Thursday, February 5, 2015
www.IowaHouseRepublicans.com
Inside this issue:
House Republican Talking Points 2015-16 House Republican Budget Principles House Republicans are committed to these principles to produce a balanced and sustainable state budget: We will spend less than the state collects; We will not use one-time money to fund on-going needs; We will not balance the budget by intentionally underfunding programs; and We will return unused tax dollars to Iowa’s taxpayers.
School Funding Speaker Paulsen in the The Gazette on 2-4-15: “It would be my suggestion that the best thing we could do right now is send the 1.25 percent increase down to Gov. Branstad and get that signed and enacted,” said House Speaker Kraig Paulsen, R-Hiawatha. “Then, if we need to have another conversation about additional dollars, we’d be happy to have that conversation,” Paulsen added. However, the discussion would include additional education reform measures that would attempt to address imbalances in the current collective bargaining system for teachers, he said. Three key collective bargaining reforms that would help control rising costs for school districts are: Allowing an arbitrator to choose in between two impasse points, not just an either/or scenario. The reason to avoid arbitration is that, given what an arbitrator is currently allowed to consider, management is likely to lose. The playing field is tilted in favor of labor and against the folks funding the eventual agree-
ment – the taxpayers. Giving the arbitrator power to consider points between two parties allows for a level playing field at the arbitration level of contract negotiations. An arbitrator, during binding arbitration, should be allowed to compare public wages and benefits to those in the private sector. Currently, an arbitrator compares wages to other public sector employees. Those public sector employees are often represented by the same unions and thus the comparison amounts to comparing a union to itself. By including a comparison to the private sector wages and benefits, an arbitrator could look at the entire spectrum of facts and maintain parity between the public and private sectors.
HF 80 continues the legislature’s trend of providing significant increases to the state’s K-12 system, bringing the 5 year total increase to over $570 million, a nearly 22% increase. According to the Department of Education’s Allocation Summary documents, Iowa will spend $10,231 per student in FY 15. That means in classroom of 20, Iowa spends just over $200,000. If we adopted the 6% increase in supplemental state aid for education pushed by Democrats in FY 16, the state would spend 104.4% of on-going revenue. If we adopted a 4% increase in the supplemental state aid proposed by Senate Democrats this week, the state would spend 101.6% of on-going revenue. If the Legislature approved the 6% increase in supplemental state aid for education pushed by Democrats, revenue growth in FY 16 would need to be about 8.63%. Add the FY 2016 funding for the (Continued on page 2)
Appropriations
2
Agriculture
4
Commerce
5
Economic Growth
6
Education
6
Environmental Protection
7
Human Resources
8
Judiciary
8
Labor
8
Natural Resources
9
Public Safety
9
State Government
10
Transportation
10
Veterans Affairs
10
Ways and Means
11
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House Republican Newsletter
House File 125 If Iowa wanted to be in the top 10 in per This bill updates Iowa Code references to Education Reform package, and revenue pupil spending, Iowa taxpayers would need the Internal Revenue code to make federal growth would need to be 9.54%. Over the to pony up over $2.8 BILLION in additional income tax revisions enacted by Congress last 20 years, revenue growth has averspending. Iowans would face a 76.82% in 2014 applicable for Iowa income taxes. aged 3.27%. income tax increase to support this level of Generally speaking, this bill will save Iowa spending. For a family of four, it would taxpayers and families money in areas Revenue would need to grow at 6.56% to mean a $3,654 income tax increase. such as: out-of-pocket expenses for teachfund 4% SSA. Right now, revenue is proers, tuition and fees, and mortgage insurjected to grow by 4.9 percent. According to a Friedman Foundation for ance premiums. It will save Iowa businessEducational Choice study in 2013, 66% of es money through updates to the Research Or, if 6% Supplemental State Aid is apIowans do not think per-pupil spending is Activities Credit, and small businesses proved, $316.7 million would need to be cut too low and 65% believe the public school equipment costs. to balance spending with on-going revesystem is either good or excellent. nue. If 4% is approved, $258.8 million House Study Bill 40 would need to be cut to balance spending Depending on the calculations you are us- As part of an overall effort for Iowa veterwith on-going revenue. ing Iowa is spending about $10,231 per ans that passed last year, the Legislature pupil. The continued emphasis on this created a homestead tax credit for veterans Statistics that show Iowa is in 35th place dollar amount further cements the focus on with service-connected disabilities. This bill nationally in regards to per-pupil spending inputs rather than outputs. The true evalu- expands the law to include veterans who are questionable. Notably that ranking ation of K-12 performance is outputs. Or in have a permanent disability and have been comes from the NEA and its inherent union other words, the academic performance of deemed unemployable. biases. The US Dept. of Education’s Naour students. In the end, whether you tional Center for Educational Statistics agree with a program’s purpose or not, House File 1 shows Iowa in 28th place. However, using programs are supposed to help people, not This is a zero-based budgeting bill which the NEA per-pupil rankings, assuming eve- bureaucracies. The focus on inputs is a requires government departments to subrything else stays the same, 1.25% moves focus on bureaucracies. mit budget requests on the assumption that us from 35th to 33rd, while 4% moves us they will receive zero funding and prove from 35th to 32nd. During debate on HF 80, House Democrats why each budget request is needed as suggested raising business taxes and usopposed to the current system where they The result of increasing state spending to ing money originally targeted for debt reare guaranteed 75% and 100% of the preunsustainable levels and spending oneduction to increase spending on education. vious year’s allocation. time money for ongoing expenses mixed with an economic collapse caused educaOversight for the taxpayers Notable Bills tion funding in this state to take a $530 One of the most important functions of the million loss in one single year (FY 2010). Legislature is to act as a check on the other As we continue our work this session, The state is still recovering from that loss. branches of government – and to protect House Republicans continue to work on That recovery is only possible if we spend the taxpayers’ dollars and bring oversight mainstream bills that are a priority for Ioless than we collect. when it comes to projects they’ve invested wans. Republicans’ focus is on increasing in. This year, the House Oversight Comopportunities for Iowans and protecting If you use the 35th in the nation ranking of families and taxpayers. Here are a few bills mittee has already begun an investigation per-pupil spending and the dollars associinto the delayed opening of the new state that are moving through the process: ated with it, Iowa taxpayers would need to penitentiary. Additionally, the House Apback over $767 million in additional spend- House File 124 propriations committee has invited both the ing this year to the national average. IoTreats Iowa Educational Savings Plans, or University of Iowa and the American Instiwans would face a 20.55% income tax intute of Business (AIB) to discuss their re529’s, like IRA’s allowing tax deductible crease to support this level of spending. cent announcement that the UI will take contributions into plans until April 30. For a family of four, it would mean an inover the campus in Des Moines. come tax increase of $979. (Continued from page 1)
Appropriations
(Contact Brad Trow at 1-3471)
Budget Comparison Shows K-12 Education Remains State’s Top Funding Priority As the 2015 legislative session continues to discuss how much funding should go to Iowa schools, it may be helpful to look at how much of the state’s budget goes to
Iowa schools when compared to the rest of state government. The results will be surprising for anyone listening to the “information” being put out by various
school groups. At the start of Tom Vilsack’s tenure as gov(Continued on page 3)
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House Republican Newsletter The graph below shows how that money was distributed:
ernor, the state of Iowa spent $4.7599 billion from the General Fund for FY 2000.
That year, K-12 education funding consumed 38.57 percent of the General Fund. That amount is the state aid amount plus the categorical funding streams that have now been rolled into the school funding formula. The second largest
Contrary to the rhetoric being used by the education community, K-12 education would have a larger share of the state budget in FY 2016 than in it did in FY 2000. The Governor’s budget would spend 40.98 percent of the General Fund on K-12 education through Supplemental State Aid and the Education Reform funding streams. So
individual program in the budget was support for the Board of Regents institutions, which received 14.59%. Medicaid was the third largest program, at just 8.83 percent of the General Fund.
Fast forward to what Governor Branstad has proposed for the General Fund budget in FY 2016. A pie graph breakdown of his proposal show some interesting changes in how the state’s money is spent:
the growth in state funding in schools is not just in total dollars, but also in its share of Iowa’s budget too.
program’s share of the total budget has gone from 8.83 percent in FY 2000 to 18.55 percent in the proposed budget for FY 2016.
The most striking change over 15 years has been the dramatic growth in Medicaid. The Medicaid’s growth has not been at the exactual dollar amount going from the General pense of K-12 education, but other proFund has tripled during this time, and the (Continued on page 4)
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House Republican Newsletter (Continued from page 3)
grams have been impacted. The Regents’ share of the budget fell from 14.59 percent to 8.20 percent. The rest of state government - including the Courts system, economic development, public health, agriculture and others - have seen their share of the state dollars go down from 17.83 percent to 11.37 percent. These programs have shouldered the brunt of Medicaid’s growth.
tate how much new money Iowa schools The fact that over 40 percent of Iowa’s Gen- will receive. eral Fund goes to local schools should not be a surprise to Iowans who have always made education a top priority. And for FY “larger share of the state 2016, House Republicans have already committed 50 percent of the new state reve- budget in FY 2016 than in it nue to increase state aid to Iowa schools. did in FY 2000” What should be a concern to everyone is the significant growth in the share of Iowa’s budget consumed by Medicaid. In the near future, the growth in that program will dic-
Agriculture
(Contact Lew Olson at 1-3096)
Iowa Nutrient Scientists Identify Likely Source of Winter -Spring Nitrates in River Waters On Tuesday, February 3, 2015, the Senate Natural Resources and Environment Committee received a presentation concerning the Nitrogen Cycle and the Connection to Water Quality. The presentation was made by Dr. Matthew Helmers Professor from Iowa State University (ISU) and Dr. Michael Castellano Assistance Professor also from ISU. The professors provided the Committee and some members of the public with several handouts on their research, largely now associated with the Iowa Nutrient Research Center that was created in the 2013 session and funded as part of the Iowa General Assembly Water Quality Improvement Initiative. The presentation noted that the primary reason for nitrate loss from Iowa soils into Iowa rivers is not due to the mismanagement of nitrogen fertilizer, but rather most nitrate loss is caused by mismatched timing between the uptake of nitrate by crops and the normal microbial production/degradation of nitrate from nitrogen found in native soil organic matter. The researchers noted that average Iowa soil contains 10,000 pounds of nitrogen per acre in organic matter. This organic nitrogen matter is not susceptible to loss. However, when the soil is warm and moist, soil microbes transform, and metabolize organic nitrogen into nitrate. This nitrate is susceptible to loss through lateral movement within the soil into the state’s waterways.
