To the People of Iowa House District 95
There was no floor action in the House this week as the Appropriations Committee is negotiating with our counterparts in the Senate. Last week, we announced joint budget targets with the Senate. The agreed upon number for total spending for Fiscal Year 2024 is $8.516 billion. This represents 88.25% of ongoing revenue, a responsible number to ensure we can continue to implement the income tax cuts promised to Iowans.
HHS Budget Provides Increase for Mental Health, Nursing Homes
This week, the House and Senate released an agreement on the Health and Human Services Budget for FY 2024. Below is a list of highlights of the significant investments to advance access to mental health and support Iowa’s nursing homes. This budget appropriates $2.124 billion of state general fund (in total with federal money and other funds it is over $6 billion) towards Medicaid, child care, child welfare, public health and aging and veteran services.
Parent Empowerment, Teacher Empowerment Bills Receive Approval
Led by House Republicans, the Legislature has acted on significant measures this session empowering parents while making clear where the lines of control exist when it comes to parental responsibility and school district’s responsibility.
While it is unfortunate that parents were forced to come to the Legislature to defend and reassert their rights to direct the upbringing of their own children, lawmakers have a duty to respond. Whether the issue is school choice, age-appropriate material, invasive surveys or, somewhat amazingly, whether or not schools can keep secrets from parents, House Republicans have led the way. This bill includes these things:
The one piece that had yet to be approved by the Senate was teacher empowerment (House File 604). Teachers need the ability to control their classrooms and protect rule-abiding students from disruptive and potentially violent students. Teachers deserve to know why they are being forced to take certain kinds of training. On Wednesday, HF 604 was amended and approved by the Senate. While the Senate weakened the bill’s effort to give teachers direct and clear disciplinary measures to maintain control of their classrooms, it is still a step forward.
Key pieces of the bill include:
Together, parents, teachers, and the districts can all work together to create the best school that does the best for the students and families.
How House Republicans Created the Taxpayer Relief Fund
Just what is the Taxpayer Relief Fund and how was it created? It is an account in the State Treasury that holds unanticipated state revenue to be returned to the taxpayers. In order for funds to be deposited in the Taxpayer Relief Fund, actual state revenue has to exceed what had been projected for state tax collections by the three-member Revenue Estimating Conference (REC). The difference between what was actually collected in tax revenue and what the REC had projected is deposited into the account once the fiscal year’s books have been closed.
At the behest of House Republicans, the Fund was created in 2011 and was originally called the Taxpayer Trust Fund. House Republicans felt it was important that excess revenue be returned to the taxpayers rather than being spent on various state government bureaucracies. Through intense negotiations, the 2011 House Republican caucus convinced Senate Democrats (the majority party in the Senate at the time) and Governor Branstad to commit this. Thus, the Taxpayer Trust Fund was born. The maximum amount that could be deposited per year under that agreement was limited to no more than $60 million. If there were funds deposited into the account, those funds would be returned to taxpayers through a special income tax credit on Iowans’ state income tax return.
With the change of control in the Iowa Senate, the structure of the Taxpayer Trust Fund was significantly changed. As part of the 2018 state tax reform law, the name of the Fund was changed to the Taxpayer Relief Fund. The limit on the amount of funds that could be deposited into the account was stripped from the law, as was the automatic return of the funds via the personal income tax credit. Instead, the Fund would be dedicated to tax relief. The type or nature of the tax relief was left up to the Legislature to determine.
Using the final numbers for Fiscal Year 2022 as an example, here is how the Taxpayer Relief Fund works. When the Legislature passed the FY 22 budget in May 2021, the revenue forecast called for the state to collect $8.1686 billion in tax revenue. When the books were closed on Fiscal Year 2022, actual state revenue amounted to $9.8034 billion. The difference between the two figures is $1.6348 billion, which is the amount deposited into the Taxpayer Relief Fund.
Thanks to several consecutive years of record tax collections and controlled spending growth, the Taxpayer Relief Fund is projected to have $3.5578 billion in its account. That is a symbol of the strong fiscal leadership that House Republicans has provided the state since 2011.
