May 22, 2012

Budget cuts hitting private college and university students

Iowa college students returning from holiday break are paying more than they originally budgeted for tuition in the new semester. A one-hundred dollar surcharge now applies at Iowa’s three public universities and fall semester tuition may be up to 6% higher. Governor Chet Culver’s 10% across-the-board cut to balance the current state budget lopped 10% from state tuition grants, which also affects Iowa’s private college students.

Emily Ryan, a freshman at Coe College in Cedar Rapids, says the cut means she’s losing 435-dollars “…which actually hurts,” Ryan says. “I’m paying for college on my own. Maybe $435 doesn’t seem like a lot, but it does (hurt). My tuition has already jumped up so it is going to be a little more difficult to attend Coe.”

Iowa had budgeted $48-million for private college tuition grants, but then was forced to trim four-point-eight million. Gary Steinke, president of the Iowa Association of Independent Colleges and Universities, says the grants make private colleges affordable to needy students, but whacking 10% from those grants in the middle of the school year is devastating.

“When a student knows what they’re going to have to pay and knows what their financial responsibility is and they’ve agreed to it, which means they’ll be able to make those payments, and then to have the rug pulled out from under them with another $320 cut mid-year,” Steinke says. “One student told me, ‘To try and find $320, it may as well be $320,000 because I don’t have either one.’” University of Dubuque President Jeffrey Bullock likes the tuition grants because the money goes directly to students.

“They make the decision,” Bullock says. “We don’t receive money from the Iowa Tuition Grant. The Iowa Tuition Grant money goes into the hand or the pocket of the taxpayer and the consumer makes the decision about where they want to go to school and that seems to make a lot of sense to me.” But Bullock says some University of Dubuque students can’t make up the lost money and won’t be back this semester, even though a third of the university’s budget goes to student aid.

“Yes, the university has compensated,” Bullock says. “We give a significant amount of money away every year. About a third of our operating budget goes directly to the student in the form of financial aid and assistance. That’s a lot of money. Most of that money does not come from our endowment. Those are real dollars.” Bullock says for every dollar the U-of-Dubuque gets from the Iowa Tuition Grant fund, the university matches it seven or eight times over. Meanwhile, Steinke says the situation translates into a plea to Iowa lawmakers.

“My message to the legislature will be: Please don’t make any further cuts in this program,” Steinke says. “This is a program that provides dollars directly to students, not to private colleges, but directly to students, and the most needy students in the state of Iowa at that.” The 2010 state legislative session opens Monday.

UNI a new team with same results

U.N.I. entered this season as the favorite in the Missouri Valley Conference race but the Panthers have been even better than expected. Their winning streak is now at 12 after a blowout win at Southern Illinois on Wednesday night and coach Ben Jacobsen traces the current surge back to the practice floor.

Coach Ben Jacobsen says they started to practice better about a month ago and have played well in the last 7 or 8 games and that is because they have been practicing better. He says every year is a brand new year, even though they had 7 guys back, this team was different and they had to go to where they were practicing better to play better.

The team made it to the NCAA Tournament but Jacobsen says things have changed with the new year. He says the guys who are back have different games and there are guys who are now seniors and have more ugencye. Jacobsen says you add in some freshmen and they have been building a whole new team for this year.

A big difference this year has been the play of senior center Jordan Egelseder. The Bellevue native is averaging more than 13 points and nearly nine rebounds per game. Jacobsen says Egelseder has been healthy and able to work out in the offseason, and that is what he was missing last year. He says last year he didn’t start playing better until later in the season, but now he is healthy and playing better every week.

The Panthers are 13-1 overall and 4-0 in the Valley. They visit Illinois State on Saturday.

Turnovers a problem for the Hawkeyes

Not only is the Iowa basketball team having trouble shooting the ball just bringing it up the court has become a chore. In their 0-3 start to the Big Ten race the Hawks are averaging nearly 19 turnovers. Combine that with a shooting percentage of under 43 and it is easy to see why Iowa will have trouble winning a game in the league race.

Iowa coach Todd Lickliter says you get better by getting challenged and learning what is successful and go towards that. He says they have gone against two of the best defensive teams out of the gate. Lickliter hopes the ball handling will improve as the players gain experience.

He says it’s the first time they’ve experienced this type of rotation and aggressiveness. Lickliter says the players will get better as they won’t accept what has happened. Three point specialist Devan Bawinkel is averaging under four points per game and has only attempted 48 shots all season.

Lickliter says it would help if they had someone who could break down the defense and they are struggling to find that. Things won’t get any easier for the Hawks on Saturday afternoon when they host a Michigan State team that is known for its aggressive style of defense.

Spartans coach Tom Izzo says it is hard to cover certain guys one on one and you have to have a team concept. He says everyone has to be aware of what is going on and he says his team has always been pretty good at help defense.

Report says end state tax credit for movies, add new limits on business tax credits

Governor Culver’s top managers are recommending changes in state tax credits, including an end to the tax credit for movie and TV productions. The agency directors suggest it’s time for legislators to impose a $185 million limit or “cap” on the amount of money the state will allot for a variety of business-related tax credits. 

