Senate Democrats

Week 7 Report – Feb. 25, 2009

 

 

·        Responsibly balancing the state budget in troubled times

·        Protecting educational opportunity in tough times

·        Stepping up our efforts to help unemployed Iowans

·        Values Fund helps expand Iowa’s middle class

·        Regional partnerships expand student opportunities

·        Cracking down on meth makers in Iowa

·        Flags will honor servicemembers who give their lives

·        Shining a light on government

·        Grain Indemnity Fund changes to protect farmers

 

  

Responsibly balancing the state budget in troubled times

 

In the face of tough economic times, the Legislature took another step this week toward approving a fiscally responsible state budget when legislative leaders released their targets for state pending. 

 

The targets will guide Republican and Democratic legislators as we work together on the details of a new state budget that focuses on our key priorities. 

 

Here are some of the most frequent questions I’m being asked.

 

1)  Why are budget cuts necessary? 

 

Due to the deepening national recession, state revenues have nosedived in recent months, and we are concerned that the situation is getting worse in the short term. We must adjust spending to respond to changing economic conditions. Because Iowa law mandates a balanced budget, I won’t support legislation that goes against responsible budgeting practices. 

 

2) Is it true that the Legislature’s budget proposal calls for spending LESS than Governor Culver requested? 

 

Yes.  Governor Culver and the Legislature responded earlier this year to the national recession by cutting the current year’s General Fund budget by $36.6 million. 

 

I’m now working on the Legislature’s proposal to cut an ADDITIONAL $133.9 million from the Governor’s already tight budget proposal. We will also use $100 million LESS from the state cash reserve fund than what the Governor proposed.

 

3) What’s the next step?

 

Each of the seven state budget subcommittees is required to cut its budget by at least 1 percent from the Governor’s proposed budget. Given the cuts we’ve already made and increased demand for some state services due to the recession, that won’t be easy. 

 

When we find existing programs that don’t work or aren’t needed, we’ll shut them down.  We’re targeting resources to get the biggest bang for the buck. And I’m listening to your suggestions to help us accomplish this difficult task.

 

4) What’s your bottom line?

 

This year, we’ll be tightening our belts while working hard to fulfill the commitments we’ve made on health care, education and jobs.  Fiscal responsibility will help us keep our promises.

 

 

Protecting educational opportunity in tough times

 

Protecting educational opportunities and growing Iowa’s middle class are two of the best ways for us to help our state recover from the national recession.

 

That’s why the Iowa Senate voted this week to increase basic state funding for local schools by 2 percent during the 2010-2011 school year. This money will be used for textbooks, heating bills, technology and other necessities that help students, teachers and schools succeed.

 

We also took steps to improve student achievement and keep the best teachers in Iowa classrooms by increasing funding by 2 percent for teacher quality, professional development, class-size reduction, and reading and early intervention strategies.

 

In these tough economic times, I am committed to making the difficult decisions necessary to protect Iowans’ priorities and balancing the state budget without raising taxes.  By increasing school funding, we maintain our commitment to top-notch schools while being fiscally responsible.

 

 

Stepping up our efforts to help unemployed Iowans

 

The recession is putting too many Iowans out of work. When one person loses a job, it’s hard for the whole family. When 20, or 50, or100 people in a community are suddenly out of work, the local economy suffers.

 

At times like these, one of the best safety nets we can offer Iowa’s working families is good unemployment insurance. Unemployment benefits help families make ends meet and help communities get back on their feet. 

 

This week, the Iowa Senate unanimously passed Senate File 197, which reforms Iowa’s Unemployment Insurance program. These changes will put Iowa in compliance with the Federal Unemployment Insurance Modernization Act. The federal government then will send Iowa about $70 million to improve and expand services for people who have lost their jobs during this national recession.

 

I believe we should also pay the unemployment claims of replacement workers who lose jobs when our Guard and Reserve personnel return home. When Iowa soldiers come back to work, the state should help the replacement workers without penalizing the employers.

 

In the Senate, we’ll keep looking for ways to help middle-class Iowa families during this difficult economic time.

 

 

Values Fund helps expand Iowa’s middle class

 

One of the most important jobs of the Legislature is to invest in long-range economic development to ensure that Iowa’s middle class grows and prospers.

 

That’s why the Legislature has maintained its commitment to the Iowa Values Fund, the state’s highly successful job-creation initiative. 