scientists acknowledged will require broad implementation of many practices. The ISU professors distributed and discussed a 17 page-slide presentation titled--‘Soil Nitrogen Cycling and Budgeting’. Page 3 of that document illustrates the nitrogen cycle in a typical Iowa corn field and notes that native soil organic nitrogen is usually about 10,000 per acre and from that reservoir of nutrients, soil microbes convert 100 to 400 pounds into nitrate through microbe metabolism and re-uptakes 150 to 350 pounds average which allows on average about 30pounds of nitrate to leach from the root zone each year. One of the unexpected results of the research indicates that as much nitrate is leaching from post-harvest corn fields going into soybeans as from post-harvest soybeans going into corn and counter-to common assumptions; largely independent of crop fertilization that is within agronomic recommended levels. The most interesting slides of the presentation were pages 6 and 7, which graphically illustrated curves of when soil nitrate is produced and when it is taken up by crops, and on page 7, the role that cover crops can play to reduce soil nitrate leaching losses occurring before row crops have grown enough to absorb the bulk of soil nitrate being produced by soil microbes in warm moist conditions.
notes the powerful agronomic and economic advantages from draining Iowa cropland with research now 30-years old that found increased corn yields of 10-45 bushels and 4-15 bushel soybean yields increase per acre per crop from subsurface drainage. Dr. Helmers’ portion of the presentation also provided several combination scenarios that could achieve the water quality improvement objectives of the Iowa Nutrient Reduction Strategy of 42% nitrate-N reduction from the baseline. These scenarios are found on pages 15 and 16. One scenario would require: (a) maximum return to nitrogen application rate; (b) 60% of all corn-soybean and continuous corn acres using cover crops; (c) 27% of all ag land be treated with wetland; and (d) 60% of all subsurface drained land treated with bioreactors. A second option might involve--(a) maximum return to nitrogen application rates; (b) 25% of all corn-bean and continuous corn acres with cover crops; (c) 27% of all land treated with wetlands; (d) 25% of acreages using extended rotations (using an overwintering crop, and/or multi-year, typically forage crop); and 60% percent treatment of subsurface drained land with bioreactors.
During the discussion that followed the presentation, a State Senator asked whether fall application of nitrogen has much Dr. Helmers highlighted in his part of the impact on winter-discharge of nitrates into According to the ISU scientists, almost all presentation that nitrate is primarily transwaterways. The scientists noted that renitrate loss to Iowa waterways occurs when ported in subsurface flow pathways that search showed only a 6% difference besoils are warm and moist, but crops are not can be either through tiles lines or in natu- tween spring and fall applied nitrogen and sufficiently developed to rapidly use soil ral lateral flows through shallow ground noted that when nitrogen inhibitors were nitrate. If there is no crop to use the niwater (upper-most water table) typically used in fall applications nitrate losses on trate, some is lost to waterways; particular- exiting into streams as the source of peren- field treated with the inhibitor were 9% less ly during heavy precipitation events. The nial waters for non-intermittent streams. than fall applied fields. The scientists reitnitrate is leached from the root zone of Research has also shown a portion of this erated in the professional expertise that crops and primarily transported through subsurface flow in both circumstances will this past fall’s high nitrate discharge levels subsurface flow pathways to downstream move thru deep percolation to deeper aqui- of the Raccoon River is not due to fertilizer waters. To reach water quality goals, the fers. Page 13 of the slide presentation (Continued on page 5)
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House Republican Newsletter
tion of the tile water flow moves through and the nitrate is metabolized by microbes misapplication, but rather a somewhat feeding on the woodchips. It is hoped that unique early fall warm and wet weather that the bioreactors will have a 10 to 15-year followed a prior year’s drought. The diseffective life and at this point they have cussion also touched upon the use of biocost about $10,000 to install. Currently reactors which research has indicated can there are about 20 to 30 bioreactors inremove up to 40-60% of transported nistalled in Iowa and they typically treat 80 to trates, with bioreactors being sized at 20% 100 acres of cropland drainage per bioreof maximum tile flow capacity. It was noted actor. these devises/structures are essentially trenches in the ground filled with 2-semiIn closing the scientists opined that to adloads of wood chips through which a pordress Iowa’s water quality non-point prob(Continued from page 4)
lem will take time, and a plethora of different practices, many which are specifically aimed at a ag-parcel particularly characteristics. They included in the materials that they distributed and ISU Extension handout ‘SP 435’ that was reprinted in December 2014, and contained two pages of various practices that can be used to treat either nitrogen of phosphorous runoff and the effectiveness of each practice in removing the escaping nutrients.
IRFA Notes: Ethanol and Biodiesel Producers Primed for Strong Year On Tuesday, January 27, 2015, the Iowa Renewable Fuels Association (IRFA) issued a press release highlighting the key points of a Fact Sheet.
Based on the size and scope year-end, the renewable fuels industry had the following impacts on Iowa’s economy in 2014: Accounts for more than $4.9 billion, or about 3.5 percent, of Iowa GDP;
Purchases (in Millions)
GDP
Household Earnings
Generates $2.5 billion of income for Iowa households; and Supports more than 46,700 jobs throughout the entire economy. Employment (Jobs)
(in Millions) (in Millions) Ethanol* Biodiesel Total
$7,676.0
$4,445.4
$2,276.6
42,378
$746.4
$471.3
$286.1
4,376
$8,422.4
$4,916.7
$2,562.6
46,753
*Includes agriculture, construction and investment in R & D
To view the full report, please click here. To view a fact sheet on the report, please click here.
Commerce
(Contact Dane Schumann at 1-3626)
Governor Unveils Broadband Proposal Governor Terry Branstad’s newest proposal to expand high-speed Internet access resembles last year’s proposal, but it also has important differences. The new bill attempts to incentivize broadband expansion in areas of Iowa where Internet speeds are below 25 megabits per second of download speed and three megabits per second of upload speed. Under the bill, an Internet provider could apply to the state’s chief information officer for a grant and a three-year property tax exemption for their new investments in underserved areas of Iowa. It also would require local governments to either approve
or deny applications for broadband infrastructure within 60 days of their submission.
“incentivize broadband expansion”
Unlike last year’s proposal, this year’s “Connect Every Acre” proposal does not include a process for private companies to lease bandwidth from the Iowa Communi-
cations Network (ICN). It also does not include provisions governing the siting of cellular towers, another contentious issue from last year. The House Commerce Committee is considering the legislation and hearing from stakeholders. Tuesday’s meeting featured representatives from Mediacom, Century Link and a small Iowa communications company. A subcommittee of three Republicans-- Representatives Peter Cownie, Tom Sands and Chuck Soderberg--and two Democrats will closely consider the bill this week as they gather further input from stakeholders and the public.
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House Republican Newsletter
Economic Growth
(Contact Dane Schumann at 1-3626)
Committee Set to Consider Governor’s Agenda Iowa is ranked second nationally in the available supply of biomass, and a new bill from under consideration in the House Economic Growth Committee could allow companies to take advantage of that position. Facilities around the state produce food and fuel products from corn, soybeans and other crops. But those production processes also create byproducts that often can form the foundations for plastics, textiles, paints or pharmaceuticals. The committee bill, which was originally proposed by Governor Branstad’s Iowa
Economic Development Authority, would provide a $0.05 per pound tax credit for companies that produce the certain “building block” chemicals that can be used for various end products. The refundable credit would be capped at $1 million for a new company and $500,000 for an established one. The bill could unlock new opportunities for entrepreneurship and research, and the state’s renewable fuels industry will gain new markets for its lowervalue products.
set to consider a reform in Iowa’s “Angel Credits” program. A new bill would rescale the credits for individual investors rather than larger institutional investors, and the credits would become refundable. It would also make the eligibility simpler and align it better with existing programs. Iowa’s neighboring states have similar programs that are much more generous. They include higher funding levels, bigger caps and refundable credits.
The Economic Growth Committee is also
Education
Contact Jason Chapman at 1-3015)
University of Iowa Presidential Search Committee Chair Announced The Presidential Search Committee charged with finding a replacement for outgoing President Sally Mason has a chair now. This week the Board of Regents announced that Jean E. Robillard, M.D., Vice President for Medical Affairs at the University of Iowa, will chair the search committee.
As Vice President for Medical Affairs, Dr. Robillard oversees UI Health Care which consists of the University of Iowa Hospitals and Clinics, Carver College of Medicine, and University of Iowa Physicians which is the state’s largest multi-specialty physician group practice. Dr. Robillard has held his current position since January 2007 after previously serving four years as dean of President Mason announced her retirement the Carver College of Medicine. last month. She served in the position since August 1, 2007, when she became Previous presidential search committees the 20th President of the University of Iofor Iowa universities also appointed highwa. ranking university faculty as chairs. In the 2011, Iowa State college of business dean
Labh Hira co-chaired ISU’s search committee with Ames businessman Roger Underwood, CEO of Becker-Underwood, global provider of biological seed treatment. In 2012 Farzad Moussavi, dean of the UNI College of Business Administration, and Mark Oman, a businessman with Wells Fargo, served as co-chairs of the UNI presidential search committee. The Board of Regents is scheduled to receive an update on the search process this week during their scheduled meeting in Cedar Falls.
Help Combat Student Hunger in the Summer The Department of Education put out a call this week across the state to find sponsors for their Summer Food Service Program, a program which provides nutritious meals and snacks to children in low-income areas during the summer months.
program still remains vastly under-utilized. From 2002 to last year the number of kids served through the program has increased from approximately 6,500 to 19,000. But those children are only a small percentage of the approximately 195,000 eligible.
It’s a great opportunity for families in need of such a program to take advantage of the opportunity. Too many Iowa children are likely going without proper nutrition when the final school bell rings at the end of the year. The Department estimates that of the 195,000 kids eligible for free and reduced price lunches, 90% don’t have access to meals when school ends.
Sponsoring means acting as the organizer for the sites. Sponsors must be able to provide a capable staff, supervision and food service capabilities. Typical sponsors include public or private nonprofit schools; local, municipal, county, tribal or state government; private nonprofits; public or private nonprofit camps; and private or nonprofit universities or colleges.
The program is becoming more widely available, but this call is an effort to increase the availability even more as the
The summer meals program is funded through the U.S. Department of Agriculture. Funds are available to offset the cost,
which is based on a per-meal reimbursement. Reimbursement funds can be used for both operational and administrative expenses. A free informational webinar on sponsorship, for those interested, will be held on Tuesday, Feb. 26, from 1:30 to 2:30 p.m. and can be found on the DE’s site here: https://www.educateiowa.gov/event/ summer-food-service-program-informationwebinar-0 Additional information on the program, including a list of locations for the free lunches, can be found on the Department’s website at: https://www.educateiowa.gov/pk12/nutrition-programs-0.
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House Republican Newsletter
Public School Enrollment Increases A press release from the Department of Education last week claimed that public school enrollment increased for the 4th year in a row.
enrollment increase is due in part to an upsurge in birth rates from 2003 to 2008. Birth rates spiked in 2007 but have decreased in recent years.
On the opposite end of the spectrum, a majority of larger districts, with populations of students over 1000, posted enrollment gains A total of 480,772 students in kindergarten Despite the statewide enrollment increase a 73% of districts with over 7,500 stuthrough 12th grade enrolled in public majority of the state’s 338 school districts dents experienced enrollment increasschools during the 2014-15 school year, had declining enrollment. Here are some es. compared to 478,921 students in 2013-14 numbers: 82% of districts with over 7500 stu(an increase of about 0.4%). 52% of the 338 districts had declining dents experienced gains over the past enrollment 5 years After 17 years of declining enrollment pre Over 60% of districts with fewer than ceding the last 4 years of the growth, the 600 students saw enrollment decline Iowa school districts that reported the largchange was welcome. However, the rate of est increases or decreases in the percentOver 70% of districts with fewer than growth is slowing and is expected to platage and/or number of students are: 600 students experienced declining eau in the years to come. The statewide enrollment in the past five years 1-Year Trend - % Increase of Students School District
1-Year Trend - Increase of Students
2014-15 Enrollment
% Increase
School District
2014-15 Enrollment
Student Increase
WAUKEE
8,773
6%
WAUKEE
8,773
484
PATON-CHURDAN
204
6%
ANKENY
10,346
444
BONDURANT-FARRAR
1,697
6%
JOHNSTON
6,617
208
SOUTHEAST WARREN
588
5%
LINN-MAR
7,145
202
ROCK VALLEY
712
5%
SIOUX CITY
14,332
200
5-Year Trend - % Decrease of Students
5-Year Trend - Decrease of Students
10-11 Enroll
14-15 Enroll
% decrease
School District
10-11 Enroll
14-15 Enroll
Student Decrease
VENTURA
270
180
-33%
DAVENPORT
16,183
15,823
-360
WALNUT
211
158
-25%
CLINTON
4,111
3,834
-277
CORWITH-WESLEY
124
93
-25%
NEWTON
3,102
2,954
-148
WEST HARRISON
462
370
-20%
GLENWOOD
2,106
1,960
-146
NORTHEAST HAMILTON
261
212
-19%
HOWARDWINNESHIEK
1,384
1,244
-140
School District
The 2014-15 certified enrollment summary by school district is available online: https:// www.educateiowa.gov/documents/schooldistrict-certified-enrollment/2015/01/20142015-certified-enrollment-summary
Certified enrollment trends for each Iowa school district can be found on the Iowa Department of Education’s website: 1-year changes: https:// www.educateiowa.gov/documents/ enrollment/2015/01/2013-2014-20142015-certified-enrollment-comparison
Environmental Protection
5-year changes: https:// www.educateiowa.gov/documents/ enrollment/2015/01/five-year-certifiedenrollment-changes-2010-2014
(Contact Lew Olson at 1-3096)
EPA Seeks Input on Greenhouse Gas Emissions from Power Plants On Tuesday, January 27, 2015, the United States Environmental Protection Agency (EPA) issued a press release in which the federal agency announced that it was
reaching out and engaging with the public and stakeholders with the development of the agency’s top priority throughout the development of this rule, and EPA stated
that it is committed to continuing this engagement moving forward. Based on input from states and stakeholders, EPA be(Continued on page 8)
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House Republican Newsletter
or at least primarily represent potentially regulated small entities, may also serve as lieves that many states will find the inforSERs. Self-nominations may be submitted mation included in this plan helpful as they through the link below and must be rebegin to develop their own plans to cut ceived by February 10, 2015. Nominate carbon pollution from power plants. The yourself as a SER by visiting: http:// EPA notes that the Small Business Advowww.epa.gov/rfa/cpp-federal-plan.html cacy Review Panel (SBAR) will provide More information about Federal Plan for important feedback to the agency as it Greenhouse Gas Emissions from Electric works to develop a proposed federal plan. Generating Units: http://www2.epa.gov/ EPA announced that pursuant to the Regu- EPA seeks self-nominations directly from carbon-pollution-standards/fact-sheet-clean latory Flexibility Act, and including federal the small entities that may be subject to the -power-plan-carbon-pollution-standardsrepresentatives from the Small Business rule requirements. Other representatives, key-dates. Administration (SBA), the Office of Mansuch as trade associations that exclusively (Continued from page 7)
agement and Budget (OMB), and EPA it will empanel the SBAR . The panel members will ask a selected group of small entity representatives ( SERs) to provide advice and recommendations on behalf of their company, community, or organization to inform the panel members about the potential impacts of the proposed rule on small entities.
Human Resources
(Contact Carrie Malone at 5-2063)
Grant Will Improve Rural Heart Attack Care On Tuesday, the American Heart Association announced a $4.6 million grant that will launch a program called Mission: Lifeline Iowa.
According to the American Heart Association website, more than 250,000 Americans experience a STEMI (ST Segment Elevation Myocardial Infarction) heart attack each year. Many of these patients fail to The goal of this project is for all Iowans to receive the appropriate treatment for their receive the same quality of care, whether condition within the recommended timeline. they are living in rural Iowa or a metro area. These types of heart attacks carry a subThe mission of the program is to improve stantial risk of death and therefore require the system of care for people in rural Iowa a quick response from medical personnel. that have serious heart attacks. The Mission: Lifeline grant will utilize heart monitors that will help providers determine
Judiciary
where the damage is happening within the heart. The monitor sends information to the hospital, where heart specialists can analyze the data while the patient is transported to the hospital. The grant also provides funds to educate the public. It is better to call 911 during signs of a heart attack and not drive the person to the hospital yourself. For more information, visit here.
(Contact Amanda Freel at 1-5230)
Lawyers will Not Pay more for Iowa Legal Aid In December, Iowa Legal Aid sent a proposal to the Iowa Supreme Court to help fund their services to low-income Iowans. The proposal would have required all Attorney’s, licensed in Iowa, to pay an additional $100 each year to help fund Legal Aid. On Tuesday, Justices of the Iowa Supreme Court decided against the proposal and ruled attorney’s would not have to pay an additional fee. Iowa Legal Aid is a nonprofit organization
that provides legal assistance to lowincome Iowans. Their funding comes from the State of Iowa, the Federal Government, donations and other sources. On average Iowa Legal Aid helps in 23,000 cases a year. Throughout Iowa there are multiple organizations, both state and private, that assist Iowans who can’t afford legal representation. The Supreme Court has also made it easier for recent law graduates to help
Labor
through their “student-practice rule”, which allows law school graduates who have not yet passed the bar, to practice under a licensed attorney for approved legal-aid organizations. As budget negotiations progress, legislators will have to determine how much state funding Iowa Legal Aid will need to continue their work helping Iowans.
(Contact Colin Tadlock at 1-3440)
Governor Makes Two Appointments to Iowa Workforce Development This week Governor Branstad made appointments to Iowa Workforce Development (IWD), including appointing interimDirector Beth Townsend as Director of IWD, and Joe Cortese as the Workers’ Compensation Commissioner. The appointments are both subject to Iowa Senate confirmation. Townsend previously served as the Director of the Iowa Civil Rights Commission
after being appointed by Governor Branstad in early 2011. Townsend took over as acting Director of IWD on January 11, after the sudden retirement of former Director Teresa Wahlert. Prior to working in state government, Townsend worked in private practice at Townsend Law Office, in the areas of civil rights and employment law. She has also served as a Judge Advocate General in the
US Air Force for 21 years. She holds a Bachelor’s Degree from the University of Nebraska-Kearney and a Juris Doctor degree from the University of Nebraska. Iowa Workforce Development is Iowa’s version of the Federal Department of Labor. It covers several different areas of labor for both employees and employers. Townsend will take over directing all the (Continued on page 9)
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House Republican Newsletter
(Continued from page 8)
agencies within Workforce Development’s umbrella which includes: Unemployment Insurance Services: Handles unemployment insurance claims and appeals. Workforce Services: Handles various employment and training services through 15 regional centers and offices. Labor Services: In charge of enforcement of programs designed to protect the health, safety, and economic security of Iowans. This division handles OSHA safety standards, wage payment issues, and elevator/escalator and boiler safety standards.
Division of Workers’ Compensation: Handles workers’ compensation issues when an employee is injured while at work. This office hears claims and makes rulings on workers’ comp issues.
and enforces Iowa’s workers’ compensation laws. Additionally the Workers’ Compensation Division is a neutral third party when making rulings and providing information related to workers’ compensation to interested parties.
