Property taxes will increase – In July, each homeowner and business will receive their property tax bill.  The bill will show an increase in all school levy rates.  This increase is because the State didn’t do their job and cut approximately $167 million in state funding to schools.  Schools will fill this cut by increasing the property tax levy.

Increase in Fines – I urge each of you to obey traffic laws.  As of July 1^st, nearly every traffic fine will go up by 2 to 3 times its current rate.  (example, a seatbelt violation will go from $94 to $170) Very poor policy!

Lost Tax Credits – Many of you have already filed your income tax for the state.  You might have realized that there were several tax credits that were not allowed this year.  The Iowa legislature would not allow Iowans to couple with the Federal income tax credits.  This, in essence, is a tax increase for many Iowans.

Banning Cell Phones or Texting while Driving – All drivers that are, ages 18 and below, will NOT be allowed to use their cell phone or text while driving.  This law goes into effect as of July 1^st.  This is a positive bill.

Nuclear Energy Study – A study will be completed over the next three years to look at the viability of creating a Nuclear plant in Iowa.  This is a positive bill.

Government Reorganization – The legislature tried to create some government reform.  This is always a good idea.  However, it was not taken far enough this year.  The legislature must look at the public sector in creating substantial changes to government next year.

Final overview – The session might be over but the ramifications to our schools, businesses, and homeowners will be felt for a long time.  Schools will be cutting programs and shutting doors because of the Iowa legislatures actions.  Business and home owners will see increased property taxes.  I view this legislative session as policy and budget that were driven by politics rather than what’s best for Iowans.

2009 spending = $5,959 Billion

2010 spending = $5,300 Billion

2011 spending = $5,296 Billion (Proposed)

When you look at these budgets, you will see no real reductions in spending.  This is an actual picture.  What’s disappointing is that cuts are made to one program so another program can be created.  Don’t be fooled, all these across the board cuts have not actually cut the budget, it simply redistributed the funds.

The problem lies in where the money is coming from this year.  No spending reduction, so the money needs to be stolen from somewhere.  Below is the pots where the money is coming from for the 2011 budget!

 Federal stimulus dollars (one-time money) = $328 million

Emergency State government funds            = $258 million

Other one time pots of money                     = $  97 million 

                                                                        $683 Million of one time spending

Where do we find the money next year?  The Democrats passed a budget that continues to spend without cutting, however, it cuts  K-12 education by $167 million, and puts the money in other places in government.  This is a clear picture of government priority. 

Whoever is in control next session, the one-time money is gone, and the reckless spending will meet reality after the November election.

This is a very sad commentary on government and policy makers!

This is hypocritical passion if this bill were to be past by Democrats. 

The bill offers monetary awards to a family or significant other for the loss of life.  It dives into the economic productivity value of ones life.  Punitive damages can also be awarded.  If you are a doctor or a lawyer, your economic loss, if you were dead, could be $10-20 million dollars or more.  However, if you are unemployed your value could be very little. (If you’re a politician, you might owe money back) lol

The money that is awarded from these lawsuits comes from insurance companies.  This bill, if past, will dramatically increase your insurance costs.  It will also have devastating affects in many other ways.

Property tax increase – There are currently 48 wrongful death tort claims filed against the State of Iowa. Legislative services noted that each case could cost the State $2.5 million.  Also, Insurance will go up for every school, community and county causing increased property taxes.

Business and Jobs – Cost of employment will go up because of increased insurance and liability risks. These significant increases will be another reason for businesses not to stay, grow, or locate in Iowa.

Health Insurance – Your health Insurance WILL be going up after this bill is past.  The chance of a massive death claim will cause insurance companies to adjust their actuarial tables. Also, doctors will need to increase their mal-practice insurance which will be directly passed down to you!

We are all complaining about increased health insurance rates.  This is another way to keep the rates soaring! The Democrats will COMPLETELY sell out Iowans if this is passed! This bill is all about political games, rather than doing what’s best for Iowans.

New construction would include one and two family homes and town homes.  The new policy would have gone into affect on the first day after session.  This would have added an extra 10-15% increase on every new home.

This safety idea goes way too far.  Many homeowners block off parts of their home in the winter, what happens when these pipes freeze and break.  Or, what happens when your child lights some incense in the bathroom?  You could have a real mess! (Now if he/she is smoking in the house, a good shower might be a wake up all call)

I am happy to report that both political parties agreed that this was egregious and through a 48-0 vote we stopped this rule going into affect.

Final thought:  Isn’t it amazing that these department heads have the power to create these rules.  We often see this happen through the DNR.  However, very rarely does the Senate stop these administrative rule power grabs.

Just like social security, the IPERS fund is in financial trouble.  Government workers are living longer and the fund has lost an incredible amount of money in the stock market over the last few years.  Actuarially, the fund is underfunded by nearly $5 billion. 

