Hite Capitol Update: 02/27/20
by Dustin Hite
Week 7 has officially wrapped up here in Des Moines. Following funnel week, this week included a good amount of debate on the House Floor as we sent bills over to the Senate for their consideration. One of the bills I was the floor manager for was House File 2236. This bill prevents county recorders from charging a fee to our county veteran service officers for the examination and copying of public records that are necessary to complete and file claims for veteran benefits. I am happy to say it passed the full Iowa House with a vote of 96-0. I would like to thank Mahaska County Veterans Affairs Director Curt Grandia for his help getting this legislation introduced and passed.
As budget season approaches, discussions at the Capitol begin to focus on state revenue growth and responsible levels of state spending in the next year. With the next meeting of the Revenue Estimating Conference nearing, legislative observers often ask how today’s revenue figures compare with previous years. Below is a chart showing the annual General Fund receipts for each fiscal year, starting in 2001. It also shows the percent of growth experienced in those years:
General Fund Percent
Net Receipts Change
FY 2001 4647
FY 2002 4680.8 0.70%
FY 2003 4483.8 -4.20%
FY 2004 4683.5 4.50%
FY 2005 4929 5.20%
FY 2006 5382.5 9.20%
FY 2007 5646.3 4.90%
FY 2008 6084.4 7.80%
FY 2009 5934 -2.50%
FY 2010 5633.6 -5.10%
FY 2011 5899 4.70%
FY 2012 6311.1 7.00%
FY 2013 6768.8 7.30%
FY 2014 6488.9 -4.10%
FY 2015 6819.7 5.10%
FY 2016 6921.1 1.50%
FY 2017 7095.9 2.50%
FY 2018 7383.9 4.10%
FY 2019 7858.8 6.40%
Figures are in millions
SOURCE: Legislative Services Agency
For the current fiscal year, the Revenue Estimating Conference has projected revenue will grow 2.0 percent to $8.0146 billion revenue. In Fiscal Year 2021, the REC is currently projecting revenue to rise by 2.9 percent to an annual figure of $8.249 billion. These projections will be subject to revision at the Conference’s next meeting, set for Thursday, March 12 at 10 AM in the Supreme Court chamber.
The tax cut approved during the 2018 legislative session contained a two-pronged trigger for deep income tax cuts set to being in 2023. The first trigger stipulates that the 2023 income tax cuts cannot occur unless state revenue is equal to or exceeding $8,314,600,000 in FY 22. It is a near certainty that this trigger is met by that year. It is even a possibility that this trigger is met in FY 21. The second trigger requires that the previous fiscal year net tax receipts (FY 22 receipts for TY 23) equal or exceed 104% of net tax receipts from fiscal year prior to that fiscal year – meaning FY 22 receipts need to have growth at least 4% for trigger to be met.
As is obvious from the above table, reaching 4% revenue growth is a common occurrence. The table above shows revenue growth exceeding 4% in 11 of the previous 18 years. Removal of the 4% revenue growth trigger has generated a fair amount of discussion in the legislature this session. The data shows that reaching the 4% trigger is not an insurmountable requirement.
Next, I would like to talk about EMS in Iowa. There has been a growing concern, especially in rural counties and communities, about the access to emergency medical services. A common misconception is that emergency medical services are considered an essential service under the Iowa Code. They are not. However, it is currently an option for counties to choose to make it an essential service. Under current law, county supervisors may offer for voter approval a local option income surtax or an ad valorem property tax. Additionally, if it is considered an essential service, it has to be re-approved every five years.
House File 2434 makes significant changes to the emergency medical services chapter (IA Code 422D). The first change is that it allows the county board of supervisors to declare EMS an essential service without calling for an election to approve this decision. EMS advocates believe that this will greatly reduce the burden and cost of declaring EMS an essential service.
This bill also gets rid of the five-year sunset that required the voters to re-approve emergency medical services. This gives the voters the option to end EMS as an essential service only under a reverse referendum. EMS advocates have complained that they are uncomfortable purchasing equipment if after only five years the service could not be renewed.
A new requirement under this bill is that a county that adopts EMS as an essential service shall create an EMS Advisory Council to develop how the EMS program will be structured and work throughout the county. Current law only allows counties to enter into 28E agreements with other counties. This bill removes that barrier and allows counties to enter 28E agreements with other entities besides just counties.
Currently, in the Health and Human Services Budget, there is $303,000 that is appropriated to the Emergency Medical Services Fund. The money is divided equally amongst the counties. Also, Iowa Code 422D.6(3) lays out an enumerated list of items that these funds could be spent on. This bill changes that to include any operational cost.
In addition to the above-mentioned changes to emergency medical services, House File 2224 appropriates the revenue from sports wagering (estimated between $2-3 million) to the Emergency Medical Services Trust Fund.