Additionally, Governor Branstad appointed Joe Cortese as the new Workers’ Compensation Commissioner. Prior to Cortese’s appointment, Michelle McGovern had been serving as the acting Commissioner since last September.
Prior to being appointed, Cortese practiced workers’ compensation law for over 30 years. He holds a Bachelor’s Degree from Indiana University and a J.D. from Drake Law School.
The Workers’ Compensation Commissioner is responsible for serving as the head of the Workers’ Compensation Division of IWD. This division administers, regulates,
Cortese will assume the role of Commissioner on February 16.
Natural Resources
(Contact Carrie Malone at 5-2063)
Paddlefish Fishing Begins on March 1 During the 2014 session, legislators passed a bill that authorized the Natural Resource Commission to issue paddlefish fishing licenses for use on the Missouri and Big Sioux rivers.
license that costs $20. A non-resident fishing for paddlefish on either river must have a fishing license valid in Iowa and also purchase an annual paddlefish fishing license that costs $40. A violation of this law is punishable by a $25 fine.
Residents fishing for paddlefish on either river were required to have a fishing license The season is from March 1 through April in addition to an annual paddlefish fishing 15. Iowa anglers have purchased about
700 paddlefish licenses this year. About 50 nonresident licenses were sold this year. This will be the first time this type of fishing has been allowed in 30 years. All 35 to 45 inch fish must be released to protect the fish population. The deadline to purchase this license was January 31.
Public Safety
(Contact Amanda Freel at 1-5230)
Public Safety Committee Discusses Synthetic Drug Laws Over the past several years, synthetic drug use has been increasing in Iowa and throughout the country. In 2011, after the death of a young man in Iowa, House Republicans lead the fight to ban several common forms of synthetic drugs. While this ban has successfully reduced the legal availability of many synthetic drugs, there is still more work that needs to be done. Last week, the Public Safety Committee held a meeting with the Office of Drug Control, County Attorney’s, the Attorney General and the Division of Criminal InvestigationCrime Lab, in an effort to understand why this drug problem continues to grow.
made chemical changes to their product to skirt the law. In 2012, the Iowa legislature again acted to stop the distribution of these drugs. In 2013 and 2014 the Iowa Board of Pharmacy also took action to ban additional chemicals being used to create synthetics. Unfortunately, even with the current legislation these chemicals and drugs are too easy to find in Iowa.
Synthetic drugs take a variety of forms and are often marketed as herbal incense or potpourri. Prior to the ban in Iowa, these drugs could easily be found in gas stations and other stores. After the law change in 2011, producers of these synthetic drugs
Although they go by different names (K2, Kronic, Black Mamba, MoJo), all synthetic drugs are extremely dangerous and the effects on the user can be different every time. Countless different chemicals are sprayed on plant material to create these
“have no accepted medical use”
drugs. Depending on the chemicals used, and the amount sprayed, the effects can differ drastically each time a person uses. Common side effects include: hallucinations, intense paranoia, anxiety, increased blood pressure, confusion, vomiting, and in some cases it can lead to death. Under current law, many synthetic drugs are classified as schedule I controlled substances. These substances have high potential for abuse; and have no accepted medical use. If a person is found in possession of any of these drugs they can be charged with a serious misdemeanor for a first offense. A serious misdemeanor is punishable by up to a year in jail and a fine of at least $315 but up to $1,875. Possession with the intent to distribute any of these drugs is an aggravated misdemeanor and carries a maximum prison sentence of (Continued on page 10)
Page 10 (Continued from page 9)
2 years and a fine between $615 and $6,250. County attorneys, and the Attorney General’s Office have been working to stop the sale of these drugs around the state. In
House Republican Newsletter
2014, the Attorney General filed a law suit against the owners of a convenience store who continued to sell illegal synthetic drugs. Police across the state continue to crack down on sales and distribution wherever they find it.
their discussion with the ODCP and others, in an attempt to keep these drugs out of Iowa. While there is no quick fix, Public Safety members are committed to making the right changes to keep Iowans safe from this constantly changing and dangerous drug.
The Public Safety Committee is continuing
State Government
(Contact Brittany Telk at 1-3452)
The Vodka of the Future In the 1960s, little packets of powdered shrimp that could be added to water to instantly grow a Sea Monkey were all the rage –fast forward to 2015, and the same idea is still popular only the powdered substance is dried alcohol, able to turn water instantly to an alcoholic beverage. Powdered alcohol, known as Palcohol, has been gaining attention since last year and as it has gotten closer to distribution has gained even more controversy as bills have been introduced to ban the distribution or possession of powdered alcohol in clubs and bars.
registered in the US back in 1974. Additionally, the US is not the first country to enter this alternate realm of alcoholic beverages; Germany has been selling an alcohol powder known as “alchopop” and the Netherlands also has its own version of alcohol powder, only it is not subject to the same alcoholic beverage laws and has looser regulation.
