Vander Linden Capitol Update For February 5th

Rep. Guy Vander Linden (R) addresses those on hand at Eggs & Issues January 24, 2014. (photo by Candace Allsup/Oskaloosa News)

Military Homeownership Assistance Program Helps 423 Veterans in FY 2014

The Military Homeownership Assistance Program is now in its tenth year and is still going strong. The program provides down payment assistance to military service members and veterans purchasing homes in Iowa. The goal of the program has been to help these heroes make their permanent home in Iowa by providing a $5,000 grant to help with the down payment and closing costs associated with such a large and important purchase.

The program is a joint effort of the Iowa Finance Authority and the Iowa Department of Veterans Affairs and is funded through an appropriation by the Legislature. Since the program’s inception in 2005, the program has funded more than $15.4 million in homeownership grants to 3,244 military service members, veterans, and their families. All funds are granted out on a first come first serve basis and are subject to the state appropriating money to the fund.

In fiscal year 2014, the Military Homeownership Assistance Program aided 423 service members and veterans in achieving homeownership. More information about the Military Homeownership Assistance Program and the application is available at IowaFinanceAuthority.gov.

Budget Comparison Shows K-12 Education Remains State’s Top Funding Priority

As the 2015 legislative session continues to discuss how much funding should go to Iowa schools, it may be helpful to look at how much of the state’s budget goes to Iowa schools when compared to the rest of state government. The results will be surprising for anyone listening to the “information” being put out by various school groups.

At the start of Tom Vilsack’s tenure as governor, the state of Iowa spent $4.7599 billion from the General Fund for FY 2000.

That year, K-12 education funding consumed 38.57 percent of the General Fund. That amount is the state aid amount plus the categorical funding streams that have now been rolled into the school funding formula. The second largest individual program in the budget was support for the Board of Regents institutions, which received 14.59%. Medicaid was the third largest program, at just 8.83 percent of the General Fund.

Fast forward to what Governor Branstad has proposed for the General Fund budget in FY 2016.

Contrary to the rhetoric being used by the education

community, K-12 education would have a larger share of the state budget in FY 2016 than in it did in FY 2000. The Governor’s budget would spend 40.98 percent of the General Fund on K-12 education through Supplemental State Aid and the Education Reform funding streams. So the growth in state funding in schools is not just in total dollars, but also in its share of Iowa’s budget too.

The most striking change over 15 years has been the dramatic growth in Medicaid. The actual dollar amount going from the General Fund has tripled during this time, and the program’s share of the total budget has gone from 8.83 percent in FY 2000 to

18.55 percent in the proposed budget for FY 2016.

Medicaid’s growth has not been at the expense of K-12 education, but other programs have been impacted. The Regents’ share of the budget fell from 14.59 percent to 8.20 percent. The rest of state government – including the Courts system, economic development, public health, agriculture and others – have seen their share of the state dollars go down from 17.83 percent to 11.37 percent. These programs have shouldered the brunt of Medicaid’s growth.

The fact that over 40 percent of Iowa’s General Fund goes to local schools should not be a surprise to Iowans who have always made education a top priority. And for FY 2016, House Republicans have already committed 50 percent of the new state revenue to increase state aid to Iowa schools. What should be a concern to everyone is the significant growth in the share of Iowa’s budget consumed by Medicaid. In the near future, the growth in that program will dictate how much new money Iowa schools will receive.

Notable Bills

As we continue our work this session, House Republicans continue to work on mainstream bills that are a priority for Iowans. Republicans’ focus is on increasing opportunities for Iowans and protecting families and taxpayers. Here are a few bills that are moving through the process:

House File 124

Treats Iowa Educational Savings Plans, or 529’s, like IRA’s allowing tax deductible contributions into plans until April 30.

House File 125

This bill updates Iowa Code references to the Internal Revenue code to make federal income tax revisions enacted by Congress in 2014 applicable for Iowa income taxes. Generally speaking, this bill will save Iowa taxpayers and families money in areas such as: out-of-pocket expenses for teachers, tuition and fees, and mortgage insurance premiums. It will save Iowa businesses money through updates to the Research Activities Credit, and small businesses equipment costs.

House Study Bill 40

As part of an overall effort for Iowa veterans that passed last year, the Legislature created a homestead tax credit for veterans with service-connected disabilities. This bill expands the law to include veterans who have a permanent disability and have been deemed unemployable.

House File 1

This is a zero-based budgeting bill which requires government departments to submit budget requests on the assumption that they will receive zero funding and prove why each budget request is needed as opposed to the current system where they are guaranteed 75% and 100% of the previous year’s allocation.

Oversight for the taxpayers

One of the most important functions of the Legislature is to act as a check on the other branches of government – and to protect the taxpayers’ dollars and bring oversight when it comes to projects they’ve invested in. This year, the House Oversight Committee has already begun an investigation into the delayed opening of the new state penitentiary.

Additionally, the House Appropriations committee has invited both the University of Iowa and the American Institute of Business (AIB) to discuss their recent announcement that the UI will take over the campus in Des Moines.