Senate Democrats

Week 11 Report – March 25, 2009

 

  

·        It’s time for an Iowa middle-class tax cut

·        National recession is putting the pinch on Iowans

·        Iowa leads national effort for better health care

·        Senate strengthens protections for Iowa workers

·        Enhancing incentives for Iowa’s economic prosperity

·        Promoting green energy production is a winner for Iowa

·        Consumer protections for car buyers

·        Senate confirms new Adjutant General for Iowa Guard

·        Know your flood risk

·        Increasing local authority for environmental protections

 

 

It’s time for an Iowa middle-class tax cut

 

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.

 

 

National recession is putting the pinch on Iowans

 

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.

 

 

Senate strengthens protections for Iowa workers

 

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.

 

 

Enhancing incentives for Iowa’s economic prosperity

 

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.

 

 

Promoting green energy production is a winner for Iowa

 

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

 

 

Consumer protections for car buyers

 

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.   

 

 

Senate confirms new Adjutant General for Iowa Guard

 

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. 

 

 

Know your flood risk

 

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

 

 

Increasing local authority for environmental protections

 

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.