Highlights of the first week of the 2008 Legislative session included opening day speeches by party legislative leaders, as well as speeches from Governor Culver and Chief Justice Marcia Ternus.
On opening day the Republican leader, Representative Christopher Rants, outlined the priorities of his party for improving education by adopting statewide standards to raise student achievement to national and international standards.
To address the high cost of healthcare, Representative Rants called for changes in Iowa law that would allow improved consumer portability when a person insured under a group plan moves to an individual plan covered by the same company. He also called for incentives for wellness and chronic disease management programs designed to help Iowans improve their personal health. Finally, he called for the state’s Medicaid program to raise its payment rates to the maximum allowed by federal law. Right now the reimbursement payment to healthcare providers covers only 40 percent of the cost of care. The rest of the cost is shifted to Iowans with insurance, estimated to be about ten cents of every premium dollar paid by Iowans. This is essentially a hidden tax, and the low reimbursement rate discourages doctors from providing care to our poorest Iowans.
Representative Rants pointed out the necessity of not waiting to address property tax relief for middle class Iowans who are angry about their ever-increasing property tax bills. With the value of agricultural land at an all-time high, it is estimated residential property owners are collectively set to see an increase of $500 million over the next five years due to the fact the two property classifications are tied together. He also asked that the Legislature would consider Republican legislation that would reduce the property tax burden on commercial property owners.
Finally, Rants implored the majority party to allow the Iowa Legislature one hour to debate and vote on a resolution to begin the process of making Iowa’s Defense of Marriage Act a part of our state constitution. A large gathering of Iowans at the Capitol on Wednesday asking for the same thing attests to Iowans’ desire to allow the people of Iowa to vote to define marriage in Iowa, rather than waiting until the Supreme Court does.
On Tuesday Governor Culver laid out his agenda for the Legislature. There were several areas upon which both parties can agree and work together this year. Republicans heartily agree with the Governor’s stated desire to pass a budget that will limit expenditures, live within our means and protect our cash reserves. There may be agreement as to some healthcare initiatives, as well as finding solutions to add funds to the Road Use Tax Fund to repair roads and bridges. We are also supportive of the Governor’s recommendation to provide funds for odor mitigation for livestock operations. However, other proposals the Governor mentioned—expansion of the beverage deposit law (including a new tax), allowing local governments the option to ban smoking in public places, and a call for combined corporate reporting—face a tougher sell.
However, my biggest concern is the Governor’s proposed budget, which spends a total of $6.4 billion. When combined with last year’s budget, state government spending will increase more than $1 billion in two years’ time—a 20 percent increase. To put this in perspective, it took eight prior budgets with Governor Vilsack as Governor and Republicans in the majority in the House and Senate to increase spending by the same amount. Despite the strong revenue growth the state is currently experiencing, (over 10 percent growth year-to-date), Governor Culver’s budget is predicated on a $100 million increase in taxes in order to balance the budget. With the economic outlook beginning to dim, these continued spending increases will weaken Iowa’s financial stability.
I look forward to seeing many of you at the community forums this year. Please feel free to contact me in any of the following ways:
E-mail: carmine.boal@legis.state.ia.us
Home Address: 3301 SW Timber Green Road, Ankeny 50023
Home Phone: 964-3335