Category: Political
News from the Hill…
There seems to be a little more motivation this week to wrap up the legislative work for the year and go home. Some of us have full time jobs that people are expecting us to be back to work. Some are farmers and they are anxiously watching the soil temperature rise and will be chomping at the bit to get home and into the fields. Then there are the others, that either are retired or don’t have any other job. They are not quite as motived, but soon will be when the per diem runs out on April 22. Sooner or later everybody will be motivated to wrap things up for the year and go home. Until then, there is much to do and pass a budget is a must do before we can adjourn for the year. Unlike the Federal Government the state cannot print money, not should we be able to. Therefore, we must pass a budget that is balanced, does not spend more than we take in, is fiscally responsible and sustainable, receives as least 51 votes in the Iowa House, at least 26 votes in the Iowa Senate and then be signed by Governor Branstad. This year Iowa’s General Fund Budget, which is made up of Education Budget, Human Resources Budget, Justice Systems Budget, Administration & Regulation Budget, Agriculture & Natural Resources Budget, Economic Development Budget, Transportation, Infrastructure & Capitals Budget, and Standings. The total General Fund Budget should end up just fewer than seven billion dollars. There have been some tough financial decisions made in the last four years, but our fiscal house is in order because of those tough decisions. We will end up with our reserves full, which is 10 percent of the budget, some one time revenue which will be a difference of opinion on what to do with some of that money. House Republicans want to take some of that money and buy down the debt that the Culver administration saddled us with. That is one of the most fiscally responsible things to do with your tax dollars. To be very frank, the money belongs to the taxpayers of Iowa, not the government. It is merely our responsibility to be good stewards of your money. Now that’s a novel idea that needs to spread.
Adoption Tax Credit…
One of the bills we passed out of the Ways and Means Committee this week was HSB 686. This bill creates a refundable income tax credit equal to qualified adoption expenses up to $2,500. The main idea behind this bill is very simple, but could have major positive impact on a child’s life. I am pro-life, I believe life starts at conception and each life is worth saving. The cold hard facts are some children are in need of adoption. Anything we can do to encourage just one more child to be adopted into a loving family and have the chance to live is worth saving. I am proud to be pro-life, but that is not enough. It is just as important to give a child the possibility of a quality life, also.
TIF Reform…
So far this year I have only assigned myself to two bills in the Ways and Means Committee, but one of those bills was HSB 675. This bill continues to reform the uses of Tax Increment Financing (TIF), by protecting the integrity of the reasons TIF were introduced. Over the years some local governments, but certainly not all, have over used and abused the uses of TIF. While some may gain from those abuses, others have had to pay. In very simplistic terms, TIF districts are established to help generate growth. In those districts for a set period of time the new growth in tax revenue goes to one entity to help pay off the debt for the development. Once the debt is paid off then the new growth (increment) is to be released so all local governments receive their property tax dollars. Too many have not released the increment and have continued to retain all or portions of the growth of property taxes even if the debt has been paid off. This cost local property tax payers lots of money and the taxpayers of Iowa spent forty-nine million dollars last year just to backfill the loss of revenue for school districts because of TIF districts. This forty-nine million was not additional money for the school districts, it just simply replace what they lost due to TIF districts.
“Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.” – Abraham Lincoln
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
News from the Hill…
This time of the year there are only two committees that meet on a regular basis, the Appropriations Committee and the Ways and Means Committee. Occasionally the Oversight Committee will meet, but not regularly. A few weeks ago it appeared that we would be adjourning for the year in early April. Presently we seem to be crawling to adjournment, not racing towards adjournment. The pace to adjournment may have slowed, but not necessarily the work load. This is also, the time of year when different members of the Legislature and special interest groups desperately try to get their special bills passed. While the stories may differ, the theme is the same; “life will end as we know it, if their bill does not pass.” The line of legislators stopping by my desk on the floor telling me why their bill, which is sitting the Ways and Means Committee, is so important seems to never end. At the same time the line of special interest groups and/or lobbyist wanting to meet with me never ends. One of the first things I learned after serving my first year is that every bill while on the face may seem inconsequential, is important to somebody somewhere. However, that does not necessarily make the bill a good bill or if the bill was to become law, good policy. It is always a tough balance between what people may want and what is in the best interest of the body or the people of Iowa. I do not take my job lightly nor try to let my personal positions affect what is debated in the Ways and Means Committee. However, there are some hard facts, we will look at each bill through the eyes of the taxpayer and ask this question “does this benefit the taxpayer?” The answers “No” will most likely place the bill in the drawer and it will not see the light of day again.
