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Senate
Democrats
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It’s
time for an Iowa middle-class tax cut
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National recession is
putting the pinch on Iowans
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Iowa leads national effort
for better health care
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Senate strengthens
protections for Iowa workers
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Enhancing incentives for
Iowa’s economic prosperity
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Promoting green energy
production is a winner for Iowa
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Consumer protections for
car buyers
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Senate confirms new
Adjutant General for Iowa Guard
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Know your flood risk
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Increasing local authority
for environmental protections
There was progress this week on a tax-cut plan that would
benefit every middle-class Iowa
family. A proposal under consideration
calls for revamping the state’s antiquated income tax system and funneling
the money that change generates into middle-class tax cuts.
Under the proposal, more than two-thirds of Iowans would
either receive a tax cut or see no increase in state income taxes. The
proposal would also simplify Iowa’s
income tax system and reward middle-class Iowans.
There is no doubt that lightening the tax burden on Iowa’s middle-class families would be a significant
change in direction for Iowa
tax policy. It would reverse the trend of tax cuts that mostly benefit the
wealthiest Iowans. This new direction would reward work and provide tax cuts
to middle-class Iowa
workers who are bearing the brunt of the national recession.
Iowans across the state have expressed interest in
changing Iowa’s
tax system. Here are three reasons why this could be the right year for tax
reform:
1. This
proposal would make our tax system fairer for middle-class Iowans.
2. It
helps Iowa
communities attract good-paying jobs to our state.
3. It
keeps more money in the hands of middle-class families struggling to pay
their monthly bills, their children’s college education and day-to-day
expenses.
Under the proposal, state income tax rates will fall,
according to an analysis by the nonpartisan Legislative Services Agency. The
benefits from this tax-cut would go to Iowans with an annual income of
$125,000 or less.
The impact of those dollars being spent in communities
across our state would generate economic activity in local economies. In
addition, state and local economic development groups across Iowa have long called for a cut in Iowa’s income tax rate, which is said to
be the 4th highest in the nation.
We’re interested in making Iowa income taxes simpler and fairer,
while putting more money in the pockets of middle-class families.
There was further evidence last week that middle-class Iowa families and
employers are continuing to feel the pinch of the deepening national
recession.
The state’s Revenue Estimating Conference (REC) met and
lowered Iowa’s
revenue forecast for the current fiscal year and next fiscal year. This is on
top of new figures showing the unemployment is rising in our state, more
small businesses are seeing sales drop, and more homeowners are facing
foreclosure.
In response, we are taking the fiscally responsible steps
necessary to balance the state budget.
While difficult decisions are ahead, we intend to keep our
commitments without raising taxes. We’ll make sure every Iowa child has health care by 2011, remain
focused on educational excellence, and continue creating good-paying jobs in
renewable energy and other key industries.
Iowa
leads national effort for better health care
The Iowa Senate recently approved legislation that will
strengthen Iowa’s
leadership role in the national effort to expand access to affordable health
care.
Iowa
is already doing a good job when it comes to health care. Last year,
lawmakers committed to making affordable health insurance available to all Iowa children within
three years.
Because of our efforts, a Commonwealth Fund report on
health care for children ranks Iowa
first in the nation. The Kaiser Family Foundation found that Iowa has the third
lowest percentage of uninsured citizens. And the Dartmouth Atlas of Health
Care study of health care system efficiency found Iowa to be number one.
Senate File 389, which passed the Senate on March 19, is
another big step in extending health insurance to 30,000 Iowa kids who are currently uninsured. It
will give Iowa the highest percentage of
insured children in the nation – about 99.8 percent of Iowa’s children will be covered. This effort
will be paid for with funds allocated last year, with federal support for
children’s health insurance, and with federal stimulus dollars.
The bill will also help low-income adults looking for affordable
insurance options by creating the “Iowa Insurance Exchange.” This
organization will design a high-quality, affordable health care plan and
invite private insurers to compete to provide it. Before the plan is
implemented, the 2010 Legislature must approve it.
We will explore how schools, local governments and small
businesses can benefit from the large pool of tens of thousands of Iowans
already insured by the state. By leveraging the economic power of that large
pool, we can work with private companies to provide an affordable,
comprehensive plan that is portable and without pre-existing conditions.
The legislation also includes a host of other health care
reforms, including a ban on gifts to doctors from pharmaceutical companies
and measures to reverse shortages of nurses, doctors and other medical
workers.
While we break new ground, our focus is on improving the
lives of Iowa
families and strengthening our state’s economy by solving health care
problems that have troubled our country for years.
The series of labor and human rights violations at AgriProcessors meatpacking plant in Postville exposed
gaps in Iowa’s
child labor laws and wage payment laws. In addition the violations at Henry’s
Turkey Service in Atalissa reinforced the weakness in our wage payment laws.
This week, the Senate passed a bill (HF 618) that will
close the gaps in Iowa’s
child labor laws. The bill increases criminal penalties and creates a civil
penalty for child labor violations in an effort to deter those few employers
who choose to disobey our current laws. The bill now goes to Governor Culver
for his signature.
We also moved to strengthen Iowa’s wage payment laws (SF 413). Workers
should be paid for the work they’ve done, and businesses must be held
accountable when they don’t play by the rules. Failing to enforce wage laws
and follow minimum standards cheats legal workers, drives down wages and is
unfair to Iowa
businesses that play by the rules.
The atrocities at Postville and Atalissa are just two
examples of why we must make these changes.
One of the most important jobs of the Legislature is to
invest in long-range economic development to ensure future growth and
prosperity across Iowa.
One way we can do that is by making Iowa’s
economic development initiatives more user-friendly, which will help our
state recruit new business and retain existing jobs.
