The top two leaders in the Iowa legislature aren’t shutting the door on the idea of reconvening the legislature if a deal can be reached on property tax reform. However, House Speaker Kraig Paulsen, a Republican from Hiawatha, and Senate Democratic Leader Mike Gronstal of Council Bluffs did joke about it with reporters this afternoon.

“We finished session 48 hours ago,” Paulsen said, with a laugh, and Gronstal added: “Yeah, it’s a little early to talk about a special session.”

But about 16 hours after the leglslature adjourned on Wednesday evening, Republican Governor Terry Branstad indicated he would be willing to call legislators back for a “special session” if Senate Democrats agree to pass a bill that’s nearly identical to what House Republicans crafted. Gronstal’s willing to continue negotiations.

“We are completely open to working with the governor,” Gronstal said this afternoon. “And I’m happy to meet with the governor.”

Paulsen said there is a “gap” between the two parties, but he’s not going to declare an end to negotiations either.

“We’re a ‘glass half full people,’” Paulsen said. “…This is something that’d be good for Iowans and good for Iowa’s economy and we’ll cotinue to see if we can bridge that gap.”

However, Gronstal said it appears to him Governor Branstad has already moved on.

“From my perspective, the governor started the campaign three or four days before the end of the session,” Gronstal said. ” As I was in offices with his people, talking about what we might do on property taxes, he was on the campaign trail criticizing everything the Senate had talked about, so I think…in the end he decided he’d prefer the issue over actually getting something accomplished.”

Paulsen said it’s “very clear” the two sides struggled to reach an agreement.

“There were three big issues that we walked into: education reform, mental health reform, property tax reform. I think probably, arguably, the most important to all of us — at least for Republicans — was reforming the property tax system and providing some relief there,” Paulsen says. “We didn’t quite get over that threshold. We’re still going to keep working on that. I don’t know quite what that means, but we did get some substantive education reform done, some substantive mental health reform — still more to do in both those areas.”

The two legislative leaders made their comments during taping of a joint appearance on the “Iowa Press” program which airs tonight at 7:30 on Iowa Public Television.

Governor Terry Branstad says he’s willing to call lawmakers back to Des Moines for a “special” legislative session to pass a property tax relief package, but only if there is an iron-clad deal. Branstad says Senate Democrats would have to agree to pass a plan that’s fairly close to the bill that passed the Republican-led House earlier this week.

“I’m willing to to bring ‘em back, but I want an assurance that they have the votes to do it,” Branstad told reporters this morning. “I don’t want to call ‘em back unless we feel confident that they have the votes and they’re going to come in and do it. Otherwise we call ‘em back and it costs the taxpayers money and we wouldn’t get something done. I’ve seen that happen before, too.”

Branstad said the House bill is “basically the framework” he would accept.

“It could be tweaked a little bit, but we think it needs to be very close to that,” Branstad says.

Senate Democratic Leader Mike Gronstal suggests the main sticking point throughout the negotiations has been what the state’s role would be in dealing with the losses when commercial property taxes are reduced.

“If we’re going to reduce the amount of taxes that local governments get from commercial properties, the state ought to reimburse that,” Gronstal told reporters Wednesday.

According to Gronstal, Republicans balked at making a promise to permanently provide $140-million, each year, to local governments to make up for the reduction in commercial property taxes. Branstad said Republicans are focused on “protecting taxpayers” while Democrats are focused on “protecting local governments.”

“The Senate, well, they couldn’t even pass their own proposal, so they just seem don’t to have the committment to property tax relief that Iowans are looking for,” Branstad said. “I think that tells us we need a new, Republican majority in the senate to get this done.”

Gronstal, during an interview with reporters on Wednesday, said he had “offered up” a variety of options to the governor’s staff, but Branstad himself attended just one of the negotiating sessions with legislators.

“It seems to me they’re turned the corner and decided it’s time to play politics. I think that’s unfortunate,” Gronstal said.

According to Branstad, the “framework” for a deal was reached in mid-April, but Senate Democrats could never commit to passing it.

“If the senate decides they want to get serious about this and they come to me and tell me they have the votes to pass permanent property tax relief along the lines that we’ve been discussing, I’m willing to call ‘em back to do it,” Branstad said.

Branstad spoke with reporters this morning on the lawn of Des Moines East High School where he waiting for the start of a ceremony to open the school’s time capsule. Last night the 2012 Iowa legislative session ended just before 6:30 p.m. when the House passed its final bill. The senate had adjourned about an hour earlier.

Bill Dotzler

A proposal to boost a state tax credit for businesses that participate in a state-run investment pool for start-up companies has been resurrected.

Senator Bill Dotzler says last year legislators voted to create the Iowa Innovation Fund and grant a tax credit for investors.

“We really didn’t have any takers for that because of it being a new fund and no fund history and being at 20 percent, it just wasn’t working,” Dotzler says.

This afternoon, the Senate Ways and Means Committee approved a bill that increases the tax credit to 50 percent and makes it transferable. The bill requires disclosure of that transfer to state officials. Dotzler says that will hopefully prevent a repeat of the state film tax credit fiasco.

“We were very careful in looking at the problems that we experienced in the past to make sure that we had the accountability in this,” Dotzler says.

The bill must next be considered by the full Senate. Earlier this year the House endorsed the idea of increasing the tax credit — all the way up to 100 percent, but did not require any public disclosure of the transaction.

The 2012 legislative session could be in its final hours — but lawmakers have been struggling to reach final agreements on some politically-complicated issues. Dotzler offers this observation:

“It’s the good-bye tour that never ends,” Dotzler says.

Governor Branstad met privately this afternoon with legislative leaders, but there’s no word on whether a property tax reform deal has been resurrected.

The defeat of a property tax relief plan in the Iowa Senate last night could be the end of the effort to craft a compromise on the issue.

House Speaker Kraig Paulsen of Hiawatha has been the lead Republican negotiator. “What I must say is as we’re coming here in the final hours, my optimism is not as high as it has been,” Paulsen told reporters.

Lawmakers are hoping to complete the work of the 2012 legislative session soon, perhaps later today, and Senate Democratic Leader Mike Gronstal of Council Bluffs is offering a blunt assessment of the prospects for property tax relief.

“It is hard to tell at this point,” Gronstal told reporters.

Gronstal said he has offered “several other ideas” to Republicans in an effort to resurrect the issue.

“I’m open to considering some other approaches, but I’m basically getting stonewalled back from them,” Gronstal said.

Senator Randy Feenstra, a Republican from Hull, suggested the plans Senate Democrats have offered won’t provide “meaningful” tax relief.

“Who are we fooling?” Feenstra said. “Our businesses see through this.”

Another reform effort focused on redesigning the way mental health services are provided to poor Iowans hit a stumbling block late yesterday. Counties have been paying to provide mental health care to indigent patients, but legislators want to have the state take over the system, and set up regional hubs for the services to ensure equal access to urban and rural residents. The final details on that plan apparently have been hammered out by a 10-member committee of legislators today.

Another group of 10 lawmakers has been trying to reach an agreement on the budget for the departments of health and human services, but the panel cannot resolve a dispute over abortion policy.