A bill passed the House and Senate last week that would create a small band –aide to the huge gaping hole.  The bill that passed would:

-Put in an extra $5 million into the account

-It mandated that the employee and government, increase their contribution rate

            (This will increase property taxes)

-Requires an employee to work 7-years before being vested. (Currently it’s 4-year’s)

The state cannot continue to offer this Cadillac retirement plan.  Down the road, this will bankrupt the state. 

Solution:  The state needs to create a defined contribution plan (401-K plan) for all NEW employees.  We need to create a migrating plan to solvency.  This plan would mirror the private sector. 

It’s time to be fiscally responsible!

Good bills

2371 – A bill allowing companies to dredge rivers and pay 10 cents a ton.

2295 – A bill establishing a committee to review the AEA’s mission

2238 – A bill creating a criminal offense by attempting to entice a minor

2200 – A bill transferring guardianship for a child that needs probate court assistance

Bad bills

2461 – A bill mandating all schools to have authorized and certified business manager

2418 – A bill requiring stronger air quality standards

2376 – A bill that cut many educational programs

663 – A bill requiring inspections of private sewage disposal systems

2432 – A bill to study and recruit out-of-state minority teacher

2518 – Iowa government retirement system bail-out bill (We need to go to a defined contribution plan for new government employees)

One week left!  Lots of budget items that need to be addressed before the close of session

-Elimination of venture capital investment  tax credits

-Elimination of economic development revolving loan fund credits

-Elimination of investment tax credit for value added Ag products

-Reduces school tuition organization tax credits

-Reduces historic preservation tax credits

-Reduces ACE job credit annual cap

Iowa is reducing it’s business tax credits while States around Iowa, including Minnesota, Nebraska and Wisconsin are increasing their tax credits to generate more business and opportunity.  It seems the states around us have the direct opposite rationale on how to create business. Iowa reduces tax credits and it shows companies we are closed for business.  while other states are opening their doors to new business through extended tax credit programs. 

We are closed, they are open!!  What a statement to Iowa’s economic development.

Democrats have built bigger budgets and expanded the scope of State government but have not passed any meaningful legislation that would ease tax or regulatory burdens for small business and employers.

The Democrats have increased property taxes, increased fees, and now they are cutting tax credits.  Iowans and businesses continue to be beaten down by the Democrat party.

Also, Staff attorney for the Association, LeGrande Smith, was given a retroactive raise of $19,600 for an annual salary of $165,000.

It was also stated that the organizations, Chief Financial Offer, used the association’s credit card to buy airplane tickets to Bora Bora. 

The FBI is involved because federal funds go to his organization.  Funds also come through Iowa property taxes as school districts pay dues to be a part of this organization.

This is very disappointing! Government continues to lose the trust of society. As I sit in the Capitol and look out the window, I see large government buildings surrounding the Capitol where nearly 40,000 government employees work.  It begs the question, how many more government workers are giving themselves raises?

Some of these increases are as follows:

-Seat belt fine, from $25 to $75, plus court cost, new fine total $145

-Failure to secure a child, from $25 to $75, court cost, new fine total $145

-Speeding (5-over), from $10 to $20, court cost, new fine total $80

-Speeding (10-over), from $20 to $40, court cost, new fine total $100

-Failure to maintain control, $35 to $100, court cost, new fine total $170

-Failure to obey stop or yield, $35 to $75, court cost, new fine total $145

-Dark window violation, from $15 to $50, court cost, new fine total $110

-Careless driving, from $25 to $75, court cost, new fine total $145

This does boarder on extortion!  I am reminded of the Dukes of Hazard and Hazard County, where Boss Hogg fined everyone an exorbitant amount as they come through the county.  (complete extortion) This feels the same way. 

State troopers and police have been pushed to do the dirty work of collecting these large fees. This isn’t fair to these government workers. Democrats are floundering to find more revenue and they have no problem sticking it to the residents of Iowa.  This is flat out WRONG!!!

Good Bills

SF 2314 – A bill that creates a nuclear energy study for the state of Iowa Legislature

SF 2364- A bill creating an income tax check off for child abuse prevention.

SF 2294 – A bill that sets up procedures for disaster aid  to homeowners

Questionable Bill

HF777 – A bill that sets up an advisory board  which will cost $400,000 to look at public meetings and open records violations.  They can also issue penalty. More government!

Bad Bills

SF2335 A bill requiring  all school facilities and government entities to use environmentally safe cleaning and maintenance products. Mandating purchasing!

HF 2488 – A bill allowing young adults to serve on local, county and government boards.  (They already can! Shows how detached legislators and legislation can be)

SF 2370 – DNR bill that increases fees and still prohibits feeding of wildlife that is 50-yards away from a residence. They exempted fishing but not squirrel, duck, or bird feeding. (I agree we should not feed deer, however this is over the top)

 SF2367 – Administration and Regulation budget bill.  It increases government workers and increases the budget by $2,195,000, (total budget $108 million) rather than a reduction in budget. (1,551 government employees)

Hope to watch Rock Valley and Western play State basketball today and Friday!