RANDY FEENSTRA

Over the last several weeks the Democrats have rolled out multiple bills that are aimed at slowing down the economic growth in the State of Iowa. Several of these bills include;

SSB 1278 Removes the sales and use tax exemption from new or expanding computer and data companies. Over the last several years the State has seen business giants of Facebook, Google and Microsoft move into the State. They have created huge facilities that are creating massive property tax money and jobs. They were drawn to our State by cheap electrical power and a temporary tax exemption. The Democrats are advocating that Iowa should take away this tax exemption. Currently, several of these large companies are looking at massive expansions; but, this bill will derail these efforts.

SSB1105 Reduces the amount of tax credits the Economic Development Authority can use from $170 million to $150 million a year. The Iowa Economic Authority has helped land other big business in our State including several billion dollar fertilizer facilities including CF Industries in Sioux City and Oriscom in Lee County. The Democrats want to cut down the tax credits being used to land business and jobs in this State. Again, another hit to the States economic tool box.

SSB 1266 Removes the property tax exemption on hog or cattle pits unless the facility has 500 or fewer animals. This exemption has been used by many of Iowa’s hog and cattle producers over the last 10-years. Currently there are 45 new confinements that are ready to go up in NW Iowa this summer. However, this may put a lot of these on hold.

I really struggle with the Democrats idea of cutting economic growth initiatives like this. It’s disappointing to think about all the jobs that could be lost if these tax increases go into effect.

Today we had a hearing in the Iowa Senate with Ag Secretary Bill Northey concerning the bird flu epidemic. He noted that the avian bird flu is spreading very quickly across Iowa. He stated that 2 more Iowa counties are being hit by the bird flu; they include O’Brien and Sioux County.

The new numbers show 5.5 million laying chickens are affected in Sioux County and 500,000 chickens and turkeys in O’Brien County. A total of 9 sites have been affected in these counties.

The DNR has put a 6-mile quarantine around each site that is affected. The DNR will go to each farming operation in this 6-mile radius and check all birds, including free roaming turkeys and chickens. Also, all items on the affected farms are quarantined and cannot be moved off the premises until they are completely de-sanitized.

To kill the birds and get rid of the decomposing birds requires a lot of oversight and cost. The State has created an action plan on getting rid of these diseased birds without further spread of the disease. Funding costs for cleaning up this flu is in the process of be evaluated. Currently, the EPA is picking up the lion share of the cost.

The economic impact is massive to these counties. Each bird consumes about a bushel of corn. This would mean at least 5.5 million bushels of corn will not be used in Sioux County. It also affects hundreds of workers in these barns. It was noted that the barns could be closed up to 6-months. (this is based on the USDA approval for them to be re-opened)

As of March 2015, Iowa had about 60 million egg laying chickens in the State which produce about 16.5 billion eggs annually. This is about 17% of the nation’s egg production. Currently, at least 30-countries have placed restrictions on the US poultry exports.

The final day of the 2015 legislative session is supposed to be May 1st. This is the last day legislators get paid for their work. However, after 4-months of being in session, not one budget bill has yet been passed. The obstacle is the amount of money coming in verse the amount that legislators from all sides want to spend.

The State will have $7.15 billion coming in this year. The Governor’s budget spends $7.3 billion, using $250 million of extra funds that come out of the ending balance. The House Republican budget (they are in the majority) would like to spend $7.168 million which is about $70 million coming out of the ending balance. The Senate Democrats (they are in the majority) have not come up with a budget, but are demanding some significant extra spending on Health and Human Service and on Education.

These three groups need to come to an agreement on how much is to be spent before we can pass any budgets and gavel out for the year. It is time to get all leaders in a room and agree to final numbers.

I sat on a subcommittee today that dealt with approving the sale of fireworks in Iowa. I have been a supporter of this idea because of all the fireworks that is currently being blown off in Iowa. Currently, it’s allowed to have fireworks in Iowa, but it is not allowed to blow them off. This is like having a gas grill but not being allowed to cook on it.

The bill would allow the sale of retail fireworks in the State if the retailer paid a $400 license fee, maintained insurance coverage and had a permanent building to sell year around fireworks. (Temporary facilities could be allowed to sell consumer grade fireworks between June 13 and July 11th of each year.)

The fees would be used for the Fire Marshall to hire 2 full time employees that would oversee the permitting process and the safety training of these facilities. The State anticipates about 405 retail locations will be erected if the bill is approved.

It is estimated that the State will bring in $21,152,000 in sales per year which will give the State about $1,269,000 million in new tax revenue. These numbers are based on estimates from the Department of Revenue.

The Bill now goes to the full Ways and Means Committee and will hopefully be debated on the floor of the Senate in the next week. The current bill has a start date of June 1st of this year; however, this may change to a later date next year. There is also discussion to have a local control component to the bill.

Northwest Iowa has two large utility companies that are looking to buy easements from property owners. Cleanline Energy is looking to build a wind transmission plant near Sanborn and have a direct current electrical line crossing Iowa to Illinois. Energy Transfer Partners would like to put in a 30 inch pipeline from the North Dakota oil fields to Illinois. Both routes go through Sioux, O’Brien Cherokee and Buena Vista Counties.

Land owners in these areas have been contacted about easement purchases for the construction of these utility lines. This has created an issue on whether private companies can use eminent domain rules and demand properties owners to sign over easements. Current law would only allow government / non-profit entities to use eminent demand rights.

The Iowa Utilities Board is now deciding if these lines should be approved and whether eminent domain laws can be used. The Iowa Legislature also has taken up a bill that would prevent private, for-profit companies, to use eminent domain laws.

There are also other issues with these utilities going through private property which includes liability issues and who pays for accidents and the clean up. Also, there is contention on what is a fair price for an easement.

