Governor Vetoes Bipartisan Agreement, Delaying Adjournment

The Legislature is likely to go beyond the 110-day Legislative Session, as more discussion is needed on the state budget and key policy provisions before adjournment is reached.

Last week, the House and Senate reached a bipartisan agreement on an appropriation and tax measure that had been stalled in conference committee for five weeks. The Governor’s office was part of the negotiation on this bipartisan agreement, and a no time did they indicate a problem with the bipartisan agreement. This change of course by the Governor has created a stir in the Legislature as to how future agreements will be reached.

The Governor vetoed two provisions of the bill. He objected to a provision that allows small businesses to invest and expand their businesses in Iowa, which will help create new jobs. It allows them to deduct the entire cost of autos, machinery, and other big ticket items from their taxes immediately instead of depreciating over time. The Governor vetoed this provision because he is not interested in providing an immediate boost to main street businesses, and instead he wants the Legislature to provide long-term tax relief to major corporations.

The Governor vetoed another provision that would have provided tax relief for 240,000 families who are working at least one job, and in many cases two or more jobs, by increasing the earned income tax credit. This credit increase would have put more money in the pockets of families earning less than $45,000 per year. The Governor vetoed this provision asking for a comprehensive and holistic approach to tax relief, which leaves hard-working families without any tax relief.

Legislators will be spending less time debating bills over the next week and working hammering out the details on the budget. The negotiations hope to achieve a balanced budget that can pass both houses and receives the Governor’s signature, while also meeting the needs for Iowans for the next year.

Study Shows More Families Cannot Pay for College

Despite the growing need for a highly-skilled workforce to compete for jobs in the 21st Century, the number of families that cannot contribute to their college education has climbed sharply according to a new study out this week.

According to the Iowa Board of Regents study, 24,000 full-time resident and dependent undergraduates received and accepted financial aid at one of the Regents universities. This is an increase of 600 students or 2.4% from the previous year.

Many legislators have expressed concern that rising tuition costs are putting higher education out of reach for many middle class families. Iowa students already carry one of the highest debt loads in the country after graduation.

The study was conducted in the fall of 2010 by the Iowa Board of Regents and university financial aid representatives. This year’s sharp increase comes on the heels of three straight years of decrease in the number of families receiving financial aid.

In 2009, Iowa had the 7th highest college participation rate for students from low income families, at 37%. Since 1998, Iowa’s participation rate of students from low income families has not fallen below 35%. Iowa has ranked first four times since 2002 in this area.

Updates to Iowa’s Open Meetings and Open Records Law

The Iowa House gave final approval to a bill to improve Iowa’s open meetings and open records laws to make them clearer and provide Iowans better access to government meetings and public records.

Senate File 289 makes numerous noncontroversial changes to Iowa’s current law. This bill does not create a public information enforcement board. That board is established in SF 430, which is currently in the House Appropriations Committee.

The bill makes the following changes to Iowa’s current open meetings and open records laws:

• Repeals the current criminal penalty so all penalties would be under civil enforcement. Adds civil penalties for persons who “knowingly” violate open meetings and open records laws from $1,000 to $2,500 (current law for those who participate in the violation is from $100 to $500).
• Allows some personal information in confidential personnel records of officials, officers, or employees of a governmental body be open.
• Clarifies public notice requirements for reconvened meetings.
• Allows closed meetings for the discussion of the sale of real estate property regarding government bodies.

The bill awaits the Governor’s signature.

House Votes to Cut Economic Development Funding

On a vote of 57-43, the Iowa House voted to cut funding for economic development activities by $5.5 million from last year’s funding levels.

The largest cuts were made to small business incubators and training facilities at Iowa’s universities. Funding for the Science and Technology Research Park and Institute for Physical Research and Technology at Iowa State University, the Research Park and the Advanced Drug Development Program at the University of Iowa, and the Metal Casting Institute and the Institute for Decision Making at the University of Northern Iowa was eliminated in the bill.

House Democrats were critical of cuts to the state’s job creation engines. Amendments to restore funding to job creating economic incubators were defeated by the majority party.

Senate File 517, the economic development budget bill, contains funding for the Department of Cultural Affairs, Department of Economic Development, Workforce Development, and the Public Employee Relations Board.

The bill now moves on to the Senate for further consideration.

Iowa Education Summit Set for July 25 and 26

This week, House Democrats met with Director Jason Glass of the Department of Education to discuss the upcoming Education Summit, set for July 25 and 26. The summit will focus on three key areas: enhancing educator effectiveness, raising academic standards and measuring achievement, and leading the industrial education model.

Director Glass estimated they expect 1,000 to 1,300 educators, state lawmakers, other elected officials, business executives, and parents will attend the event. U.S. Department of Education Secretary Arne Duncan will be the keynote speaker on the first morning. Other nationally known speakers in various education fields have been confirmed for the conference.

Organized through the Governor’s Office, other event sponsors to date include the Iowa State Education Association, Iowa Association of School Boards, Area Education Agencies, State Administrators of Iowa, Association of Independent Colleges and Universities, and the Chamber of Commerce.

In early May, registration for the event will begin on-line.

Disaster Assistance Grants Available

Due to the recent storm damage across Iowa, the individual disaster assistance grant program is now available for residents of Buena Vista, Monona, Pocahontas, and Sac counties. Grants are available for home or car repairs, replacement of clothing or food, and for the expense of temporary housing.

The grant program was started in 2007 as a result of two winter storms that year. In 2008, the program was expanded to its current eligibility requirements. The program provides grants up to $5,000 for households with incomes up to 200% of federal poverty levels, or a maximum of $44,700 annual income for a family of four.

