Thursday, January 15, 2015 www.IowaHouseRepublicans.com 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. Governor Branstad’s Budget Proposal The Governor’s Budget spends $7.3410 billion in FY 2016, an increase of $346.7 million over FY 2015 or 4.95 percent. Branstad’s FY 2016 proposal spends more money than the Revenue Estimating Conference’s December ongoing revenue estimate of $7.1946 billion. The gap between ongoing revenue and the Governor’s budget is approximately $146.4 million. For FY 2017, the Governor is proposing a General Fund budget of $7.5252 billion. This would be an increase of $184.2 million or 2.50 percent. Each of the past four years, the budget passed by the Legislature has spent less than what the Governor proposed. The FY 2016 budget will continue this trend. Inside this issue: Appropriations 2 Agriculture 3 Commerce 5 Economic Growth 5 Education 5 Environmental Protection 7 Human Resources 8 Judiciary 8 Labor 9 That is a tremendous investment in our K -12 schools over the last 4-5 years especially considering statewide enrollment has been relatively flat. Natural Resources 9 Public Safety 9 In FY 2016, according to the Governor, Iowa spends about $10,900 per K-12 student every year. That means in a class of 20, the taxpayers are spending almost $220,000 per classroom. Transportation 10 Veterans Affairs 10 Ways and Means 11 percent, and Medicaid grew by 11.7 percent. 55 percent of the Governor’s FY 2016 budget proposal is targeted to education. House Republicans are looking forward to working with Governor Branstad and Senate Democrats to put together a budget that keeps Iowa in a strong financial position. School Funding State Aid to Schools over the last four years (FY 11-15) has increased $402.3 million or 16.28%. If Education Reform dollars are included that number jumps to $452.2 million or 18.30%. If the Governor’s plan for FY 16 is included that number jumps to $537.1 or 21.74%. The state’s share of education funding is at its highest level in the last 30 years. Governor Branstad increases Supplemental State Aid by $50 million and provides the second installment of $50 million for the teacher leadership component of the 2013 Education reform law. 90 percent of Iowa’s budget goes to AEA funding is once again be reduced three areas - School aid ($2.9 billion), by $15 million. This increase of $84.8 wages and benefits for state employees million raises State school aid funding to ($2.1 billion), and Medicaid ($1.6 billion). $3.0086 billion. Implementation of this figure for FY 2016 means schools reOver the past decade, state revenue has ceived an additional $537.1 million from grown by 4.1 percent annually, state (Continued on page 2) spending on K-12 education grew by 4.2 Page 2 House Republican Newsletter (Continued from page 1) Medicaid the General Fund since FY 2011, a 21.74% To address the continual growth in Mediincrease over five years. caid, the Governor is proposing major reforms. He expands the use of managed Among the other K-12 education increases care in Medicaid and other cost containprovided by the Governor in FY 2016 are ment initiatives, lowering state expendi$10 million for the High Need Schools pro- tures by $70.2 million in FY 2016. The gram, a $1.5 million increase for the Read- Governor funds the rebasing of Medicaid ing Research Center, $1.0 for the Iowa rates for hospitals, nursing homes, and Reading Corps, and $200,000 for bullying home health agencies. The Governor is prevention. not recommending a supplemental appropriation for Medicaid in FY 2015. For community colleges, the Governor increases community college general aid Medicaid is the second biggest program in funding by 1.75 percent or $3.522 million. state government, and without major reFor Iowa’s private colleges, the Governor form it will continue take funding away from increases funding for the Tuition Grant pro- other priorities like schools. gram by $4 million. This is an 8.26% increase over the FY 2015 level. The tuition First Crack at State Contracts grant for students at for-profit colleges are increased by $200,000 or 10.1 percent. Democratic Legislative Leaders have said that one of their priorities to give Iowa companies preference which it comes to landing state contracts. However, this is al- Appropriations ready state law. In fact, it is in the Code of Iowa in 4 different places and in the Iowa Administrative Code twice. Furthermore the House voted to include this idea in every budget bill during the 2014 session. So it is not only already state law, it is a bipartisan priority. Bullying Adults need to respond to bullying quickly and consistently. Teachers need the training and tools to intervene in simple and safe ways. Kids need to be empowered to stand up to it and help each other to stop it on the spot. Bullying isn’t a partisan issue nor should it be. Everyone wants schools and kids to be safe. The Governor, once again, has tabbed protecting kids from bullying a priority. There will likely be a discussion on our bullying law this session and that discussion, as any changes to our bullying law, must include parents. (Contact Brad Trow at 1-3471) December Revenue Report Shows Growth Iowa’s tax receipts experienced a major rebound in revenue growth during