.

Stagnation on commercial property tax relief after promising Iowa’s business communities they’d see action on property tax relief, the Democrats have fumbled along for two months without any progress.

Approved a symbolic bullying bill by requiring all school district to have bullying policy in place by September 1. The Democrats conveniently ignored the fact that all public and non-public schools are already required to have a student discipline policy in place addressing harassment in order to be accredited. In their rush to pass a bill they forgot to include cyber-bullying on their list. Thanks to Republicans it is now included. Below is the list of student traits or characteristics that the Democrats included on their “list”.

• Age

• Color

• Creed

• National origin

• Race

• Religion

• Marital status

• Sex

• Sexual orientation

• Gender identity

• Physical attributes

• Physical or mental ability or disability

• Ancestry

• Political party preference

• Political belief

• Socioeconomic status

• Familial status.

Republican amendments to include a parent involvement policy and nonpublic school language clarifying that the bullying policy should not inhibit teachings or consideration of doctrinal matters were eliminated from the final version of the bill.

Allowable growth funding levels that are suspiciously similar to the levels adopted by Republicans. Democrats adopted a 4% allowable growth rate and rejected an opportunity to approve 6% allowable growth. They also rejected a plan to have the state take the burden off local property taxpayers. Despite the opportunity to approve additional education dollars AND provide some property tax relief LIKE THEY PROMISED THE VOTERS LAST FALL, Democrats rejected the ideas.

Repealed Iowa’s ban on human cloning…

Essentially the Democrats repealed the code section which bans human cloning and are replacing it with a new “ban” which isn’t a ban.

Chapter 707B prohibits human cloning for any purpose, whether it be for Reproductive or therapeutic cloning. A person performing or participating in cloning would be guilty of a class C felony, while transporting cloned embryos is a aggravated misdemeanor. The prohibition does not impact in vitro fertilization.

HF 287, the Democrat’s cloning bill, repeals Iowa Code Chapter 707B. It says so right on page 2, line 19 – “Chapter 707B, Code 2007, is repealed.”

What is the difference between reproductive and therapeutic cloning?

Reproductive cloning, sometimes called human cloning, is done utilizing a process called “somatic cell nuclear transfer” (SNT). SNT involves the removal of the nucleus of an adult somatic cell (any cell other than a sperm or egg). The nucleus from the cell is then transferred to an egg cell from which the nucleus has been removed. Through proper stimulation, the cell develops into an embryo that can then be implanted into the uterus. A real life example of this is Dolly the sheep.

Therapeutic cloning or nuclear transplantation utilizes similar procedures to reproductive cloning, with the difference being the end result. The embryo created for therapeutic cloning has the stem cells extracted from it. This is embryonic stem cell research.

An early childhood bill that has nothing to do with children but everything to do with ISEA recruiting. The Democrats have managed to pass a bill that:

• does nothing to help the most at risk children receive quality pre-K instruction

• raises costs to parents of preschool children

• increases the red tape and regulations for private preschools

• specifically excludes private preschools from employing any of the teachers hired under the bill

• raises local property taxes to pay for it

The payoff for children and their parents? A public school teacher visiting every preschool for 10 hours a week. If one were cynical, one could argue quite convincingly that ISEA is in favor of this bill because the most tangible result is more union members for ISEA.

Pulled a fast one on the tobacco tax increase…

After approving SF 128, Democrats insisted the first $127.6 million of increased tax revenue flowed into the new Health Care Trust Fund ostensibly to fund health care priorities. If the Democrats own balance sheet is truthful, 100 percent of the new revenue is deposited into the general fund NOT into the Health Care Trust Fund.

The bottom line is that all cigarette tax revenue is going to the general fund for new spending NOT for health care.