This year, for the first time, the program allows local authorities to establish a voucher system to help people who do not have the up-front funds to begin repairs. If a voucher system is not in place, original receipts are required for those seeking reimbursement for actual expenses related to storm recovery.

The grant application and instructions are available at the “Storm Help” link on the front page of the Department of Human Services website at www.dhs.iowa.gov, or you can call 1-866-434-4692. All applications must be received by June 9, 2011.

Nuclear Energy Bill Passes House

By a vote of 68 to 30, the House passed House File 561 which gives MidAmerican the authorization to ask the Iowa Utilities Board (IUB) for permission to build a nuclear facility and seek the ability to recover preconstruction and construction costs from its customers. Opponents of the bill argued this authorization is moving too quickly, and MidAmerican customers will likely end up paying for more than their fair share.

House File 561 allows MidAmerican customers to start payments on a nuclear facility before it is even completed, and they would still be on the hook if construction would not be completed on the facility. It is estimated that from beginning to end, costs would be in the billions. Rate increases for residential customers could vary widely from $7 to $50 per month, $30 per month for small businesses, and $2,000 per month for industries. No one could say how much the private investors would be on the hook compared to customers.

Safety of technology cannot be overlooked with what has recently happened in Japan. True, it is unlikely that Iowa will experience a tsunami, but mother nature often does the unpredictable including tornados. The technology that is looked at being used in Iowa is only used in submarines. There are also unanswered questions regarding what will be done with the nuclear waste.

It was disappointing that House File 561 didn’t contain any language to encourage or require more investment in renewable energy technologies. Iowa produces large amounts of wind energy, and the technology needed to store that type of energy is around the corner. Imagine how much clean energy Iowa could produce if we invested half as much as will be used for nuclear energy in renewable energy and education for consumers.

House Votes to Increase Endow Iowa Tax Credits

The House approved a bill to increase the tax credits available under the Endow Iowa program. The Endow Iowa program seeks to increase the philanthropic activity in the state by providing a state tax credit for a qualifying gift to an endowment fund within a qualified foundation or organization. The tax credits are available to individuals, businesses, or financial institutions.

Under current law, the program is authorized for $2.7 million in tax credits annually, not including an additional 1/10 of 1% of state gambling revenues. Senate File 302 increases this authorized level to $3.5 million per year.

Last year, the approximately $3.1 million in Endow Iowa credits that were awarded resulted in approximately $12.09 million in charitable giving from more than 1,700 separate donations. Of those 1,700 donations, over 1,250, or 73%, were for $1,000 or less. The donations went to 71 different community foundations or organizations.

The bill now awaits the Governor’s signature.

House Passes Bill Assisting Lake Delhi

This week, the Iowa House gave final approval to a bill designed to help Lake Delhi recover from the dam breach that destroyed the lake last summer. Senate File 412 incorporates several ideas from the Lake Delhi Task Force formed by Governor Culver following the dam breach.

The bill allows the Lake Delhi taxing district to issue both general obligation and revenue bonds in the same manner as cities. The bonds cannot be issued until an election occurs where 60 percent of those voting approve issuing the bonds.

The bill also increases the number or people on the Lake Delhi board of trustees from three to seven. People who own property in the district can also be on the board. Previously, only residents of the district could serve on the board. These changes are being made to help meet federal grant requirements.

On July 24th, 2010, the earthen portion of the dam at Lake Delhi breached and the 450 acre, nine mile long lake in northeast Iowa drained downstream. The lake is part of the Maquoketa River near Manchester.

The bill now awaits the Governor’s signature.

Agriculture Committee Legislation Signed into Law

Several pieces of legislation have been signed into law that will help Iowa farmers and rural Iowa.

Members of co-ops will be allowed to vote electronically on measures for their board meetings starting July 1st. Grade “A” milk certification will be moved from the Department of Public Health to Iowa Department of Agriculture and Land Stewardship (IDALS) on July 1st. This was done to streamline programs and save Iowa taxpayers money.

Also on July 1st, IDALS will be allowed to petition a district court where neglected livestock are located asking the court provide feed to the livestock and to sell or otherwise dispose of the livestock. A mechanism is provided in the bill to help offset the department costs for the care of the neglected livestock.

Starting January 1st, 2012, all exhibition shows must be registered with IDALS. In addition, swine returning home from an exhibition, or moved to a purchaser’s herd following an exhibition or consignment sale, will no longer be required to be isolated and retested negative for pseudorabies within 60 days after reaching its destination.

Finally, the Council for Agricultural Education will be re-established on July 1, 2011. This council reviews, develops, and recommends standards for secondary and postsecondary agricultural education in Iowa.

House Approves Task Force to Examine State Marketing

The House approved a bill to explore the possibility of finding additional government efficiencies through a master marketing contract. The bill creates a state marketing and advertising expenditure task force to study and review state advertising and marketing purchases and to develop a plan for collaboration among state agencies in marketing and advertising expenditures.

The task force is to consider the amount of purchases by each agency or authority of the state and the specific needs of each agency or authority when completing the expenditure plan. The task force is allowed to keep pricing, product service, business strategy, marketing, or purchasing information confidential if the release of such information would give an advantage to competitors, vendors, or other parties. The task force may hold a closed session to discuss such matters.

The current Iowa lottery authority will provide the staff assistance and administrative support to the task force. The chief executive officer of the Iowa lottery authority, or their designee, will serve as the chairperson.