December, according to the Legislative Services Agency. State revenue in December was $109.8 million higher than the amount taken in during December 2013. This increase raised the revenue growth through the first six months of Fiscal Year 2015 to 5.8 percent. The state’s revenue growth for the first six months of the year has been indicative of Iowa’s strong economic position currently. Personal income tax collections grew by $49 million in December, an increase of 16.8% over December 2013. The strong December numbers raised the fiscal year growth in personal income tax to 5.4 percent, just slightly below the Revenue Estimating Conference’s projection of 5.7 percent growth. Sales and Use tax collections also experienced a strong month. December revenue in these categories grew by $46.7 million over the previous year, an increase of 27.5 percent. Through the first six months of FY 2015, Sales and Use tax receipts have grown by 5.8 percent. This is stronger growth than what the REC has projected for the year, setting Sales and Use Tax collections 4.4 percent higher than FY 2014. tax revenue is growth of 3.8 percent in FY 2015. A sizable portion of the revenue growth in December was due to timing issues. November’s revenue growth was smaller than projected due to one less processing day for the Department of Revenue. That lost processing day was picked up in December. According to LSA’s analysis, approximately $42 million of the revenue growth last month came from the additional proCorporate income tax also experienced cessing day. Of this amount, $16 million growth for the month. This category collect- was personal income tax revenue and the ed $12.3 million more than December 2013, rest came from sales and use tax collecwhich is an increase of 17.5%. Through tions. December, corporate collections trailed FY 2014 by 1.1 percent. But this gap, created While tax refunds increased during Decemby an accounting issue at the start of FY ber, overall refunds continue to lag behind 2014, has been closing over the past few FY 2014’s pace. Through December, tax months. The REC forecast for corporate refunds were down 3.9 percent. Governor Branstad Unveils Budget Proposal for FY 2016 and FY 2017 Governor Branstad released his proposed budgets for Fiscal Years 2016 and 2017 as part of his condition of the State message on Tuesday morning. While the budget did not play a prominent role in the Condition of the State message, Branstad’s recommen- dations dominated the conversations under the Golden Dome afterwards. The Governor is proposing to spend $7.3410 billion in FY 2016, an increase of $346.7 million over FY 2015 or 4.95 per- cent. Branstad’s FY 2016 proposal spends more money than the Revenue Estimating Conference’s December ongoing revenue estimate of $7.1946 billion. The gap between ongoing revenue and the Governor’s (Continued on page 3) House Republican Newsletter Page 3 (Continued from page 2) budget is approximately $146.4 million. tation of the Board of Regents’ performance -based funding formula. This amount is below the $13 million requested by the Regents for the University of Iowa. For fiscal year 2017, the Governor is proposing a General Fund budget of $7.5252 For community colleges, the Governor is billion. This would be an increase of $184.2 proposing to increase community college million or 2.50 percent. general aid funding by 1.75 percent or $3.522 million. For Iowa’s private colleges, As is usually the case, the subject getting the Governor is proposing to increase fundthe most discussion was the Governor rec- ing for the Tuition Grant program by $4 milommendation for state funding to local lion. This would be an 8.26% increase over schools. Governor Branstad is proposing to the FY 2015 level. The tuition grant for increase Supplemental State Aid by $50 students at for-profit colleges would be inmillion and to provide the second installcreased by $200,000 or 10.1 percent. ment of $50 million for the teacher leadership component of the 2013 Education reform law. AEA funding would once again “21.74% increase over be reduced by $15 million. This increase of $84.8 million will raise State school aid five years” funding to $3.0086 billion. Implementation of this figure for FY 2016 would mean schools had received an additional $537.1 million from the General Fund since FY 2011, a 21.74% increase over five years. To address the continual growth in Medicaid, the Governor is proposing major reAmong the other K-12 education increases forms. His administration will expand the provided by the Governor in FY 2016 are use of managed care in Medicaid and other $10 million for the High Need Schools procost containment initiatives, lowering state gram, a $1.5 million increase for the Read- expenditures by $70.2 million in FY 2016. ing Research Center, $1.0 for the Iowa The Governor is proposing to fund the reReading Corps, and $200,000 for bullying basing of Medicaid rates for hospitals, nursprevention. ing homes, and home health agencies. At this time, the Governor is not recommendFor FY 2017, the Governor is recommend- ing a supplemental appropriation for Mediing an additional $141.5 million for school caid in FY 2015. aid, including the final allocation of $50 million for implementation of the 2013 EducaAnother major area of discussion on Tuestion Reform law. day was the Governor’s decision to phase out services at the Clarinda and Mount Governor Branstad also proposed giving Pleasant mental health institutes. The poIowa’s three state universities a 1.75% intential elimination of mental health and subcrease ($8.768 million) in their general aid stance abuse treatment beds at these two funding to maintain the tuition freeze for in- beds is raising questions about the ability of state students getting their bachelor dethose in the rural parts of southern Iowa to grees. In recent weeks, the Board of Reaccess acute levels of care, while also putgents revised their position by stating that ting additional pressure on the remaining this funding is necessary for them to extend two MHI’s (Cherokee and Independence) the freeze for a third year. The Governor and other facilities. also provides $4 million to begin implemen- Agriculture In addition to the General Fund proposals, Governor Branstad also released his recommendations for spending from various other state funds. The Governor’s continues to provide additional resources to address ways to improve Iowa’s water quality. The Rebuild Iowa Infrastructure Fund budget includes an increase of $3,100,000 for the state’s Water Quality Initiative and $1,920,000 to close additional ag drainage wells. Governor Branstad is also recommending the state move forward with the revitalization of the State Historical Building. In his budget, the Governor recommends $8.63 million in FY 2016 and $20.3 million in FY 2017 from RIIF for this purpose. The Iowa Veterans Home would also have a series of infrastructure projects addressed through the Governor’s plan. His budget recommends spending $10.8 million from RIIF in FY 2016 to address several infrastructure issues at the Iowa Veterans Home. These include the replacement of emergency fuel tanks, laundry renovations, and air quality improvements for residents. Funding is also provided for several of the Governor’s new initiatives. To fund his IowaNext initiative for improving the quality of life in Iowa, Governor Branstad is calling for the creation of the Iowa Next Fund. The Governor is recommending an appropriation of $26.1 million to the Iowa Next Fund in FY 2016, with $20 million coming from the State Bond Repayment Fund. And to fund his “Connect Every Acre” initiative, the Governor is recommending spending $5 million in grants to local communities. These dollars would come from the Technology Reinvestment Fund ($2 million) and the State Bond Repayment Fund ($3 million). Consideration of the Governor’s proposal now moves to the budget subcommittees. House budget subcommittees will begin their work on Thursday, January 15. (Contact Lew Olson at 1-3096) IDALS and USDA Announce Program to Improve Iowa Water Quality On Monday, January 12, 2015, the United States Department of Agriculture (USDA) issued a press advisory announcing on Wednesday, January 14, 2015, there will be an unveiling of a new project which is part of USDA’s new program, the Regional Conservation Partnership Program, that will partner with Iowa Department of Agriculture and Land Stewardship (IDALS) nutrient reduction strategy efforts. This project will promote farmer-to-farmer education and practice implementation through demonstration projects to help improve water quality and is one of two, which originate in Iowa. This project is one of more than 110 high-impact projects across all 50 states that will receive more than $370 million as part of this new effort. USDA’s Natural Resources Conservation Service (NRCS) will join IDALS to unveil this new project. The announcement is scheduled to be made at the Wallace State Office Building Atrium at 3 P.M. on Wednesday, January 15, 2015. The NRCS is scheduled to be represented by State Conservationist Jay Mar who will be joined by Iowa Secretary of Agriculture Bill Northey and NRCS Assistant Chief Kirk Hanlin. (Continued on page 4) Page 4 House Republican Newsletter servation efforts, and develop new programs to help engage all Iowans in improvIn a related matter, Iowa Secretary of Agri- ing water quality. Branstad also included culture Bill Northey issued a press release $6.75 million for conservation cost share in on Tuesday, January 13, 2015, that his budget which is at the current year’s thanked Gov. Branstad and Lt. Gov. Reyn- level. For over four decades, Iowa’s soil olds for including $7.5 million for the Water conservation cost share program has enQuality Initiative in their budget procouraged the adoption of conservation posal. This proposal continues their strong structures and practices to protect and presupport for a voluntary, science-based ap- serve our state’s natural resources and proach to improving water quality, building improve water quality. Last year alone, the on the $2.4 million and $4.4 million restate’s $9.5 million investment generated ceived from the general fund in fiscal years $13 million in matching funds from Iowa 2014 and 2015 to support water quality. farmers and land owners to support conservation practices. The $7.5 million for the Water Quality Initiative would allow IDALS to offer cost share The Governor’s Budget request proposed statewide to farmers trying new water quali- that the Water Quality Initiative Funding be ty practices, continue work in targeted wa- increased from $4.4-million general fund tersheds to achieve measurable water appropriation in the current fiscal year to a quality improvements, expand urban concombined $7.5-million for fiscal year 2016 (Continued from page 3) with an additional $3.1-million in Rebuild Iowa Infrastructure Fund moneys. This recommendation puts funding at the level of support IDALS sought for Water Quality Initiative program funding in its budget request to the Governor, but returns funding level for the program back to $4.4-million of general fund moneys in FY 2017. The Governor also proposes to provide the FY 2016 IDALS asking for $1.92-million for ag drainage well closure alternative drainage that will allow for the closure of eight additional agriculture drainage wells in the state to protect groundwater quality agriculture drainage wells in the state, but proposed no funding in FY 2017. IDALS had requested $1.92-million for both FY 2016 and FY 2017 and that would have allowed 17 ag drainage wells to be closed. USDA Announces More Than $18 Million to Support Training and Development for Beginning Farmers and Ranchers On Monday, January 12, 2105 the United State Department of Agriculture (USDA) issued a press release in which USDA Deputy Secretary Krysta Harden announced the availability of more than $18 million in funding to help educate, mentor and enhance the sustainability of the next generation of farmers. This support is available through the Beginning Farmer and Rancher Development Program (BFRDP), administered by USDA's National Institute for Food and Agriculture (NIFA). Winning awards from last year's application cycle will be announced in the near future. ganization providing services to beginning farmers and ranchers. At least five percent of the funds must go to projects that serve military veteran beginning farmers and ranchers, and at least five percent to projects that serve socially-disadvantaged, limited-resource, or farmworker audiences. All applicants are required to provide funds or in-kind support from non-federal sources in an amount that is at least equal to 25 percent of the federal funds requested. Priority topics are: Basic livestock, forest management, and crop farming practices; The Beginning Farmer and Rancher Devel- Innovative farm, ranch, and private, opment Program awards grants to organinonindustrial forest land transfer stratzations implementing programs to train egies; beginning farmers and ranchers, including Entrepreneurship and business trainworkshops, educational teams, training, ing; and technical assistance throughout the Financial and risk management trainUnited States. Fiscal Year 2015 applicaing (including the acquisition and mantions for BFRDP are due March 13, 2015. agement of agricultural credit); Eligible applicants are collaborative, state, Natural resource management and tribal, local, or regionally-based network or planning; partnership of public or private entities, Diversification and marketing strateincluding state cooperative extension sergies; vice; community-based and nongovern Curriculum development; mental organization; colleges or universi Mentoring, apprenticeships, and inties (including institutions awarding associternships; ate degrees); or any other appropriate or- Resources and referral; Farm financial benchmarking; Assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers; Agricultural rehabilitation and vocational training for veterans; Farm safety and awareness; and Other similar subject areas of use to beginning farmers or ranchers. NIFA will host a webinar for interested applicants on Wednesday, February 11, 2015, from 2:00-4:00 p.m. EST. No password or advance reservation is required. A recording will be posted on the NIFA website shortly after the event. Page 5 House Republican Newsletter Commerce (Contact Dane Schumann at 1-3626) Internet Access Takes Center Stage In Washington and Des Moines President Obama unveiled a series of measures this week aimed at making highspeed Internet access cheaper and more widely available. His announcement, made in Cedar Falls, focused chiefly on efforts by cities to build their own Internet networks as competitive alternatives to major web providers. The president said he’ll urge the Federal Communications Commission to help neutralize state laws that effectively protect established Internet providers against municipal networks that want to build and offer services. Federal agencies will also expand grants for both municipal and rural providers. Wednesday’s speech opens a different front in another issue that’s before the FCC: net neutrality. The president’s communique to the FCC marks his second since November when he asked the agency to apply strong net neutrality rules on Internet providers that would ban them from charging different prices for highcontent web traffic from companies like Netflix. The video streaming service also urged the FCC last year to preempt the kinds of state laws that prevent municipal Internet networks from coming online in places like Colorado, for example, where a city must hold a successful referendum before undertaking such a project. net neutrality rules. Meanwhile, existing Internet providers are pushing back. In August, AT&T warned the FCC that public investments in municipal networks will only diminish private-sector investments that could both expand and Cedar Falls is one of many cities across enhance web access. And any move from the county that have built their own publicly the FCC to neutralize state laws would operated network, and a high percentage almost surely meet fierce--and perhaps of the city’s households are subscribers. successful--legal resistance from estabNine Iowa cities offer similar services. lished providers. President Obama’s visit coincides with the U.S. Department of Agriculture announcing “10-year property tax a multi-million dollar loan program to help rural carriers build broadband in unserved exemption” or underserved areas. It also coincides with Governor Branstad’s Connect Every FCC Chairman Tom Wheeler wrote last Acre initiative, which he announced during year that the public interest would be Tuesday’s Condition of the State Address. served if the FCC moved to “preempt state His proposal would provide a 10-year proplaws that ban or restrict competition from erty tax exemption for broadband infracommunity broadband.” The FCC’s constructure in place on or after July 1, 2014. gressional charter gives it the authority to A $5 million grant program would also help stimulate broadband deployment, a broadly spur broadband access to farms, school worded commission that could also be and rural communities. used to authorize its equally controversial Economic Growth (Contact Dane Schumann at 1-3626) Branstad Proposes Partnership for Workers, Employers Business leaders continue to urge state legislators to support and expand programs designed to develop more highly skilled employees. On Tuesday, Governor Branstad used his Condition of the State address to join the chorus by asking the legislature to pass a bill creating the Center for Human Capital Enrichment. The new public-private partnership would research best practices, study data and make recommendations to help improve both the quality of Iowa’s workforce and the way stakeholders utilize their human capital. The private side of the partnership would be represented by the Human Capital Enrichment Council, an advisory body that would represent the needs of employers and the education sector. The council members would also include the state auditor and the directors of Workforce Development, the Department of Education and the Economic Development Authority along with other lead policy agencies. It would also include the 21 largest private employers in the state, such as Rockwell Collins and Principal Financial. Education An operations team comprised of state employees from those lead policy agencies would comprise the public side of the partnership. This Operations Team will ensure the council has the resources available to carry out its mission. The governor proposed a prototype of the initiative last fall during his reelection campaign as a way to help Iowans align their existing skills or educational opportunities with the needs of Iowa businesses. Contact Jason Chapman at 1-3015) The Governor’s Education Agenda The legislative session for 2015 began this week with the usual pomp and circumstance. New legislators took their seats, returning legislators resumed their work, and the Governor delivered his State of the shown to education over the past four State Address. In his speech he laid out several education claims and proposals, (Continued on page 6) continuing the strong commitment he’s Page 6 House Republican Newsletter (Continued from page 5) years. While the speech was short on details and some proposals are waiting for accompanying language to flesh them out, here are current details: Regents Universities The last two years the legislature provided funding to the three Regents Universities (the University of Iowa, Iowa State University, and the University of Northern Iowa) that allowed the universities to freeze tuition for undergraduate resident students. This had not been accomplished for over 40 years. The Regents this year have proposed yet another tuition freeze, for which the Governor expressed support during his speech. The tuition freeze is contingent upon the Regents’ funding request, which amounts to a 1.75% increase for each university, or about $9 million in increased funding. this challenge last fall. Details on the program are yet to be determined, but similar programs are being created in other states around the nation. Private College Affordability He also made reference to his proposed increase for the Iowa Tuition Grant, a scholarship program that provides students financial help to attend a private college or university in Iowa. The Governor’s proposal is a $4 million increase. The legislature has made some significant increases over the past few years to the Tuition Grant, and last year raised the cap for what each student could receive from $4,000 to $5,000. FY12 - $43.5 million FY13 - $45.5 million FY14 - $47.0 million FY15 - $48.4 million FY16 - $52.4 million (proposed) Community Colleges and A Skilled Workforce The Governor also reiterated commitment The Governor also brought up his chalto the Community Colleges and the Skilled lenge to the universities to create $10,000 Worker and Job Creation Fund. The Govdegree programs for students, allowing ernor’s proposal for FY16 is an additional those students to attain higher education at $3.5 million, or a 1.75% increase, in line a more affordable cost. He first unveiled with the Regents. FY12 - $164 million FY13 - $177 million FY14 - $193 million FY15 - $201 million FY16 - $205 million (proposed) Bullying Finally, the Governor mentioned his commitment to passing an Anti-Bullying bill. The Governor hosted summits on antibullying in 2012 and 2013 and proposed legislation during the 2013 and 2014 sessions. 