Why could this be dangerous? A lot of opponents state this powdered substance can be snorted, so people will be able to get drunker faster; however, the Palcohol company has disclaimers stamped across its website stating “DO NOT SNORT” because it would be dangerous and just an overall painful experience due to the alcohol in the powder. Additionally, there is Palcohol in the US has plans to release two always the concern that under aged kids versions of its product: an ingestible verwill get the powder, and the ease of mixing sion, consisting of 6 different flavors to be an alcoholic beverage by just adding water consumed as a regular cocktail and indus- will be too hard to control. On the other trial version which is not meant for human hand, there are those that say if the subBut before the arguments against such a consumption but for medical purposes, stance is banned it will become a black product can take place, it is essential to manufacturing applications and other pos- market item, easier for children to obtain know exactly what the product is. What sible energy uses. The ingestible uses of and states will miss out on the tax reveexactly is powdered alcohol, how is it pos- the powder will be powdered vodka or rum, nues it will offer. sible to create such a thing –some of the and will measure out to one package of first questions that come to mind when powdered alcohol being equal to one shot Either way, Iowa is not the first state to look discussing the phenomenon and what it is of liquor, holding a calorie content of 80 to ban the substance. A bill in Colorado actually defined as is molecularly encapsu- calories per package, not including the has cleared the House and moved over to lated alcohol. There are parts of alcohol mixer’s calorie count –much similar to the the Senate to ban the substance in the that can be dried out, yet still carry out the standard, liquid shot of vodka or rum. The state. Meanwhile, at the federal level, the same effects as regular alcohol as the company is intending to sell the packages substance is also in the process of being chemical parts of the product can hold their wherever liquor is sold, subject to the same discussed. own weight in water. And this process is rules and regulations as regular alcohol not new as some of the first patents were (age restrictions, included). (Source: Palcohol website)
Transportation
(Contact Brittany Telk at 1-3452)
City Road Infrastructure Funding In late January, 20 local governments supported an increase to transportation infrastructure funding for all modes of transportation, according to the Des Moines Area Metropolitan Planning Organization. Additionally, according to the Pavement Quality Forecasting, these same cities would have to invest $40 million each year for the next decade –an increase of $10 million more
than the last 6-year average.
Iowa Clean Air Attainment Program –all programs offered through the DOT which Currently, cities receive funding from a involves some federal and state funds to variety of sources including a 20% allocago towards specific transportation-related tion from the TIME-21 funds, and the same programs. from the Road Use Tax Fund. Additionally, cities are able to receive funds through the Surface Transportation Program, the (Sources: DSM MPO website, Iowa DOT Transportation Alternative Program and the website)
Veterans Affairs
(Contact Kristi Kielhorn at 2-5290)
Military Homeownership Assistance Program Helps 423 Veterans in FY 2014 The Military Homeownership Assistance Program is now in its tenth year and is still
going strong. The program provides down payment assistance to military service
members and veterans purchasing homes (Continued on page 11)
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House Republican Newsletter
of Veterans Affairs and is funded through an appropriation by the Legislature. Since in Iowa. The goal of the program has been the program’s inception in 2005, the proto help these heroes make their permanent gram has funded more than $15.4 million in home in Iowa by providing a $5,000 grant to homeownership grants to 3,244 military help with the down payment and closing service members, veterans, and their famicosts associated with such a large and im- lies. All funds are granted out on a first portant purchase. come first serve basis and are subject to the state appropriating money to the fund. The program is a joint effort of the Iowa Finance Authority and the Iowa Department (Continued from page 10)
In fiscal year 2014, the Military Homeownership Assistance Program aided 423 service members and veterans in achieving homeownership. More information about the Military Homeownership Assistance Program and the application is available at IowaFinanceAuthority.gov.
Ways & Means
(Contact Kristi Kielhorn at 2-5290)
Repeal of Sales Tax on Laundromats Clears Subcommittee House Study Bill 64 passed subcommittee unanimously last week and will now move to the House Ways and Means Committee to await further consideration. The bill exempts the sales price for the use of selfpay washers and dryers from the state sales tax.
sales tax.
The arguments for exempting self-pay washers and dryers from sales tax are many. One argument is that it is a regressive tax because generally self-service laundry is utilized by lower income families who cannot afford washers and dryers in Iowa Code 423.2 provides a list of enumer- their homes. ated services that are subject to the state sales tax. Anything not on the list is not a Another argument for being exempt is that taxable service. The list is extensive and the sales tax is uncollectable and results in includes boat repair, pet grooming, sewing, a gross receipts tax on the owner. Washing and currently self-pay washers and dryers. machines and dryers are only equipped to House Study Bill 64 would specifically exaccept quarters—making collection of six empt them from that list, but would leave cents on the dollar impossible. Proponents traditional dry cleaning services subject to of exemption also argue that the owner/
operators of the laundromats already pay sales tax on the purchase of the machinery and on all utilities and thus on the inputs of their business. Of the 45 states that collect sales tax, currently only four collect sales tax on self-pay washers and dryers. Iowa is in this minority with Hawaii, West Virginia, and New Mexico. The fiscal impact of exempting this service in Iowa is estimated to be roughly $700,000 annually including reductions to the general fund, SAVE fund, and LOST revenue.
