James Q. Lynch, CR Gazette –
UPDATE: The Iowa House has approved a flood mitigation bill that would allow Cedar Rapids and other communities retain some of their sales tax revenue growth to pay for flood protection.
On a 76-23 vote, the House approved Senate File 2217 and sent it to the governor. The Senate approved it earlier, 50-0.
SF 2217 would create a Flood Mitigation Program administered by a state board. The board could allow communities to retain growth in sales tax revenues over a period of time or provide state aid from a state flood fund for communities without sales tax growth. The program requires a 50 percent local match.
As much as $30 million a year could be diverted from general fund sales tax revenues, with as much as $15 million available for any one project.
Although it appears Cedar Rapids is the most likely community to be able to take advantage of the legislation, supporters emphasized its statewide application and merit as sound flood protection policy.
“The question we can ask now is, ‘Did we learn anything?’” floor manager Rep. Jeff Kaufmann, R-Wilton, said. “I think, this bill says ‘yes.’ We are allowing communities to help themselves by investing sales tax revenue to help themselves.”
Rep. Pat Murphy, D-Dubuque, pointed out that the bill requires more than “asking for government funds.”
“Basically, it requires local involvement as well with community match dollars from the private sector, so you have a public-private sector relationship,” Murphy said.
Even in the case of Cedar Rapids, the benefit of flood protection will have a wider impact, said Rep. Nate Willems, D-Lisbon. Although communities in his district were not directly impacted, many residents of the district work in Cedar Rapids. Flood protection there will protect their jobs.
“The longer we wait, the longer time goes by, we’re simply rolling the dice with thousands and thousands of jobs in Cedar Rapids that if another flood were to hit that community I don’t think would come back,” he said.
“We’re still recovering,” added Rep. Dave Jacoby, D-Coralville. “Any help with flood mitigation is sorely needed, especially in areas where flood damage is four years old.”
Although there has been organized opposition to the bill, especially in regard to accountability, no representative spoke in opposition. Some lawmakers privately expressed concern about diverting even the growth in sales tax revenue from the state to communities. They are concerned that could impact funding for state priorities, such as education.
In the end, 39 Republicans and 37 Democrats voted for SF 2217, while 20 Republicans and three Democrats voted against it.
