Governor Terry Branstad held an hour-long hearing Thursday evening, to give members of the public a chance to comment on state spending priorities for the coming year.
Most of the 20 people who spoke represented trade groups and associations. Sharon Presnall, a vice president of the Iowa Bankers Association, is also on the Iowa Taxpayers Association board of directors. She urged the governor to “seriously consider” cutting income taxes.
“Frankly states with the best tax climates have broad bases and low rates and this is an area that we think that Iowa can do a little bit better in,” Presnall said. “And I also think at the end of the day by doing that you actually generate more revenue.”
Justine Stevenson, director of government relations for the Iowa Cattlemen’s Association, urged the governor to find a way to finance repairs of “deteriorating rural roads and bridges.”
“A delay in addressing the shortfall in transportation infrastructure has increased the cost to make those necessary repairs and improvements,” Stevenson said. “Recognizing the serious condition of our roads and bridges, you are working with legislative leaders and interest groups to craft a bipartisan solution. We commend you for this effort and will work to support the responsible funding plans that may be developed.”
For the past five years legislators and the governor have talked about raising the state gas tax or finding a new way to finance road and bridge construction, but there’s been no resolution. Scott Newhard is executive vice president of the Associated General Contractors of Iowa, the trade group for companies that build highways and bridges or supply the materials for that construction.
“Roads should be paid for by users, including out-of-state drivers on a pay-as-you-go basis and with constitutionally protected funds,” said Newhard, who was the first speaker at last night’s hearing.
State fuel taxes are placed on the Road Use Tax Fund and, according to the state constitution, money in that fund may only be used for the state’s transportation system. Newhard asked the governor to tamp down any talk of using general state tax dollars to pay for roads and bridges.
Each speaker at last night’s budget hearing was given three minutes to make their pitch and about 10 people who came to speak were unable to make it into the hearing room in the one-hour allotted for the event. The governor did hear from lobbyists for community colleges and nursing homes concerned about state support of their institutions, plus trade group representatives seeking state money for water quality initiatives. Members of Iowa Citizens for Community Improvement who were stuck waiting outside the hearing room said state government should focus on preventing water pollution by limiting manure and farm chemical use on cropland rather than giving farmers money to construct barriers that prevent run-off.