Senate Majority Leader Mike Gronstal:
“We did some things on job creation in this state on making sure that the resources are there to provide for education and training of employees in this state to match the skills to the jobs that are out there and get thousands of Iowans back to work. So I’m pretty excited about some of the things we did for higher education and in particular community colleges. There are disappointments, there are disappointments in every session. I would have really loved to have gotten something done on commercial property taxes in this state. In the end we felt the plan that the Governor was advancing was one that would shift taxes to homeowners and we couldn’t go along with that.”

Video, audio and a transcript can be found at IPTV.

Senator Rob Hogg of Cedar Rapids

Senate proposals approved with strong bipartisan support that the Iowa House failed to consider

Statement by Senator Rob Hogg of Cedar Rapids

“Below are ten bills that passed the Iowa Senate with strong bipartisan support.  They focus on job creation, growing Iowa’s economy, health care and public safety.  Unfortunately, the Iowa House failed to debate these bipartisan opportunities to move Iowa forward.”

Small business health care tax credit: SF 506 – Help 60,000 Iowa businesses with 10 or fewer employees by providing a tax credit to defray the cost of employee health insurance. This bill passed the Senate by a vote of 48-0.

Supporting the use of alternative fuel vehicles: SF520 – Tax credits for electric and natural gas vehicle infrastructure, which would create jobs and provide a long-term, environmentally superior alternative to dependence on foreign oil. This bill passed the Senate by a vote of 47-3.

Working families’ tax cut: SF2161 – Expand the Earned Income Tax Credit to cut taxes for 260,000 working families (home to 37 percent of Iowa’s children) and boosting our local economy. This bill passed the Senate by a vote of 48-0.

Buy American when spending public dollars: SF2287 – Preference for American-made products to be used on public projects, unless those products cost 5 percent more than other products. This bill passed the Senate by a vote of 37-13.

Encourage locally-owned renewable energy: SF2326 – Add renewable energy production tax credits for locally-owned projects to create jobs and help the environment. This bill passed the Senate by a vote of 41-9.

Buy Iowan when spending state dollars: SF2302 – Give Iowa companies an opportunity to match a lower bid when the state is purchasing goods and services if the Iowa company is within 5 percent or $10,000 of the lowest bidder. This bill passed the Senate by a vote of 35-15.

Require autism coverage: SF2128 – Require insurance companies to provide coverage of autism spectrum disorders.  This bill passed the Senate by a vote of 43-7.

Alzheimer’s support strategy: SF2270 – Establish a comprehensive strategy to help people with Alzheimer’s and their families. This bill passed the Senate by a vote of 44-6.

Close the “justice gap” for victims of child sexual abuse: SF2295 – Extend the statute of limitations to 10 years from the date they turn 18 for victims of child sexual abuse to bring a civil lawsuit. This bill passed the Senate by a vote of 49-0.

Statewide public safety training center: SF2335 – Establish a governing board and funding mechanism for coordinated statewide programs and facilities for police, fire and other public safety personnel and volunteers to improve training and reduce the burden on property taxes. This bill passed the Senate by a vote of 35-13.

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Senator Brian Schoenjahn of Arlington

(DES MOINES)  On Monday, May 7, the Senate voted 28-19 and the Iowa House voted 92-5 for a bipartisan, compromise education budget that includes key job creation measures.  The legislation now goes to Governor Branstad for his signature.

“When Iowa employers can’t find the workers they need, they have three bad choices: lose business to competitors, hire out-of-state, or move out of Iowa,” said Senator Brian Schoenjahn, chair of the Senate Education Budget.  “We’ve voted to invest in our community colleges so they can help Iowans fill those skilled job shortages.”

Under Senate File 2321, investment in workforce training will increase to $8 million next year, a hike of 60 percent.  The new GAP Tuition Fund, which helps Iowans earn certificates in welding, information technology and other shortage areas, will begin with a $2 million investment.  The Accelerated Career Education (ACE) program will receive $6 million.  General community college funding will increase by $13 million and the institutions will receive an additional $5 million for maintenance.

“Helping Iowans become more productive, more competitive workers is a great way to grow our economy and create new jobs in our state,” said Schoenjahn.  “Reaching the right compromise took some time but improving our economy and helping Iowans improve themselves was certainly worth it. “

The compromise budget also increases funding for Iowa’s public universities by $23 million, an amount which the Board of Regents has said will help prevent future tuition increases.  Tuition grants for private colleges were increased by 4.6 percent and funds for the National Guard tuition program were increased by 7 percent.

“By keeping tuition costs down at our public universities and private colleges, we increase educational opportunity and make it possible for Iowa’s families to send their kids to Iowa’s great colleges and universities,” said Schoenjahn.

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• An increase in our state’s investment in education at the local level, at our community colleges and at our state universities. The Senate blocked Republican demands to close preschools, eliminate support for smaller class sizes and extra help for kids learning to read, cut community college funding and force more of the cost of college onto the backs of families.