Speaker Murphy on the tobacco tax:

“Last week House Minority Leader Pat Murphy, D-Dubuque, said a cigarette tax hike isn’t needed because they state now has a budget surplus fueled by healthy tax revenues. That sounded a lot like the argument made last spring by GOP House Speaker Christopher Rants, who was criticized by Murphy for refusing to allow a vote on raising the tax.” (Sioux City Journal, 10-12-06)

“The Iowa House is unlikely to go along with incoming Gov. Chet Culver’s proposal for a dollar increase in the cigarette tax, incoming House Speaker Pat Murphy said Friday. “I don’t think we’ll go that high,” said Murphy…Instead, he looks for a tax increase in the range of 40 cents to 60 cents a pack.” (Des Moines Register, 1-6-07)

"’Governor Culver has given some compelling arguments to go to a dollar," Murphy said during a taping of Iowa Public Television's "Iowa Press" program, which will air this weekend.” (Associated Press, 2-10-07)

The House Democrats claim that all of the new money generated by the cigarette tax hike will be spent on health care. However, when the joint budget targets are released, it will become evident that the bulk of the increase goes to fund increases for other areas of the budget including the Regents, teacher salaries and state employee salaries.

You may have also heard about what the Governor is calling the "smoking gap":

Governor Culver has been talking about the dramatic $187 million Medicaid gap between what the current tobacco tax brings in and what is paid out for smoking-related illnesses. Today, Iowa has the 9th lowest tobacco tax in the nation and currently brings in $90.5 million per year in revenue. Meanwhile, the annual Medicaid expenses for smoking-related illnesses amounts to $277 million per year. This leaves a $187 million gap funded mostly by non-smoking Iowans.

What he doesn't want you to know is that for every $1 the state spends on Medicaid, the federal government spends $2. Therefore, if the $90.5 million is spent on Medicaid, it will be matched with $181 million from the federal government, almost completely eliminating this so-called gap.

Killed Castle Doctrine…

Castle Doctrine allows reasonable use of force to defend yourself and your home.

Shifting Power to the Teacher’s Union and Away From School Boards…

Under the Democrat’s teacher pay plan, the teacher’s union will negotiate terms of evaluation and how the teacher quality money is distributed. We seriously doubt the teacher’s union will negotiate a plan that makes it harder for teachers to get pay raises. The union is going to make it as easy as possible for its members to make more money.

The Democrats also make it harder to terminate bad teachers and makes it easier to give bad teachers a raise. Most Iowans don’t agree with that. Where is the incentive for poor performing teachers to improve? If the Legislature is going let the teacher’s union, instead of administrators and school boards, dictate the terms of teacher evaluation and make it easier for the poorest performing teachers to get raises, why improve?

Raising Taxes…

This bill is just the latest example of a shift in policy that is leading down the path of increases taxes – especially property taxes. The preschool bill we did last week allowed school districts to take funding currently allocated to K-12 needs and spend them on preschool instead. Any kind of shift will open a funding gap that will need to be filled.

The two PPEL bills that are currently on the debate calendar allows school districts to spend cash currently restricted to infrastructure needs on non-infrastructure items. Any kind of shift will open a funding gap that will need to be filled.

Now we have this, the teacher’s union payback bill. The bill plows $70 million into teacher salaries without tying the increase to improved teacher performance to higher student achievement. The Democrat’s plan removes a restriction that prevents property taxes from being used to pay for salaries. As salaries increase, what do we think will happen to property taxes.

Refused to allow debate on veteran’s assistance bills…

Republicans offered two amendments which would have provided free tuition to Iowa veterans who received harzardous duty pay and to the families (children and spouses) who were severely disabled or killed in action.

Expanded gambling…

A bill that originally was supposed to allow veterans engage in recreational poker nights was hijacked by Democrats and turned into a bill that allowed other “qualified” organization to hold casino nights.

The bill allows certain organizations to award cash prize for participation in any game of skill, game of chance or card game conducted during an annual game night. The cash prize in total shall not exceed $10,000 and no one individual shall be awarded more than $5,000. Under current law cash prizes are not allowed.

Just over the horizon…

Runaway Spending and Big Tax Increases

The Democrat’s General Fund balance sheet details all tax and spending increases. It amounts to a 10 percent increase in spending and $144 million in tax increases.

The total increase in the FY 08 general fund budget is $528 million, or 10 percent above the budget enacted last session.

Even when the $62 million in supplemental appropriations are factored into the FY 07 budget, the increase for FY 08 is $467 million, or 8.7 percent compared to last year.

Now comes even more bad news for taxpayers. According to figures recently released Fiscal Services, the built-in expenditures for FY 2009 approach $700 million.