Volunteer Firemen/EMS…
This week on the House floor we passed HF 2459 which increases the tax credit for volunteer firefighters and volunteer emergency medical services (EMS) personnel. It also adds reserve peace officers to the person’s eligible for the credit. This credit was just established last year and is showing up on the Iowa Tax form for the first time. We doubled the credit from $50 to $100 to help encourage people to volunteer for our local fire departments and local EMS departments. As our society evolves and becomes much more mobile, it is increasingly difficult to find good people willing to volunteer. We are fortunate to have many good people who have stepped up to volunteer in our communities and to be there when they are needed. Thank you for what you do. I voted for this bill and have encouraged the Senate to do the same. It is up to the Senate to pass this bill now.
Community Colleges Levy…
Another Ways and Means Bill that passed off the House Floor and sent over to the Senate this week was HF 2456. Current Iowa Code provides that in addition to a Community College districts property tax levy, the voters in that district may vote a facilities property tax levy not exceeding 20 and one-fourths cents per $1,000 of assessed value for up to 10 years. This money is used to purchase grounds, construct buildings, and pay debts contracted for the construction of buildings, etc. These referendums typically pass over whelming across the state. The bill eliminates the need to force the Community Colleges to spend lots of money to hold these elections every ten years. However, to protect taxpayers they can petition the Community Colleges and force the election. This bill should save time and money and strikes a good balance between the taxpayers and the tax receivers. I supported this legislation and voted for HF 2456. This bill is now in the hands of the Senate.
“The taxpayer – that’s someone who works for the federal government but doesn’t have to take the civil service examination.” – Ronald Reagan
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
This week’s forums: Saturday, April 5th
9:00 – 10:30 AM Muscatine Community College Student Center
11:15 AM – 12:15 PM State Bank of WapelloCommunity Room
News from the Hill…
This week in the Iowa House we passed several of the bills that came from the Ways and Means Committee. One of those bills was HF 2447, which I had drafted to fix a problem motor sports people were having with the Iowa Department of Transportation with their car haulers being over length. The bill establishes a new classification specifically for these types of haulers that should work for everybody. The bill passed the Iowa House with 93 voting aye and 0 nays. The bill now heads to the Senate for their consideration. I have spoken personally with Senate Ways and Means chair, who has indicated they will take a look at the bill. I sponsored and voted for this bill and will continue to follow it through the process in the Senate, as I meet with their Ways and Means Committee Chair regularly this time of year.
NASCAR…
Another bill that was passed this week was SF 2341 which replaced HF 2451 that dealt with the same subject. These bills made a couple small code changes with the possibility of bigger returns for the taxpayers of Iowa. Several years ago the legislature passed a bill that helped the owners of Iowa Speedway in Newton into a reality by permitting the track to keep some of the sales tax dollars that were generated at the track. The incentive was to stop on January 1, 2016 or once they received $12.5 million whichever came first, and only could apply if the 25% of the ownership was held by residents of Iowa. The incentive was performance based, if there were sales there would be sales tax, if there weren’t any sales, no sales tax dollars. Taxpayers were never on the hook if the track did not succeed. This past year the track was sold to NASCAR. I had several meetings with the track management and a teleconference with the owner of NASCAR. They wanted the legislature to consider changing the law for the ownership restriction to permit an Iowa Business and extend the sunset to January 1, 2026. The cap of 12.5 million was to remain intact. I was slow to move the bill until I heard first hand on some of the improvements they wanted to make to the track. While I can’t share many specific details, I believe that with this new ownership NASCAR has every intention to make the Iowa Speedway a major entertainment facility. They are uniquely capable of bringing attractions, producing nationally televised events, exporting the Iowa brand and creating value that the previous owners could not provide. I assigned this bill to myself personally to floor manage. I wanted to make sure the bill passed on its merits and not on someone’s passion for NASCAR. The Senate passed the bill with 36 voting aye and 9 nays. The House passed the bill 82 voting aye and 14 nays, now the bill heads to the Governor for his consideration.
Honoring our Veterans…
This week we debated and passed one of Governor Branstad’s initiatives, Home Base Iowa. The bill, SF 303, exempts federal retirement pay received from the military service from the state individual income tax retroactive to January 1, 2014. The bill also exempt’s military survivor benefits from Iowa income tax. The bill makes several different changes that hopefully will aid our veterans and show a small token of our appreciation to their service. The main objective is to encourage more veterans to move back to Iowa to live, work and/or retire. I voted for pieces of this bill that came through the Ways and Means Committee and the entire bill amended by the House on the Floor. The bill now heads back to the Senate for their consideration of our House Amendment.
“I now say that the world has the technology –either available or well advanced in the research pipeline – to feed on a sustainable basis a population of 10 billion people. The more pertinent question today is whether farmers and ranchers will be permitted to use this new technology.” – Norman Borlaug September 8, 2000
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands