February 9, 2012

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Gas tax hike, property tax cut & tax credit for low-income advance

February 8, 2012 By

Three different tax proposals advanced at the statehouse today, although future prospects for all three are uncertain.

Two of the proposals would cut income and property taxes for some Iowans, while the other would raise the state’s gas tax. A three-member subcommittee in the Iowa Senate signed off on a 10-cent hike in the gas tax. Senator Tom Rielly, a Democrat from Oskaloosa, is the key architect of the plan.

“I think it should be pointed out that anytime we talk about any fee increase, it’s a last resort and I am convinced that we are at that last resort,” Rielly said this afternoon.

Officials estimate current state gas tax collections are falling $215 million dollars short of what’s needed to fix and build roads and bridges in the state. Senator Rielly suggested there’s nowhere left to cut in the DOT’s budget to find that kind of extra cash.

“Since 2002, we have 750 fewer employees (in the DOT). We have turned over almost 800 miles of roads to cities ad counties. We have closed 40 maintenance garages and engineering offices,” Rielly said. “That freed up about $45 million.”

Senator Tim Kapucian, a Republican from Keystone, signed-off on the proposal which would raise the gas tax five-cents on January 1st, 2013 and by another nickel on January 1st of 2014. Kapucian said many roads and bridges in rural Iowa are “dilapidated.”

“I live between a couple of small towns in eastern Iowa,” Kapucian said, “and the bridges that go in and out of that town where there are millions of grain stored, we cannot legally get those trucks back out to Highway 30, down to Cedar Rapids or Eddyville — wherever it’s going.”

With increasing grain yields and heavier farm equipment, Kapucian said the quality of rural roads is crucial to get that grain to market.

“We have more and more corn being produced off every acre every year, the soybeans — we just have to have an infrastructure to be able to compete worldwide and help feed the world and that’s one of the reasons why, as much as I do not like a tax increase, I feel it’s imperative,” Kapucian sai. “We have to take a look at this at this time.”

Senator Matt McCoy, a Democrat from Des Moines, is the third co-signer who helped the proposal clear a subcommittee this afternoon.

“We’re the third worst state in the nation in terms of bridge deficiencies and in the state of Iowa we’ve got a multi-billion dollar problem and kicking the can down the road is no longer an option,” McCoy said. 

Increasing the state gas tax by a dime over the next two years would raise an additional $220 million for the state’s road fund.

As for those other tax proposals, the Senate Ways and Means Committee this afternoon approved a bill that would increase a tax break for low income Iowans who qualify for the federal “Earned Income Tax Credit.” Republican Governor Terry Branstad vetoed a similar proposal twice last year, but Senator Joe Bolkcom, a Democrat from Iowa City, is hoping the third time’s a charm.

“And get a much-needed tax cut to people that can really use the help,” Bolkcom said. Most Iowa families with an annual income of $45,000 or less qualify for the Earned Income Tax Credit, and the proposal now pending in the senate would almost double the state credit for those households.

The third tax-related proposal considered at the statehouse Wednesday deals with cutting commercial property taxes. House Republicans have made some adjustments in their plan. Representative Tom Sands of Wapello says they’ve abandoned one of Republican Governor Branstad’s ideas on the subject that was intended to address some of the objections from cities and counties.

“I think they have some valid concerns and we tried to address them and listen to them,” Sands says. “But every time we tried to meet that, they come up with a different concern or the same concern that that one won’t work.”

The mayors from Iowa’s 10 largest cities held a news conference at the statehouse earlier today to say cities need “more, not less” tax revenue.  Republicans on the House Ways and Means Committee voted this evening to approve the GOP’s latest version of commercial property tax reform.

Filed Under: News, Politics & Government Tagged With: , , ,

Mayors deliver “more, not less” message at capitol (audio)

February 8, 2012 By

Cedar Rapids Mayor Ron Corbett.

Mayors from Iowa’s 10 largest cities say they “need more, not less” tax revenue to remain the key hubs for jobs in the state.

 The newly-formed “Iowa Metropolitan Coalition” touts an Iowa State University study indicating 62 percent of the jobs in Iowa’s 10 largest cities are filled by people who live in adjacent suburban or rural areas.

Waterloo Mayor Buck Clark is among the mayors and other big-city officials who gathered outdoors for a news conference today on the statehouse stops.

“To specifically point out the importance our core cities have on the entire vitality and financial success on whole regions in the state,” Clark said, in explaining the event. “Our cities provide jobs and quality of life to our own residents, but they also fuel the economy of our counties and of our neighboring communities.”

Republican Governor Terry Branstad and legislators have been debating the idea of reducing the amount of commercial property taxes cities may collect. Des Moines Mayor Frank Cownie argued city governments are running bare-bone budgets today and can’t afford more reductions.

“Cities need more dollars for economic development. We need more dollars for infrastructure. We need more dollars for flood (control and mitigation),” Cownie said. “We need more dollars, not less.”

Cities used to get money from bank franchise fees and from property taxes on machinery and equipment, but Cownie said state officials in the past shut down those sources of taxes, too.