Such a move would provide more “predictability and stability” in the state budget, according to the agency directors’ written report.  In addition, the agency directors recommend more “transparency” so taxpayers can see how the tax credits are being used. 

Selling tax credits through a broker allows the recipient – like a movie-maker — to get cash upfront rather than wait to file a tax return.  But the governor’s agency directors say that sort of practice means the individual or corporation that benefits most from the tax credit is not the intended recipient, and they get less than the person or corporation that bought the credit. The agency directors recommend that practice end.

Victor Elias of the Child and Family Policy Center says the recommendations are long overdue, as state tax credits are expected to amount to about half a billion dollars this year.

“That is revenue that is not available to the general fund to provide for education, to provide for healthcare, and support services for our most vulnerable children and families,” Elias says.

Business groups are lining up in opposition to the recommendations.  Ed Wallace, president of the Iowa Taxpayers Association, says he worries about the proposal that each state tax credit be reviewed — and subject to possible elimination — every five years.

“Companies and business entities need predictability,” Wallace says.  “…You’re obviously saying that we only have a window of time for these entities to be in place and that can prove problematic.” 

Dave Roederer is executive director of the Iowa Chamber Alliance which represents the state’s 17 largest chambers of commerce.  He says the recommendations send the wrong signal.

“When you are wanting to have more revenue come into the state, the way you do it is through the private sector. You have to grow the economy,” Roederer says. “So why would we be sending a signal to business and industry throughout the country as well as in Iowa that we don’t think we’re going to provide the incentives that we’ve provided you in the past.”

Fred Hubbell, a Des Moines businessman who has been interim director of the Iowa Department of Economic Development, was one of the seven managers Governor Culver asked to review the state’s three dozen tax credits. Hubble says it’s time that the state require more transparency and accountability from tax credit recipients.

“Is this going to significantly impair the ability of the state to grow its economy going forward? I don’t believe that,” Hubbell says.  “I think this is going to help create more balanced growth and still have plenty of good, adequate incentives for the business community.”

The panel’s recommendations are not final.  The changes proposed must be endorsed by the Iowa Legislature and signed into law by the governor, and supporters of the tax credits plan a lobbying effort to prevent many of the recommendations from becoming law.

The report released this morning shows the amount of state tax credits awarded for a variety of reasons increased “substantially” from July 1st, 2000 through June 30th, 2007, but has since declined.  In the last state budgeting-year, the amount of tax credits awarded decreased by over 24 percent, “likely due to the economic slowndown,” according to the report.

See the entire report here: Tax Credit Study Review Report

(This story was updated at 3 p.m.)

DNR to unveil two new REAP license plates

REAP eagle license plate

REAP eagle license plate

Two new license plates to help fund natural resources in the state will be made available to Iowa motorists this spring. Three current plates dedicated to the effort feature a goldfinch perched on a wild rose, a pheasant and a bald eagle.

Ross Harrison with the Iowa D.N.R. says revenue from the license plate sales is split between the Resource Enhancement and Protection (REAP) program and the Wildlife Diversity program.

[Read more...]

Much of the state deals with subzero wind chill readings

Wind chill levels are approaching 40-below zero in parts of the state this morning as Wind Chill Warnings are posted for much of Iowa’s western half, with advisories issued for eastern Iowa. Meteorologist Ben Moyer, at the National Weather Service, says regular air temps today may not get above zero.

Moyer says wind chill readings are in the 25 to 35-below zero range this morning. While they may warm a bit during the afternoon, the Wind Chill Warning extends until midnight as the extremely frigid readings should return with the winds. While it’s not exactly a heat wave, Moyer says warmer weather is coming.

Forecasters promise a slight warm-up is coming, with highs in the 20s by early next week. High temps may even go above normal on Thursday, topping 30 degrees. For more details, visit  the National Weather Service website.

By Pat Powers, KQWC, Webster City

Practical Farmers of Iowa holds annual conference in Marshalltown

The group “Practical Farmers of Iowa” begins its two-day annual conference in Marshalltown today. P-F-I executive director, Teresa Opheim, says it’s the group’s 25th anniversary and they plan to remember the past, but also look to the future. Part of looking to the future is included in the Saturday keynote address.

Opheim says four of the younger farmers will discuss their farms and looking ahead to the next 25 years of agriculture. One of the speakers will talk about her views on trying to decide if she should go into farming. Opheim says the conference features numerous topics.

The topics include getting the most from your fertilizer, there’s a session with a couple of chefs on cooking with local foods, grazing your cattle, and marketing for small food producers. The ag industry has felt the downturn in the economy like any other business and Opheim says they will talk about that. She says pork producers have had an especially tough time, and they have some sessions scheduled on how they can minimize their cost.

Overall Opheim says P-F-I members try to look to the future and keep a positive attitude about agriculture. “They’re a wildly diverse group. We have some farmers in Practical Farmers of Iowa who have three or four thousand acres of corn and soybeans, and we have some that have three or four acres of fruits and vegetables, but they all like to get together and talk about producing food, and I think it will be a wonderful event,” Opheim says.

The annual conference is at Marshalltown Community College. Find out more on-line at: www.practicalfarmers.org.