The snow melting not only indicates that spring is near, but it also reminds us that the legislative session is coming to an end. The schedule has been full of issues to debate. Some of the most notable bills include SF2357 that relates to firearm forfeiture, a bill that relaxes weight restrictions on commercial vehicles, and education reform within appropriations.
SF2357 passed the House and the Senate prohibiting a person charged with domestic abuse or subject to a protective order from possessing firearms, offensive weapons, or ammunition. Domestic abuse is wrong and those who are found guilty should be punished accordingly. However, punishment without being found guilty is unconstitutional. Even more, this punishment is the revocation of one’s 2nd Amendment right to bear arms without due process. Amendments were offered to try to make the bill better, but were rejected. These amendments would have defined the word “spouse” as it is still defined in Iowa Code Ð one man and one woman. Another amendment would place a penalty on a person who knowingly provides false information to obtain a protective order. An amendment was offered to create a program of self defense classes funded by additional fines on domestic abusers. Unfortunately, these amendments were defeated, and it may soon be possible to have your firearms removed without being convicted of a crime.
The House Agriculture Committee passed House File 2512 that allows trucks moving livestock and construction materials with six axles to weigh up to a range from 80,500-90,000 pounds; and up to 96,000 pounds for seven axles to apply to all commercial vehicles of similar size. The measure requires that a commercial motor vehicle traveling under the new weight restrictions must be operated by a person with a commercial driver’s license valid for the vehicle operated, unless the operator is exempt from commercial driver licensing requirements under existing law. The provisions of the bill do not apply to vehicles operated on interstate highways. My first impression was that this would increase the damage to our roadways. I discovered that research performed by many states and the Federal Department of Transportation has found that the additional axels lessen the amount of weight that each axle carries and transmits to the pavement. Only trucks with the proper number of axles would be able to haul the additional weight, and the bill does not change our laws for the trucks operating under the 80,000 pound weight limit. Why is this helpful to our agriculture industries? Trucks operated by one-driver could haul almost 25% more per load for a fuel use increase of about 10%, saving energy and creating greater hauling efficiency. In addition, weight damage to roads will decrease with more axels balancing the weight placed through the wheels. I believe that this bill will be helpful to Iowa farmers and I will support this provision.
Our communities are full of teachers who work hard to create a bright future for out kids, but the Education Appropriation bill contains policy changes that carve out special favors for teachers at the expense of district taxpayers. A bill was passed through Education Appropriations that exempts teacher salaries from any across the board cuts within the Education budget bill, SSB3248. Here is how this affects you:
The buzz around the Capitol is that the legislative session may end even earlier than the shortened deadline. Finishing earlier does not mean that the bodies have taken the time to make good decisions. Budget and policy decisions have not been wise this year and will not be for the benefit of the Iowa taxpayer. This week, I would like to focus on fiscal responsibility and how taxes will be raised to offset the reckless spending of the past few years. Some tax increases you can expect to see this year are the revocation of tax credits, property tax increases due to underfunding allowable growth in education, and increased fines and fees that different government departments are proposing to supplement the 10% across-the-board cuts.
I support any effort to review state tax credits to ensure that they are serving their intended purpose, but as tax credits are reduced or removed, any “savings” to the state treasury should be passed to the taxpayers through property relief. When a tax credit is capped or eliminated, someone’s taxes are going up. The only entity that benefits from higher taxes is government. The Democrats’ tax credit bill, by their own admission, raises taxes by $115 million. This forces Iowans to pay for their irresponsible spending rather than redirecting the savings to broad based tax relief.
FY2012 Ð $1 Billion Spending Gap Projected
There will be a $1 billion tax burden on Iowans by 2012 if the budget is not balanced. The brunt of the spending gap is due to spending in Health and Human Services and Education. The HHS budget will be funded with $530 million in one-time revenue sources. There will also be likely program increases of $100 million solely for Medicaid, meaning that there will be a $630 million hole for FY2011. With a $170 million short-fall in education funding, the total comes to an $850 million dollar spending gap.
Democrats plan on supplementing the debt by taking $187 million from cash reserve fund. According to the Revenue Estimating Conference FY 2011 will have $33 million more in the general fund than this year. After the entire budget has been completed, Democrats will have taken an estimated $1.1 billion spending gap for 2011 and created a $1 billion spending gap for 2012. I cannot support a budget that spends more than it takes in.
Millions in Increased Fines and Fees Proposed
The Senate passed the Justice System budget earlier this week, but before they did, they increased fines and court costs to the tune of $15.2 million. This follows last year’s move to increase court costs by $21.3 million.
The increased fines contained in the Senate bill impact hundreds of violations and vary widely in the amounts. Many fines will see a $10 increase. All speeding tickets fall into this category. A large number of other charges increase significantly. For example, failure to obey a traffic signal goes from $35 to $75. Failure to maintain control goes from $35 to $100.
Over 32,000 Iowans are charged with failure to wear a seat belt each year, making it one of the most common offenses in the State. That fine will increase from $25 to $75. What must be considered along with these increases is that each one is also assessed a 35% criminal penalty surcharge. So each increase in a fine means another increase in the criminal penalty surcharge paid.