I understand how important it is to have a utility grid where electric and oil can be moved efficiently; however, the State must also protect the rights of the land owner. Very tough topic!

Helping the Disabled
The Senate sub-committee did three significant bills that would help those who are disabled in the State, they include:
• A bill setting up a tax free saving account for those with disabilities. A disabled person could put money in a tax free savings account and then they could use these funds to buy a car, home or personal health devices.
• The Senate also set up a tax credit for businesses that hire a disabled person.
• A bill was also proposed that would require gas stations to have a button that a disabled person could push if they need help pumping gas.

Special License Plates
The DOT has noted that they create 17,200 personalized license plates a year. This brings in an extra $440,000 in for the State. The Des Moines Register in the April 14th issue noted that DOT has stopped making plates that have mean spirited comments; they include plates like, H8IAST8 and HRKYSUX. The DOT has also banned plates that are sexual in nature and reference illegal activity. 240 plates have been rejected in the last 5-years.

Honoring Rep Dawyne Alons
On Tuesday, April 14th, the legislature had a memorial service for all legislators that have passed away over the last 2-years. Rep. Alons was remembered; he served 8-terms (16-years) in the Iowa House. He was from my Hull, my home town.

Each Session, the Senate is required to approve all Government appointed workers and board members. (about 430 people) This would include all agency directors and Citizens that have been asked to sit on one of the nearly 30 boards this State manages.

To be approved, a person must receive 34 out of 50 votes to be approved by the Senate. Over the years, I have seen many people get voted down through this process. If this occurs, the Governor needs to submit another name for approval.

Over the last several days, we have approved several key people including Debi Durham who is Head of Economic Development and Courtney Kay-Decker who is the Head of the Dept. of Revenue.

The Boards include Natural Resource Commission, Tobacco Prevention and Control, Veterinary Medicine, Utilities Board and Board of Corrections; to name a few.

These can be some very contentious votes; It’s always interesting how these appointments play out.

The State of Iowa gets 75% of its DNR funding (Department of Natural Resources) from the Federal Government. Iowa’s DNR is worried they will lose some of this funding if they don’t push the reduction on nitrate limits that the EPA is requesting. (Federal Environmental Protection Agency) This coercion by the EPA is objectionable.
The key issue is the enumerated powers of the State which is set out in the United States Constitution. (Article I, section 8) The 10th Amendment states that all privileges not vested in the federal government nor prohibited of the states are reserved to the states and to the people.
The EPA is in direct conflict with enumerated powers of the states. The EPA has rule making power that expands to all states in the nation. It further pushes its power by controlling the money it gives to each state. This is a complete over-reach of power.
States are great incubators for great ideas, including ways to mitigate nitrates. NW Iowa has several rural water organizations that are putting together studies and mitigation ideas to handle the nitrate problem. Initiatives like this and what other States are doing create opportunity that is far better than the federal EPA’s heavy regulatory demands.
The number 1 topic at my forums over the last several years has been the regulations that the DNR is requiring based on the federal EPA. Cattle farmers have noted that there are so many rules that an operation can no longer know what is expected of them. Iowa should not be held captive by the EPA carrot of money.

Below are the top 5 wage earners for Iowa government workers in 2014.
1. Kirk Ferentz – Iowa Football Coach -$3,825,000
2. Fred Hoiberg – Iowa State Basketball Coach - $1,849,999
3. Paul Rhoads – Iowa State Football Coach - $1,750,000
4. Fran McCaffery – Iowa Basketball Coach - $1,312,684
5. Gary Barta – Athletic Director for Iowa - $921,432

I fully understand these individuals bring in a lot of money to the State and that is wonderful, this commentary is not against them; rather, society hoisting up sports rather than a doctor that may give life. It would be great to see a Doctor at the University of Iowa that saves lives or makes a difference in the medical field be in the top 5 salaries.

This list really shows what’s important in society; not academics or an inventor of a lifesaving drug. The President of Iowa, Sally Mason is 32nd on the list. She makes $521,403.

I love sports and I know Iowa is the same as every other State that has Division I Sports. These salaries are always on the top of the list. But, that doesn’t change the fact that there are people in society doing incredible work that are getting snubbed in their wages by government that puts sports first.

It will take the citizens of America until April 24th this year to earn enough money to pay for this year’s government budget. Citizens of the US will pay $4.8 trillion in total tax this year which comes up to 31% of a person’s average salary.

Being a legislator for the last 7-years, I have heard more passion and demand about raising taxes for the states roads and natural resources than any other topic. Gas was raised 10-cents a gallon and there is a push to raise sales tax 3/8th of a cent for natural resource programs.

Both areas including our Schools need government funding. The State will take in about $14.5 billion this year in taxes through the state and federal dollars being passed down to the State. I firmly believe the State has enough funds to do all these things without raising taxes. To make this work the state needs to the following;
• The State needs to prioritize the programs it wants to fund. Those on the bottom of the list should get cut.
• Schools get 1-percent of the States sales tax money. Currently, this money can only be used for new infrastructure. This is why nearly all Iowa schools are building or renovating. The State should allow schools to use this money on school operations, this would help the struggling school districts. (should not be used for wages)
• School should cap wage increases at 4% a year. This 4% should include step increases and inflationary increases. Private sector wages, on average, only increase 3.1% a year.
• The State should take all the Federal road dollars it gets and use them for State road projects. The State gas tax money should then be used for local and county roads. By doing this the State could eliminate many of the Federal road building regulations. (Davis Bacon Laws) The State could save almost $83 million a year on road projects by doing this.

These are a few items that could be done to allow the State to have enough money to pay for all the required government funding areas; including schools, roads, and health and human services. Legislators need to be more vigilant on how tax dollars are being spent. The easy thing to do is simply raise taxes.