News from the Hill…
Thursday morning Catherine and I joined some Iowa Cattlemen for a bill signing by Governor Branstad for the Cattlemen’s bill that will allow them to hold a referendum vote. The livestock industry is very important to Iowa for food supply, jobs and revenue. The cattlemen are obviously an integral and important group of the livestock industry. So it was an honor and privilege to join them for their bill signing. I am not able to attend very many bill signings as time just simply does not allow. But they can be a very special event and the final event to complete the “how a bill becomes a law” process.
Water Quality is flowing…
There will always be people more willing to cast blame for problems rather than look for solutions. But some have asked why should everyone help pay for improving the water quality in Iowa? The truth of the matter is that we as humans are all responsible helping to create the problem. Currently, Iowa dedicates over $20 million annually towards improving the state’s water quality through the Nutrient Reduction Strategy. The private sector invests much more of its own money for these efforts as well as Federal dollars to help improve the quality of water in the state. There is over 325 million dollars spent annually on water quality measures in this state alone when private and Federal monies are added. I am sure that we haven’t quantified all private monies which would push up the total investment. This is a significant investment, but us as a state need to do more to advance these efforts.
The Iowa Water Quality Improvement Plan will continue implementation of the Nutrient Reduction Strategy while significantly increasing the state’s investment in a manner that addresses both urban and rural water quality issues. This Plan has dedicated sustainable long-term funding sources from both the Rebuild Iowa Infrastructure Fund (RIIF) and the excise tax on metered water. Funding for rural efforts will come from the Rebuild Iowa Infrastructure Fund, focusing on long-term improvements that will reduce the runoff of nitrates and phosphorus into Iowa waterways and reduce soil erosion. These improvements will involve in-field and edge of field practices. They will be funded on a cost-share basis. The dollars in RIIF come from gaming tax revenue. While I am not particularly fond of this revenue stream for water quality, it provides a short term solution until a better long term funding stream can be found.
Ways and Means…
The bill, HSB 654, for finding a different funding source for water quality improvement started its journey Thursday morning in the Iowa House Ways and Means Committee. Presently there is a 6 percent sales tax on metered water that is collected by the state and deposited into the State’s General fund. One sixth of this would be sent back to local schools for infrastructure. This tax would be changed to a 6 percent excise tax that would be deposited into the State Revolving Fund (SRF) administered by the Iowa Finance Authority. Priority would be given for projects in which a disadvantaged community is seeking financial assistance for the installation or upgrade of wastewater treatment facilities and drinking water treatment facilities. The funding from the water services excise tax would be dedicated to urban conservation practices, improvements to wastewater and drinking water facilities in communities, and a financing program for water quality projects. So the people paying for the tax on their metered water bill would see no change or increase in their cost. The monies collected however, would be in the SRF for municipalities to receive, instead of being dumped into the black hole of the state’s general fund.
“ When there is a lack of honor in government, the morals of the whole people are poisoned” – Herbert Hoover
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
This week’s forums: Saturday, April 2nd
9:00 – 10:30 AM Muscatine Community College Student Center
11:15 AM – 12:15 PM State Bank of Wapello Community Room