That is not the whole picture however, because the bill increases court costs from $60 to $70 or from $100 to $120. Anyone who has received a speeding ticket understands that whether they contest their ticket or not, they are assessed the court cost. Keep in mind, the criminal penalty surcharge was raised from 32% last year to the current 35%. The chart below outlines a specific example of how these changes will impact Iowans.
The increase in funds will be deposited in a new Public Safety Enforcement Fund. The fund is estimated to receive and allocate $8.8 million to various agencies. If the fund generates anything more than expected, that money will revert to the general fund at the end of the fiscal year. The $8.8 million is distributed as follows:
$100,000 Ð Community Based Corrections District 1
$402,810 Ð Community Based Corrections District 6
$1.45 million Ð Fort Madison Institution
$200.000 Ð Anamosa Institution
$846,190 Ð Luster Heights Correctional Facility
$150,000 Ð Volunteer Fire Fighters
$250,000 Ð Dept. of Public Safety
$100,000 Ð Civil Rights Commission
$5.3 million Ð Judicial Branch
If this proposed change is passed by the House and signed by the Governor, it will mean that fines and court costs have increased a total of $36.5 million in two years. In regards to court costs, the State is already collecting only 62% of the court costs for traffic violation and under 30% for everything else. It is not good policy to increase fines and court costs in order to cover additional General Fund expenditures and additional spending. The Justice System budget is due to be considered by the House this week. Democrats have indicated they will be looking to set new increases in fines and court costs. Those in favor of the changes have said that if we must raise revenue, then criminals should pick up the cost. Seatbelts? Criminals? Really?
It is an honor to work for you in the Statehouse. If you would like to contact me, please email jason.schultz@legis.state.ia.us or call 515-281-3221.
Using the “Duck Test”
You might have heard of the famous “duck test.” The reasoning goes that if something looks like a duck, swims like a duck and quacks like a duck--it probably is a duck. This well-known test can be used to better understand one of the biggest and most controversial bills of the entire session.
Now with just days to go in the session, the majority party has passed a bill that, upon Governor Culver’s signature, will make significant changes to Iowa’s tax code. But, those changes will not be for the better. Instead, they will mean higher and more burdensome taxes for Iowans at a time when we can least afford it.
There is no question that this bill is a massive $122 million dollar tax increase. If it forces Iowans to pay more to the state like a tax increase, if the state increases revenues to continue to uncontrollably spend like a tax increase, and if it will hurt job creation like a tax increase-- then it probably is a tax increase. Unquestionably, it passes the infamous “duck test.”
Last fall, when the scandal involving the Culver Administration’s mishandling of Iowa’s film tax credit program erupted, legislators decided to use the opportunity to evaluate all of Iowa’s tax credits. Whether it is tax credits or any government program, I believe in constant oversight and rigorous examination. Simply put, if it is efficient and encourages job creation, it should continue. If it is wasteful and ineffective, it should end.
Instead of using the opportunity to carefully and deliberately make positive changes to Iowa’s tax code, the majority party and Governor Culver, took the occasion to end or drastically reduce many important tax credits that are used by the private sector to spur economic growth and stimulate job creation.
Republican Senators offered a common sense amendment that would promote necessary transparency and accountability provisions while stripping out every one of the tax increases. Unfortunately, it was defeated. Only one member of the majority party supported this vital amendment.
Tax increases mean government will have even more of Iowans’ tax dollars to spend. Iowans are already well aware of what has happened the last three years when Governor Culver and his party overspent and created unbalanced budgets that are not reflective of the true priorities of Iowans. There is little evidence to suggest the past budgeting mistakes of the last three years are not going to be repeated again by Governor Culver and the current party in power on Iowa’s new budget.
This bill is just the latest in a series of tax and fee increase bills that will hit ordinary Iowans hard. Earlier this week, the current majority passed a bill that increases fines and fees by as much as 400 percent in some cases for those who are pulled over for speeding, seat belt and other traffic violations. These increases were designed to generate an additional $8 million dollars annually that will be used to continue to grow government. Government gets more to spend at the expense of hardworking Iowans.
Additionally, most Iowans are aware of the job-killing property taxes that are being put onto the backs of local property taxpayers because of the overspending and irresponsible budgeting of the last three years. Governor Culver and his party broke their promise that was made to Iowans not to raise taxes when government made an across-the-board ten percent cut to school districts. Consequently, school districts are facing deep cuts to staff and programs unless property taxes are increased to the tune of approximately $270 million dollars. And increased taxes means less hiring by businesses.
Because 111,000 Iowans are unemployed as well as untold numbers who remain underemployed, I believe this is the wrong time to be raising taxes and fees on Iowans. This bill, like many of the other of tax and fee increases passed by this Legislature and supported by the Governor, highlights the line of difference between the two parties.
As the 2010 session draws to a close, I will continue to focus on creating jobs, protecting taxpayers, and streamlining government. I know those are the same priorities that the majority of Iowans have. I will continue to vote “no” on any increases that will spend the state into debt and raise taxes on Iowans.
If you have any questions or concerns involving the Iowa Legislature, please feel free to email me at james.Seymour@legis.state.ia.us.