The Democrats still plan to raise taxes by $150 million this session. It remains to be seen how high taxes will have to be raised to fill the revenue shortfall they are building into the FY 09 budget.

Big Fines to Businesses…Free Ride to Tax Cheats

So let’s get this right – the Democrats are hiring more OSHA inspectors to fine legitimate Iowa businesses thousands of dollars over OSHA violations.

 

But they are going to pass a tax amnesty bill that lets people who don't pay their taxes off the hook without paying any fines.

Iowans who have been working hard, playing by rules and paying their taxes get socked with $144 million in tax increases this year and even more next year, while Iowans who have been breaking the rules and cheating the system, get a free ride.

Top spending priority is union salaries

Democrats plan to spend $107 million on union salary increases.

The $107 million represents the largest increase in the budget this year. That means the top spending priority for the new Democrat majority is not for teachers, health care or economic development. It is to pay back the state employees union.

Raiding the Senior Living Trust Fund

The Democrats have a balance of $142 million in the Senior Living Trust Fund (SLTF) in FY 08. This is $55 million less than the Governor’s recommendation. Also, they did not reveal how much they are taking back out of the SLTF to fund the Medicaid budget in FY 08. It is likely they will use at least $74.8 million (the Governor’s recommendation), meaning that if the revenue does not continue to exceed the REC expectations, the SLTF could be completely drained in FY 09.

Between raising taxes, approving an unsustainable rate of spending growth and raiding trust funds, the budget blueprint put forth by the Democrats is fiscally reckless.

New tax on satellite TV subscribers

Democrats have a plan to tax the air through satellite signals travel because satellite TV subscribers are getting away without paying their fair share to local governments. Currently cable TV subscribers pay a tax to local governments because the cable companies use the right-of-ways to place their cable lines.

More Gun Control?

Gov. Culver has already public stated to the AP on Monday that the tragedy at Virginia Tech is a reason to revisit gun control legislation.

Fair Share

SF 413 forces non-union public employees - like teachers- to pay union dues. The only way for public employees to avoid paying union dues is to quit their jobs.

The effect of SF 413 is the same as a direct repeal of the Right to Work law.

The so-called “Fair Share” legislation is not fair. It is forced unionism.

There is nothing fair about forcing individuals to pay dues to a union or an organization they do not choose to belong.

There are amendments to SF 413 which, among other things, would do the following:

• Relieve public employee unions of the burden of representing non-union employees and allow them to simply represent their members.

• Require an annual audit and public reporting requirements to disclose how the unions are spending the cash raised from fair share fees.

• Allow a religious exemption for public employees who have a religious objection to joining employee organizations. Other states, like Ohio for example, have this in Code.

• Make the bullying and harassment of public employees who do not want to join the union illegal.

• Prevents fair share fees from being used for any political effort or lobbying effort germane or not germane to collective bargaining.

• Makes it illegal for unions to recruit and/or sign up illegal aliens.

• Requires that any union making political contributions to Iowa political campaigns certify that all individuals paying dues aer American citizens.

• Allows non-union employees who are forced to pay fair share fees the right to view and examine union finances related to the fair share fees.

• Replaces all references to “fair share” in the bill to “forced union”.

• Allows teachers to be represented by an organization other than ISEA.

• Amends the scope of negotiations section of the code to allow employers and unions to collective bargain diversity policies, harassment policies, discipline policies, promotion procedures.

• Requires the union to set the fair share fee based on actual historical data instead of the whims of union leadership.

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Inside This Issue:

Built-In Spending Soars 1

Ag & DNR Budget Violates Rules 2

Cable Franchise Bill Moves 4

Eco Devo Budget Passes House 5

New Chief for DED 5

Education Budget Skyrockets 14% 6

High Union Dues in Iowa 7

Waste Tire Program Funding 8

Partial Birth Abortion Ban Upheld 8

Judiciary Update 9

Local Government Update 10

Natural Resources Update 10

Teamsters Bill Keeps Moving 11

House Votes to Expand Gambling 11

RIIF Bill Released 14

Property Taxes Abolished? 16

House Republican Talking Points 17

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