Guy Vander Linden Capitol News Update – March 29, 2012

Tyler Sash Welcomed by Iowa House of Representatives (submitted photo)

TIF Reform Continues in Bipartisan Fashion
For the last six weeks, Republicans and Democrats from both the House and Senate Ways and Means Committees have been meeting to discuss various Tax Increment Financing (TIF) reform proposals.
The House Republicans initially held three subcommittee hearings on the House Study Bill 540 and currently, a bipartisan effort is underway to fashion an amendment with the following in a TIF Reform bill:
• Increased oversight – specifically audit language of TIF funds.
• Increased transparency – ensuring other taxing entities are notified and meetings open to the public on each TIF project.
• Require a “but for analysis” on all TIF related projects.
• Sunset all Pre-1995 TIF’s, while granting waivers for those who can prove their bond payment schedule would require more time than year 2032.
• Exempt Windmills from TIF’s going forward. Those currently in place would stand.
• New TIF duration would be 15 years + 5 years. Year one does not start until the assessment has increased 105%.
• Enhanced Piracy language to address the situation in Iowa City/Coralville from occurring again.
• List uses of what TIF cannot be used for. Firehouses, police stations, city halls, swimming pools, salaries and buildings that don’t produce property taxes would not be permitted to use TIF funds.
• Allow residential TIF’s for cities under 10,000 in population only.
• Strike Sales Tax TIF’s.

Revenue Estimating Conference Increases Estimates

On Friday, March 23, the Revenue Estimating Conference (REC) met to review and revise the revenue estimates for FY 2012 and FY 2013.
For FY 2012, the estimate was increased by $50.9 million for a total of $6.051 billion. While current spending for FY 2012 is just under $6 billion, the $14 million increase will be deposited into the Taxpayers Trust Fund (which reaches its cap of $60 million).
Under the House Republican budget plan, after the reserve funds are filled to 10 percent, the remainder will be deposited into the Taxpayers Trust Fund (TTF).

On the other hand, the Senate Democrats’ budget plan spends more than the state takes in. Their targets appropriate $6.219 billion. However, they shift $113 million of tobacco tax revenue into the Health Care Trust Fund and reduce revenue by $26.4 million by increasing the Earned Income Tax Credit, which lowers their ongoing revenue to $6.113 billion. The Senate targets spend 102 percent of ongoing revenue.
As negotiations take place to reach an agreement on the FY 2013 budget, House Republicans will insist that ongoing spending be less than ongoing revenue.
House Republicans fought for the Taxpayers Trust Fund because any surplus or ending balance is caused by an overpayment of taxes. Therefore, that surplus should go to the TTF and not be used for ongoing spending. In addition, House Republicans will continue to advocate for a budget structured to deal
with the impact of high gas prices and federal cuts.

If the Senate approves this provision, the TTF will have $380 million in it in FY 2013. If the Legislature decides to rebate this money to the taxpayers, it would work out to over $200 per taxpayer.
For FY 2013, the estimate was increased by $29 million, for a total of $6.281 billion. By law, the additional $29 million cannot be spent and must be deposited into the Taxpayers Trust Fund at the end of FY 2013.
For FY 2013, the House Republican budget spends $6.060 billion. This is 96.5 percent of ongoing revenue. The Governor proposed spending $6.244 billion, which is 99.5 percent of ongoing revenue.

Governor’s Iowa Environmental Excellence Awards Applications Due

On March 22, 2012, the Iowa Department of Natural Resources (DNR) issued its weekly electronic newsletter EcoNewsWire with a reminder to Iowa businesses, organizations and citizens that applications for the Governor’s Iowa Environmental Excellence are due April 6, 2012. These awards honor and recognize an individual’s exemplary leadership and innovation in the protection of Iowa’s water, land and air.
Awards will be given for overall Environmental Excellence, along with Special Project Awards in:
 Air Quality
 Energy Efficiency/Renewable Energy
 Habitat Restoration
 Waste Management
 Water Quality
 Environmental Education
The awards program is coordinated by the Iowa Governor’s Office, the Iowa Department of Natural Resources, the Iowa Department of Agriculture and Land Stewardship, the Iowa Department of Economic Development, the Iowa Department of Education, the Iowa Department of Public Health and the Iowa Waste Reduction Center.
For more information and/or to download an application: www.iowadnr.gov/Environment/IowaEnvironmentalAwards.aspx Contact: Emily Bainter Emily.Bainter@dnr.iowa.gov.

On Tuesday March 27th, Governor Branstad signed a proclamation declaring Tyler Sash Foundation Awareness Day (submitted photo)

NEWS FROM THE DISTRICT

On Tuesday March 27, 2012, I had the great pleasure of introducing Tyler Sash to the Iowa House of Representatives and to accompany him to Governor Branstad’s office for the official signing of a proclamation declaring Tyler Sash Foundation Awareness Day.

Recognized as one of Oskaloosa’s most outstanding young citizens and as a member of the New York Giants 2012 Super Bowl champion team, Tyler’s visit clearly delighted the Governor, the House, Senate and his many fans and admirers here.
Tyler is a remarkable young man who touches many lives in many ways yet does so with poise and humility. 01Thank you, Tyler, for making our Capitol day with you an unforgettable one.

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