“We have an ever shrinking source of revenues,” Cownie said. “I think we have a lot of ideas about what we could do, but certainly the solution for the future of Iowa is not to shrink the revenue sources to the place where this state and job opportunity is growing.”

Cedar Rapids Mayor Ron Corbett said the economies of Iowa’s largest cities are “equally as strong” as the state’s robust ag economy. 

“Cities oftentimes are on the front lines when it comes job creation,” Corbett said. “We work hand-in-hand individually, and our staffs do, with businesses that are looking to locate and expand in our community.”

According to the analysis from Iowa State University economist David Swenson, 29 percent of Iowans live in the state’s 10 largest cities and those cities generate 39 percent of the state’s gross domestic product.

AUDIO of today’s news conference.

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Statehouse showdown over state support of K-12 schools

February 7, 2012 By

Democrats in the Iowa Senate have voted to dramatically increase the level of general state aid for K-12 education in the future.

In the current year, Iowa’s public schools saw “status quo” support from the state, meaning no increase over last year. Senator Herman Quirmbach, a Democrat from Ames, says that’s unprecedented.

“It has never been the case prior that we have done so little to help advance education,” Quirmbach says.

The level of state aid for schools is set to increase by two percent, starting this fall. But this morning Senate Democrats approved a bill that would set aside four percent more in general state aid for schools, starting in the fall of 2013. Quirmbach says that’s $142 million more for K-12 schools.

“That is well within our ability to pay given the likely level of revenue growth over the next two years,” Quirmbach says. “Our economy is recovering.”

Republican senators rejected the idea. Senator Shawn Hamerlinck, a Republican from Dixon, ridiculed the Democrats.

“We hear all the time that, ‘We’re doing this for the kids.’ ‘Our schools are barebones.’ ‘We care about the youth,’” Hammerlinck said.

But Hammerlinck accused Democrats of promising money they may not be able to deliver.

“Right now, it’s nothing more than a sound bite or a soapbox that you stand on, to score political points,” Hammerlinck said.

Republicans in the House do not intend to bring up the Senate Democrats’ proposal for state funding of schools in the 2013/2014 school year. Republican Governor Terry Branstad has asked legislators to repeal the state law that requires lawmakers to set the level of state aid for schools two years in advance, to give administrators time to plan. The current legal deadline for taking that action for the 2013 academic year is this Thursday.

Filed Under: Education, News, Politics & Government Tagged With: , ,

Report suggests state support of higher education lagging

February 7, 2012 By

A coalition of liberal-leaning groups has issued its own analysis of Republican Governor Terry Branstad’s spending priorities for higher education. Andrew Cannon authored the report for the Iowa Fiscal Partnership, to call lawmakers’ attention to the level of funding for the state universities and community colleges.

“Our hope is we’ll look at what is needed,” Cannon says.

According to Cannon’s calculations, the University of Iowa, Iowa State University and the University of Northern Iowa are getting 3.5 percent less state support this year compared to last year. Cannon also suggests state support of the 15 area community colleges is still less than it was in 2008 or in 2009.

“Over that same period, community college enrollment has grown from 88,000 students to over 106,000 students,” Cannon says. “So the questions we need to be asking: Are we meeting the needs or are students going to be faced with larger debt burdens as they move on to their careers?”

Governor Branstad’s spokesman says Iowa’s higher education institutions “are a priority for the governor, which is why they were one of the few institutions to receive increased funding in the governor’s recommended budget.” The governor’s aide noted the “overwhelming majority” of state agencies are seeing no increase or a reduction in funding during this time of “scarce” state resources.

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White House chef touts upcoming “Let’s Move” party in Iowa (audio)

February 7, 2012 By

Sam Kass

The assistant White House chef who is coordinator of the first lady’s food initiatives says Michele Obama’s trip to Iowa later this week is intended as a salute, a celebration and, hopefully, an inspiration to Iowa kids. 

As you may know, the first lady launched an initiative aimed at America’s kids, to promote healthy eating habits and encourage exercise. The goal is to end childhood obesity within a generation. Over 10,000 Iowa kids are expected in Wells Fargo Arena in Des Moines Thursday to see First Lady Michele Obama and participate in “Let’s Move Day” in Iowa.

Sam Kass is the first lady’s chef and chief assistant in the nationwide “Let’s Move” effort.  During a telephone interview with Radio Iowa early this morning, Kass said Iowa Governor Terry Branstad’s “Healthiest State Initiative” is the reason Obama’s coming.

“We want to celebrate the great work that’s going on there, show how the country’s really unifying around these issues: trying to ensure that our kids and our communities are as healthy as they can be,” Kass said.

Republican Terry Branstad has been a vocal critic of Obama Administration policies, but on this particular issue he’s in harmony with Mrs. Obama.

“We share the goal of a healthier nation and people taking ownership of their own health,” Branstad said.

Private companies in Iowa are participating in the governor’s “Healthiest State” iniatitive, along with hundreds of individual Iowans who’ve signed up for this winter’s “Live Healthy, Iowa” 100-day weight-loss challenge. Kass, the chef in the White House, suggests one way to live healthier is to buy local.

“In Iowa, I know there’s great work being done to try to produce more food and more vegetables for Iowans to eat and, you know, we think that’s great,” Kass said. “But every community is going to have to step back and take a look at what’s happening around them and figure out what are the best solutions.”

AUDIO of Radio Iowa’s five-minute interview of Sam Kass.

Kass helped plan and plant the White House garden. From that garden experience, Kass understands kids can play a role in improving their family’s approach to food.

“When they dug up a carrot, they ended up taking it home and saying, ‘Mom, dad, let’s have some carrots tonight.’ When a kid’s asking for that, you can’t say, ‘No,’” Kass said. “We’ve kept in touch with these kids and they telling us how they’re eating (differently) in their home…They’re baking the chicken instead of frying it. That’s the true power and essense of all that we’re doing here.”

Thursday’s “Let’s Move” party in Wells Fargo Arena will feature some notable sports figures, like skater Michele Kwan, gymnast Shawn Johnson and NASCAR driver Carl Edwards. TV star Bob Harper — one of the trainers on “The Biggest Loser” — will be there, as will Iowa State basketball coach Fred Hoiberg, a former player in the NBA. Kass hopes Thursday’s event will be a motivating experience for the more than 10,000 sixth, seventh, eighth and ninth graders who’ll participate.

“I honestly believe, and I know the first lady does as well, that kids who are stepping up and making changes and being leaders in their communities is maybe our greatest tool in overcoming some of these challenges,” Kass said.

Kass has been involved in behind-the-scenes discussions about federal strategies that could improve the health of America’s children.

“Just two weeks ago, the first lady celebrated the finalizing of the new standards for school lunch and they’ve been raised for the first time in 15 years,” Kass said. “These new standards are going to be transformative to the food that kids are being served every day. Thirty-two million kids every day eat breakfast and lunch — or some combination — in our schools, so knowing that our kids are going to school eating the best food possible is just critical.”

The new standards call for doubling the amount of fruits and vegetables served in school cafeterias and cutting in half the sodium content in school lunches. Kids can still drink chocolate milk, but it has to be skim — fat-free — milk.

Filed Under: Featured Story, Health & Medicine, Human Interest, News, Politics & Government Tagged With: , , , ,

Auditor sees some improvement in governor’s budget

February 6, 2012 By

The state auditor says there are “still areas for improvement” in state budgeting practices, but Republican Auditor Dave Vaudt says the budget plan Republican Governor Terry Branstad proposed in January has “come a long way” in the right direction.

Vaudt did say the state budget for the current year is bigger than his fellow Republicans have claimed. Republicans in the House insisted their “General Fund” plan for the current budgeting year spent just under $6-billion.

According to Vaudt’s analysis, it’s actually half a billion dollars more than that. Vaudt also raised a red flag about another issue. Branstad’s budget plan did not set aside money to provide salary increases for state employees.

State agencies, therefore, would have to make budget cuts in other areas, lay off workers and enforce unpaid time off for employees. Vaudt warns this practice will “significantly impact the level of services” state agencies can provide.

Vaudt also called on the governor and legislators to come up with a long-term fix for the Iowa Public Employees Retirement System. That state pension system has an unfunded liability of more than $5.5-billion.

Branstad says he “inherited a mess” and has “tried to work diligently” to fix budget practices, like using one-time windfalls to the state treasury to pay for on-going expenses.

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Governor to lobby Pentagon brass about Air Wing closure

February 6, 2012 By

Governor Branstad says he’ll lobby Pentagon officials directly later this month to try to keep an Iowa Air Guard operation in Des Moines from being closed.

“I think it’s a big mistake,” Branstad told reporters this morning. “This fighter unit in Des Moines has had a tremendous record of service and they’re outstanding and, as I understand it, they’re the only fighter wing in the country that’s being targeted to be replaced.”

The Air Force is recommending the 132nd Fighter Wing be “decommissioned” as part of Pentagon budget-cutting plans. Twenty F-16 fighters jets and nearly one-thousand Guard members work in the unit, which is based in Des Moines. Branstad is co-chair of a governors’ group that meets with Pentagon officials to discuss issues surrounding national security and operation of the state-level National Guard units.

“I think they’re making a mistake,” Branstad said. “I think they ought to take another look at it. I intend to work with our congressional delegation.”

This past Friday members of Iowa’s congressional delegation issued stern statements about the shut-down plan. Congressman Leonard Boswell, a Democrat from Des Moines who is a veteran, vowed to fight “tooth and nail” to reverse the Pentagon decision. Congressman Tom Latham, a Republican from Clive, questioned why Pentagon chief would consider decommissioning this “consistently high performing unit.” And Senator Tom Harkin, a Democrat, said Iowans should know this is “by no means a final decision about this unit.”

Governor Branstad is also working on a bipartisan basis with Iowa and Illinois congressman to try to keep the Rock Island Arsenal from being targeted for closure.

“Obviously with a major reduction in defense spending that the country’s faced with, there’s concerns about a lot of things,” Branstad said. “And we certainly are concerned about this one.”

The Rock Island Arsenal is the largest employer in the Quad Cities, with more than 8600 people woking at jobs connected to the arsenal.

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