Left/right, Progressive/Conservative, Democrat/Republican… The names change and evolve but the core difference remains constant: The Collectivists (leftists) vs. The Individualists (conservatives). In Bill Whittle’s latest FIREWALL, he shows how violence, disruption and intimidation have always been the tools of the Collectivists (leftists). Recent protests are not about Donald Trump, no matter how much they want you to believe it.
News from the Hill…
This week on the Iowa House passed supplemental state aid (SSA) for fiscal year 2017. The amount of growth in their spending local school districts is allowed. The amount of growth for FY 2017 will be an additional 145 dollars per pupil, which is 2.25 percent increase over last year. The new per pupil amount in the foundation formula will be 6,591 dollars. This amount is a mixture of property taxes and state taxes collected and sent back to districts. There will be an increase to the state general fund appropriation of 153 million dollars that will go to K-12 educational funding. This was the agreement that was worked out between the Senate Majority party, House Majority party and the Governor. Both bills, SF 174 and SF 175 passed with 55 voting aye, 44 voting nay and 4 absent or not voting. I voted for both bills.
Water Quality…
On Wednesday, March 23, 2016, the Iowa Department of Agriculture and Land Stewardship (IDALS) issued a press release in which Iowa Secretary of Agriculture Bill Northey announced 13 urban conservation water quality initiative demonstration projects have been selected to receive $978,149 in funding. In addition to the state funds, the 13 projects will provide over $2.59 million in matching funds to support water quality improvement efforts as well as other in-kind contributions. The communities participating in the projects are: Amana, Ankeny, Arnolds Park, Bloomfield, Cedar Rapids (2 locations), Davenport, Des Moines (2 locations), Lake View, Sioux City, Storm Lake and West Des Moines.
Projects will focus on conservation measures that capture and allow storm water to be absorbed into the ground and reduce a property’s contribution to water quality degradation, stream flows and flooding. They also include partnerships and outreach/education components to disseminate information to promote increased awareness and adoption of available practices and technologies for achieving reductions in nutrient loads to surface waters. Practices which will be installed as part of these projects include bio-retention cells, bio-swales, native landscaping, permeable pavement, rain gardens, sedimentation basins, soil quality restoration, wetlands and other practices. A bioreactor and saturated buffer system will also be installed to demonstrate potential nutrient reduction benefits in an urban storm water runoff environment. More information about these and other urban water quality practices can be found at www.cleanwateriowa.org/residential-practices.aspx.
This is just a small sample of what is and has been going on in the State of Iowa when communities work together to help find solutions. There will be more next week on the different water quality initives being worked on in the legislature this year for future projects.
Ways and Means…
The Ways and Means Committee passed HF 94 this week out of committee. The bill eliminated a requirement that taxpayers indicate on their Iowa Tax returns the presence or absence of health coverage for their dependent children and apply for certain public health care coverage. This information is no longer needed or useable. In addition this was never a function of the department of revenue.
The committee also passed out HF 2412 which was the economic development authority bill that included the Historical Tax Credits. This program has been a success in the State and needed some updating to make it more useable for the different communities that participate. The bill also took measures to protect the taxpayer of Iowa who are the ultimate partners in this program.-
“Earth’s saddest day and gladdest day were just three days apart!” – Susan Coolidge, author
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
Was America once socialist? Surprisingly, yes. The early settlers who arrived at Plymouth and Jamestown in the early 1600s experimented with socialist communes. Did it work? History professor Larry Schweikart of the University of Dayton shares the fascinating story.
Obituaries this week
Helen Gretchen Leffler, 90, West Burlington died Sunday, March 20, 2016
Lorraine LaCroix Cummings, 89, formally Burlington, died February 18, 2016
Theoma Osborn, 77, Burlington, died Saturday, March 19, 2016
Sherry Prugh Reynolds, 94, Arlington, VA died Friday, March 18, 2016
Tracy Dale Timmerman, 53, Burlington, died Friday, March 18, 2016
Sanchia D. Gahn, 86, Edina, MN, formerly West Burlington died Monday, March 21, 2016
Ruth Wells Pitzer, 93, Burlington, died Wednesday, March 23, 2016
Christine “Bear” Billups, 47, Burlington, died Thursday, March 24, 2016
Charles “Jim” Byars, 76, Burlington, died Monday, March 21, 2016
News from the Hill…
The Revenue Estimating Conference (REC) met this week and established new projections for fiscal years 2016, 2017 and 2018. The Legislative Service Agency (LSA) lowered their projection of revenue, the Governor’s Appointee raised his number, and the third member selected a number in between. So they all three agreed that they would keep the 2016 number the same as their December projection of 7.0456 billion dollars. While I believed they would lower the 2016 revenue, they believed that the revenues would pick up enough in the last four months to bring the overall growth up to current projection. Only time will tell. Fiscal year 2017 however is a different story. There was a wider spread between the LSA and Governors Appointee of 72.2 million dollars. The three collaboratively decided that the revenues were first lowered 46.4 million due to a down turn in the economy. However there were some changes in December to the Federal Tax Code which will increase Iowa’s income tax revenue 76.4 million dollars. So the net effect would be an increase to the State’s revenue picture of 30 million dollars. In addition when the Governor signs the coupling and supplies bill into law there will be another increase of 23.6 million dollars to fiscal year 2017 revenues. To make it even more interesting for numbers geeks like myself is that for the first time in six years the ongoing revenue, the amount the tax payers are sending the state is higher than the legal amount the state can spend. By State Law we are bound to the December estimate unless the March estimate is lower. When you compare the December estimate of 7.3274 billion dollars and then make the revenue adjustment of 76.4 million dollars due to the federal tax changes made in December the actual December estimate is 7.4038 billion dollars. The March estimate already accounts for the Federal Tax Changes with their new estimate of 7.3574 billion dollars, which is lower than the December estimate. So the new spending limitation for 2017 will be 7.3510 billion dollars which is 176.7 million dollars higher than what the state spent last year. While you can find good news and bad news within the REC projections the size of the pie is now known and appropriations can now be completed.
School Funding…
With the March REC meeting behind us, the legislature should now be able to come to an agreement with school funding which will permit the rest of the budgets to complete their process also. The amount of additional dollars for school funding at a 2 percent growth is 80.9 million dollars. Once again school funding will take precedence and receive a large percentage of the additional dollars the state can spend. I was under the understanding that the agreement on supplemental state aid was going to be reached this week. However, unless something changes today, it now appears next week is more likely. I know schools are anxiously waiting for the growth in dollars to be set to they can finalize their own school budgets. Time is of the essence and there needs to be an agreement sooner rather than later.
Ways and Means…
A developing and new technology is new uses from byproducts of bio fuels. The Iowa Economic Development Authority (IEDA) has stated the program works in a way that the industrial facilities around the state that are already producing products from renewable products also produce other co-products that can then be processed into higher value basic chemical compounds. These compounds could then be processed into other consumer products. The Renewable Chemical Production Tax Credit (RCPTC) is an attempt to incentivize the production of these high value chemicals which would in turn: create new opportunities for Research & Development, create a stronger market for these co-products generated by the State’s existing renewable fuels industry, support Iowa’s farmers, reduce carbon emissions and help maintain Iowa’s leadership position in renewables. This bill passed the Ways and Means Committee this week and heads to the House floor for debate. I believe this is a new and exciting technology that could benefit Iowans a great deal. However, the program uses some tax language that I am not so favorable about. I believe that the parameters and limitations with the sunset of the program in fourteen years will offset this. In addition this program will be under the cap that the IEDA is under so there is no additional fiscal impact to the state. If this industry grows it could actually raise Iowa revenue in the future.
“May the road rise to meet you. May the wind be always at your back. May the sun shine warm upon your face. And rains fall soft upon your fields. And until we meet again, May God hold you in the hollow of His hand.” – Irish Blessing
For more information on these and other bills: www.legis.iowa.gov
Until next time,
Tom Sands
This weekend’s Legislative Forum:
Saturday, March 19th
9:15-11:00 am West Burlington City Hall, West Burlington
Author William Voegeli, Senior Editor of the Claremont Review of Books, poses two questions that every American should think about this election year: 1) How much government is enough government? and 2) Should America’s government be as big (or bigger) than that of France, Germany, or Sweden? Mr. Voegeli shows just how big our government has gotten in the past 70 years, and why the cost and size of Washington, D.C. has us on a crash course for European-style unemployment. The amazing thing? Progressives still say — and will always say — the government doesn’t spend enough.