Legislative Update Week 6
Last January when I took the oath of office Iowa was spending $1.18 for every dollar collected. When the legislature adjourned in June we reduced spending to .97 cents of every dollar. We were able to accomplish this because Senate and House Republicans stood firm with Governor Branstad to reign in the out of control spending by legislative Democrats.
Republicans ended the practice of funding ongoing expenditures with one-time money. Together with Governor Branstad and House Republicans we passed a budget that spent less and put our fiscal house in order. Earlier this month we continued making progress with the release of the House and Senate Republican budget for the upcoming fiscal year. Our budget was assembled with job creators and hard‐working Iowans in mind, and frankly that is the way it should be. As the session progresses I will work for continued government reform with corresponding spending reductions.
As we all know, livestock production is an essential part of Iowa’s economy. Agriculture sales, as an industry, have seen $12 billion in totals in 2002 explode to $30 billion in sales in 2011. Iowa ranks first in the nation in corn, soybean, hogs and egg production and fluctuated in ranking between 4th and 6th, depending upon which study you review, in cattle production. Total enrollment in Iowa’s agricultural colleges is the highest it has been in 30 years with placements higher than 90% upon graduation. That said, the future looks bright for Iowa agriculture.
With all this good news, challenges remain on the horizon. Those challenges include future federal restrictions on dust and potential restrictions on allowing young Iowans to work on family farms.
A third and potentially devastating issue of concern is obtaining false access to livestock operations by individuals that would like to destroy livestock production methods in Iowa. These individuals gain access to the facilities and stage animal abuse for the sole purpose of ruining legitimate operators’ credibility.
Iowa producers value the health of their livestock and have developed and implemented methods of production to prevent disease and produce a leaner product, which is demanded by consumer. These products feed the world and have led to unprecedented overseas exports.
The Iowa Senate is prepared to debate House File 589 with a filed amendment that provides protection for Iowa’s agricultural community from fraudulent activities. The bill, as amended, is a narrowly-tailored remedy for the problem of unauthorized individuals taping staged animal abuse. The bill prohibits a person from obtaining access to an agricultural production facility under false pretenses. It also establishes criminal penalties for these offenders. My hope is that the Senate will pass this bill to protect Iowa’s livestock producers from influences that are damaging to our way of life.
As always, feel free to contact me with your questions, comments and ideas. We have several town halls scheduled, and I would encourage you to attend. I can be reached by phone at 712-898-2505 or email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Have a great week.
Don't Forget
Upcoming Town Hall Meetings:
Friday, February 17th
- Sergeant Bluff - 12:00PM to 1:00PM, Pizza Ranch, 206 1st St
Saturday, February 18th
- Merrill – 8:30AM to 9:30AM, Plymouth Oil Company, 22058 K42, Merrill
- Hinton – 10:00AM to 11:00AM, Long Branch Steakhouse, 201 East Main Street
- Lawton – 11:30AM to 12:30PM, Lawton Community Center, 101 East Maple Street
- Correctionville – 1:15PM to 2:15PM, Correctionville Community Center, 312 Driftwood Street
From the Desk of Representative Chuck Soderberg
With just one week until the first legislative deadline, when a number of bills must be passed out of committee, week six of the 2012 Iowa General Assembly was filled with committee meetings, sub-committee meetings, and floor debate in the Iowa House. Information on all the bills, amendments, and floor action can be found on the Iowa General Assembly web at: www.legis.iowa.gov.
Fact or Fiction: Does Iowa Have a $1 Billion Surplus?
Many have probably heard at some point that the state of Iowa has a $1 billion surplus. If true, why is there such an effort to contain costs? In reality, the so-called “surplus” is actually:
• $600 million in one-time cash reserve funds (needed to help the state cash flow)
• $250 million in one-time ending balance from this year (FY 12)
• $200 million in on-going revenue growth for next year (FY 13)
The state budget is really about $12 billion, $6 billion is appropriated by the state and $6 billion is received from the federal government to fund federally mandated programs. Iowa’s law requires that 10% of the state budget must be set aside into a cash reserve (not spent on ongoing operations) to assist the state in paying bills in a timely manner. This means that $600 million is off-limits to spend.