2013’s unwieldy bill received no Floor action in either chamber. 2014’s bill was altered in both chambers and both chambers passed a bill, but a reconciliation on the differences never materialized. This year’s bill appears to contain some of last year’s elements but with new ideas included. Full details are yet to come, however. The House Education Committee convenes this week for organization. Next week the committee will begin its work looking at the Governor’s proposals and many other proposals brought forward by the members of the House. The Governor’s Education Budget Proposal The Governor released his budget proposal this week in conjunction with the legislature’s opening ceremonies and the Gover- nor’s State of the State address. Within the Education budget, which funds the Department for the Blind, the College Student Aid Commission, the Department of Education, Community Colleges, Vocational Rehabilitation, Iowa Public Television, and the Board of Regents, he proposed spending $1.02 billion, an increase of $36.3 million over FY15’s $986 million. $200,000 increase for the Iowa Tuition Grant for For-Profits $1.3 million increase for the Teach Iowa Scholars Program Department of Education $1.2 million increase for the Department’s administrative costs $1.5 million increase for the Iowa Reading Research Center $3.5 million increase for Community Colleges $200,000 new line item for Bullying Prevention Notable changes over FY15 include: $10 million new line item for High Needs Schools College Student Aid Commission $1 million new line item for the Iowa $181,787 increase for administrative Reading Corps costs with the Commission $600,000 for a new State K-12 Career $4 million increase for the Iowa Tuition Planning System Grant $1.5 million for a new line item title Iowa Academic Standards $100,000 for a new Principal Leadership Institute Iowa Public Television $282,000 increase for IPTV Board of Regents $4 million increase for the University of Iowa $3.1 million increase for Iowa State University $1.6 million increase for the University of Northern Iowa $4 million new line item to help the Regents implement their new Performance-Based Funding model $164,358 increase for the Iowa School for the Deaf $68,525 increase for the Iowa Braille and Sight Saving School Page 7 House Republican Newsletter (Continued from page 6) PK-12 School Aid Outside of the scope of the Education Appropriations bill, the Governor also mentioned his proposed increases for PK-12 school aid funding. While he did not release a percent of growth, his proposed increase of $84.8 million for FY16 includes what would amount to roughly a 1.25% Supplemental State Aid amount and his proposal of $143.9 million for FY17 includes what would amount to roughly a 2.45% Supplemental State Aid growth percentage. Here’s a breakdown of the proposals: FY16 (15/16 school year): 1.25% Supplemental State Aid Increase $18.5 million increase for School Aid through the Regular Program $5.9 million increase for Categorical program (Teacher Salary Supplement, Professional Development, and Early Intervention dollars) $3.2 million increase for preschool $5.6 million increase for Property Tax Replacement Payment which picks up the property tax increase $50.2 million for the Teacher Leadership Compensation system, which becomes another Categorical program with the other three. It would also put about half of districts on the Budget Guarantee for a cost of $16.3 million. FY17 (16/17 school year): 2.45% Supplemental State Aid Increase $52 million increase for School Aid through the Regular Program $9.1 million increase for Categorical program (Teacher Salary Supplement, Professional Development, and Early Intervention dollars) $3.7 million increase for preschool $10.8 million increase for Property Tax Replacement Payment which picks up the property tax increase $53 million for the Teacher Leadership Compensation system, which becomes another Categorical program with the other three. This would also put about 37% of districts on the Budget Guarantee for a cost of $18.1 million. The House Education Committee will be looking at Supplemental State Aid amounts within a bill likely next week, while the House Education Appropriations Committee will begin its budget process next week. Environmental Protection (Contact Lew Olson at 1-3096) Environmental Protection and Natural Resources Commissions Will Meet Jointly Jan. 21 On Thursday, January 08, 2015 the Iowa Department of Natural Resources (DNR) issued a press release in which the state agency announced that the Environmental Protection Commission (EPC) and the Natural Resources Commission (NRC) will meet jointly