Senate Gives Final Legislative Approval of Veterinary Scope of Practice Update Legislation
On Monday, April 24th, the Senate considered and passed House File 670 by a 49-0 vote. HF 670 updates the state Veterinary Practice Code chapter (169) for the first time in over 25-years. Much of the legislation is codifying regulations which the Iowa Veterinary Board has adopted to deal with the evolution of the profession during the last three decades but for which the Code provided the Board with generalized rule making authority. The provisions in HF 670 were negotiated by the different parties in the profession and represent a consensus of the parties. The new Code language recognizes and specifies the scope of veterinary services that veterinary students, veterinary technicians and auxiliary veterinary personnel can perform and their relation to supervisory veterinarians.
HF 670 directs the Board of Veterinary medicine to submit notice of intended rule making to implement this legislation no later than January 1, 2024, and the legislation as a whole has a delayed effective date of July 1, 2024, to accommodate the new rule making process. This piece of policy is something I heard about from my local Farm Bureau members about a lot, so I was happy to see this piece of legislation get over the finish line.
Staying in Touch
As always, as session wraps up you can shoot me an email at taylor.collins@legis.iowa.gov or call the capitol switchboard at (515) 281-3221.
Sincerely,
Rep. Taylor Collins
Iowa House District 95
To the People of Iowa House District 95
Not much floor action occurred at the capitol this week until Wednesday when everyone had returned to the capitol to continue our work on the budget and this years property tax reform proposals.
House Republican Property Tax Plan Adds Certainty for Taxpayers While Also Cutting Property Taxes
This week the House passed House File 1 (now House File 718). The bill does four major things to provide all Iowa property tax payers with immediate and direct property tax relief.
Division I of the bill provides an immediate statewide property tax reduction of over $200 million dollars. Iowa Code section 257.3 requires each school district to levy (each year) a foundation property tax equal to $5.40 per $1,000 of assessed valuation on all taxable property in the school district. Division I reduces that requirement by $1.00 so schools will be required to levy a property tax of $4.40. The state would then pay for that reduction so that the schools do not lose revenue.
Division II of the bill puts a limitation on how much a property tax payer’s bill can increase year over year. The division outlines a property tax increase limitation on a per parcel basis for qualified parcels. This is on the actual amount of property taxes paid (not the assessment). This division’s limitation does not limit taxes levied as a result of a voter-approved levy or a debt service levy.
This division provides that a qualified parcel (gets the growth limitation) is a parcel that is NOT:
Additionally, a parcel that has changed ownership since the last assessment will not get the growth limitation (will get a new base with a new owner). New construction will of course get a new base year at full value and full taxation.
If a parcel is a qualified parcel, for property taxes due and payable in fiscal years beginning on or after July 1, 2024—if the amount of property taxes due exceed 103% (Residential, Agricultural) or 108% (Commercial, Industrial) of the prior year, the amount due will be reduced as described below.
If the threshold is exceeded, the amount of property taxes due and payable to each taxing authority that certified to levy in excess of such amount shall be reduced. If the city only levied the same as the prior year, but the county levied 104% on a residential parcel, only the county would have to reduce the amount due. The amount of the reduction shall be proportionately applied among those certified to levy in excess of the limitation. The reductions shall be made by the county auditor prior to delivery of the tax list and statements.
If there were improvements or renovations (not amounting to new construction) on the parcel during that year, the threshold amount of taxes shall be up to 103% or 108% plus the percentage of the parcel’s taxable value attributable to the improvements.
Division III of the bill rounds out Iowa’s version of Truth in Taxation and works to get more information in the hands of property tax payers. With this information they will be more informed about how assessments and levies are working together in their area. This division also provides that if all of the information from all taxing jurisdictions is available in a timely manner—everything should be on one notice for the taxpayer.
Finally, Division IV of the bill simply states that all special elections by any political subdivision for bonds or other debt must be on the first Tuesday after the first Monday in November of each year. Additionally, it provides that the commissioner of elections will send notice of a bond election to eligible voters 10 to 20 days before the election. The notice must contain the full text of the public measure to be voted on.
Regardless of the eventual fate of HF 718 in the Senate, it is obvious that House Republicans have chosen the side of the property taxpayers and not the property tax collectors. Prioritizing certainty and sustainability for property taxpayers over ballooning assessments will continue to be a driving force in the House.
Budget Discussions in Full Swing After House Republicans Release Spending Proposals
Last week House Republicans released their General Fund spending plans for Fiscal Year 2024. These plans can be found on the budget subcommittee webpages under “Committee Documents,” and they show how the majority party plans to spend the 8.5 billion budget that will start on July 1.
