Representative Van Fossen

Jamie Van Fossen


The Week In Review     

March 5, 2004
E-mail: jamie.van.fossen@legis.state.ia.us

 Session Week 8
Fax: 563-355-9954

IOWA ECONOMY SEEING REBOUND

On Monday, March 1, Fiscal Services released the revenue figures through the first eight months of the fiscal year. Year-to-date revenue growth was $65.1 million, or 2 percent above the first eight months of FY 03.  The growth was primarily due to continued growth in personal income tax receipts.

 Through the first eight months of the fiscal year, personal income tax receipts were up $74 million compared to this point in FY 03.  Sales and use tax receipts were up $6.1 million and other receipts were up $4.9 million.

February was the third straight month of strong revenue growth.  (Revenue growth exceeded expectations in December and January as well.)  February receipts were 5.7 percent higher than February 2003 receipts.  If March exceeds the estimate, it would indicate the economy is finally starting to turn around.

 If revenue continues to come in above last year’s level, FY 04 will end up with a surplus.  Due to the Governor signing a provision in HF 2039 (the 98 percent limitation bill), one-half of the surplus will be deposited in the Cash Reserve Fund and the other half will be deposited in the Senior Living Trust Fund.

 The Revenue Estimating Conference (REC) will meet again on Friday, March 19 to review and revise the FY 04 and FY 05 revenue estimates.  However, even if the REC increases the revenue estimate, the expenditure limitation law requires that the Legislature use the December estimate when crafting the FY 05 budget.

MEDICAL MALPRACTICE REFORM GOES TO IOWA HOUSE

One of growing problems facing Iowa ’s health care provider community is the dramatic rise in liability insurance.  One major factor is the awarding of non-economic and punitive damages in medical malpractice lawsuits.  With liability insurance rates skyrocketing, access to certain groups of medical providers is becoming increasingly difficult.  Rather than face a future where Iowans had to travel significant distances for access to affordable

 

 health care, House Republicans have taken action to protect Iowa ’s health care system.

 The Commerce, Regulation and Labor Committee passed out landmark legislation that would reform Iowa ’s medical malpractice law.  House File 2202, as amended, would limit non-economic damages to $250,000 in lawsuits against physicians, hospitals, and nursing homes.  Non-economic damages are those damages that cannot be financially measured because they are subjective and non-quantifiable.  The bill would not limit actual damages or any punitive damages and, if actual malice can be proven, the cap on non-economic damages would not be in effect.

 Non-economic damages have been a primary driver of the increasing costs for professional liability insurance.  While the number of lawsuits against Iowa physicians falls within the national average, the jury awards exceed the national average.  Thus, the market forces upon the liability insurance industry drive up premiums in Iowa .  That is if you can get an insurance carrier to cover you.

 Actions like those proposed in House File 2202, have had a positive impact on professional liability.  In other states that had passed similar laws, the cost of medical liability insurance went down.  According to information, the rates for medical liability insurance in California went down by 40 %.

GOVERNORS TAX INCREASE IS HERE

 Tom Vilsack is at it again. In his condition of the state address, Vilsack laid out a $300 million-plus tax increase. This week the Governor’s office delivered his bill.
 The Governor hopes to expand the sales tax to include services that are used every day by small businesses and the people of
Iowa . As the chair of the tax writing committee I vow to fight this tax increase and block attempts to take more of your hard earned money!

  Ways & Means Update
Bills introduced and passed committee this week: No bills passed committee this week.

   Week in Review Archives

2004 Session
02-27-04
02-20-04
02-13-04
02-06-04
01-30-04
01-23-04
01-16-04

2003 Session
06-04-03 Special Session
05-30-03 Special Session
05-02-03
04-25-03
04-18-03
04-11-03
04-04-03
03-28-03
03-21-03
03-14-03
03-07-03
02-28-03
02-21-03
02-14-03
02-07-03
01-31-03
01-17-03
01-24-03

2002 Session
05-28-02 Special Session II 
05-10-02 Special Edition
04-22-02 Special Session I
04-12-02
04-05-02
03-29-02
03-22-02
03-15-02

03-08-02

03-01-02
02-22-02
02-15-02
02-08-02

02-01-02
01-25-02
01-18-02

2001 Session
05-04-01
04-27-01
04-20-01
04-13-01
04-06-01

03-30-01

03-23-01
03-16-01
03-09-01
03-02-01
02-23-01
02-16-01
02-09-01
02-02-01
01-26-01
01-19-01

01-12-01

2000 Session
04-28-00
04-21-00
04-14-00
04-07-00
03-31-00
03-24-00
03-17-00
03-10-00
03-03-00
02-25-00