APPROPRIATIONS-Week of Feb. 27

SF 2217 – Flood Mitigation

SSB 3173 – FY13 Administration & Regulation Budget

SSB 3175 – FY13 Dept. of Transportation Budget

FLOOR ACTION:

SF 2217 establishes a flood mitigation board to oversee the flood mitigation program. The board is responsible for reviewing flood mitigation project plans that apply for financial assistance from the flood mitigation fund or by using state sales tax revenue growth from that governmental entity. When reviewing projects requesting financial assistance, the board will consider these factors:

** Whether the project will mitigate future flooding of property that has sustained significant flood damage in the past and is likely to sustain significant damage in the future.

** Whether the project addresses the impact the proposed project would have on flooding both upstream and downstream of the proposed project and whether it conforms to any applicable floodplain ordinance.

** Whether the area that would benefit from the project is sufficiently valuable to the economic viability of the state or is of sufficient historic value to the state to justify the cost of the project.

** The use of local matching funds. A project will not be approved unless at least 50 percent of the total project cost, less any federal funding, comes from local sources. The project must also be accompanied by nonpublic investment in the governmental entity’s area equal to at least 50 percent of the total project cost. Nonpublic investment means investment by nonpublic entities consisting of capital investment on infrastructure projects occurring in anticipation of or as a result of the project during the period of time from July 1, 2008, and ten years following the completion of the project.

Projects eligible under this program must be undertaken by a qualified governmental entity, which includes a county, a city or a joint board established by a 28E agreement between two or more cities located in a county, a county and one or more cities located in the county, or a county and one or more cities located in the county and a drainage district formed by mutual agreement. Following approval of a flood mitigation project plan by the state flood mitigation board, the governmental entity would adopt a resolution requesting the establishment of an account in the sales tax increment finance fund of the state treasury. The money in this account would come from increased sales and service taxes collected in the jurisdiction of the governmental area above the base year, which is the year the flood mitigation project plan was approved by the board. The Department of Revenue would compute the amount of money to be deposited into the account quarterly, and the governmental entity could request remittances from that account as often as quarterly. Money remitted from the project’s account must be deposited into entity’s flood project fund for the purposes of financing the project.

The total amount of money that can accrue in the sales tax increment fund is not allowed to exceed $30 million annually. No governmental entity (or project) would be able to receive remittances from the entity’s flood project account in excess of $15 million annually, or 70 percent of the increased sales tax increment revenue from the governmental entity’s applicable area, whichever is less. The bill also creates a flood mitigation fund as an alternative future funding source, but does not provide any appropriations for the flood mitigation fund. [2/28: 50-0]

COMMITTEE ACTION:

SSB 3175 appropriates a total of $350.8 million to the Department of Transportation (DOT). This includes $47.6 million from the Road Use Tax Fund (RUTF), $303.2 million from the Primary Road Fund (PRF). This is a net increase of $4.9 million. The bill designates reporting requirements regarding the implementation of efficiency measures identified in January 2012. The DOT is required to submit quarterly electronic reports to various related legislative committees and the Legislative Services Agency concerning the activities regarding one-time and long-term efficiencies and partnerships. The first report is to be submitted by October 1, 2012. An amendment was adopted to increase the time a young driver is required to have their instruction permit before receiving an intermediate driver’s license from six months to 12 months. An applicant for an intermediate driver’s license is required to be accident- and violation-free for 12 months (was six months) before receiving the license. [2/27: 20-0 (Hatch excused)]

SSB 3173 appropriates a total of $56.8 million from the General Fund for the Administration and Regulation FY13 budget. This is an increase of $4.1 million. SSB 3173 also appropriates a total of $50.7 million from other funds, a decrease of $3.1 million. Highlights include:

** Funding a Medication Therapy Management Program with a transfer of $510,000 from Board of Pharmacy fees. The transfer is contingent on legislation establishing the Program during the 2012 session.

** Maintaining the current level of funding for Department of Administration Services, Auditor of State, Governor’s Office, Department of Human Rights, Department of Human Rights, Office of the Secretary of State, Office of the State Treasurer and Department of Revenue.

** Increasing the Iowa Ethics and Campaign Disclosure Board by $35,000 to upgrade entry-level auditor positions to field auditors.

** Appropriating $1.8 million from the General Fund and $24.1 million from other funds to the Department of Commerce. This is a status quo appropriation from the General Fund and an increase of $247,000 from other funds to the Banking Division for additional bank examiners and a $65,000 increase to the Credit Union Division for an additional credit union examiner.

** Appropriating $993,000 from the General Fund to the Iowa Telecommunications & Technology Commission for Regional Telecommunications Council. This item was previously funded in the Education Budget.

** Appropriating no funding and two FTEs from the General Fund for the Governor’s Office of Drug Control Policy. This is a decrease of $290,000. The responsibilities of the Office will be addressed in other legislation.

** Appropriating $12.9 million from the General Fund and $7.4 million from other funds to the Department of Inspections and Appeals. This is an increase of $3.4 million from the General Fund and a decrease from other funds to shift funding from the Medicaid Fraud Fund.

** Repealing the FY13 Medicaid Fraud Fund appropriations of $670,000 to the Department of Inspections and Appeals for assisted living and adult day care services that was provided in HF 649 during the 2011 session.

** Authorizing members of the Legislature to receive per diem, travel expenses and actual expenses while serving as members of the Deferred Compensation Advisory Board. [2/27: 13-8]