The Senate recently passed a proposal (SF 344) that
streamlines the application process for economic development assistance under
the Iowa Values Fund, which has helped Iowa
create and retain more than 32,000 good-paying, high-quality jobs.
We’ve also added two new components to Iowa’s economic development initiatives.
The first is Disaster Recovery Funding, which draws on the lessons learned
from the devastating tornadoes and extensive flooding in 2008. By
establishing funding specifically for disaster recovery, the Iowa Department
of Economic Development can better assist businesses in an emergency.
The second new component gives Iowa greater flexibility in addressing
Threats & Opportunities by allowing local economic developers to
personalize recruitment and retention packages that meet the specific needs
and circumstances of businesses.
These improvements will reduce the time and complexity of
the economic development process at all levels—for the business, for local
economic developers and for the state’s Department of Economic Development.
Rather than funding each economic development program separately, we’ll put
all the economic development money in one pot so that it can be more easily
accessed and used where needed.
By streamlining our processes in these ways, we can reduce
paperwork and make it cheaper to monitor and maintain programs. It will also
be easier for economic developers to report on programs, easier for
businesses to understand what is expected of them, and easier for the public to
evaluate a program’s success.
In these tough economic times, increasing efficiency and
transparency is the right thing to do by taxpayers. I’m optimistic about our
economic future and will continue looking for ways to create more good jobs
by showcasing all Iowa
has to offer.
For more on economic development in Iowa, go to www.iowalifechanging.com.
Iowa
is a national leader in renewable and alternative energy. Our efforts are
creating good jobs across the state, making us energy independent and
benefiting our environment.
Iowa is second in the
nation in total wind generating capacity, behind only Texas. Our local communities are also home
to many new companies that manufacture wind turbine components and equipment.
Senate File 456 will build on these successes by shifting
more existing tax credits to locally owned projects that provide jobs and
other economic benefits to our communities. The bill also promotes mid-size
projects by electric utilities and larger developers, and would allow our
universities, community colleges and public hospitals to finance their
projects with tax credits.
We are also encouraging the use of geothermal energy. Senate
File 426 would prevent a tax increase on residential property for ten years
due to the installation of a geothermal heating or cooling system.
Geothermal systems use 25 to 50 percent less electricity than
conventional heating or cooling systems. According to the EPA, geothermal
heat pumps reduce energy consumption and emissions and improve humidity
control.
Learn more at www.energy.gov
When buying a new or used car, no one wants to sink their
hard-earned money in a lemon. That’s why the Senate unanimously passed a bill
that helps ensure Iowa
families don’t get swindled when they buy a car.
Senate File 419 closes a loophole that has allowed
unscrupulous car dealers and recyclers to easily get back into business by
recruiting a friend or relative to obtain a license for them.
Under the bill, once recyclers or dealers have their
license revoked, they cannot be an owner, salesperson, employee, dealer
representative or officer of a corporation involved in motor vehicle sales
for five years. In addition, the Department of Transportation will have the
right to deny a dealer license application to anyone acting on behalf of a person
whose license has been revoked.
This legislation will protect consumers by preventing
dishonest dealers from returning to the marketplace under another name. It
will also protect honest business people by ensuring they don’t have to
compete with shady dealers.
The bill now goes to the House for consideration.
This week, I had the opportunity to visit with Colonel
Timothy E. Orr prior to his Senate confirmation as the 28th Adjutant
General of the Iowa National Guard. Orr has served as chief of staff for
the Iowa Army National Guard and will now be promoted to the rank of
Brigadier General.
Born in Winterset and raised in Earlham and Boone, Orr has
been with the Guard his senior year in high school in 1979.
Orr holds an associate’s degree in Business from Des Moines Area
Community College, a bachelor’s in
Business and Education from Drake University and a master’s in Education and
Community College Certification from Iowa State
University. He also
earned a master’s degree in Strategic Studies from the U.S. Army War
College.
Orr’s military awards include the Legion of Merit,
Meritorious Service Medal, Army Commendation Medal, Army Achievement Medal,
Ranger Tab, Pathfinder Badge, Parachutist Badge, and Canadian Airborne Badge.
Orr is married to Lt. Col. (ret.) Suzanne Orr. They have a
son, Jacob, and daughter, Elizabeth.
Thousands of Iowans are still rebuilding their lives after
last year’s devastating flooding. With the arrival of spring and lots of wet
weather here in Iowa,
we’re reminded once again of that we must be prepared for flooding.
March is Flood Awareness Month, and “now is the time to
assess your home’s risk of flooding and to purchase flood insurance,” said
Bill Cappuccio of the Iowa Department of Natural
Resources. Because there is a 30-day waiting period before a policy takes
effect, it’s important to act early, he said.
Check the DNR’s Web site at www.iowadnr.gov/water/floodplain/index.html
to learn how you can “Take the Gamble out of Flooding.”
Learn more about your risk of flooding and average
insurance premiums at:
www.floodsmart.gov/floodsmart/
www.floodsafety.noaa.gov/
www.weather.gov/floodsafety/resources/FloodsTheAwesomePower_NSC.pdf
We’re working to provide communities greater local control
in environmental protection.
Senate File 343 will allow cities to adopt local
ordinances regulating or limiting the use of lawn chemicals containing
phosphorus on residential property.
Excess phosphorus application can harm water quality. When
applied to a lawn, fertilizer can easily wash into storm drains and flow over
surfaces during a rainstorm or snow-melt and settle into waterways and lakes.
Phosphorus causes dangerous algae blooms, excessive aquatic plant growth and
a decrease in dissolved oxygen, which can kill fish and other organisms.
Providing greater local
control over the application of fertilizer is part of our ongoing commitment
to clean drinking water, safe outdoor recreation and environmental
protections in Iowa.
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