Criminal Law and Public Safety

Apart from the high-profile bills on the budget and taxes we consider in the legislature, there are a lot more items that you rarely see in the news. In my role on the Judiciary and Public Safety Committees, I get the opportunity to work on many pieces of legislation related to the criminal code and public safety.

One bill I have in drafting right now aims to clarify and strengthen our laws on domestic minor sex trafficking. Sadly, this is not just something that happens in other parts of the world, but does happen here in Iowa. One of the key components of this bill will be to add new penalties for the use of the Internet lure, entice or purchase a minor in this appalling business.

I have submitted another bill creating enhanced penalties for Driving Under the Influence (DUI). Several people in the community have relayed to me how they have been personally impacted by drunk driving, and feel that it is too easy for offenders to get their license back. All too often, we hear stories of second or third time DUI offenders causing serious accidents.

The House recently passed a bill adding specific penalties for strangulation under our domestic abuse statute. Data reveals that strangulation is a predictor of future, more violent acts against a domestic partner. By adding new penalties for strangulation, prosecutors and law enforcement will have another tool to help separate abuse victims from the abuser, and hopefully provide additional protection from further violence.

There is also an effort this year to improve and strengthen the new ban on synthetic drugs we fought for in the House last year. The problem is that there are always new synthetic compounds being invented, and prosecutors are finding it difficult to prosecute every case. We will be working this year to make sure the Iowa code fully addresses a complete list of these dangerous drugs.

Many of these bills are non-partisan and get broad support, but there is still a great deal of work that needs to be done at the subcommittee and committee level. As always, if you have any suggestions or comments, please do not hesitate to let me know.

Fiscal Year 2013 Budget Targets

Last week, House Republicans announced targets for the Fiscal Year 2013 budget. The goal was to set forth a budget that is honest, transparent, and sustainable. The budget meets my own personal goals in that it does not spend more than the state takes in and provides for priority services in the areas of education, health and human services, and public safety. Taxpayers should also appreciate that this budget does not use one-time money to balance the budget and does not purposefully underfund state commitments like the property tax credits.

The House Republican Budget proposal spends $6.059 billion or $313 million less than the total overall spending for FY 2011 and $59.9 million more than the FY 2012 budget. The small increase is almost all due to $55 million of new expenditure to fully fund property tax credits. If enacted, this will be the first time state property tax credits have been fully-funded since FY 2000.

Despite the increase to fund the property tax credits, it is still only a 1 percent budget growth over FY 2012.

Another key component of the targets is $42.9 million for state employees, including legislators, to contribute to the cost of their health insurance. This assumes that all state employees, including legislators, will pay at least $200 per month for their premiums

In comparing other budget targets in the legislature, it is important to understand how the available revenue number is used in each proposal. Some budget proposals plan to spend all available dollars, even one-time money carried over from the previous year. The House Republican plan does not consider these one-time funds to be appropriate for spending toward ongoing projects. Spending these one-time funds only grows government, and forces tax increases in future years.

This budget will be another positive step toward aligning state spending with state revenue. With a healthy balance sheet, the taxpayers of Iowa can have greater confidence that future legislatures will not resort to tax increases to solve budget problems. This confidence will help individuals and families plan their own budgets and for employers to be able to predict future expenses.

Coralville TIF Hearing

On Thursday of last week, our Government Oversight Committee heard testimony about the use of Tax Increment Financing (TIF) in Coralville, primarily for the Iowa River Landing project. Legislators have recently heard from many people who are concerned about potential abuses of TIF, with Coralville getting the most attention.

TIF allows cities to add to their overall tax base by borrowing against the future increase in valuation that comes from redevelopment. While this has been a very useful tool for many cities (including in our area), we also have to consider whether there should be limits placed on the amount of debt a city can accumulate under TIF, and also if there needs to be a limit on the length of time TIF debt obligations should remain outstanding.

For example, the City of Coralville carries well over $200 million in TIF debt, amounting to about $12,000 per citizen. Also, the city is not scheduled to repay the TIF debt for another 30 years. Another downturn in the economy could put a tremendous burden on the city’s finances.

We also need to consider whether or not cities should use publicly funded projects to compete directly with private business and also question if cities should use TIF to poach existing businesses from nearby communities. Coralville has been using its own Iowa River Landing Project to proactively take tenants away from other places, most notably Coral Ridge and Sycamore malls.

Both the House and Senate Ways and Means Committees are working on bills to reform our current laws on TIF. The results of our hearing will be shared with the House Ways and Means Committee, to help them put together new guidelines for TIF that allow cities to keep this tool, while also adding safeguards for taxpayers.

Although this can be a difficult and controversial issue to deal with, I believe that we will be able to find common ground to make the system better. The media did a fair job of reporting our hearing, and here are a couple of good articles that provide additional background:

Des Moines Register – Citizens group urges restrictions to TIF law

Iowa City Press Citizen – Coralville and TIF under microscope

Also, I highly recommend the following study from Peter Fisher of the Iowa Policy Project to anyone who has a particular interest in TIF:

Iowa Policy Project – A Case Study of Johnson County

DOT Efficiency Report

At the request of the Governor, Department of Transportation (DOT) Director Paul Trombino released the finding of a study to find cost savings within the department. The report identified 13 efficiencies with total savings projected at $50 million. The goal of the report was to find efficiencies in order to free up more money in the Road Use Tax Fund for the improvement of the public roadway system.

Some of the program efficiencies include an assessment of rest area and weigh station investments ($1.5 million annually), a reduction in roadside vegetation improvements ($1 million annually), and the selling of unnecessary right of way parcels ($1 million in one-time). Other savings include a one-time $11 million through the implementation of an asset management tool, which would help the DOT make better decisions on how and when to upgrade and maintain their physical assets. Similarly, the department found $10 million in savings annually that envisions the implementation of new budgetary management policies focused on post-letting project costs. The goal would be to deliver projects ahead of schedule and under budget.

Some of these efficiencies will require legislative action, or action by the Transportation Commission. Some will simply require cooperation at the county or local level. A full copy of the report released this week—which includes details on the efficiencies, and whether or not the efficiency requires legislative action—can be found here:

https://governor.iowa.gov/wp-content/uploads/2012/01/Road-Use-Tax-Fund-Efficiency-Report-FINAL1.pdf

I commend the DOT for their efforts to find efficiencies in state government. This is what every department and every agency should be submitting to Iowans, a plan to save taxpayer money while preserving core services.

Property Tax Reform

This week, the House Ways and Means Committee began work on much needed property tax reform. Year after year, escalating property taxes are hurting Iowans’ pocketbooks, and without legislative action, even larger increases on the horizon.

Over the last ten years, school rates have increased 60 percent, county rates have increased 64 percent and city rates have gone up 74 percent. While over the same time period, Iowans’ personal income has only increased by 46 percent.

If we do nothing, the hardworking taxpayers of Iowa are staring down the barrel of a $2.3 billion property tax increase over the next 10 years, with the majority of that falling to homeowners.

Overly burdensome commercial and industrial property taxes negatively impact Iowa’s economy and serve as an impediment to getting Iowans back to work. Our uncompetitive and unpredictable property tax system places a burden on job creators and restricts the ability of businesses to expand, hire or relocate to Iowa.

As the legislature considers several different tax proposals, I am committed to relief that is provided across all tax classifications, including residential. Furthermore, we must create a predictable system, so that taxpayers can plan on their future obligations. Finally, we need to make sure that our plan includes ways to limit future growth.

One interesting component of the most recent House Republican proposal is to have the state pick up a greater share of local school aid. This reduction in how much local school districts need to levy would free up those funds for property tax relief. What remains to be determined is if this proposal would provide as much relief in our community as it does statewide.

Iowa’s current property tax system is incredibly complicated, and unfortunately so are any solutions. It is going to take a lot of work by all interested parties to find an equitable solution.

The bottom line is that just like all of us have tightened the family budget and learned to do less with more, so should all levels of government. I welcome any ideas you might have on to help us craft meaningful property tax relief.

Beginning the Budget Process

With the ceremonial speeches and formalities out of the way, it is time for the legislature to get down to work.  We were able to get the budgeting process started right away this year, with Governor Branstad delivering his proposed budget in the first week, something very rarely seen at the Capitol.

Governor Branstad’s proposed budget meets my top criteria in that it complies with Iowa’s expenditure limitation.  Unlike prior budgets that spent far more than the state collects in revenue, this budget does not contain the budget gimmicks we have seen in the past.

The increases that are included in the Governor’s proposed budget are focused on what I consider to be essential functions of government.  The FY2013 budget contains additional money for Medicaid, education, mental health services, and prisons.  As we move through the budget process, I will be looking for ways to cover these essential services in a fiscally responsible manner.

You have my ongoing promise that I will not support any spending beyond what the state collects in revenue.  We will fully fund the priority obligations of government while we seek cost savings to make state government smaller and smarter.

All of our work this year must be considered through the lens of what is good for Iowa’s economic recovery and our future growth.  It is my belief that the best way to put Iowans back to work is to advance policies that create an environment that gets government out of the way and encourages employers to create jobs right here in Iowa.

I will be advocating for legislation that provides the certainty that job-creators require and the opportunity for careers that Iowans deserve.  What I will not support is more government “stimulus”, or another I-JOBS plan that grows government and borrows even more from our children.

Iowa’s employers must have a commitment from their government to keep spending under control so they can plan for the future and know for certain that a tax increase for them is not on the horizon to pay for bigger, more bloated government.

Condition of the Judiciary

On the third day of session, Chief Justice of the Iowa Supreme Court, Mark Cady, presented the 2012 State of the Judiciary. The tone of Justice Cady’s speech was markedly different than last year’s address, and I believe his comments were well received by the legislature.  The Chief Justice focused on the common interests between the Justice System and the other two branches of Government, particularly with regarding to fiscal stewardship and economic growth.

Justice Cady’s remarks began by addressing the ways the court system can help to build a better economy.  According to Justice Cady, the most successful and wealthiest nations have a court system that applies the rules of law fairly and impartially. When all are treated fairly, companies are more confident and willing to invest in a state, according to the United States Chamber of Commerce.

Since Justice Cady became Chief Justice, Iowa Courts have made attempts to open up the court system to the public. The Iowa Supreme Court has traveled to Cedar Rapids, Mason City and Carroll to hear cases in more accessible settings. Justices have traveled to schools to speak with children and adults about the goals of the court system. Additionally, the Supreme Court has installed cameras in their courtroom so people from all over Iowa and the world can watch oral arguments wherever they may be.  I commend the Court for their work to bring new transparency to their work.

Chief Justice Cady concluded his speech by addressing the issue of funding for Iowa Courts. Citing a reduction in staff and an increase in cases, the Chief Justice remarked that the court system could be undermined if cuts continue. For the coming fiscal year, the Courts have requested an increase of $9.2 million from last year.

As a practicing attorney, I understand the critical role that the courts play in our society.  There are many ways in which our court system impacts children, families, homeowners, businesses and ultimately all taxpayers.  Although there are very limited funds available to increase any government spending, I do believe that we need to make sure that our courts have the resources they need to effectively serve the people of Iowa.

2011 Session Wrap-up

The 2011 Session of the 84th General Assembly adjourned on Thursday, June 30, just hours before the end of the 2011 fiscal year. The 172 day session was the third longest in the history of the state of Iowa. We made a great deal of progress this year toward protecting taxpayers and restoring fiscal discipline to state government, yet there remains much work to be done.

Throughout my time in the legislature, I have advocated for a budget that does not spend any more money than the state collects in revenue. In recent years, government has spent too much and saved too little, leaving each of us to pay the bill. Beginning this year, we have changed course and we have chosen the road back to fiscal responsibility.

This year’s state budget will spend just $0.97 for every dollar collected in taxes. This is a stark contrast to last year, when government overspent at $1.18 for every dollar collected.

We accomplished this change in spending habits by making tough choices, and not simply shifting the burden to property tax payers, as has been done in the past. This year’s budget spends over $200 million in new money for K-12 education, to backfill previous underfunding and shifting to property taxes.

