Guy Vander Linden Capitol News Update April 19, 2012
Representative Guy Vander Linden works at his desk in the Iowa House
Tentative Deal on Total State Spending Reached
Late last week a tentative agreement was reached with the House Republicans and the Governor on total spending for Fiscal Year 2013. The budget framework allows for joint budget targets to be agreed upon and the final budget to be approved by the Legislature before session adjourns for the year.
The general fund budget will appropriate $6.242 billion for FY 2013. This is below the December Revenue Estimating Conference (REC) estimate of $6.252 billion in ongoing revenue. While this number is higher than House Republicans would have preferred, it follows the three budgeting principles of House Republicans:
• Appropriates less in ongoing expenditures than ongoing general fund revenue
• Does not use one-time funds to for ongoing expenditures
• Does not intentionally underfund entitlements to allow for additional expenditures
Using the current REC estimates, the FY 2012 budget appropriates only 93 percent of available general fund revenue. The agreement with the Senate and Governor appropriates only 95 percent of available revenue. This presents a major victory for the taxpayers because past practice would have been to spend at least 99 percent of available revenue.
Another victory for the taxpayers is the creation of the Taxpayers Trust Fund (TTF). Under current estimates, the TTF will have $60 million at the end of FY 2012 and another $30 million at the end of FY 2013. While there is no agreement on how to return the funds to the taxpayers, the fact that it cannot be spent is noteworthy.
In addition, when comparing the total gross ongoing expenditures for FY 2010 and FY 2011 to FY 2012 and FY 2013, the final budgets approved by House Republicans appropriate $180 million less than the last two budgets approved by Legislative Democrats and signed by Governor Culver. This number does not include over $200 million in salary increases that the departments were forced to absorb.
Volunteer Firefighter and EMS Personnel Tax Credit Passes the House
Senate File 2322, which passed the Senate 50-0 and the House 96-1, provides for a nonrefundable individual income tax credit for an individual who was a volunteer fire fighter who has met the minimum training standards or certified volunteer emergency medical services personnel for the entire tax year or prorated if part year. The amount of the credit is equal to $50. The credit is to help compensate the individual for their volunteer service. The estimated credit claims for tax year 2013, the first year the credit is in effect, is a decrease of $910,000.
Fiscal year 2013 impacts are estimated to be zero, with all of the tax year impact falling in fiscal year 2014. For the following fiscal years, credit claims are estimated to grow an average of 0.8 percent per year as wage growth raises average tax liability. The bill now goes to the governor for his consideration.
Seeking Compromise on Education Reform
The House moved the Senate version of education reform through subcommittee and committee on Monday, followed by a short debate on the floor. The bill passed, as amended by the House, 54-45.
The resulting version makes strides towards creating a stronger educational system in Iowa which includes:
– A path forward for competency-based learning
– Increased opportunities for online learning
– Annual teacher and administrator evaluations
– Value-added measures, which help measure student growth
– A system of accountability for schools
– Improved and relevant assessments
– Development of an optional statewide professional development plan
– An early literacy framework designed to get kids reading at grade level by the end of third grade, including retention to prevent sending children on without the tools for success
– Increased flexibility for school districts with home rule authority
Application Deadline For Century & Heritage Farm Owners
Iowa Secretary of Agriculture Bill Northey reminded eligible farm owners that the deadline to apply for the 2012 Century and Heritage Farm Program is June 1, 2012.
Sponsored by the Iowa Department of Agriculture and Land Stewardship (IDALS) and the Iowa Farm Bureau, the awards ceremony to recognize the 2012 Century and Heritage Farms will be held at the Iowa State Fair on Tuesday, August 14th. Since its inception, the Century and Heritage Farm program has recognized over 17,000 such farms across the state.
Interested farm families seeking recognition this year must submit an application to the Department no later than June 1, 2012 on the following websites:
www.IowaAgriculture.gov
Becky.Lorenz@IowaAgriculture.gov
Applicants may also write to:
Century or Heritage Farms Program
Iowa Department of Agriculture and Land Stewardship Henry A. Wallace Building,
502 E. 9th St., Des Moines, IA 50319
Public Information Board to Enforce Transparency Passes the House
The House furthered government transparency by passing Senate File 430 with a vote of 92–7 to create the Iowa
Public Information Act and Iowa Public Information Board. Senate File 430 passed the Senate last session with a vote of 49–0 and will now go back to the Senate for further consideration.
The board will be comprised of nine members appointed by the governor and confirmed by the Senate, with no more than 3 members from the media and no more than 3 members who represent cities, counties, or other political subdivisions. Senate File 430 allows the board to:
• Adopt rules to enforce and implement Chapters 21/22.
• Issue declaratory orders with the force of law as well as informal advice to any person
• Receive complaints of violations of Chapters 21 and 22 and seek resolution of those complaints.
• Request and receive assistance and information from governmental bodies.
• Examine confidential records as necessary.
• Issue subpoenas enforceable in court for the purpose of investigating complaints and facilitating prosecution.
• Issue civil penalties provided for in Chapters 21 and 22.
• Represent itself in court to enforce or defend its orders.
• Provide training on Chapters 21 and 22.
• Prepare annual reports
• Make legislative recommendations.