In addition, the Legislature can (but is not required) to spend up to 99% of the projected revenue. We must be disciplined in our spending as the economic recovery continues, the federal debt increases, and the anticipated federal cuts that will impact the $6 billion in federal funds Iowa receives. Spending our one-time ending balance money to fund ongoing expenses would also be reckless as it is a short-sighted budgeting practice.
Historic Property Tax Reform Passes the House
On February 14th, the House passed HF 2274. I support this bill as it is the only property tax proposal that delivers significant tax relief and genuine reform to all classes of Iowa’s property tax payers. Iowa currently has the 2nd highest commercial property taxes and the 16th highest residential property taxes in the country. As mentioned last week, over the last ten years, property taxes have increased over 60%, or over $1.7 billion dollars. If we do nothing, over the next 10 years property taxes paid by homeowners will increase an estimated 73%, from $2.3 billion in 2012 to $3.9 billion in 2022. The majority of that new tax burden would fall onto Iowa’s homeowners.
HF 2274 is a genuine property tax relief and reform for ALL Iowans that puts money back in the pockets of Iowa families and job creators. Property tax reform also affects Iowa’s economy and is an impediment to putting people back to work. The House plan further provides an emphasis on smaller, Main Street, entrepreneur-type employers. It creates predictability and stability for all employers. Highlights of the House plan include:
• ALL Iowans receive tax relief and there is no shifting of burdens to any one class of property.
• Job creators receive a $602 million property tax cut.
• Homeowners receive a $417 million property tax cut.
• Republicans’ proposal offers a total of $1.2 billion in relief for Iowa property taxpayers.
The plan proposed by the Senate Majority Party results in a $2.5 billion property tax increase, with $1.69 billion of that falling on the backs of homeowners. According to public polling, Iowans favor broad based property tax relief proposal, similar to the House plan, by a 2 to 1 margin over a targeted tax credit plan, similar to the plan passed in the Iowa Senate.
Mental Health Redesign Work Continues in the House
After months of public discussion and interim committee meetings throughout the summer, the House Human Resources Committee has begun work on three pieces of the legislation that will redesign Iowa’s mental health and disability services system.
HSB 623 is the product of the DHS/Judicial Branch work group that has been in existence for several years. In 2011, the group was tasked with addressing a number of issues related to the interaction of law enforcement, the Judicial Branch, and the mental health system. The group put together a series of recommendations ranging from on-going mental health and disability services training for law enforcement officers, the ability of residential care facilities to determine whether or not to accept people referred to them by the court, and clearing up conflicts within the Iowa Code on which mental health professionals may be involved in the commitment process.
The final Mental Health Redesign bill draft, addressing many of the recommendations proposed by the Department of Human Services, is expected to be released soon. The recommendations include:
• Transforming the management structure for mental health services;
• Changing the basis for determining financial responsibility; and
• Establishing core services that will be available throughout the entire state.
One new element in this bill is the issue of future funding for the system. Under the language passed in SF 209 last year, the current mental health levy is phased out at the end of FY 2013. The amount generated by the current levy statewide is $125 million. The legislation will call for a four year phase out to begin in FY 2014, with the state providing dollar for dollar property tax relief.
Opportunities to Learn About Issues and Voice Your Concerns
As we work on various issues, I would love to hear from you. Senator Anderson and I will be holding our next joint legislative forums on February 18th at the following locations to discuss various issues concerning the Iowa Legislature:
• Merrill Plymouth Oil Co. (22058 K42 – At Ethanol Site) @ 8:30 to 9:30 a.m.
• Hinton Long Branch Steakhouse (201 East Main St.) @ 10:00 to 11:00 a.m.
• Lawton Community Center (101 East Maple St.) @ 11:30 a.m.-12:30 p.m.
• Correctionville Community Center (312 Driftwood St.) @ 1:15-2:15 p.m.
If you have any questions, comments or know someone who would like to receive my electronic newsletter via email, please feel free to reach me during the week at (515)-281-3221, on weekends at (712)-546-6136 or email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .