Republican legislative leaders say they’ll present a counter proposal to the governor when they meet tomorrow to continue negotiations on restoring the Iowa Values Fund. The economic development program was thrown into limbo by the Iowa Supreme Court decision that overruled the governor’s veto of tax cuts. Governor Vilsack, a democrat, told lawmakers he’d agree to slight changes in the state worker compensation laws and maybe a 50-million dollar tax break for small businesses in exchange for restoring the Values fund. Senate Republican Leader Stewart Iverson of Dows isn’t ready to reveal the counterproposal.Iverson says he thinks its only fair for lawmakers to wait until they give the proposal to the governor before they reveal it to the media. Iverson says neither side will get everything they want in the republican proposal.Iverson calls it a true compromise as he says they’re trying very hard to meet the governor half way. Republicans sued the governor after he vetoed a 300-million dollar income tax cut and business reforms that were in the same bill as the Values Fund. The court ruled the vetoes were illegal — and threw out the entire bill in the process. Senate Democratic Leader Mike Gronstal of Council Bluffs says democrats are worried they’ll be asked to accept a tax cut they don’t like. Gronstal says if democrats don’t like the republican proposal, the governor should resist compromising and instead used his administrative power to move other money into the Values Fund. Gronstal says he doesn’t think that’s worth holding a whole bunch of things hostage for. Gronstal says the goal of democrats in the legislature is to get the Values Fund back to legal status — without tax cuts.Gronstal says additional tax cuts will leave a large hole in the state budget. The Iowa Values Fund has already given out awards to 36 companies.