 

The Iowa Department of Economic Development recently released its annual report for the Iowa Values Fund. The Values Fund has awarded more than $147 million in direct financial investment and $750 million in state tax credits to attract and expand businesses in Iowa since 2003, according to the report.

 

More than 32,000 good-paying, high-quality jobs have been created or retained through Iowa Values Fund financial assistance. This is great news for Iowa’s working families.

 

Review the annual report and search the Values Fund database for specific business development awards at www.iowalifechanging.com/annualreport/2008/compliance/.

 

 

Regional partnerships expand student opportunities

 

Iowa needs schools that can work together to offer our rural students the same opportunities that students in many urban schools enjoy. 

 

The Regional Academy for Math & Science (RAMS) in Oelwein is a concept that will open doors for many northeast Iowa students and may provide a model that could be implemented statewide.

 

RAMS, a partnership between the local community college, area K-12 schools and Regent universities, offers rigorous and relevant math, science and technology course work for area students, as well as teachers and community members who want advanced degrees in those subject areas. The curriculum is designed to meet the needs of students and for specialized training needed by business and industry.

 

RAMS, which allows rural northeast Iowa schools to provide educational opportunities that students would not get otherwise, has received $1.7 million in state and federal funding to pursue its mission. 

 

I am hopeful that other schools across the state will pursue this type of partnership to ensure more students get the best possible educational opportunities.

 

 

Cracking down on meth makers in Iowa

 

Democrats and Republicans have been working together for years in the Iowa Legislature to crack down on meth makers in our state. We’ve had a lot of success and are continuing our efforts.

 

One of the biggest problems we see today is “smurfing,” which is when meth makers illegally buy pseudoephedrine from many different pharmacies around the state. This week, the Senate Judiciary Committee passed legislation that is designed to help stop this practice by tracking pseudoephedrine sales electronically. It would also make it easier to locate and prosecute those who are breaking the law.

 

Our goal is to cut down on the number of meth labs in Iowa. Meth is not just a dangerous drug. The ingredients that go into making it can be volatile, creating a very dangerous environment for those who live in the vicinity of a meth lab, including innocent children and neighbors.

 

 

Flags will honor servicemembers who give their lives

 

On February 25, the Senate unanimously approved a bill to honor Iowa’s servicemembers who lose their lives in the line of duty.

 

Under the legislation, an Iowa servicemember’s family will be given the U.S. and Iowa flags flown at half-staff over the Statehouse in recognition of their service and death while on active duty. The two flags will be presented by the Governor to the surviving spouse or other immediate family member.

 

This is another step in our bipartisan efforts to show our appreciation for the sacrifices of our servicemembers and their families. The bill, Senate File 112, now goes to the Iowa House for consideration.

 

 

Shining a light on government

 

Open meetings and open records result in open government.  That’s why the Senate State Government Committee has approved making updates to Iowa’s “sunshine laws.”

 

It’s important that citizens know what their government is doing and that their rights to information are protected. Open government is an important safeguard against corruption, favoritism and bad ideas. 

 

For example, the outrageous salaries in the CIETC scandal would have been rejected outright if the public had known what was going on. 

 

That famous motto – “Sunshine is the best disinfectant” -- has served Iowa well for many years.  This year, we will continue to strengthen our commitment to open records, open meetings and open government.

 

 

Grain Indemnity Fund changes to protect farmers

 

Iowans who store grain in a warehouse or sell grain to a licensed grain dealer are eligible to have their losses covered through the Grain Indemnity Fund. In a loss situation, the fund pays the claimant for 90 percent of their loss.

 

The fund is supported by a dealer warehouse fee and a per bushel fee on grain sold to a dealer by a seller. The Indemnity Fund, which was started in 1986, has a current net worth of more than $8 million.

 

The Senate Agriculture Committee recently approved these changes to the Grain Indemnity Fund:

The maximum payout for a loss by an eligible claimant is increased from $150,000 to $300,000.

The balance in the fund required to automatically waive the assessment of the dealer warehouse fee and the per bushel fee is increased from $6 million to $12 million. 

The balance in the fund required to automatically reinstate the fees is increased from $3 million to $6 million.

 

More information is at www.iowaagriculture.gov/grainWarehouse/GrainIndemnityFund.asp.