FROM THE DESK OF REPRESENTATIVE DE BOEF

March 3, 2005

As a member of the House Public Safety Committee, I was privy to the discussion this week of the controversial pseudoephedrine bill, SF 169.  After much discussion, this bill was approved on a 13-8 vote with very restrictive language which requires a tight Schedule V application towards pseudoephedrine.  If this bill passes both the House and the Senate with this language, my constituents will only be able to purchase products such as Sudafed, Clariton D and others containing pseudoephedrine in a pharmacy.  The bill requires the following :

• A licensed pharmacist or pharmacist intern supervised by a pharmacist must dispense the product.  Pharmacy technicians and other pharmacy employees are prohibited from dispensing the product, even if under direct supervision of a pharmacist.
• The purchaser must be at least 18 years old.
• The purchaser must furnish identification, unless the purchaser is known to the pharmacist.
• The pharmacist must maintain a record book, including the name and address of the purchaser, and indicating the name and quantity of the substance purchased.  However, a purchaser is NOT required to sign the log.

Because my district is very rural, I was one of the eight “nay” votes.  I would prefer a similar bill; one that would permit the purchase of 360 milligrams a day over the counter.

Much of our time recently has been spent talking about the proposed budget.  One aspect of that budget includes salaries.  This brings me to my next point.  Only in state government can “zero” actually mean millions of dollars in increases.

Many of you have seen the recent headlines stating that the governor and the state’s largest employee union, AFSCME, have reached a tentative agreement in their salary negotiations.  Namely, that both sides have agreed to a zero percent salary increase for the upcoming year.  Some have gone so far as to call it a “freeze.”  This seems to me, and to you all, to be a step in the right direction.  Compared to the multi-million increases of the past, it is.

However, just so you are aware, this is not an actual salary freeze.  In FY 06, state employees will not receive a COLA (Cost Of Living Adjustment) increase.  However, employees would still be eligible for a step (also called merit) increase, which most state workers will inevitably receive.  A better way to put this might be “seniority increase” rather than merit.

In FY 04 and FY 05, these step increases were 4.5 percent, so it is reasonable to expect them to be roughly that amount this time.  Also, in April of 2006, employees who are “capped out” in their pay range, i.e. the employee has reached the highest step within their highest pay grade, will receive a 2.5 percent increase in pay. 

40 percent of employees are capped out, so almost one-half of AFSCME covered employees will receive an increase for the last quarter of the fiscal year.  In addition, the state will pick up 100 percent of any insurance premium increases that occur from January to July of 2006.

So what is the impact of the zero percent salary agreement?

According to the governor, this agreement will cost the general fund $27.5 million in FY 06.  This breaks down as follows:

• $9.8 million for step increases,
• $3.7 million for the 2.5 percent for employees who are capped out,
• $12.8 million for previously negotiated benefit increases, and
• $1.2 million for increases in the health insurance premiums. 

We have yet to receive the budgetary impact for FY 07, but we project it to be much higher.

It may not end there.  It is possible that health insurance premiums will increase in FY 06.  If that happens, and the state picks up 100 percent of the increase, it is unlikely the $1.2 million listed above will cover it.

Question of the Week…

We will be voting once again on the “People’s Right to Vote” constitutional amendment.  This amendment would require a vote by the taxpayers in a general election before state taxes could be raised more that 1%.  Do you support the Taxpayers Rights Amendment? 

I would appreciate your input.  My phone number at the Capitol is 515-281-3221, or e-mail me at bdeboef@legis.state.ia.us.  I would welcome visitors at the Capitol, too!