Legislative update from Representative Todd Prichard

From Representative Todd Prichard –

I must confess that the egg is one of my favorite foods. I like them fried, over easy, poached, you name it. Admittedly, I have a personal vested interest in the egg market. That interest, however, is nothing compared to the economic impact that the egg industry has on the state, both in individual terms of employment and revenue, and the ever-reaching effects that come with a shortage within the food market.

Currently the egg industry and the rest of the poultry industry are reeling from the scourge of Avian Flu (H5N2) that has devastated both poultry and turkey flocks throughout the Midwest. Over the course of the last few months, over 20 million laying hens have been infected, and outbreaks have been reported in Iowa, Minnesota, North and South Dakota, Montana, Kansas, Arkansas, Missouri, Oregon, Washington, and Idaho. It has been estimated that that 40% of the laying hens in Iowa have been affected by the outbreak, which is believed to have been caused by wild birds infected by the virus.

The disruption to the poultry and turkey industry, as well as the greater agricultural economy, is hard to assess. There will certainly be negative consequences. Jobs will be lost throughout the production and supply chain as operations cut production. Egg prices will rise as there is a reduction in supply. Egg dependent food industries that use eggs as an essential ingredient, such as ice cream, will feel the pinch and be forced to pass on the increased cost to the consumer. Ultimately, customers will feel the effects at the register. Furthermore, the lack of corn consumption to feed the now absent flocks will decrease demand for corn and soybean meal, further weakening commodity prices.

Unfortunately, producers and government agencies were not fully prepared for the magnitude of the current outbreak. While the industry and regulators were aware of a possible outbreak, no one anticipated the scale of the outbreak.

The good news is that the ag industry and both the Iowa Department of Agriculture and its Federal equivalent, the USDA, have both reacted appropriately to get this industry back to normal. On a recent visit to an egg laying facility in Northwest Iowa, everyone I spoke with was focused on the same goal–control the current outbreak and get back into normal production as soon a safely possible. These tasks are monumental; it may take two years to get back to normal. However, I was impressed by the determination of the farmers and USDA representatives to do the job.

From my vantage point in the State Legislature, there are lessons to be learned from this outbreak. First, industry and the USDA should focus on best practices for bio-security. Bio-security is the term used to describe farm practices that safeguard flocks from the spread of disease. Examples of bio-security measures include wearing proper clothing, as well as using effective cleaning and disinfectant procedures. We need to insure producers understand and are able to implement best practices for bio-security across the industry.

Second, we in the Statehouse should realize the importance of having robust capabilities at facilities like the Diagnostic Veterinary Lab at Iowa State University. The Diagnostic Lab provides invaluable service by testing and identifying disease in poultry, swine, and cattle, in addition to their other veterinary services. A short time ago, this facilities’ existence was in question because of potential cuts. For me, the lesson from the Avian Flu outbreak is to continue to invest in the institutions that allow our most vital industries to thrive.

Hey, wait a minute, isn’t this the same argument I have been making all year for funding public schools? I feel like I’m experiencing déjà vu all over again.

Progress Made During 2015 Session but with Missed Opportunities

After a month of overtime, Iowa lawmakers wrapped up the 2015 legislative session on June 5th and legislators said some progress was made this year to help everyday Iowans.

The 2015 session opened with a plan to strengthen Iowa’s working families, build a vibrant economy, and re-vitalize rural Iowa. Key legislation approved this year maintains Iowa’s balanced budget, invests in Iowa’s economy, and keeps vulnerable Iowans safe.

In an effort to build a strong economy, the Legislature worked together to approve bills that will cut red tape and encourage more investment in small businesses, entrepreneurs, and start-up companies. A bi-partisan group of legislators also worked to re-vitalize rural Iowa by expanding broadband to un-served areas, encourage new development in rural communities, and add more value to the crops of Iowa farmers, and create renewable energy jobs.

A new Safe at Home program was created by lawmakers to protect the confidentiality of victims of sexual or domestic abuse and another bill to protect Iowans makes it easier to locate cell phones in life-threatening situations.

Many legislators were also disappointed the majority party missed many opportunities this year, especially in Iowa’s k-12 public schools. With Iowa’s strong economy, there was no reason to leave schools in budget uncertainty for over a year. Other missed opportunities include raising Iowa’s minimum wage, protecting workers from wage theft, developing a paid sick leave plan for workers and withholding life changing medicine to sick Iowans by refusing to even debate medical cannabis.

School Aid Compromise Approved, Falls Short of Needs

Going into the 2015 Session, k-12 school funding was to be addressed quickly since it was not established the previous year as the law required. However, it was one of the last bills addressed when leaders of the majority party in the House refused to compromise for over a year, despite many attempts by House Democrats to set school funding sufficiently.

This delay caused schools to not know how many teachers they would have in the upcoming year and created problems for student class registration in many districts. School funding also affects class size and a schools ability to purchase up-to-date materials and invest in technology.

School leaders and many lawmakers said the compromise funding was too low, but it would prevent cuts at most schools. The Supplemental State Aid (SSA) was set at an increase of at 1.25% which is an increase of $84.8 million compared to FY 2015. This will increase the state cost per pupil from $6,366 to $6,446 (or $80).

School districts will also receive one-time funding of $55.7 million. However, these extra funds cannot be used for salaries for staff, which is the largest portion of every school’s budge. With such insufficient funding, this may force many schools to raise property taxes.