Category: News
News from the Hill…
This week was our third joint session with the Iowa Senate for the year. Wednesday morning we were given the Condition of the Iowa National Guard. We are all proud of our soldiers, including the Iowa National Guard members and we owe them a great deal. One of the bills that will get lots of attention this year is military pension dollars exempted from Iowa Income Tax. A couple different versions are in the Ways and Means committee waiting to be assigned to sub-committee. This will happen in the next couple of weeks.
Great River Region Days…
This week was Southeast Iowa Great River Region Days at the Capitol. Individuals from businesses, local chambers, local government leaders and M Power U Youth Leadership students made the snowy trip on Wednesday morning. High School Juniors in school districts from Louisa, Des Moines, Lee and Henry County have the opportunity to take a leadership course offered by Southeast Community College. This college accredited class is called M Power U Youth Leadership; one of the main focuses is on the importance of leadership, to be involved in their communities and government. During Great River Region Days they divide up into three groups and make a presentation on three different topics. This year the three topics were: Money for Occupation-Not Education, Iowa School Start Date and Welfare Reform. The students put a lot of time and effort into their topics and research. Each group gave their presentation to the group and then the audience was expected to ask questions. The students did a great job of thinking through each question and defending their position. I was proud of the students and the job they did.
Iowa Income Tax Receipts…
Iowa personal income tax payments have declined in the past seven months when compared to the same period a year ago. This represents a decline of $24 million. According to the Legislative Services Agency, (LSA) there was a 17 percent drop in total state tax collections in December of last year with a slight increase last month. Specifically, personal income tax payments were down 10 percent in December. The Personal Income Tax makes up about half of Iowa’s general fund revenue.
From July 2013 through January 2014, Iowa collected more than $3.7 billion in taxes. That is 1.2 percent less than the same period one year prior. Some of this difference is due to the deposit of tobacco and gambling taxes in a separate account. If those items were still included in the state general fund, revenue would be at about 0.6 percent more than last year.
Fiscal House…
In Iowa we have a balanced budget established by law that we cannot spend more than 99% of available revenue. However, when there is a will there is a way when big spenders want to follow the law, but spend more. Too often in the past the big spenders would pass a budget under the 99% spending limitation, but do so by intentionally underfunding entitlements. They then would come back in for a special session or early in the next session and pass a supplemental spending bill that surpassed the spending limitation. Those tricks were used extensively under the Culver administration. Since then, House Republicans vowed we would not do that while we were in the majority and under Governor Branstads leadership. We have not broken that promise. The spending limitation is based on a projection made in December for the fiscal year that starts in the following July. While there is a lot of time and effort put into the projection, it is just that a projection and actual receipts can be greater or less than the projection. People expect their government to live within its means just like we do in our own family and/or businesses. I have vowed that we will keep our on-going expenditure under our on-going revenue. The general fund in Iowa has just about doubled in the twelve years I have been here. It is more important than ever, to keep our spending in check. But the Big Spenders are circling.
“Don’t interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties.” – Abraham Lincoln
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
Categories
Snow Day!
West Burlington High School appears buried behind mounds of snow cleared from the school’s parking lot Wednesday after 6-inches of drifting snow fell overnight. Classes were canceled for the day due to the inclement weather.
October 14, 2012, Felix Baumgartner ascended more than 24 miles above Earth’s surface to the edge of space in a stratospheric balloon. Millions across the globe watched as he opened the door of the capsule, stepped off the platform, and broke the speed of sound while free falling safely back to Earth. Felix set three world records that day—and inspired us all to reach beyond the limits of our own realities, and reimagine our potential to achieve the incredible.
