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House
and Senate Republicans’ Progress Report
House
and Senate Republicans issued a report card on their progress,
tracking their commitment at the beginning of session to pass any
bill based on affirmative answers to these three questions. (1)
Does it generate wealth for Iowans? (2) Does it put
Iowa
’s budget on sound
financial footing for the future?; and (3) Does it improve student
performance?
The
Republicans have made a great progress toward generating wealth
for Iowans. The House and Senate have aggressively pushed a bill
through committee that will keep biotech companies within
Iowa
’s borders, create new
life science companies, and bring millions of federal dollars in
for a bio-defense facility. The bill is expected to be voted on in
the House next week. Another income generating item is a $2
billion BIO fund, which will focus on job creation and retention,
K-12 education, and marketing out of state. The Senate and House
each have a tax reform group working on sweeping changes to
Iowa
’s tax code. The Senate
released its plan this week and the House will release its plan
later this month. Finally, the Business Climate Enhancement bill
has been approved in the Senate Business and Labor Committee. It
includes liability reform and changes in the areas of workers’
compensation, unemployment compensation, occupational safety,
financial services, environmental regulations, and contractor
qualification requirements. These changes will help make
Iowa
more business friendly
and help produce the good-paying jobs we need in this state.
In
order to put
Iowa
’s budget on sound
financial footing for the future, Republicans have outlined a
budget that takes a $300 deficit the governor would leave for next
year and scaled it down to $90 million. Additionally, the Senate
has passed a Chapter 20 reform bill through committee this week,
eyeing restraints on the collective bargaining process in order to
level the playing field for
Iowa
taxpayers.
This bill would prohibit dramatic changes to pay scales and
benefits in a single year. Republicans are working with a Medicaid
reform plan aimed at producing more than $50 million in savings
during fiscal year 2004. Finally, the GOP has grasped the
reinvention of government project, outlining a goal of $128
million in savings.
In
order to improve student performance the Republican budget funds
the K-3 block grants that
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were
set to expire this year and funds the teacher compensation package.
Local schools will receive an additional $42 million in state aid
for programs and services, and both the Senate and House committees
have approved a local option sales tax for schools bills that helps
maintain and build safe school buildings.
What
Other States are Doing
While
Iowa
has balanced its budget
through reductions and transfers, many states have resorted to
raising taxes. Below is a list of the tax increases approved in
other states.
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·
State:
Illinois
Estimated Tax Increase: $605
million
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·
State:
Indiana
Estimated Tax Increase: $600
million
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·
State:
Kansas
Estimated Tax Increase: $255.7
million
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·
State:
Michigan
Estimated Tax Increase: $372
million
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·
State:
Nebraska
Estimated Tax Increase: $118
million
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·
State:
North Carolina
Estimated Tax Increase: $1
billion
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·
State:
Ohio
Estimated Tax Increase: $709.5
million
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·
State:
Pennsylvania
Estimated Tax Increase: $1
billion
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·
State:
Tennessee
Estimated Tax Increase: $1.1
billion
Ways
& Means Update
Bills passed out of Ways & Means this week:
No
Bills passed out of committee this week.
Bill
Assigned in Ways & Means this week:
HF 99-A
bill for an act relating to the recycling property exemption form
property tax.
HSB 270-A study bill exemption the
purchase of coins, currency, and bullion from sales and use taxes.
HSB 271-A study bill relating to the
requirements for receiving a property tax exemption for open
prairies and wildlife habitats.
HSB 272-A study bill relating to the
gradual repeal of the state franchise tax.
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Week
in Review Archives