Landon Newsletter23

COMMITTEES Appropriations Commerce Transportation John Landon STATE REPRESENTATIVE Statehouse: (515) 281-3221 e-mail –j...

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COMMITTEES Appropriations Commerce Transportation

John Landon STATE REPRESENTATIVE Statehouse: (515) 281-3221 e-mail –[email protected]

HOME ADDRESS 525 NE Stone Valley Dr. Ankeny, IA 50021 Ph. 515-249-0348

House of Representatives State of Iowa Eighty-Sixth General Assembly

APPROPRIATIONS SUBCOMMITTEE Administration & Regulations, Chair

STATEHOUSE

Des Moines, Iowa 50319 March 26, 2015 Dear Friends and Neighbors, The Revenue Estimating Conference released their first quarter estimates on Thursday, March 19, 2015. The results of the estimates indicate a decrease in revenues for the State of Iowa. Fiscal year 2015 was negatively impacted by $89.7 million and fiscal year 2016 by $20 million by growing requests for refunds due to overpayments by Iowans. Late last year the Federal Government extended higher depreciation allowances for 2014. The Iowa Legislature conformed Iowa’s tax law to allow Iowans to follow the same depreciation rules. The Governor must use the December revenue estimates to put his budget together. The Iowa Legislature must use the lower of the December or March estimates to create the actual budget. We will be using the March numbers to establish spending limits. There are positive signs in the Iowa economy. The number of workers in Iowa continues to go up. Hours worked per week average 42 and hourly rates of pay continue to climb. Approximately 20,000 jobs are being created annually in Iowa. Modest growth is forecast but is starting to slow down. The main reason for the slowing growth is the agricultural sector. The price of corn has dropped 43% from the highs of two years ago and the lows have probably not been realized yet. The livestock sector is doing well, but prices are beginning to retreat. Additionally, manufacturing in support of agriculture is slowing as well. What this means is that no additional funds have been found to help with pressing needs like education or Medicaid funding. I continue to believe it will be very difficult to arrive at a balanced budget that the Iowa Senate will agree to. Please let me know your thoughts on this and/or other issues important to you.

You are invited to attend our legislative forum at the Neveln Center, courtesy of the Ankeny Chamber of Commerce on April 11th at 9 a.m. Rep. John R. Landon John Landon State Representative House District 37 515.249.0348 www.JohnLandon.Net www.Facebook.com/John.R.Landon