Governor Presents Budget Proposal to Legislature
In his first major address to the Iowa Legislature, Governor Chet Culver outlined his budget proposals for 2008 fiscal year, which begins July 1. The governor’s proposed budget increases General Fund spending by nearly nine percent, or $459 million, over the FY2007 budget lawmakers approved last year.
I am pleased that the governor’s budget proposal continues a commitment made by lawmakers last year to raise teacher pay in Iowa. I also appreciate the governor’s commitment to fully fund Medicaid, the health care program for needy Iowans. However, there are several areas of concern. During his speech, Governor Culver said we have a historic opportunity to create one Iowa. Yet, his budget leaves many Iowans behind, including:
Iowans who expect increased access to affordable health care: Iowans overwhelmingly believe that any cigarette tax hike should be dedicated to health care. Yet the governor does not target the increase in cigarette tax revenues for health-related spending. Instead, his budget directs revenues from a cigarette tax increase to the General Fund, so they will not be dedicated to any specific purpose.
I am disappointed the governor doesn’t target the cigarette tax increase for health-related programs such as smoking prevention and cessation efforts. I believe any revenues from a cigarette tax hike should be fenced off specifically to increase access to affordable health care.
Property Tax Payers: In a year of strong state revenues, the governor's budget raises taxes by $185 million, but only gives back $25 million in commercial property tax relief.
The $25 million will result in a one-time rebate of $250 to an Iowa business. That is mere peanuts when you consider what businesses pay in taxes each year. What’s more, the $25 million in tax relief this year is just a band-aid for Iowa’s outdated property tax system. It does not offer any of the long-term property tax reform that the governor promised.
Students and Parents: The governor raises teacher pay but has already come out in opposition to measures aimed at tying increases in teacher salaries to student achievement. Lawmakers approved pay-for-performance measures as part of last year’s teacher pay initiative because we believe they are critical to retaining good teachers and improving accountability in the classroom. Senate Republicans want pay-for-performance measures to be included as part of additional funding for teacher salaries this year as well.
Seniors: The governor’s $25 million request to create an Iowa Power Fund for renewable energy projects comes at the expense of Iowa’s seniors. The governor’s proposal pays for the program from the current year’s budget surplus, which is money that is required to replenish the Senior Living Trust. Senate Republicans are dedicated to repaying the Senior Living Trust Fund, and we intend to keep those commitments.
Senate Approves Anti-Bullying Bill
The Senate this week approved anti-bullying legislation. The bill now goes to the House for consideration.
Bullying any child for any reason is wrong, and this bill works to address the issue in order to improve the safety of children while at school. However, I do have some major concerns about the bill and this is why I voted against it:
The bill’s impact on nonpublic schools Church-affiliated nonpublic schools that teach curriculum based on a church doctrine could potentially be sued under this legislation if a student, who does not agree with that doctrine, feels that he or she is subjected to a hostile environment.
An amendment Republicans offered would have required nonpublic schools to still enforce anti-bullying policies for all students; however, it would have removed the possibility of litigation in cases where a religious-based school is teaching curriculum that is consistent with its church doctrine. Unfortunately, our amendment was defeated.
Without protections against litigation for nonpublic schools, this bill is a payday for lawyers. Senate Republicans are concerned that this legislation will result in a number of lawsuits, especially against religious nonpublic schools.
The enumerated list isn’t broad enough, and should be eliminated The bill includes a list that defines certain classes of children who would receive special protections under the policy. While the list includes major categories such as religion, ethnicity and sexual orientation, it does not include the trivial issues that are all too often the subject of the classroom bully.
Republicans offered an amendment to strip the enumerated list from the bill and make it clear that ALL children should not be bullied for any reason. Unfortunately, this amendment was also defeated.
We will never be able to include all of the reasons why someone shouldn’t be bullied Ð too messy, too shy, too smart, not smart enough, the list goes on and on. By including such a list, the legislation sends a mixed message that some students should receive more protection than others. The bill leaves behind those kids who do not make the list.
Schools should be a safe place for all children Ð not just the ones who make the list.
Senate Democrats Introduce Legislation to Repeal Right to Work
Senate Democrats this week introduced legislation to repeal Iowa’s Right to Work law.
