House Republicans Continue to Work for a Compromise on Property Taxes
Rep. Guy Vander Linden (R-Oskaloosa)
During the first two weeks of the session, the House Ways and Means Committee held three subcommittee hearings on the House property tax proposal, and a separate subcommittee on the Governor’s proposal.
The House Republicans and the Governor have made concessions that are reflected in both plans. The House listened to concerns from local governments and by using an exemption model, implemented over 14 years, gives businesses certainty, while allowing local governments the flexibility to plan ahead. Meanwhile, the Governor has extended his phase in from five years to eight. The House plan:
- Provides relief to all classes of property
- Prevents or mitigate the upcoming shift to residential property taxpayers. The House plan will help prevent a shift to residential (by increasing the school aid foundation to 100 %.)
- Provides commercial property tax relief to 100% of businesses – we need job creators of all sizes to invest and hire.
- Aligns local government expenditures with the rate of inflation – but allowing local governments to spend more by putting it to a vote of the people.
- Provides the most certainty to all taxpayers for businesses (job creators need certainty.)
- Creates action. If we do nothing a huge residential tax increase is on the horizon.
Department of Transportation Finds $50 Million in Efficiencies
In a report issued this week, Dept. of Transportation Director Paul Trombino identified 13 efficiencies with total savings projected at $50 million in order to free up more money in the Road Use Tax Fund for the improvement of the public roadway system.
According to the DOT, the fund has a $220 million critical needs shortfall. Some of the program efficiencies include an assessment of rest area and weigh station investments ($1.5 million annually), a reduction in roadside vegetation improvements ($1 million annually), and the selling of unnecessary right of way parcels ($1 million in one-time). Another savings worth a one-time $11 million is the implementation of an asset management tool.
Similar, the department found $10 million in savings annually that envisions the implementation of new budgetary management policies focused on post-letting project costs.
The other category of savings is partnership efficiencies. The major savings comes from a surface transportation program ($5 million annually) and the integration of the motor vehicle enforcement division into the Department of Public Safety ($5 million annually).
Some of these efficiencies will require legislative action or action by the Transportation Commission. Some will simply require cooperation at the county or local level.
National Guard Educational Assistance Program
The House passed SF 2007 this week – a supplemental appropriations bill providing an additional $1.3 million to the National Guard Educational Assistance Program (NGEAP) for FY12. This will be in addition to the $3.186 million appropriated last year, totaling $4.486 million.
The reason for the sudden increase was an underestimation in the amount of soldiers who would apply for the funds. With Iowa’s largest deployment in the history of the National Guard ending recently and the ending of the war in Iraq, deployments are down and returning soldiers are up. The College Student Aid Commission (CSAC), which administers the program, expended $2,366,134 of the FY12 appropriation, leaving $820,099 for second semester.
