Week one of the 2010 session began while Legislators from all 99 counties in Iowa gathered together in the Iowa Capitol to begin our work for the people.  The week has a traditional feel to it as we are informed on the Condition of Iowa by speeches the Governor and the Chief Justice.

The Governor’s Condition of the State Address was delivered on the second day of the session.  After an opening, which looks forward to a better tomorrow, Governor Culver described today’s Iowa in ways that I did not recognize.  I was disappointed in the claim of balancing the budget for three years without raising taxes.  This simply isn’t true.  A little research reveals the truth.  I have listed the taxes and fees that Governor Culver has proposed.  Not all of these have been signed into law, but it is clear that the Governor is not a friend of the taxpayer.

FY07 – $32.3 million

• Cigarette and Tobacco Tax Increase – $32 million
• Additional DCI Agents for Riverboats –$200,000
• Additional Fire Marshall inspections fees –$100,000

FY08 – $169.5 million

• Cigarette and Tobacco Tax Increase – $138.4 million
• Combined Corporate Reporting –$25 million
• Additional Department of Revenue Auditors –$4.6 million
• Additional DCI Agents for Riverboats –$600,000
• Additional Fire Marshall inspection fees – $400,000
• Additional Department of Commerce fees – $100,000
• Restaurant Inspection fees – $400,000

FY09 – $134.3 million

• Combined Corporate Reporting – $75 million
• Bottle Deposit Expansion – $21.5 million
• Improved Court Fine Collections – $18 million
• Uncollected Bottle Deposit – $13.2 million
• Workforce Development Withholding – $4 million
• Child Care Credit Fun – $2.6 million

FY10 - $30.6 million

• Cap Tax Credits at $200 million - $15 million
• Cap Research and Activities Tax Credit - $13 million
• Child Care Tax Credit – $2.6 million

All of these add up to $366.7 million in proposed tax and fee increases in three years.

I will stand to defend the taxpayer in all of these instances.  You send plenty of your hard earned paychecks to Des Moines.  The problem of state government for years has not been enough revenue; it’s been too much spending.  We must work to reduce the size of state government. 

A few of the issues I will be watching and reporting back to you would include an effort to repeal your ability to deduct your Federal tax bill on your state return, labor bills, increases to your property taxes, and education bills which will change the way our local schools are funded. 

This will be an intense 80 day session, and I will work to keep you up to date.  If you would like to be on my email list of smaller updates, please send an email to: jason.schultz@legis.state.ia.us.  Also use this email address to send me your comments and concerns.  Thank you for your support and the opportunity to work for you in Des Moines. 

Jason Schultz

Iowa State Representative

District 55