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.

Senator Jeff Danielson

DES MOINES – Democratic legislators from Black Hawk County are laying out the legal reasoning why the Board of Regents was wrong to support UNI President Ben Allen’s recommendation to close Malcolm Price Laboratory School. 

“Unlike previous requests, we have both asked the Iowa Attorney General for an opinion and laid out the legal reasoning as to why the Board of Regents’ decision was not legal,” said Senator Jeff Danielson of Cedar Falls.

Danielson is joined by Representative Bob Kressig, Senator Bill Dotzler and Representatives Deborah Berry and Anesa Kajtazovic in seeking the opinion of the Iowa Attorney General on whether the Board of Regents has the authority to close Price Lab at the University of Northern Iowa. The legislators’ request includes arguments describing how the Iowa Board of Regents overstepped its authority in deciding to close Price Lab. View there request here: Price Lab AG’s opinion request

“We believe the policy and the appropriations authority in this matter lie exclusively with the Legislature,” Danielson said.

“There was no plan in place and little discussion. The parents, students and teachers of Price Lab deserved more than five days to make their case to other Iowans and the Board of Regents,” said State Representative Bob Kressig of Cedar Falls. “This formal request is the next step in our efforts to determine what options are available for Price Lab School. I will work with my colleagues in the House and Senate to provide more support for UNI next year.”
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Statement by Senator Herman Quirmbach of Ames, Senate Education Committee Chair

“Senate Democrats remain committed to working with Governor Branstad and Republican legislators on our shared goals of raising academic standards, increasing teacher and school administrator effectiveness, and implementing innovation that increases learning.

“The education reform package developed by Senate Democrats includes some elements of the Governor’s waiver application.

“However, we have no interest in supporting some of the risky, unproven proposals contained in this application.

“It doesn’t make any sense to pass bad state policy in an effort to get a waiver from bad federal policy. Two wrongs don’t make a right.

“We asked Director Glass to share Iowa’s NCLB waiver application on February 8th, so that we could review that application before it was filed.  They instead chose to keep it secret. 

“We hope that the Governor and the Department of Education will adopt a more open, transparent, and cooperative approach in the future.

“For the Senate Democrats and the overwhelming majority of Iowans, the education of Iowa’s kids is not a partisan issue.”

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Senate Majority Leader Mike Gronstal

House Republican budget threatens economic security of Iowa’s middle class families, threatens recovery

House Republicans have proposed cutting Governor Branstad’s budget for education and economic development by more than $180 million.  On its own, the Governor’s budget is inadequate in many ways.  The House Republican budget cuts, however, would be even worse.

“Given the state’s improving fiscal position, these unwise cuts would undermine the economic security of middle-class families,” said Senate Majority Leader Mike Gronstal. “As the details of our budget are released, Senate Democrats will do better; better for jobs, better for education and better for Iowans’ quality of life.”

Here are some of the worst House Republican budget cuts when it comes to jobs and education, as compared to the Governor’s budget:

• Eliminate $25 million for business incentives through the Economic Development Authority.
• Eliminates proposed $20 million increase for our Regent universities (more than $250 per student).
• Cuts University of Iowa funding by an additional $18 million (or nearly $600 per student).
• Eliminates economic development funding ($209,000) through the University of Iowa.
• Decreases economic development programs at Iowa State University by $1.5 million.
• Cuts University of Northern Iowa funding by an additional $3 million (more than $225 per student).
• Reduces community college by $4 million (approximately $40 per student).
• Reduces investment in STEM by $3 million.
• Reduces student financial aid through the Iowa Tuition Grant and other programs by $4.9 million.
• Cuts Iowa State University funding by an additional $10.1 million (more than $300 per student)
• Decreases workforce development field office funding by $4.3 million, a 50% general fund cut.
• Decreases general economic development by $965,000, slashing tourism and Main Street initiative.

“I’m afraid that the House Republican cuts are just the tip of the iceberg,” Gronstal added.

“Iowans want Republican and Democratic legislators to focus our efforts on expanding job creation and improving educational opportunity,” said Senator Bob Dvorsky of Coralville, chair of the Senate Appropriations Committee.  “That’s why jobs and student achievement are the top Democratic priorities, and I know many Republicans share those priorities.  We will consider any idea—regardless of who suggests it—that will help the Iowa economy grow.”

The Senate Democratic plan calls for $6.218 billion in general fund spending, $25.2 million less than Governor Branstad’s proposed budget.  The Senate Democrats include a commercial property tax cut that especially helps Iowa’s small businesses and new workforce training to reduce Iowa’s skilled worker shortfall. The plan also calls for increased state support for Iowa’s local schools and a tax cut for working Iowans (Earned Income Tax Credit)

Spreadshett of FY 13 Senate Targets

Statement from Senator Joe Bolkcom

“TIF is an important tool used by Iowa’s local leaders create jobs, encourage business growth, and grow Iowa’s economy.

“TIF allows a city or county to freeze the property taxes on a site at pre-development levels for a certain period of time.  Any increase or “increment” in taxes can be used to fund development within the TIF district.

“As a result of the freeze, local taxing agencies, such as school districts and the county, do not receive any incremental tax revenue until the TIF district expires.

“TIF has done a lot of good across Iowa. It also has been used in some questionable ways.

“Senate Democrats are working with both Republican and Democratic legislators to approve TIF reforms.  Our shared goal is to better support efforts to create Iowa jobs.

“In the Senate, Senator Steve Sodders, the chair of the Economic Growth Committee, is developing legislation.  If approved by the Economic Growth Committee, that legislation will then go to the Senate Ways and Means Committee.  The members of the House Ways and Means Committee are also working on legislation.

“The legislators I’m working with, both Republican and Democratic, take the issue of TIF reform very seriously.  After all, TIF funds statewide total more than a quarter of a billion dollars.”

(VIDEO) Bolkcom and Representative Tom Sands, (R-Wapello) hosted a public TIF meeting on Jan. 4 in Coralville.  Here’s a direct link to Senator Bolkcom’s introduction to TIF and to the entire presentation.

Recent News Clips on TIF

New development has Iowa cities’ debt piling up—Des Moines Register

11:51 PM, Jan. 19, 2012

City officials spent about $350 million in tax dollars in 2010 paying off or acquiring new long-term debt under the state’s tax increment financing law, according to the most recent data available from the state’s nonpartisan Legislative Services Agency. “I think there is an opportunity to finally do something about this,” said Sen. Joe Bolkcom, D-Iowa City, who has been researching new legislative changes.

Residents speak out at forum on TIF practices—Iowa City Press-Citizen

7:06 PM, Jan. 21, 2012

Iowa City resident Tom Carsner said he has no issue paying taxes, but he doesn’t like it when he has no say in the process. “I’m subsidizing Coralville $80 a year to take a business out of my town and put it in Coralville,” he said, referring to the Von Maur deal. “I don’t agree with that.”

Tax increment financing getting legislative scrutiny—The Gazette

3:10 PM, Jan. 17, 2012

Sen. Herman Quirmbach, D-Ames, said he has heard growing concerns expressed about TIF abuses that should be addressed. “We don’t want to throw the baby out with the bath water, but there is some bath water out there that’s getting a little nasty and we ought to deal with it this year,” he said.

Lawmaker: TIF bill is ‘complex’—Des Moines Register

7:02 AM, Jan. 21, 2012

Sands and Iowa City Democrat Joe Bolkcom, who is chairman of the Senate Ways and Means Committee, have said they plan to make TIF reform a priority this session. “This takes a fairly comprehensive look, and they take a fairly heavy hand,” Bolkcom said of the House bill. “We want to make sure that we don’t change (TIF) in a way that it becomes ineffective.”

Iowa legislators join state legislators nationally
to defend health care gains; Call on Governor Branstad
to stand up for Iowa families

(Video) (What Iowans will lose)

(DES MOINES) Iowa legislators are among more than 500 state legislators from all 50 states who have filed a brief with the U.S. Supreme Court supporting the constitutionality of the health law, arguing that “the minimum coverage provision of the Affordable Care Act is a valid exercise of Congress’s Commerce Clause and Necessary and Proper Clause powers.”

