Another busy week in the Iowa House with continued subcommittee work, budget appropriations testimony and full debate on dozens of bills that have made their way to the floor for consideration by the 100 members.  Debate on a single bill, HF 549, lasting one and a half days!  HF 549 is an act relating to collective bargaining arbitration proceedings involving employees of school districts and area education agencies.  The long debate on HF 549 was justifiable as it would impact the quality of our children’s education for years to come.   The final vote in the House was strictly along party lines with Republicans passing the measure  56 to 41.  HF 549 now moves to the Senate where it is expected to meet a cool reception.

Governor: Iowa Students Deserve More

If the future of Iowa children, job creation and economic growth matter to you, please make your voice heard on funding for our students and schools.

The House and Senate are in gridlock. The Senate has approved a 4 percent increase in funding for our K-12 schools. However, our House Republicans have voted to scale back educational opportunities with a meager 1.25 percent increase. That is not enough to even keep up with inflationary costs, let alone compete with other states.

When asked about the impact on their students, Iowa school board members, superintendents and administrators have said that, with only a 1.25% increase in supplemental state aid, they would be forced to increase class sizes, fire teachers, delay buying new classroom materials and reduce course offerings – all directly impacting the achievement of Iowa students.

In Iowa, we are already more than $1,600 below the national average in annual per-pupil investment. The result is that other states are better at funding their schools – schools which are now increasing student achievement faster than Iowa’s.

Iowa is competing with the world for high-skill, high-wage jobs. We must increase our commitments to great Iowa schools, student achievement and teacher quality.

Contact Governor Branstad and tell him to break the gridlock on school funding by supporting 4% supplemental state aid. Call his office at 515-281-5211 during regular office hours, M-F, 8 am to 4 pm  or send him a personal message at www.governor.iowa.gov/constituent-services/register-opinion.

REC Cautiously Optimistic about Revenues

Due to growing wages and increasing retail sales, the Revenue Estimating Conference  predicts that Iowa will continue on the road of modest revenue growth in the coming fiscal year, expecting Iowa to take in $7.18 billion in the fiscal year that begins July 1. That’s about 6 percent more than the current year. The projection is slightly less than the amount estimated by the group in December due to this year’s IRC income tax coupling bill, rather than any economic changes. State revenue is made up of personal and corporate income taxes, sales and use taxes and other sources.

Under Iowa law, the Legislature must use the March estimate to determine the next fiscal year’s budget, because it came in lower than the REC’s December projection. But because there is very little difference in the projections, it is unlikely to greatly change this year’s budget proposals.

The process was created during budget reforms in the 1990s, and is designed to force the governor, the Legislature and an independent economist to agree on how much the state will likely collect in taxes and then use that as a base for a new state budget.

My colleague in the House, Representative Chris Hall attended the REC meeting Thursday and provided me with these additional notes:

• FY 2015 revenue was reduced from the December estimate by $89.7 million. The sole reason is the legislature’s passage of SF126, the IRC federal tax coupling bill. That bill reduced state revenues by $98 million in the current year.
• FY 2016 revenue was reduced from the December estimate by $19.1 million. This represents a very small reduction overall.
• Revenue coming into the state has actually increased since December’s meeting.
• REC members anticipate modest to moderate growth in state revenue to continue into the future, between 4-5%. They see no great cause for concern and remain optimistic, viewing more positive economic indicators than negative.
• Non-farm employment in Iowa is expanding at roughly 20,000 jobs per year. REC members will continue to monitor the manufacturing sector, which is down approximately 700 jobs since last year. The strong US dollar may also impact agricultural and manufacturing exports. The stronger the dollar is, the less attractive our exports are in international markets.
• LSA encourages members and our constituents to examine a new section on their website:Economic Trends

Flat Tax Should be Flat-lined

Attached is an excerpt from the Legislative Service Agency’s analysis of HSB 215 and it’s estimated impact on the state budget.  Figures are from of the Department of Revenue detailing the first fiscals on the Alternative Flat Tax proposal in HSB 215.  The bill was voted out of the Republican-controlled House Ways & Means Committee Wednesday on a party line vote, 13-11.  The bottom line negative fiscal impacts include $521 million in FY 2016 and approximately $444+ million each year thereafter. (Table references removed.)

Estimated Impacts

• Under this bill, the estimated General Fund decrease is $408.0 million (-12.2%) in tax year 2015.
• An estimated 25.2 percent of taxpayers would experience a decrease in their tax liability, with an estimated $1,037 average decrease in tax liability per household. In tax year 2015, an additional 12.7 percent of taxpayers are estimated to select the alternative tax for simplicity although their tax liability would be the same under the two options.
• School District Surtax collections are estimated to increase by $1.6 million in tax year 2015 and $1.9 million in tax year 2019.
• The estimated decreases in General Fund revenues are $12.2 million in fiscal year 2015, $521.5 million in fiscal year 2016, and $444.2 million in fiscal year 2019.
• The share of taxpayers who are estimated to select the alternative tax will be 37.9 percent in tax year 2015 and 37.2 percent in tax year 2019 for all taxpayers. Limiting to residents, the share selecting the alternative base income tax option would be 36.9 percent in tax year 2015 and 36.2 percent in tax year 2019.
• In tax year 2015 for those with income between $20,001 and $500,000, in general the share of selecting the alternative base income tax option rises as income increases. It is notable that for taxpayers with income $20,000 or less, the share of choosing flat tax will be 39.3 percent in tax year 2015, higher than the percentages for those with income between $20,000-$60,000, primarily suggesting that a larger share of the low-income taxpayers have no tax liability under either options so that they are considered to select the flat tax for simplicity.

Since session began, Republicans have been telling Iowans that the state budget is tight and it can’t afford more than a 1.25% increase for schools, which is about $99 million next year.

That’s why I was shocked this Wednesday when Republicans controlling the House Ways and Means Committee passed a new bill full of new additional tax breaks – overwhelmingly targeted to those at the top – that will cost the state $520 million next year and more than $444 million every year thereafter.

If Republicans can find $520 million for a new tax break, there is clearly enough money to resolve the school funding crisis and quickly approve a 4% increase in school funding next week.

The proposed tax break would overwhelmingly favor the rich with one-fifth of the tax cut going to about .5% of taxpayers, all of whom make over half a million dollars annually.  This would be at the expense of the other taxpayers and the most vulnerable whose services would have to be cut – due to the funding shortages that would be created throughout the state budget.

The total tax cut for those making below $49,000 in Iowa, approximately one million tax filers, is almost the same amount as just those 2,500 tax filers making over a $1 million annually.

Here are some observations about this tax cut:

• The total cost of the tax cut would be 10% of the entire state budget
• It is not just a one year break, it will cost over $444 million every single year
• The tax cut would put a huge hole in the state budget and steep cuts would have to be made in education, health care, mental health, public safety and many other area

To put it into context, here’s just one scenario of what could happen to pay for the tax cut:

• Permanently close the entire correctional system ($379 million) and
• End Iowa’s efforts to improve water quality ($57 million) and
• Eliminate the Iowa Dept. of Agriculture ($22.4 million) and the Iowa Economic Development Authority ($18 million) and
• Eliminate preschool for $20,000 four year olds ($70 million)

Bill Permitting Iowans to Registier to Vote Online Passes Senate

The Democratic-controlled Senate voted 26-20 along party lines to create an online voter registration system for Iowans.

This legislation would permit online voter registration through the Iowa Secretary of State’s website with an Iowa driver ‘s license number, a Social Security number or a state-issued identification card number.

Once registered online, officials at the local county auditor’s office are expected to verify the information and then mail a voter card.

“The bill before us basically says that we’re not going to leave any Iowan behind when it comes to their basic civil right of voting,” said Sen. Jeff Danielson, D-Cedar Falls. “The first step in voting is to register.”

If passed in the Iowa House and signed by the Governor, the bill would go into effect in January 2016.

Protecting Local Pharmacies & Keeping Prescriptions Affordable

The House unanimously passed a bill to give the Insurance Commissioner explicit authority to investigate and impose sanctions on pharmacy benefits managers who do not follow the reporting law.

Pharmacy Benefits Managers (PBMs) act as a pharmaceutical middle management between health care providers, pharmacies and prescription drug companies/manufacturers by negotiating the costs of those prescriptions.  They can also assist providers by creating formularies (list of authorized prescriptions).  In return, the pharmaceutical middle management keeps a portion of the money paid by the customer and/or health care provider that would otherwise be returned to the pharmacists in the form of a rebate.

The Legislature sees the Insurance Commissioner as an important tool for consumer protection to allow the Commissioner to look into the pricing methodology to see if the PBMs were taking financial advantage of their position, which could explain some of the high costs of prescription drugs and why some pharmacies closed.

House File 395 passed the House and is now ready for debate by the Senate.

Executive Director of the Iowa Community Action Association, Lana Ross, and Representative Sally Stutsman, spoke on poverty during “Moral Mondays IOWA”. (MMIowa is a collaborative project designed to highlight the progress at work in the Iowa Legislature.)

Poverty is one of the biggest factors negatively impacting Iowa families and children and hindering their success. Raising the minimum wage to at least $10.10 an hour would benefit about 1 out of every 10 Iowans. Lana explained that our society has come to a crossroads of sorts where we need to determine if we are going to pay workers a dignified wage, or continue subsidizing families’ incomes with family support services, earned income tax credits, food stamps, etc.
Here are some stats about poverty in Iowa:

Child child poverty rate is 16% Percent of single-parent families with related children that are below poverty: 33% Children receiving food stamps (SNAP): 161,000 [based on 2013 data fromhttp://www.spotlightonpoverty.org/map-detail.aspx?state=Iowa]

Area Education Agencies from across the state hosted a legislative reception at the Capitol. I enjoyed visiting with Dr. Paula Vincent, Heartland AEA Chief Admin.; Tom Lane, retired superintendent and Heartland AEA legislative liaison; and Joe Crozier, Grant Wood AEA Chief Admin. We discussed proposed legislation for providing mental health counselors for area schools as well as adequate funding for K-12.

Great to visit with this group of professionals who are as passionate as I am about providing our youth with an excellent education!

Susan Smith is the Managing Director of I-TABS (Iowa’s Technical Assistance and Behavior Supports) at the Woodward Resource Center. The Woodward Resource Center (WRC) is one of two State Resource Centers that provides a full range of active treatment and habilitation services to individuals with severe intellectual disabilities. It serves to prepare and support their clients to live safely and successfully in the home and community of their choice. I learned that Susan will even come to your town to provide behavioral consultation and assessment services. More about this resource here:https://dhs.iowa.gov/mhds/disability-services/resource-centers/woodward

The Heritage Area Agency on Aging Executive Director Ingrid Wensel and Associate Director Jill Gleason advocated on behalf of older Iowans today at the Capitol. (pictured also is Representative Dave Heaton of Mount Pleasant)

We discussed a program called Life Long Links, which is an excellent statewide service for aging Iowans, Iowans with disabilities, veterans and their caregivers as they begin to plan for long-term independent living. Life Long Links provides access to many of the state’s information and referral resources to help individuals learn which programs are available in their community and connect them with local or regional service providers.

More info here: http://www.lifelonglinks.org/home.htm

Speaking on behalf of constituent Gwen Meek, who first contacted me about a bill for statewide control of dangerous K2 and other synthetic substances. HF 567 passed the House and now goes to the Senate.

Wednesday was Homeless Awareness Day at the Capitol and several Cedar Rapidians were here advocating for the myriad of issues associated with homelessness: affordable housing, child daycare, domestic violence, mental health, counseling services, support groups, drug and alcohol dependencies, and jobs that pay living wages.

Inadequate supply of affordable housing for low-income families is a big problem, even in the metropolitan Cedar Rapids area. A home is the foundation for health, education and stability but when an average homeless person’s total income is only $629 per month, housing options are slim to non-existent.
There’s some good news for Iowa veterans – programs to help veterans have reduced their homelessness by 14% over the past two years.

I learned that 882 people from my House District 66 were served in a homeless shelter, transitional housing or permanent supportive housing facility in just the last year.
More than 100 Iowa agencies operate over 225 programs for the homeless. A few of the people doing some amazing work in these agencies are pictured here:

Waypoint representatives: Dave Thielen, Chief Operating Officer; Carrie Slagle, Director of Homeless & Housing Services; Stefanie Munsterman-Robinson, Board Member; Stacie Osako, Board President; and Cathy Terukina, Board Vice President.

Willis Dady Emergency Shelter Executive Director, Tim Wilson.

I appreciate them for bringing awareness of this critical issue, homelessness, to the Statehouse.

Steve Carroll is Linn County Rural Electric Cooperative’s Member Services Supervisor. Shortly before I visited with Steve, a group of Chinese students with US Education Without Borders spoke with him about career opportunities in the electrical transmission and power plants field.

Linn County REC is a not-for-profit, member-owned electric distribution cooperative serving more than 26,000 members in portions of six counties in eastern Iowa. They are committed to providing members with reliable, cost effective, sustainable electricity and excellent customer service.

Steve certainly represented the REC well, both in his discussion with me and his exchanges with the Chinese students visiting the Iowa Capitol!

Alzheimer’s Association’s East Central Iowa Chapter Executive Director, Melissa Pence, spoke with me about SSB 1001. This bill would develop a task force to review dementia training standards in Iowa and to look for gaps in who is trained at all levels of the continuum of care.

Today, over 60,000 Iowans are living with Alzheimer’s disease. It is the fifth leading cause of death in Iowa and the only major disease with no cure. Without a treatment or cure, medical costs are projected to increase to more than $1.1 Trillion dollars in 2050!

If you are caring for a loved one with the disease, there are resources and support networks available. Learn more here: http://www.alz.org/eci/

Dupont Pioneer Manager, Dave Everett, serves on the board of the Iowa Center for Economic Success. The Center’s mission is to empower Iowans with the potential to succeed as they pursue opportunities to improve their financial futures. They offer free tax prep and planning, microloans from $5,000 to $50,000, and business education. They also operate a Women’s Business Center in Des Moines to help develop business skills, confidence and resources necessary to start, grow and advance in business. Women in Iowa have smaller businesses than their national counterparts; only 9% report sales of over $100,000.

Learn more about these services here: http://www.isedventures.org/

Two of my favorite authors are John Steinbeck and Arthur Conan Doyle, and pictured here are some of my favorite librarians: Capitol Law Librarian, Cory Quist; Cedar Rapids Young Adult Librarian, Molly Garrett; and Library Commissioner, Dan Boice (along with one of my favorite legislators Todd Taylor). Molly told me how proud she is of our CR libraries. I also learned of a recent innovation grant the library received to provide technology to students at area schools.

Exciting things happening in the Corridor!

Meeting with Cedar Rapids officials at the Capitol regarding the potential impact of HF 493 on the SAFE-CR program. The purpose of the Secure And Friendly Environments in Cedar Rapids program is to ensure a higher quality of life for citizens, preserve property values, control the costs of taxpayer funded services (such as police, fire and property code enforcement), ensure properties are well maintained, promote lawful conduct and the peaceful use of properties. The program applies to all properties, including rental, owner-occupied, commercial and industrial.

There are landlords who have supported a bill relating to the right of residents, owner, tenants and landlords that would likely preempt the CR ordinance. I and many others have been working hard to resolve the issues, craft workable legislation that protects the CR ordinance, preserve individual rights to seek assistance and better ensure the safety and well-being of our neighborhoods. Not an easy task.

Thank you to all who have participated in attempting to resolve these issues.

“Life is one grand, sweet song, so start the music.” – Ronald Reagan

SoundReach – a choral music group for adults who have developmental disabilities – started the musicTuesday morning in House Chambers with three songs: “Hound Dog”, “Yellow Submarine” and God Bless America”. SoundReach choir is a music therapy service offered by West Music. Under the direction of Kyle Wilhelm of Cedar Rapids and Jenny Denk of Des Moines, the choir’s performance brought legislators to their feet in appreciation for the beauty of their music.

(Show here with Rep.Lisa Heddens and constituents, Jim and Geri Pettitt’s and their daughter, Michelle, who was one of the singers.)

“Music can change the world because it can change people.” – Bono
Continue Reading the Statehouse News

To read the rest of my Statehouse News go to:http://iowahouse.org/StatehouseNews/3-20-15