News from the Hill…
Week two is now behind us with many committees meeting and either hearing presentations on potential law changes or assigning bills to start through the process. The first bill out of the Education Committee is an increase to supplemental state aid (allowable growth). This bill increases the per pupil amount in the foundation formula that gives local school districts their spending authority. Last year the Iowa House passed a 2% increase and sent it over to the Senate, which they did not take up. As the same time the Iowa Senate passed a 4% increase and sent it over to the House, which we did not take up. Last week the House Education Committee assigned the Senate File and passed the bill out of subcommittee. This week the House Education amended the Senate File to strike the 4% increase and replaced it with a 2% increase. I am expecting that the Iowa House will pass that bill as amended on the House Floor next week and send it back over to the Senate. If the Senate accepts our amendment the bill will head to the Governor. If they resist our amendment the bill will head to conference committee. A 2% increase in the amount of state aid would be an additional $81 million and a 4% increase would amount to approximately $168 million. There is approximately $153 million in additional state monies to appropriate for budget year 2017.
Ways and Means…
This week the Ways and Means Committee met and I assigned the bill, HSB 535 to couple with the Federal Tax Code which I talked about in last week’s newsletter. I am committed to making a decision with the utmost urgency so the taxpayers and the tax preparers know what the State of Iowa is going to do. The first returns are due March 1, 2016 and the clock is ticking. The subcommittee for HSB 535 will have a meeting prior to the next Ways and Means Committee meeting which is Monday, January 25, 2016 at 3:00 PM. My intentions are to pass the bill out of Committee so it is eligible for debate Thursday of next week. The bill couples with the Federal Tax code for tax year 2015 with everything except bonus depreciation. The bill does include section 179 which is very important to all small businesses including farmers. They have made buying decisions based on the state coupling with section 179 because that is what we have been doing for the past five years. So if the state would not couple with section 179 the result would be a tax increase to farmers and small businesses alike. The fiscal impact of the bill as written for fiscal year 2016 is a reduction of $95.69 million. There are only five months and one week left of the fiscal year so this would lower the projected ending balance of the fiscal year 2016 an equal amount. In addition the impact for fiscal year 2017, which we are preparing that budget, now is an increase of approximately $86.47 million. Due to some of the calculations the ongoing revenue increases slightly and the carry forward is reduced. The two main drivers of this legislation are consistency and urgency which we are honoring.
Presidential Precinct Caucuses…
The ‘First in the Nation” caucuses are just over a week away. I hope no matter which party caucus you decide to attend, that you do attend. People can and will change their voter registration to attend one of these caucuses. This is the very first chance we the people have to have a say on who the next President of the United States of America will be. Ultimately caucus goers will be voting for who they think should be the party’s candidate for the November election that will determine the President of our great country. While I have made up my mind on who I will vote for, I hope you have taken the time to listen and meet as many of the candidates who have swung through our area. We are very fortunate to be able to meet, visit and shake hands with so many. Most Americans do not have this chance, so take advantage of the opportunities. I hope you take our job of First in the Nation very serious. The decisions will affect generations to come. Each county party will be sending out the Call to Caucus information on precinct locations, but all of them will be held Monday February 1, 2016 at 7:00. Please make plans to be there and show up early, especially if you plan to change your voter registration that night. In fact I would advise printing off the voter registration, filling out at home and bring it in with you at your precinct caucus.
“Be sure you put your feet in the right place, then stand firm.” – Abraham Lincoln
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands