Category: Mediapolis

News from the Hill…

This week another step in the budget process was taken.  The House Republicans and the Senate Democrats released their respective budget targets.  For Fiscal Year (FY) 2014, which is the budget we are working on, there is $7.1822 billion available to spend.  However, of that amount only $6.5377 billion is an on-going revenue stream.  To spend all the projected available dollars in a high revenue growth year to grow government, sets future budgets at risk for across the board cuts.  I simply will not use one-time money for an on-going expenditure.  I will spend less than what the state collects and will not balance the budget with smoke and mirrors to deceive the tax payers of Iowa just to spend more money.   Growing government is not a priority of mine.  Growing jobs, building personal family monetary strength and opportunity is a priority of mine.  We are proposing to spend $6.4139 billion, which is an increase of 3 percent over last year’s level.  Our proposal spends 98% of on-going revenue or 89.55% of available revenue for FY 2014.  This budget leaves a projected ending balance of $840.7 million at the end of the Fiscal Year 2014.  While revenue growth is currently ahead of projections, there is so much uncertainty about future revenue due to the on-going drought conditions, slow economic growth and the federal budget situation.

Our budget proposal continues the practice we implemented two years ago of aligning spending with revenue.  The budget continues to make state commitments a priority.  The budget proposal fully funds property tax credits, funding necessary to maintain our commitment to education; including the funding necessary to allow the Regents universities to freeze tuition, $10 million to the community colleges and a two percent increase in supplemental state aid for our local schools.

The Senate Democrats budget targets were released 30 minutes after the House and they take a completely different road.  They spend $6.9010 billion in the state General Fund which is an eleven percent increase over last year.  Senate Democrats are proposing to spend $1.05 for every dollar of on-going state revenue.  This simply does not make sense and places future taxpayers at risk.  To sustain this amount of spending would require 6.2% growth in revenues for FY 15.  The Revenue Estimating Conference is projecting revenue growth of 3.3 percent in FY 13 and for FY 14 to have growth of 3.4%.  Historically revenue growth over the last twenty years has averaged 3.34 percent.  To spend more than the average growth is simply fiscally irresponsible.  While details of their budget were not released it is apparent there are big differences between the two budgets and the two caucus’s philosophical views.

Funnel week approaching…

We are one week away from being half way through session.  Policy bills need to be out of their respective committees by March 8 or they are dead for the year.  There will be a substantial mount of bills that will no longer be eligible for debate after next Friday.  The term “funnel” was established because many bills will be funneled out of circulation.  Bills in the Ways and Means Committee and the Appropriations Committee are funnel proofed and eligible for consideration throughout the entire session.  While the policy committees are slowing down, our work load will be picking up.  There are a certain amount of policy bills every year that may have a tax or a fee included in them that forces them to come to the Ways and Means Committee.  Usually when they come to my committee we only spend time discussing the fee or tax portion of the bill and not the entire bill.  This same approach applies to the Appropriations Committee if there is an appropriation in a policy bill.  Both of these two committees are on call all session long.

“To educate a man in mind and not in morals is to educate a menace to society.”

– Theodore Roosevelt

For more information on these and other bills:  www.legis.iowa.gov

-Tom Sands

News from the Hill…

The 85^th General Assembly is under way with the first week about to be completed.  This begins the 110 day session for 2013.  Like all General Assemblies before, there are high hopes of much accomplishment again this year.

Governor Branstad begins the third year in this term; the Senate is still under the control of the democrats with a 26-24 vote edge and the House remains under the control of the republicans with a 53-46 vote edge.  There is a special election in the northeast Iowa for a house seat that will change the house numbers by one.

I will serve on the Ways and Means Committee for the ninth year and will serve as the Chair for the third year.  I was the ranking member the previous four years.  I will also serve on the Public Safety Committee starting my 11^th year and the Commerce Committee starting my ninth year.  My committee assignments are rounded out by serving on the Legislative Council for the seventh year.

 First Bills filed in the Iowa House…

House File 1 places the Iowa Taxpayer at the head of the table when it comes to our Iowa taxpayer’s trust fund.  This bill takes the unused tax dollars and gives it back to the taxpayers.  Letting Iowans keep more of their hard earned income helps stimulate Iowa’s economy in a faster and better way.

House File 2 begins the process on the House version of Property Tax relief.  This bill increases the state’s share of the school funding formula.  This provides dollar for dollar property tax relief.  This method is the purest form of property tax relief there is.  The bill provides property tax relief across all classes of property.  It is predictable, sustainable and does not create a shift to other classes of property.

House File 3 provides an alternate code section under which to file your Iowa individual income tax returns.  This gives Iowans a choice; they can choose to file under the present system that has nine different brackets with different credits and deductions.  The other choice would be to file under the new code section established under HF 3 that eliminates all the credits and deductions and has one flat rate of 4.5%.  This bill will start the discussion on ways to simplify and reduce the Iowa income tax burden.  This could not come at a better time, the Governor of Nebraska is asking for the elimination of the Corporate and Individual Income taxes for their state.  We presently have to compete with South Dakota, if Nebraska passes this legislation Iowa will lose more business’s and people to our western neighbors if we do nothing.

  Live Action in Iowa House…

Last year the Iowa House started a Live House Video via the internet, so people could watch first hand on what was going on in the Iowa house without driving to Des Moines.  This has been used in classrooms, living rooms and offices across this state.  I have included the link below for your convenience if you would like to look and listen in some time.

https://www.legis.iowa.gov/index.aspx

 Newsletter Distribution…

Once again I will be sending out a weekly newsletter while we are in session.  Many of the local papers print my newsletter; however there are a few who do not.  If you know of someone who you think would like to receive this newsletter by email or hard copy.  Contact me by the way they would like to receive the newsletter.  This letter tries to inform the readers of what is going on in the Iowa House, but also lets people know of the upcoming forums, times and locations.

“…that this nation, under God, shall have new birth of freedom-and that government of the people, by the people, for the people, shall not perish from the earth.”   Gettysburg Address – Abraham Lincoln

For more information on these and other bills:  www.legis.iowa.gov

-Tom Sands

This week’s legislative forum:

  Saturday, January 19^th

  Burlington Public Library

  Burlington, IA

  9:15 AM – 11:15 AM