Budget talk dominates session's closing days

The last and 110th day of session this year is supposed to be Friday, April 29. That?s the day funding for the legislators runs out. However, it is looking increasingly unlikely that this year?s session will come to a close by then. Generally, once the paychecks end, and legislators begin paying for their food and housing out of their own pocketbooks, things tend to be resolved quickly. It?s beginning to feel like it may take a bit longer this year.

There is a lot yet to be resolved before a final conclusion is reached and things could get a little squirrely.

For example, consider that both the House and Senate have passed an individual budget bill that will fund one fiscal year for a particular area of state government. Both chambers have also passed a bill that funds a particular area of government for one-and-a-half years and the Iowa House also passed a budget bill that budgets for two years.

Governor Branstad has either vetoed or threatened to veto anything that is not a two-year budget because he believes a biennial budget will result in more fiscal stability and responsibility after four years of uncertainty.

Before everything is all said and done, identical bills must pass both chambers and be signed by the Governor. This is a pretty large divide that still needs to be bridged and these actions have not put the Legislature any closer to adjournment.

While the budget may be the biggest point of contention, it is not the only one. There are ongoing efforts to find common ground on property tax reform, education transformation, and restructuring Iowa?s mental health delivery system, among others issues.

Even as Iowa?s unemployment rate jumped up this month and over 1,000 additional Iowans found themselves without work, pro-jobs legislation is extremely slow to move in the Senate. I got my first look at the Majority Party?s amendment to the House bill that will restructure the Iowa Department of Economic Development on Wednesday evening. There are some clear differences between the wants and needs of the individual parties. But I am hopeful that something workable will come of the negotiations.

We continue to stand ready to help our colleagues in the other party pass important bills that deal with promoting the creation of well-paying private sector jobs.

On Wednesday, the Iowa Senate passed legislation which makes significant changes to several aspects of Iowa?s gaming industry. Ever since gaming was first legalized in Iowa, debates over gaming laws have historically been highly emotional, often controversial and have nearly always cut across party lines. This legislation is no different.

The most remarkable changes were those made to horse racing in Iowa which provides breeders and racers more consistency, predictability and stability. The various breeds have been in general disagreement over the racing dates and the size of purses for the past 20 years. So it is noteworthy that they have resolved their differences.

The bill also removes the automatic referendum that must be held every eight years in the counties where casinos are located. This referendum was put in place so that Iowans in those counties could vote once every eight years as to whether they wanted to continue to allow a licensed casino in their county. The law would instead put in place a reverse referendum that would allow a vote to occur if enough signatures were collected from the voters of that county, so it still gives an opportunity for a vote if the people wish to pursue it.

The legislation also instructs the Iowa Racing and Gaming Commission to study the possibility of allowing online poker in Iowa. The report must include a study on the societal impacts on families and communities created by online poker.

While the legislation has passed the Senate, it still must move through the Iowa House and be signed by Governor Branstad.

After sitting for weeks in conference committee, a bi-partisan agreement was struck late last week to move forward on a wide-ranging tax and supplemental appropriations legislation.

Senate File 209 contained many issues that were of importance to both parties in both chambers.

Here is a run-down of the legislation:

$45.78 million in supplemental appropriations

Community Colleges - $5,948,736

Department of Corrections - $14,201,683

Indigent Defense/Public Defender - $18,551,500

Department of Public Safety - $2,955,000

Department of Public Health - $1,212,551

Department of Human Services ? Mental Health Institutions - $2,644,316

Terrace Hill - $263,329

Increases the refundable earned income tax credit from 7 to 10 percent.

Initiates bonus depreciation beginning with 2011 tax year.

Spends $20 million on a budget supplemental for mental health waiting lists, risk pools and other mental health provisions.

Repeals the mental health code by July 1, 2013.

Establishes the ?Taxpayer Trust Fund,? which is designed to capture up to $60 million of the state?s ending balanced in order to provide tax relief.

Now that this compromise has passed both chambers of the Legislature with unanimous support, the legislation sits on Governor Branstad?s desk awaiting his decision. It is unclear whether he will sign it or veto it, but rest assured, we intend to monitor the situation closely as this bi-partisan bill stands to provide real financial help to many Iowans of all income levels.

Mail sent to me here at the Capitol should carry the zip code 50319 and my email address is sandra.greiner@legis.state.ia.us.