This move has helped kickstart budget discussions under the golden dome. Meetings between the House, Senate, and the Executive Branch have been taking place all week as momentum is building towards reaching an spending plan agreement.
Some highlights from the proposed budget include:
Summary of New Firearms Bill
Last week, the House passed House File 654, a bill that made changes to firearms laws in Iowa. Once again, Democrats used fearmongering as opposed to facts to try and stop Iowans second amendment rights. However, the bill passed with overwhelming support (62-37) and is in the Senate awaiting further action.
HF 654 has nine divisions, some are technical changes designed to ensure the code is uniform, others are substantive to allow law abiding Iowans the freedom to carry their firearms. A short break down of the nine divisions can be found below:
Division I allows loaded firearms in locked vehicles on most publicly owned property.
Division II strikes a DHHS rule that prohibits foster parents from having loaded firearms in their vehicle.
Division III allows loaded firearms to be in a vehicle on school property while dropping off or picking up a student.
Division IV allows loaded firearms to be in a vehicle parked at regents universities or community colleges.
Division V prohibits insurance companies from refusing to insure a school that allows firearms in their buildings.
Division VI clarifies a person can have a loaded firearm in their car while driving.
Division VII allows a person to have a loaded firearm on their snowmobile or ATV.
Division VIII strikes a rule prohibiting firearms at casinos. Casinos will determine their own firearm policy.
Division IX makes several changes to code section 724 regarding who can possess and who can carry firearms
House Child Care Bills Await Senate Action
Recently, the Iowa House passed House File 707 unanimously to increase child care provider rates by $10.8 million and expand eligibility of the Child Care Assistance Program. This bill also importantly requires parents to work 32 hours, instead of the previous 28 hours, per week to qualify for CCA. This bill awaits a subcommittee assignment in Senate Appropriations Committee.
The Iowa House has also passed House File 668 to provide the residential rollback (instead of commercial) to child care centers and facilities for property tax purposes, which will provide $8.8 million in reduced property taxes for child care facilities statewide. This bill awaits a subcommittee in the Senate Ways and Means Committee.
Lastly, House File 319 removes the barrier to child care worker employment of requiring a physical prior to starting employment. This bill awaits Senate floor action.
Over the last two years, House Republicans have prioritized expanding access and lowering the cost of child care throughout the state. Below is an expansive list of the bills signed by the Governor during the last general assembly.
Milk Freedom Moo-ves to the Governor’s Desk
Soon Iowa could join 20 other states in the legal sales “raw milk” if Senate File 315 is signed into law. Raw milk is produced from dairy animals and has not been pasteurized. Pasteurization is the method of extending the shelf life of milk by heating the milk for a controlled amount of time. Individuals who seek out raw milk for their consumption value the freedom to decide about what they value in their milk.
Currently, state law prohibits the sale of raw milk in any capacity. SF 315 allows consumers the freedom to make an informed decision for their needs and purchase raw milk from raw milk producers instead of being forced to leave the state or to break the law. If signed into law, producers will be allowed to have up to 10 dairy producing cows, goats, and sheep for the production and sale of raw milk and raw milk products.
These raw milk dairy producers will be required to test monthly the coliform bacteria levels and have an annual examination of the producing animals by a licensed veterinarian. Records of both the monthly testing and the annual examination are required to be maintained and available to the Department of Health and Human Services, local health boards, and consumers. If a licensed physician suspects an individual became ill as a direct result of raw milk, HHS or a local board of health may demand the test records of the dairy from the previous 3 years.
While SF 315 provides increased freedom to consumers, it still does not allow raw milk to be used in commercial or homebased food products to prevent someone from unknowingly consuming raw milk. An individual cannot purchase raw milk or a raw milk product without ordering it directly from the raw milk producers.
Restoring more individual freedom in the choices offered to consumers is ‘udderly’ important to House Republicans, who have championed this legislation and other pieces of legislation to provide more freedom to creators, producers, and consumers.
CAT Grants Awarded
This month the Enhance Iowa Board awarded 18 Community Attraction and Tourism (CAT) grants – two of which went to projects in SE Iowa.
These Awarded CAT Grants Include:
