By LARRY PETERSON – CNA staff reporter
Comments (...)By LARRY PETERSON
– CNA staff reporter
Proposed legislation to reform the state’s education system unveiled Friday by Gov. Terry Branstad was figured to be one of the main dishes on the table when members of the 84th General Assembly opened their 2012 session Monday.
Branstad’s blueprint for an improved state education system includes ideas for more rigorous teacher evaluations, end-of-course high school examinations and holding back third-graders who don’t demonstrate basic reading skills.
In December, Branstad shelved a controversial element of the plan that called for revamping the state’s teacher pay system. Creation of a four-tier pay system was met with criticism, so a task force will spend the next year studying the proposal.
In totality, the reforms including the revamped teacher pay system could carry an estimated price tag between $100 million and $200 million.
Shorter session
Lawmakers have expressed the need for a cautious approach, despite projected increased state revenues, because of established commitments when they agreed to Branstad’s demand for a biennial budget process last year. The contentious 2011 session did not include a finalized spending package until June 30, only hours before facing an unprecedented government shutdown.
Nobody expects such a long session during an election year. It’s a scheduled 100-day session set for adjournment in April.
“I’m pretty sure we’ll get out of there this year,” said Rep. Cecil Dolecheck, R-Mount Ayr.
“I am hopeful that we can accomplish more of the policy-type issues,” said Sen. Joni Ernst, R-Red Oak, “because we have an 18-month budget appropriation right now. The health of the state, fiscally, is much better. We are in a better position because we have slowed down or stopped the use of one-time money for ongoing expenditures.”
Rep. Clel Baudler, R-Greenfield, said there are built-in incentives to meet the 100-day schedule this year.
“I would guess everybody wants to pass a budget and get out of town and campaign because of reapportionment,” Baudler said. “The problem is, we have to pass a smart budget. Last year we got the ship turned around. Medicaid will take that surplus away and more. The budgeting process never ends. But, at least we won’t be looking at so many places to cut.”
Budget-makers expect to have about $250 million in increased revenue available, and don’t face a $1 billion gap to fill, like in 2011.
But, as Baudler mentioned, higher spending for Medicaid, driven by a slowed economy, will be a big budget issue, as well as increased education appropriations. There is also a collective bargaining agreement that calls for state employees to receive a 3 percent pay boost next fiscal year, amounting to more than $300 million.
Commercial tax policy
Still, Branstad and a Republican-led House (60-40) want to provide commercial property tax relief. Iowa’s commercial/industrial property tax structure is thought by many to be a major impediment to economic development, and out of line with neighboring states.
Last session, Branstad proposed that commercial property taxes, which are taxed at 100 percent of assessed value, be gradually lowered to 60 percent over five years at a cost of $250 million. New business ventures would get the 60 percent break immediately. He also proposed agricultural and residential property tax increases be capped at 2 percent.
The Senate still has a 26-24 Democrat majority after Sen. Liz Mathis’ special election victory in Marion last November.
And, some Democrats want to tie any commercial property tax relief to a change in the earned income tax credit. It currently stands at 7 percent of the federal credit for working poor families. Proponents of new legislation are asking to raise the credit to 20 percent, which they say would generate economic activity in their local communities for basic needs.
Again this year, Branstad and lawmakers will attempt to fashion a compromise on taxes.
Road work
Both Ernst and Baudler said they are focusing on transportation issues and road funding. Bauder said many old, deteriorating bridges have tonnage limits prohibiting the passage of emergency vehicles and farm equipment.
“We’re very hopeful here in the rural areas that we can achieve some accomplishments in those areas,” Ernst said. “The governor wants to see it come out of the current transportation budget. They are looking to relocate some funds, such as rest-area construction projects, or maybe a gas-tax increase. A lot of people are favorable to that because 25 percent of the projected revenue comes from out-of-state travelers.
“It allows us to capture revenue from people who are not paying into our tax system,” Ernst said.
Dolecheck, meanwhile, is co-author of another bill aimed at providing relief in struggling rural areas.
“I have a proposal with (Rep.) Richard Anderson looking at the possibility of rebates for some of the sales taxes collected to be returned back to economically-distressed counties,” Dolecheck said. “It’s called STARC — sales tax rebate to counties — that could help some counties experiencing high unemployment rates. It could be an incentive to develop jobs in those areas. There are places such as Red Oak that have experienced losses in manufacturing positions.”
Mental health
Rep. Joel Fry, R-Osceola, served on a committee last summer that studied proposed changes in the state’s mental health policies.
The new Affordable Care Act from the federal government mandates more requirements that figure to place 100,000 additional people on Title 19 rosters, Fry said. Specifically, there’s a move from an emphasis on group-home living to living more independently, or in small-group situations.
The theory is that a state-based system of larger regions replacing the county-based network could achieve more efficient contracts by involving several counties at a time.
“A consulting firm monitored a series of public meetings and came back with a report of 160 to 180 pages,” said Fry, a licensed independent social worker and mental health therapist. “I was on an interim committee of 12 legislators charged with boiling that report down to some legislation we can bring to the session. That legislation is being drafted and we hope to present it in the first month, or sooner.”
Overhauling the commercial tax structure, the mental health industry and dealing with the governor’s blueprint for education reform is a full plate for lawmakers, but Fry is sure of one thing.
“We won’t be here until June 29,” he said, chuckling.
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