(9.3 percent) compared to February 2007.  The February increase more than offset the sales and use tax drop experienced in January.  For the year, sales and use tax revenue grew by $65 million, or 4.9 percent. The REC estimate for FY 08 sales and use tax receipts is an increase of 2.8 percent compared to FY 07.

Corporate income tax revenue increased by $49 million, or 20.7 percent compared to FY 07.  The REC estimate is only an increase of 5.3 percent.  This means that corporate profits are still strong.

Other taxes were up by $100.6 million, or 48.9 percent compared to FY 07.  The REC estimate is for other taxes is an increase of 37.3 percent.  Cigarette and tobacco taxes continue to exceed the estimate, which means the majority party’s stated goal of using the tax to force people to quit smoking is simply not being attained.  We will be watching to see what the majority party does with the excess cigarette tax revenue.  It is all supposed to go to health care but likely will just be deposited in the general fund.

Other receipts were up $30.3 million, or 12.7 percent compared to FY 07.  The REC projects an increase of 1.7 percent compared to FY 07. Judicial revenue accounted for most of the increase, which is also interesting because the majority party has built in an increase of $18 million for enhanced collection of judicial revenue.  Since that enhancement already appears to be happening, most likely “enhancement” will change to an “increase” in judicial fees and fines.

Despite the unanticipated revenue growth, Legislative Democrats continue to hide their intentions on tax increases and spending priorities.  The REC estimates give the Governor and Legislative Democrats plenty of money to spend but despite that, Democrats chose last week to raise taxes on hometown Iowa businesses by failing to couple or mirror the federal tax changes in the federal stimulus package.

 

CONTROVERSIAL WORKERS’ COMPENSATION BILLS PASS LABOR COMMITTEE

On March 4^th the House Labor Committee approved House File 743 on a 10-5 party-line vote.  HF 743 changes the use of scheduled injuries and allows for additional workers’ compensation payments for an injury resulting in reducing the employee’s earning capacity by a significant difference in pay.

House Study Bill 658 was passed by the  Committee.  This bill provides that if an employer or insurance carrier pays workers' compensation benefits on behalf of an employee, the employer or carrier must file notice of commencement of the payments with the workers' compensation commissioner.  Additionally, the bill penalizes a payer if the late payment of benefits results in a worker being denied medical care.

 House Study Bill 653 was approved by a 10-5 party-line vote.  The majority of this bill deals with out of state workers’ compensation claims, but easily the most controversial portion of HSB 653 is the last section which allows the reopening of a settled award/agreement in workers’ compensation benefits. 

Thursday the Labor Committee passed House Study Bill 771.  House Study Bill 771 is the most controversial workers’ compensation bill of 2008 – this bill makes changes to the choice of a physician to treat an injured employee under workers' compensation.  This bill allows an employee to pre-designate a physician for medical treatment – an employer can only choose the physician for workers’ compensation treatment if the employee has not already pre-designated a doctor.

 

DAVENPORT CENTRAL BOYS FIGHT FOR THE 4A BASKETBALL TITLE

Davenport Central’s “Marshall Maniacs” invaded Wells Fargo Arena Wednesday night as the Blue Devil boys won their quarterfinal game against Waukee 60-45 to advance to today’s semi-final round against Cedar Rapids Kennedy.

I had the pleasure of watching my alma mater beat Waukee with Davenport Schools Superintendent  Julio Almanza, and school board members Richard Clewell,  Ralph Johanson, and Ken Krumwiede.

Good Luck to Central Blue Devils coach Craig Wurdinger and the boy’s basketball team in tonight’s game against CR Kennedy!