Right to Work guarantees that no worker in Iowa can be forced to join a union, or pay union dues, to get or keep a job. Under the bill introduced this week (SSB 1120) workers in union shops who are not union members would be required to pay up or be fired.
The legislation would require employers to deduct union fees from nonmembers’ wages to pay for collective bargaining agreements negotiated by the unions. It forces nonunion members to pay union dues.
Make no mistake. No matter how the bill is characterized by its supporters, the legislation is an attempt to repeal Iowa’s Right to Work law.
I do not support the bill. I believe Iowa’s workers should not be forced to pay for activities they do not wish to support. They should have the freedom to decide whether joining a union is right for them.
And, polls suggest Iowans agree. More than 60 percent of Iowans support our state’s Right to Work law. They believe workers who are not union members should not be required to pay union dues.
Repealing Right to Work would put Iowa at a competitive disadvantage. Currently, Iowa is one of 22 Right to Work states across the nation. Many local economic development offices in Iowa highlight Right to Work as one of the advantages of doing business in Iowa.
Business relocation consultants say Right to Work is a critical factor in location decisions. Insight Research Corporation, one of the country’s dominant competitors in corporate relocation research, reported that 90 percent of their clients looking to expand or relocate will not even consider non-Right to Work States.
In recent years, Iowa has been working very hard to attract jobs and businesses through our economic development initiatives. Repealing Right to Work would have a chilling effect on efforts to grow Iowa’s economy.
I am committed to Iowa’s Right to Work status and will fight any attempts to gut the law. Right to Work is needed. It gives Iowa’s workers a choice, helps attract new jobs and businesses, and drives economic growth in communities across the state.
If you have any questions or concerns involving the Iowa Legislature, please feel free to email me at james.seymour@legis.state.ia.us.
On Tuesday, January 30, the Governor released his budget recommendations for 2007, 2008 and 2009 to the Joint Assembly. His budget message was received with mixed feelings. I do want to work with our new governor to move Iowa forward, but I want to do this in a financially responsible way.
The Governor opened on a very positive note telling us that the income for Iowa families was above the national average, unemployment was less than the national average, and state revenue was growing faster than expected. This is good news when you consider the fact that the cost of living in Iowa is the 16th lowest in the nation. Iowa used to be last in the nation in venture capital. Now with the investments in ethanol and soy-diesel plants we are a leader in the nation in venture capital.
The Governor told us that he wanted to follow five budget practices for the state just as a family follows for its budget. These five budget practices are:
Do not spend more than you take in.
Keep your reserves for difficult times.
Use actual numbers.
Do not fund all requests. Make the difficult decisions in funding.
Keep working for improvement in Iowa’s financial rating. Iowa currently has a bond rating of AA, but we should try to get to AAA.
The increase in spending in the proposed budget is over 7%. Current inflation remains around 3%. This means the proposed budget increase in spending is more than double the rate of inflation. Most of the increase in spending is for growth in government. Very little spending is for infrastructure.
We have not done a good enough job of taking care of our infrastructure, especially our roads. We have fallen behind in the maintenance of our rural roads. This says nothing about the need for improved four-lane roads to handle our east-west traffic.
To satisfy budget needs, the Governor is proposing a $1 cigarette tax increase. He projects this tax will raise $140 to $170 million in new revenue. His reason for raising the tax is to cause fewer people to smoke. If this happens, his projected increase in revenue from the tobacco tax will decrease. Most other states that have increased the cigarette tax have not realized near their projected increase in revenue. I doubt that the Governor will be able to get both chambers to agree to a $1 increase in cigarette tax.
This budget is the Governor’s proposal. As I stated before, I want to work with the Governor, but I have a very difficult time in supporting this large increase in spending. His increases in revenue projections include several other areas that many of us question. I hope we can work together to amend some of the spending requests. I have a lot of faith in Iowa’s economy but I would like to see more of the money in the bank before we spend it.
Please feel free to contact me if you have any questions or concerns about issues being raised or other concerns you may have.
Representative Clarence Hoffman
Statehouse, Des Moines 50319
515-281-3221
clarence.hoffman@legis.state.ia.us
Home: 616 Parkview Dr.
Denison, IA 51442
Phone: 712-263-4884