• A significant cut in commercial property taxes that reduces taxes on every commercial property in Iowa. We need to help small businesses the most and does not shift taxes onto residential property.

• A tax cut for working families—one that will also help local businesses when families purchase milk, gas and school clothes, make car repairs and pay bills.

What else still needs to be done?

Legislation that will help create jobs and strengthen our economy tops my list. Many ideas passed the Senate with bipartisan support but weren’t taken up in the House. These ideas—developed by working closely with local business and community leaders—need to be given another look:

• Giving Iowa’s community colleges more tools to help fix our state’s shortage of skilled workers. 

• Intensifying efforts to make sure state and local tax dollars buy American and buy Iowan.

• Reducing costs for 60,000 Iowa small businesses with a state tax credit on employee health insurance costs.

• Providing consumer rebates to create jobs on solar and wind projects at residences and businesses.

We filed a property tax cut bill today that contains elements of proposals from the Senate, the House and the Governor. When fully implemented, the legislation will encourage job creation by cutting taxes by almost $350 million.  Our goal is to increase economic growth and jobs in Iowa. Iowa small businesses will benefit the most, thanks to the insistence of Senate Democrats.”

Here are some highlights of the bill:

• All commercial property will receive a tax cut
• Nearly two-thirds (63%)of all commercial property will receive a 40 percent tax cut.
• Taxes will be cut by 40 percent on the first $100,000 of assessed value.
• Local governments will be reimbursed for most lost property tax revenue.
• Limits on how much residential property taxes can increase are toughened.

In addition, the legislation would more than double the state’s Earned Income Tax Credit. This legislation provides $31 million to help working families make ends meet and give a boost to local businesses.

Other provisions will encourage additional affordable housing by cutting property taxes on apartments and eliminate competitive disadvantages in the taxation of Iowa telephone companies.

Link to SSB 3205.

When we’re done, I think we’re going to have an economy in the state of Iowa–and Iowa’s economy is in relatively good shape–where we can encourage job creation and growth, encourage businesses to come to our state, tackle a problem that’s been going on for 34 years in terms of an inequity in the tax code and provide the resources to make sure we have the skilled workers to fill the jobs that we think will come to our state.  I’m very excited about that.

The Iowa Senate is working to invest $62 million in job creation and economic growth. The Republican-controlled Iowa House, however, is only willing to invest about half that much.

The Senate also agreed that Iowa should help businesses create jobs through targeted incentives. The House does not.

The Senate wants Iowa’s three state universities to keep working with businesses on technology commercialization, marketing, entrepreneurship and technical assistance for businesses.

The House budget, on the other hand, would cut advertising for Iowa tourism and close Small Business Development Centers and Workforce field offices. If the House gets its way, it will be more difficult for Iowans to looking for work and for Iowa businesses to get started, expand and find the employees they need.

We all hope we can agree to put job creation first as the 2012 session wraps up. Other efforts to boost our economy that I’m pushing for include:

** Fixing Iowa’s skilled worker shortage. It’s the best thing we can do for our economy, according to business leaders. Partnerships between community colleges and local businesses are a proven way to help Iowans gain the skills needed for hard-to-fill job openings that are locally available right now.

** Cutting commercial property taxes for every Iowa business—especially for small and Main Street businesses—without increasing residential property taxes.

** Requiring more effort to buy American and buy Iowan first when your state and local tax dollars are spent.

** Cutting income taxes for 260,000 working Iowa families by boosting Iowa’s Earned Income Tax Credit.

** Reducing health insurance costs for 60,000 Iowa small businesses with a state tax credit on employee coverage.

** Boosting alternative energy investment through consumer rebates for residential and business solar and wind projects that save money and are environmentally friendly.

State Senator Joe Bolkcom

Statement by Senator Joe Bolkcom, chair of the Ways and Means Committee and member of the Senate Appropriations Committee

“Governor Branstad, your reckless rhetoric has helped bring Iowa to the point of fiscal crisis. This weekend, Senator Bill Dix of Shell Rock, the top Senate Republican on budget issues, suggested that Republicans should simply give up on budget negotiations.”

Senator Dix said:

‘I believe that there are sufficient resources that were allocated a year ago to get to January 1,” Dix says, “in which case the next legislature, after this November election, could make a determination at that point of how to supplementally approve resources for the balance of that year.

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“Governor, we need you to help stop a politically-driven Iowa government shutdown that would devastate investor confidence in the Iowa economy, create turmoil at Iowa’s schools and universities, and create needless panic among Iowa’s seniors and families.”

Last year, the longest session in recent memory, ended relatively quickly once conference committees were established. Conference committees are comprised of five legislators from the House and five from the Senate. Their task is to resolve the differences between the two chambers on key bills.

This year, Senate Democrats look forward to a side-by-side, public comparison of our differences with the House. We believe this effort will benefit educational opportunity and support job creation.

For more details on this year’s conference committees and how they work, go to http://tiny.cc/conf2012.