“Iowa has been named the best state in the nation when it comes to children’s health care.  Yet there are still 300,000 uninsured Iowans.  Skyrocketing health insurance rates continue to hamper job creation in Iowa and make Iowa households financially insecure,” said State Senator Jack Hatch of Des Moines, the past chair of the national Working Group of State Legislators for Health Reform.  “Iowa’s health care crisis will not be solved without a strong federal effort to increase competition, control costs, improve quality, and insure every American.”

Iowa Governor Terry Branstad earlier joined 25 Republican governors and attorneys general to file a lawsuit seeking to overturn the Affordable Care Act on constitutional grounds.

“If the lawsuit Governor Branstad is part of takes away all the new health benefits Iowans already have received and will receive thanks to health reform, that will expose his effort to make Iowa the healthiest state empty political posturing,” said Hatch.  “Governor, if you care about uninsured Iowans, about the rising health care costs choking Iowa’s economy, and about the strain on Iowa family budgets, you will withdraw from the short-term, blindly partisan effort to use the Supreme Court to deny urgently needed health care from Iowans.”

Senator Joe Bolkcom of Iowa City, the chair to national Progressive States Network, which helped organized the national effort by state legislators, detailed what Iowans stand to lose if the federal health reform law is overturned by the U.S. Supreme Court.

“Insurance companies will be free to deny coverage to children with pre-existing conditions, young adults will no longer be covered under their parents’ insurance.  Iowa seniors will lose free preventative care services, the rebate for prescription drugs and donut hole discount on brand-name drugs, which saves them an average of 569 a year,” said Bolkcom. “The patient bill of rights that eliminated a host of insurance company abuses will be eliminated.”

The Amicus Brief strongly defending the Affordable Care Act in the challenge currently before the Supreme Court. The brief will be filed this Friday and was prepared and filed in conjunction with the Constitutional Accountability Center (CAC).

“The idea that the federal government does not have the power to address a national problem such as the health care crisis has no basis in the Constitution’s text and history,” argue the legislators in the text of the brief.

CAC Chief Counsel Elizabeth Wydra said, “Because the Affordable Care Act is supported by the Constitution’s text and history – as well as Supreme Court precedent going back to the Founding era – challenges to health care reform have a lot more to do with politics than they do the Constitution. After losing in Congress, conservatives are simply looking for courts to give them a judicial do-over. Fortunately, judges across the ideological spectrum – including those appointed by Chairs George W. Bush and Ronald Reagan – have upheld the Act as constitutional, and we are confident the Supreme Court will agree.”

“Almost two years after the enactment of the Affordable Care Act, and as a pivotal year kicks off, this brief is an incredible statement of support for health law from the states,” added Progressive States Network Executive Director Ann Pratt. “It’s also a sign of how responsible state lawmakers all across the nation are coming together in 2012 to turn the tide from political gamesmanship and attacks to working to protect the gains already made for the health security of families under the Affordable Care Act: one million young adults now newly covered, four million seniors who have received help affording prescription drugs, and a patients’ bill of rights that puts an end to many insurance industry abuses.”

A summary of the Amicus Brief text is available at: http://www.progressivestates.org/ACAamicus The full text, accompanied by a full list of signers will be available via the above URL on Thursday, January 12th.

Progressive States Network (http://www.progressivestates.org) is a non-partisan, non-profit organization dedicated to supporting the work of progressive state legislators around the country and to the passage of state legislation that delivers on issues the issues that matter to working families: strong wage standards and workplace freedom, balancing work and family responsibilities, health care for all, smart growth and clean energy, tax and budget reform, clean and fair elections, and technology investments to bridge the digital divide.

Constitutional Accountability Center (http://www.theusconstitution.org) is a think tank, public interest law firm, and action center dedicated to fulfilling the progressive promise of the Constitution’s text and history.

“This review of the hundreds of millions of dollars Iowa spends in state tax credits is long overdue. We need transparency, accountability, and we need to make sure these programs produce jobs, jobs, jobs.

“Here’s the question that I want to hear answered today. ‘Why does an Iowan making $17,500 a year pay more in state income taxes than some of the largest, most profitable corporations in the world, corporations which are making money in Iowa?’

“In other words, why is Iowa taking from the working poor and giving to rich corporations?”

(The full agenda and additional documents)