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Legislative update from Rep. Todd Prichard

Rep. Prichard with children at the state capitol
Rep. Prichard with children at the state capitol
The following is a legislative update from Rep. Todd Prichard of Charles City –

Failure to Compromise Hurts Iowa’s Children

The Iowa Legislature is still at an impasse regarding the level of assistance the State of Iowa will provide to local schools. According to Iowa law, the funding level should have been set last year. Instead, two sides are currently at odds over what funds are available for education. Whatever anyone argues, the bottom line is this: There is money in the Iowa budget to properly fund our schools.

Iowa’s economy and budget are in good condition. Iowa law requires the state to maintain 10% of its total budget as set aside reserve. Because of Iowa’s careful budgeting over past decades, Iowa’s reserves are full, and have remained untouched since 2010. At that time, Iowa, like the rest of the country, felt the pinch of the Great Recession. Since that time, Iowa’s economy has grown, and with that, state revenues have also increased. This is due in large part to Iowa’s low unemployment rate of 4.1%. Further helping the budget, Iowa law does not allow the Legislature or Governor to spend all the money the state collects. Rather, the budget is capped at 99% of available funds, allowing for a 1% cushion. As revenues have grown and we have spent less then what we have taken in, the leftover money has filled the reserves. What has remained has then been contributed to the upcoming year’s budget. This money is called the carry over, and is often a substantial amount. According to the Legislative Services Agency, the non-partisan part of state government that does the state’s accounting, the current carry over is $319 million.

While both the Governor and the Senate want to budget with this year’s carry over, the House Republicans will not consider it. This position is unfortunate when you consider that only half of the $319 million carry over is needed to provide what many would consider adequate state funding to our schools. Further, the $319 million carry over cannot go into the state’s reserve funds because those funds are full and capped at 10% of total budget.

I think to most observers, the fix for funding schools is simple. Use the $319 million carry-over funds. This would alleviate the pressure local schools feel to raise property tax levies. Unfortunately there are those in the House who want to leave that money off the budget table.

Compromise is needed, and the funds are available to help our schools. The sad reality is that our children’s education and future wait in limbo. Appropriate funding is vital, and public education is too important for us to not find common ground.

Students, parents and educators from across Des Moines held handmade signs and posters at the Statehouse on Wednesday to visit with legislators in support of 4 percent school funding for Iowa schools.

Senate, Governor Agree on Balanced Budget Plan

The Iowa Senate and Governor Branstad have agreed on a balanced state budget outline this week that proposes spending $7.3 billion next year while leaving the state’s savings accounts full at $700 million with an additional $387 million surplus.

The Senate plan includes a compromise 2.625 percent increase in state support for Iowa’s local schools, which is about $150 million. It calls for a tuition freeze at our state universities for the third consecutive year and fully funding property tax credits as well as a commercial property tax cut approved two years ago. The plan also funds an early retirement incentive plan for eligible state employees that are projected to save the state $16.1 million in the next fiscal year.

The release of budget targets is a significant step for the budget subcommittees and the Appropriations Committees to begin their work in crafting the detailed expenditures of the fiscal year 2016 budget.

However, the House Majority party is insisting on overall spending of $7.175 billion, $166 million less than both the Governor and Senate are proposing, and has yet to release any more details. The delay means the Legislature is unlikely to finish work by the May 1 deadline.

Iowa law allows the Legislature to spend up to 99 percent of available revenues. The proposals by the Senate and Governor Branstad are both $149.1 million below the state’s 99 percent expenditure limitation. Both the Senate and Governor are at 97 percent of available revenues, as determined by the nonpartisan Revenue Estimating Conference.

Veterans Benefits Consumer Protection

The Iowa Legislature works each year to thank veterans and their families for their service and sacrifice. Over the past ten years, the benefits and services to veterans and their families have increased. As a result, private entities have emerged willing to help them apply for their well-deserved benefits, but for a fee.

The Legislature passed legislation that requires individuals and companies to notify their possible clients that the same benefits and services are offered at no cost by federally chartered veteran service organizations, such as the American Legion or the Veterans of Foreign Wars (VFW), and by County Commission of Veteran Affairs offices. The applicant must sign a written disclosure form statement stating that the client has read and understands the written disclosure statement.

If an individual or company fails to comply with the requirement, they are subject to a fine of $1,000 for each violation. Any penalties collected for failing to comply with the requirement will be deposited in the Veterans Trust Fund.

The bill now goes to the Governor’s desk for signature or veto.

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