Another big success for this year was the creation of the Taxpayers Trust Fund, which gives the taxpayer a permanent seat at the table. The new fund captures up to $60 million of excess revenue, which has been overpaid by Iowa taxpayers. This fund provides a vehicle to return this money to the taxpayer, rather than have these tax dollars consumed by the state for new spending. The Ways and Means Committee will be tasked with planning the use of this fund when we come back in January.

The legislature also passed the first phase in the reform of adult mental health systems in Iowa. This was a bipartisan effort to make sure that all Iowans have equal access to mental health care services. Ultimately, we will craft a redesigned system to deliver necessary services to all Iowans, regardless of where they live.

Despite several legislative successes, it was frustrating to see so many of the bills we passed out of the House die in the Senate. The House advanced legislation to reform Iowa’s collective bargaining laws, passed a 20% income tax cut, and moved several bills dealing with educational reform, to mention just a few.

I very much appreciate the ideas and input that I have received over the past six months. It has been an honor to serve at the Capitol this year, and I am excited for what we can still accomplish in the future. As always, please feel free to contact me anytime.

Rules Review Bills

As Chairman of the House Government Oversight committee, I have the opportunity to consider a wide range of issues on how our government operates, and the impact government has on our state.

During the legislative session, House and Senate Republicans, along with the Governor, crossed the state on the “Re-Open Iowa for Business” tour to get input directly from Iowans on what government rules and regulations were hurting their businesses. At their stops, legislators listened to concerns and are now working through remedies to address the problems Iowa businesses are facing.

There were a wide variety of concerns heard on the tour. Some solutions involve administrative rule changes, nullifications, legislation or involvement from the Governor’s office.

This week, the Government Oversight Committee considered four bills which were then passed by the full House. While each may seem relatively small, they are examples of how government can hamper business development. These bills may not grab headlines, but are very important to the businesses impacted.

House Study Bill 242: Allows hearing centers to promote their comprehensive hearing services without restrictions on exact marketing language.

House Study Bill 243: Makes it easier to have additional licensed sign language interpreters without lessening standards.

House Study Bill 244: Allows employers who have had difficult financial times another six months to keep their current unemployment rate.

House Study Bill 245: Allows companies to get state criminal background checks for certain food vendors, including ice cream truck drivers.

The Government Oversight Committee will continue to meet during the legislative interim and will continue to look for ways to make government work better for the people of Iowa.

Capitol Update – May 11th

The Legislature is now in its second week of extra session. Negotiations continue to move slowly between the Republican controlled House, the Democrat controlled Senate and the Governor.

From my perspective in the House, Republicans are holding true to our campaign promise to bring greater responsibility to the state budget. We have put together a budget that does not spend more money than the state collects in revenue.

Last week, House and Senate Republicans joined with Governor Branstad, agreeing to the total amount of general fund spending for Fiscal Year 2012. The general fund budget will be just less than $6 billion.

This amount is 97 percent of ongoing revenue and over $200 million less than the adjusted FY 2011 budget. It leaves over $300 million in the ending balance and brings the budget back to FY 2009 levels.

Even considering these difficult budget choices, the House has made it a priority to appropriate an additional $216 million dollars for K-12 education. Following Governor Culver’s 10% across-the-board cut in 2009, there was a huge hole in local school budgets that was largely shifted onto the backs of property tax payers. The House budget backfills this shortfall and restores full state funding to our schools.

This is all part of following through on my campaign pledge to help make state government less expensive, more efficient and more transparent. These changes certainly involve some difficult, yet necessary budget choices.

The next step is getting the Senate Democrats to agree on the spending level. Once that is accomplished, the appropriations bills can be approved by both chambers and sent to the Governor.

One silver lining to an extended legislative session is the opportunity to continue our work on commercial property tax reform. Commercial property tax rates in Iowa are among the highest in the country, and represent a barrier to economic development and job creation.

The House and Senate are each considering their own proposals to provide this much needed commercial property tax relief. Discussions are ongoing and I am optimistic that we can put together a package that will give Iowa businesses relief from this burden and help them grow.

We will continue working until a budget agreement is reached. At the end of the session, I am confident that we will have done our best for the taxpayers of Iowa. As always, I welcome your comments. Please feel free to contact me anytime.

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