News from the Hill…
This week in the Iowa House the Education Conference Committee continued to meet to work out the differences between the Iowa House plan and the Iowa Senate plan. The House set allowable growth for FY 14 and FY 15 at 2% for both years, while the senate plan sets allowable growth for FY 14 and FY 15 at 4%. This was important to the Senate Democrats, while the policy in the House plan was very important to House Republicans and the Governor. In the art of compromise the House Republicans laid out a proposal as follows. We will go up to your allowable growth figure in this way. For FY 14 we will set allowable growth at 2%, and a one-time payment of 2% in 2014, and 4% in 2015 along with acceptance of the House version of the education reform bill. However, Senate Democrats, this is a one-time offer. You want to change the policy, the money starts going down. This takes what is important to all sides and gives everybody a chance to get some of what they want, but not everything. Time is of the essence, it is time to accept the offer and move on. Local School districts deserve an answer.
Compromise…
A settlement of differences by mutual concessions; an agreement reached by adjustment of conflicting or opposing claims, principles, etc., by reciprocal modification of demands.
Capital Gains Exemption…
A capital gains exemption for Iowa businesses passed out of committee on April 9, 2013 with a vote of 23-2. The bill creates a narrow exemption from Capital Gains taxes for employee-owners of Iowa based companies that have been operating for ten years or more. This legislation is modeled after the Nebraska legislation that was passed three years ago. The bill impacts small business owners, middle class, and upper middle class Iowans who depend on their stock investments that have been purchased over the course of their career to fund their retirement. The bill is narrowly tailored to only allow stocks invested in home-grown Iowa-based business to qualify. This bill would help and encourage more of the retirees of these companies to stay in Iowa. We lose too many of some of our best retirees to other states that treat them more fairly with their retirement income. The loss is greater than the taxes they pay, we need them to stay in Iowa communities mentoring young people to be better citizens, volunteering and sharing their experiences with other people in their respective communities.
Property Tax Update…
This may be the year we can finally get some property tax relief and reform. I doubt very much with the divided government, the reform or relief will not be as substantial as I would like. However, I am encouraged to hear key Senators talk about a bill not only passing the Senate, but making it to a conference committee. This is very important for the following reasons. In the prior two years we have passed a several property tax bills in the House, but the Senate never took any of them up for consideration. In the prior two years the Senate has passed only one property tax bill, which we debated, altered and sent it back to them. But they refused to take action on the House amendment to the altered bill. I believe the only road map to a property tax bill making it through both chambers is via a Conference Committee. It takes 51 votes in the House and 26 votes in the Senate for a bill to make it through both chambers. A conference committee is made up of only 10 legislators, five from the House and five from the Senate. It will be easier for ten people to find some common ground than it is for 150.
“I am in politics because of the conflict between good and evil, and I believe that in the end good will triumph.” – Margaret Thatcher
For more information on these and other bills: www.legis.iowa.gov
-Tom Sands