The Legislature is likely to go beyond the 110-day Legislative Session, as more discussion is needed on the state budget and key policy provisions before adjournment is reached.|From Rep. Sharon Steckman
The Legislature is likely to go beyond the 110-day Legislative Session, as more discussion is needed on the state budget and key policy provisions before adjournment is reached.
Last week, the House and Senate reached a bipartisan agreement on an appropriation and tax measure that had been stalled in conference committee for five weeks. The Governor’s office was part of the negotiation on this bipartisan agreement, and a no time did they indicate a problem with the bipartisan agreement. This change of course by the Governor has created a stir in the Legislature as to how future agreements will be reached.
The Governor vetoed two provisions of the bill. He objected to a provision that allows small businesses to invest and expand their businesses in Iowa, which will help create new jobs. It allows them to deduct the entire cost of autos, machinery, and other big ticket items from their taxes immediately instead of depreciating over time. The Governor vetoed this provision because he is not interested in providing an immediate boost to main street businesses, and instead he wants the Legislature to provide long-term tax relief to major corporations.
The Governor vetoed another provision that would have provided tax relief for 240,000 families who are working at least one job, and in many cases two or more jobs, by increasing the earned income tax credit. This credit increase would have put more money in the pockets of families earning less than $45,000 per year. The Governor vetoed this provision asking for a comprehensive and holistic approach to tax relief, which leaves hard-working families without any tax relief.
Legislators will be spending less time debating bills over the next week and working hammering out the details on the budget. The negotiations hope to achieve a balanced budget that can pass both houses and receives the Governor’s signature, while also meeting the needs for Iowans for the next year.
