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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Senate Leader Mike Gronstal watches the vote count on the day before the 2012 session adjourned.

Prepared closing remarks by Senate Majority Leader Mike Gronstal of Council Bluffs

On January 9, I said “My goal is a short, productive session.”

I got it half right.

I want to start by thanking Speaker Paulsen, Senate Minority Leader Behn, and every Republican legislator for helping make this session a success.

I really mean that.

Legislative politics is not about a group of people who agree with each other all the time, getting together and telling each other how right they are.

Legislatures never work that way.

Success in legislatures occurs when people of good faith work to find reasonable compromises.

That happened many times this year.

That’s why Iowa politics are different from Washington politics.  That’s why this session is a success.

Obviously, we did not agree on every issue.  What group of 150 Iowans would?

We did, however, agree on legislation that will move this state forward, legislation that will help create jobs, grow our economy, increase student achievement, and expand educational opportunity.

And we did it by balancing the budget without raising taxes.

Here’s my short, personal list of session highlights:

This Legislature stayed focused on improving Iowa’s economy.

• Business people say fixing Iowa’s skilled worker shortage will create jobs and grow our economy. Working together, we asked Iowa’s outstanding community colleges to tackle this problem.  We also provided the money they’ll need to get started.
• Working together, we made college more affordable for every Iowan, from returning National Guard soldiers to students at Iowa’s outstanding private colleges and nationally recognized public universities.
• Working together, we intensified the STEM effort to improve Science, Technology, Engineering and Math learning in our K12 schools and expanded career-oriented engineering education.

This Legislature agreed to continue substantial economic development efforts

• Working together, we funded substantial business incentives; innovation and business development at our universities; and Workforce Development field offices that help out of work Iowans find jobs and local businesses find workers.
• Working together, we jumpstarted Iowa’s solar and geothermal energy industry with targeted tax credits and extended ethanol incentives.

This Legislature launched an intensive effort to improve Iowa schools

• Working together, we reinforced the importance of early grade literacy, increased parental involvement, instituted annual teacher performance reviews, and expanded student assessments.
• Working together, we kept the option of high quality preschool available to all parents and smaller class sizes for kids learning to read

This Legislature fundamentally reformed our complex mental health system.

• Working together, we made sure all Iowa families will receive high quality services regardless of where they live; there will be more accountability and transparency; and, services will be provided more effectively and efficiently.

We could have done more.

For example, we should have continued forty years of forward funding for local schools by approving a four percent increase in 2014.  The need is there, and we had the resources.

But I’ll leave more talk of “woulda, coulda, shoulda” for another day.

Today the focus should rightly be on the fact that the Republican-controlled Iowa House and the Democratic-controlled Iowa Senate chose to enact good policy rather than engage in partisan politics.

The result will be a stronger Iowa economy, better Iowa schools, and a better quality of life for all Iowans.

In closing, I want to thank Democratic Leader McCarthy and our Democratic colleagues in the Iowa House for their vigilance and passion, the Senate backroom staff, the Republican and Democratic Senate staffs, the Senate doorkeepers, the Legislative Service Agency, and the pages.

Finally, I would like to thank the 26 Democratic members of the Iowa Senate.

Every day, each of you inspired me by showing how people of good faith work together to find reasonable compromises.

Well, most of you, on most days, were inspiring.

Thank you all.

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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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.

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.”

The Earned Income Tax Credit passed earlier this year by the Senate for the third time would provide some needed relief to working Iowans and their families. Senator Bolkcom made his comments on April 19 on the floor of the Senate chamber.

From the Center for Budget and Policy Priorities

Taxing the incomes of working-poor families runs counter to decades of efforts by policymakers across the political spectrum to help families work their way out of poverty. The federal government has exempted such families from the income tax since the mid-1980s, and a majority of states now do so as well. Since 1991, the number of states with income taxes on working-poor families of four has fallen from 24 to 15, and even in most of the remaining 15 states, the income tax liabilities of these families have declined significantly since the 1990s. Poor families paid income tax bills of several hundred dollars in 2011 in seven states. A two-parent family of four with annual income at the poverty line (which is $23,018 for a family of that size) owed $548 in Alabama, $509 in Illinois, $331 in Hawaii, $274 in Oregon, and $273 in Georgia. Iowa and Montana also levied taxes of more than $200 on families with poverty-level incomes. Such amounts can make a big difference to a family struggling to escape poverty.

Highlight video

Complete discussion (audio only)