Capitol Comments
Tax Credits Available for Working Families
You and your family may not have realized that you may be eligible for a refundable tax credit when you file your 2014 federal and state income taxes this spring.
As we, Iowans, begin to work on our taxes, eligible families that meet certain income requirements could receive a refund up to $6,143 from our federal taxes and up to $921 on our state income taxes.
With more than 222,000 Iowans benefiting, Iowa’s Earned Income Tax Credit (EITC) is designed to help lower income families while initiating work. As a family earns more income, they become eligible for a larger EITC until they approach self-sufficiency.
A single filer without dependents could receive as much as $496 and a family of five with an income of under $47,000 could receive up to $6,143.
According to the Internal Revenue Service, about 25% of eligible workers don’t claim the credit. For more information or assistance on the EITC, call 1-800-829-8482 to find your local tax assistance site or log on to www.irs.gov.
Other Iowa Tax Credits
• Last year we passed legislation that doubles the tax credit available to volunteer firefighters and emergency medical technicians (EMTs). The credit was increased from $50 annually to $100.
• The Iowa Child and Dependent Care Tax Credit is a refundable tax credit available to anyone that had child care expenses in the last year, such as paying someone to care for a child, earned income from wages, salaries, or similar compensation. The change will return over $4.5 million to middle-class Iowans with child care expenses every year.
• In 2014, the legislature created an adoption tax credit. The credit would provide up to $2,500 to any Iowa taxpayer to help offset the costs of qualified adoption expenses, including welfare agency and legal fees, fees and costs relating to adopting the child, and medical and hospital expenses of the mother for birth of the adopted child.
Free Tax Services
A public-private partnership, the Free File Alliance and the IRS are offering middle-class families with incomes below $60,000 a fast, free and safe way to do their taxes online.
To learn more visit, www.IRS.gov/FreeFile.
Disable Veterans Property Tax Exemption Set to Expand
Last year, 843 eligible disabled Iowa veterans or surviving spouses took advantage of a new law that exempted them from paying property taxes. However, an additional 200 veterans who are not 100% disabled, but are determined to be unemployable by the U.S. Department of Veterans Affairs, applied but were denied.
The House Veterans Affairs Committee, on which I serve, passed legislation introduced by the Iowa Department of Veterans Affairs, which fixes this omission. Despite the veterans not being rated 100% disabled, they do receive disability payments at the highest level due to the nature of their disabilities as determined by the U.S. Department of Veterans Affairs.
If adopted into law, this year’s legislation would go into effect retroactively to May 26, 2014, the day last year’s legislation took effect. This would ensure that those who applied, but were denied, will be able to take the tax exemption for last year.
The bill has now moved to the full Iowa House for consideration.
Facts on Minimum Wage from House Minority Leader Rep. Mark Smith
“Dear Friend,
One of the keys to building a strong middle class is providing more economic security to working families.
Right now, there are over 306,000 Iowans earning the minimum wage who have not had a raise in nearly eight years.
Over the last 30 years, the minimum wage has failed to keep up with the rising costs families face in health care, food, and raising a family.
If the wage had kept up with inflation, the minimum wage would currently be $10.74 an hour. The current wage of $7.25 has 78% of the purchasing power it did in 1968.
Until the early 1980’s, minimum wage was enough to support a family of two above the poverty line. Today, working full time, 52 weeks a year leads to a salary of $15,080, below the poverty line of families of two. For a family of three to stay above the poverty line, the minimum wage would need to be raised to $10.10.
Low wages for hard working Iowans is also a factor in Iowa’s rising poverty rate. Today, more than 40% of Iowa children are eligible for free or reduced lunch, up from 27% just ten years ago.
Contrary to popular belief, the majority of minimum wage workers are not teenagers. Eighty-one percent of workers benefiting from the wage increase are over 20 years old. Since 58% of minimum wage workers are women, it also disproportionately impacts women and children.
Raising the minimum wage isn’t just good for Iowa workers, it’s also good for our economy. It would mean a pay raise for 306,000 Iowans and the new money injected into the economy would lead to an estimated 1,400 new jobs.
In fact, according to the Department of Labor, the 13 states that raised their minimum wage in January, 2014, have experienced faster job growth than states that did not.
During the 2014 legislative sessions, 34 states considered raising the minimum wage, with 10 states raising the wage (Minnesota, Michigan, West Virginia, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Rhode Island, and Vermont). During the 2014 election four states (Alaska, Arkansas, Nebraska and South Dakota) approved minimum wage increases through ballot measures in the 2014 general election; Illinois voters approved an advisory measure.
Currently, 29 states have minimum wages above Iowa’s rate, including our neighbors Missouri, Minnesota, Nebraska, and Illinois.
Iowans are also solidly behind raising wages for Iowans. Two polls out last year found 65% of Iowans supported increasing the minimum wage while just 31% opposed raising the wage. There was also broad support in both urban and rural areas.
With broad popular support and a strong economic case, raising the minimum wage is something the legislature should act on this year.
After eight years without a raise, 306,000 Iowans deserve it.” -Rep. Mark Smith
Health Care/ Mental Health and the Governor’s Budget
The Governor’s budget is out and the increases in spending are to fulfill promises made to local governments (backfilling loses from property tax cuts), and paying for part of the shortfall in Medicaid (much of it caused by loss in federal funds due to a formula change in the Medicaid program). Medicaid is short $68 million for the current fiscal year but the Governor does not recommend funding for this. Many legislators are deeply concerned about the impact of the Governor’s decision on Iowans receiving (and waiting for) Medicaid services. For FY 2016, Medicaid needs an additional $200 million to meet its obligations. The Governor is proposing $70 million in savings from various cost containment measures, of which $51 million in savings comes from managed care. The legislature will be reviewing these proposals and their potential viability as the budget is developed for fiscal year 2016.
The Governor has recommended no funding for the MH/DS redesign regions – representing a cut of $30.6 million. He is also scooping the $10 million “offset” repayment for Medicaid – funds that were a result of the savings to regions when the Iowa Health and Wellness Plan picked up costs previously paid by regions. Iowa law currently directs the Legislature to reinvest those “offset” funds into the regional services system. Without the “offset” funds, regions will need to pay for non-Medicaid services to Iowans with disabilities using only their local tax levies (which are capped) and fund balances (any extra money they may have in reserve).
Becoming the healthiest state in the country isn’t just about eating nutritious foods and making time for exercise. All Iowans deserve access to affordable health insurance and quality healthcare providers – doctors, nurses, direct care workers and others – in our local communities.
Unfortunately, Iowa lags behind much of the nation in healthcare workforce recruitment. In particular, Iowa struggles in comparison to the rest of the nation in attracting mental health professionals. According to the National Alliance on Mental Illness (NAMI), Iowa is ranked 44th in the nation for mental health workforce availability. Of particular note, Iowa ranks 46th for the number of psychiatrists per capita and 47th for the number of psychologists per capita.
The Senate Human Resources Committee recently heard a presentation from the Iowa Department of Public Health on existing healthcare workforce training and recruitment. NAMI and the IowaCare Givers presented ideas on ways to improve current programs. Recommendations ranged from making programs at the Department of Public Health more efficient and effective to establishing more residency programs for doctors.
Iowa recently redesigned its local mental health and disability services system, and now we must adequately fund it and take the necessary steps to train and attract high-quality health care providers – those who can offer services to Iowans, statewide.
The Governor’s budget recommendations and his proposal to close the Mental Health Institutes in Clarinda and Mount Pleasant make the need even more urgent.
The Week in Pictures
FIRST Tech Challenge Cedar Rapids League Championship
Founded by inventor Dean Kamen, FIRST was established to inspire young people to be leaders in science and technology. 8 Years ago, there were just two teams in all of Iowa. Now, there are 190 active teams, with international competitions.
I saw a lot of inspired kids at the event!
Student from Kennedy, fine-tuning his Cougarbot before competition.
Xavier’s team, the Xcentrics, is coached by Math instructor, Stacy Carnahan (yep, she’s the one in the Nerd box).
Linn Mar’s team was on the dark side – Dark Matter, that is. Word has it among the many teams that this group has shown the best leadership and cooperation skills throughout the year. Coached by volunteer, Steve Brooks (not pictured), there’s nothing Dark about these Bright young adults!
CR Metro High School robot engineering and design with parts from 3D printer and laser cuts. Impressive.
United Way of East Central Iowa’s Financial Stability Manager, Dave Loy, and Coordinator of Education Initiatives, Laura Columbus, (both constituents) braved the cold, snowy weather to journey from Cedar Rapids to the Capitol. I’m glad they made it safely and we had an opportunity to discuss United Way’s planning, vision and positive impact in our community. Did you know that United Way collaborates with around 30 partners to assure our communities’ most critical needs are being addressed,?
They are always looking for new volunteers/donors! Find out how you can get involved here: http://
Discussing vocational rehabilitation services with Holly Mateer, Supervisor at the Cedar Rapids Voc Rehab location. It’s exciting to hear of the efforts underway to include those with disabilities into the workforce. With the closing of Options imminent, it’s essential that alternative employment opportunities be available. In 2014, over 2000 Iowans with disabilities were placed into competitive employment, resulting in a 15% reduction in the costs of public support and a 25% increase in family incomes. Some of the services that the Iowa Voc Rehab provide are: training for employment, counseling and guidance, special adaptive equipment, occupational tools, personal assistance, supported employment, job coaching, and job placement. In Cedar Rapids, several employers have expressed renewed interest in starting or expanding job positions for those with a disability. More info here: http://www.ivrs.iowa.gov/
Dr. David Johnson, of Chiropractic Health Care Associates in Cedar Rapids, spoke with me about Medicaid reimbursements. Chiropractors would like to ensure that, if any significant changes are made to Iowa’s managed healthcare program, chiropractic health continues to be included. Studies indicate that the inclusion of chiropractic care reduces health care costs, and improves outcomes.
Dr. Johnson recently moved into House District 66, so it was really great to have an opportunity to visit with a new constituent!
The Capitol was very busy Tuesday with several scheduled meetings and groups of 8th graders touring the building! But constituent, Linn County Community Project Director, Chris Kivett-Berry and I found an empty table to sit and visit. We discussed Early Childhood Iowa funding, preschool tuition assistance, family supports and parental education. Healthy, safe, school-ready children is what Linn County Early Childhood Iowa is all about.
Since 1998, Linn County has worked to enhance the early childhood development experience of families with children age pre-natal to five years. More than 40 percent of Iowa’s young children live in households below 200 percent of poverty, High quality early education yields higher graduation rates, reduced crime, higher earnings, and better jobs. If we invest in high quality early care, health, education, and family support programs for all Iowa families, we will empower more children to reach their full potential as adults.
My boss, Dr. David Benson, came to the Capitol to participate in the Grant Wood AEA Superintendent’s legislative meeting, and to advocate for public schools. Joining him is College Community Superintendent, John Speer, and constituent, Daniel Wasta. (Daniel is clerking in the Iowa Senate this year.)
The Iowa House passed 1.25% supplemental aid and the Iowa Senate is proposing 4%. Supplemental aid will be one of the key budget battles this Session.
Please call/email your state representative to voice your support for Iowa’s school children:https://www.legis.iowa.gov/
In honor of Black History Month, we recognized Iowa’s first black legislator, the late Mr. Cecil Reed of Cedar Rapids, for his many contributions to our state. Cecil presided over the passage of the Fair Housing Bill before Governor Harold Hughes named him as Iowa’s Employment Security Commissioner in the 1960s, another first for an African American in Iowa. Mr. Reed was also an entertainer and an entrepreneur. In response to a lack of accommodations for black travelers, he built and operated the Motel Sepia on his property, which was a part of the Lincoln Highway. His memoir, Fly In the Buttermilk, is fascinating and should be on your must-read list. You can also learn more about his incredible life by visiting the African American Museum of Iowa.
It was indeed a privilege to meet Cecil’s son, Rev. Richard Reed, who came to Capitol to be recognized on his father’s behalf, in the House of Representatives.
Recognition on the House floor was presented by Representative Kirsten Running Marquardt.
Linn County Supervisors, Jim Houser and Ben Rogers spoke with Linn County legislators about the Urban County Coalition’s issues and priorities, including: infrastructure funding, mental health funding, and unfunded mandates.
The Coalition is a partnership among Linn, Black Hawk, Johnson and Scott counties organized to jointly develop, communicate and advocate for issues of mutual interest. It was great to visit with Jim and Ben, and I am appreciative of their service to our county!
(Also pictured: Representatives Todd Taylor, Kraig Paulsen, Liz Bennett, Quinten Stanerson, and Kirsten Running-Marquardt)
Autism Day on the Hill means delicious homemade cookies by Glenda Koehn, Autism Society of Iowa Board Member! But more importantly, it means the opportunity to hear personal stories of how autism has affected Iowa families. Also advocating at the Capitol today were Board Members, Rebecca Clausen and Evelyn Horton.
The Autism Society is requesting the following supports from the legislature:
– insurance reform to cover medically necessary autism services
– services for children with mental health needs
– legislation that would provide families access to the ABLE Act in Iowa
– reimbursement for telehealth services to increase access to Psychiatrists and Psychologists in Iowa
– funding to eliminate waiting lists for all health waivers
I am hopeful we’ll be able to address these critical issues this Session.
I learned quite a bit about the newspaper business at the Iowa Newspaper Association legislative reception. Many thanks to Dick Colvin, Executive Director of Midwest Free Community Papers, and Dale Larson, General Manager/Sales Director of Press-Citizen Media, for an enlightening conversation about advertising, printing, layout and news topics. It’s a fascinating and challenging industry that is ever-changing with technological advances.
Legislative priorities for IMA are centered around access to government records and meetings, and the open records law.
Always enjoy discussing education issues with SIYAC (State of Iowa Youth Advisory Council) representatives! Ehan Lowder is working with Senator Herman Quirmbach on a bill which would raise the minimum age for dropping out of high school and include funding for wrap-around services. Sruthi Palaniappan and Mary Korch are working with me on a bill to include Writing and Social Studies in the statewide assessments. Also pictured: Anne Edwards, Nina Yu, and Nick Beckwith.
These bright young people are learning about policy and the legislative process – in a hands-on way!
Learn more here: http://www.icyd.iowa.gov/
The Iowa State Building and Construction Trades Council hosted a legislative reception and it was wonderful to visit with more folks from Cedar Rapids. I heard from Mike Sadler, II and Steve Petersen, both from the Plumbers and Pipefitters Local Union 125, and Randy Sconyers with Sheet Metal Workers Union 263. We discussed apprenticeship programs and the increase in major construction in recent years. Next, I visited with constituents, Brian Heins and Tad Gusta of IBEW. This was a great evening with many of my favorite local leaders and educators in our skilled trades.
Tom Hardecophf, Linn County LIFTS Directors, and Kay Fisk, NTS Development Director, spoke with me about transportation in the Corridor. Nearly 60% of Iowa’s transit buses exceed FTA’s standards for useful life. With over 28 million rides via public transit last year, our vehicles are getting plenty of use, and wear and tear.
The Iowa Public Transit Association has 4 key priorities during the 2015 legislative session:
1. Increasing the state transit assistance for operating funding.
2. Steepening the penalties on assailants of transit operators.
3. Allocating $25 million in capital funding for public transit each year for five years
4. Getting Iowans to work and strengthening our economy by passing the Iowa Employment Rides Initiative Bill.
Good visit with Cheri Grauer, Iowa Natural Heritage Foundation’s Major Gift Steward. We discussed the importance of funding the Natural Resources & Outdoor Recreation Fund. The Foundation proposed that funding this would: support voluntary conservation programs for farmers, protect drinking water sources and waterways, improve vital watersheds and expand outdoor recreation and conservation, and generate $3 billion dollars of economic activity yearly and support over 31,000 jobs.
It’s not too early to plan a Spring hike on one of Iowa’s beautiful trails! Learn more here:http://www.inhf.org/iowa-
The Iowa Rivers Revival legislative reception was held at Noodle Zoo in Des Moines – great food and great conversations! I visited with constituent Gregg Stark, who is a newsletter editor with Iowa Water Trails Association, about protecting our rivers and streams. Between the Missouri and Mississippi rivers, Iowa has over 70,000 miles of interior waterways! These waters are the barometer of the overall health of our ecosystem. IRR is working to ensure that our rivers are safe, clean and enjoyable for us and and our grandkids. Learn more about these efforts here: http://iowarivers.org/
Great turnout for Senator Liz Mathis’ listening post at the Hiawatha Public Library last weekend. Many of the attendees came to discuss the Natural Resources and Outdoor Recreation Trust Fund. The Fund was established in 2010, when 63% of Iowans gave overwhelming support to a constitutional amendment that would allow increased investment in Iowa’s parks, recreation and clean water. However, five years later and the legislature has not yet passed the 3/8 cent sales tax to fund it, as intended. Nearly everyone present voiced their support of conservation, trails and clean water.
We enjoyed a good discussion at the forum about: natural resources, school supplemental aid, mental health, fuel tax and the state budget.
Thanks to all who came to voice their support of the Trust Fund!
Jim Hodina, Linn County Public Health Environmental Manager, and Pramod Dwivedi, Director of LCPH, met with me to discuss investment in Iowa’s food safety system and food-licensing fee structure. They also provided me with an Iowa Air Quality Stakeholder Report, with a list of recommendations for improving Iowa’s air quality, and for source and ambient monitoring, including compliance and enforcement. You can read the report here: http://www.iowadnr.gov/
It was an extra special day at the Capitol Tuesday because family came to visit! Step-daughter, Kirsten Sowell, niece and nephew, Melissa and Nate Smith – with 8-week old Lucy – toured the building (and enjoyed lasagna provided by Insurance Day on the Hill ; ). Kirsten’s a Social Worker, Melissa’s a Nurse, Nate’s a Firefighter, and Lucy just may be a future Speaker of the Iowa House; I felt safe and protected surrounded by these terrific service professionals. Susan and I love having visitors here at the beautiful Iowa Capitol!
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