Wednesday, January 21 at 10 a.m. at the Wallace Building fifth floor conference rooms at 502 E. Ninth St. in Des Moines. Each commission will present its annual report followed by reports of mutual interest from DNR staff. The joint meeting will conclude at 1 p.m. Commissioners will gather prior to the joint meeting at the State Capitol from 7:30 a.m. to 9:30 a.m. to meet with legislators. At 1:30 p.m. the Environmental Protection and Natural Resources commissions will reconvene in separate meeting rooms for their business meetings with the EPC meeting on the third floor of the Wallace Building, where it will receive a presentation on stakeholder recommendations for fully funding the Air Quality Bureau’s programs into the future. Reductions in air emissions have led to declining revenues from fees assessed on air emissions. mental interests studied the bureau’s funding structure and developed six recommendations that were fully supported by 19 members of the group. The DNR submitted a report to the General Assembly regarding the findings and recommendations of the stakeholder group in December 2014. The complete report is available on the DNR website under Workgroups, AQ Stakeholder Group at--www.iowadnr.gov/ InsideDNR/RegulatoryAir/ StakeholderInvolvement.aspx. Thirty stakeholders from small and large businesses, governments, and environ- DNR Announces Manure Applicator Training Begins in January On Thursday, December 18, 2015, the Iowa Department of Natural Resources (DNR) issued a press release in which the state agency announced that Iowa manure applicators, confinement and commercial, should plan to take training to renew their certificates by March 1, 2015. Commercial applicators were afforded an opportunity of a January 6th that was program was offered from 9 a.m. to noon at 72 Iowa locations. Commercial applicators can also take training at three sessions in Minnesota and Wisconsin. Confinement site applicators can take training at many county Extension offices from January 13th to February 27, 2015. Confinement applicators should check the training schedule to pick a convenient location and time. cattle or hog manure in a dry or solid form. They are open to both confinement and commercial applicators. After completing the training, applicators should submit applications and fees to the DNR prior to March 1 to avoid a $12.50 late fee. Check for training times and locations at Applicators who work with mostly dry or www.agronext.iastate.edu/immag/ solid manure may want to schedule training mac.html. More information about the proat one of seven February workshops. gram is available at www.iowadnr.gov/afo/. These workshops specifically meet the Testing is available at six DNR field offices needs of applicators who work with poultry, (Continued on page 8) Page 8 House Republican Newsletter (Continued from page 7) in lieu of training. The DNR certified 2,694 commercial and 2,363 confinement site manure applicators in 2014. Certified applicators annually complete a training session, or pass an exam. The DNR administers the manure applicator certification program in Iowa. ISU Extension and Outreach provides training opportunities. State law requires certifica- tion for manure applicators who handle, transport or apply manure from a confinement (totally roofed) facility with more than 500 animal units. Human Resources (Contact Carrie Malone at 5-2063) Governor Proposes Significant Changes to Medicaid Budget On January 13th, Governor Branstad released his FY16 and FY17 budget proposals. The Governor’s proposal includes major reforms to the Iowa Medicaid program. It also includes cost containment initiatives that will save over $70 million in FY16. Below are some of the changes the Governor is proposing in his FY16 Medicaid budget: Cost Containment - The Governor has proposed $70 million in cost containment initiatives. The largest one is a proposal to modernize the way Medicaid services are delivered by transitioning the Medicaid program to a managed care model. This switch will save the Medicaid program $51 million in FY16. The Governor has also proposed implementing a waiting list for the intellectual disabilities waiver. This will result in a $6 million savings. Other cost Mental Health Redesign - The budget containment initiatives include payment proposes to eliminate mental health equalireform. The Governor has proposed to zation. increase the nursing facility assessment fee to 3%. This will save almost $4 million. Finally, the Governor has proposed that the “$70 million in cost University of Iowa fund the state share of containment Disproportionate Share Hospital (DSH) payments. This will save $4.5 million. initiatives” FMAP - The budget includes an increase of $56 million to reflect a change in the Federal Medical Assistance Percentage (FMAP) Mental Health Institutions - The budget rate. recommends eliminating the Clarinda and Mount Pleasant MHIs and transferring control of the campuses to the Department of Rebase - The budget includes a total of $42.8 million to rebase nursing facilities, Corrections. This will save $8.2 million in hospitals, and home health services. FY16 and FY17. Judiciary (Contact Amanda Freel at 1-5230) State of the Judiciary On Wednesday, Chief Justice Mark S. Cady, of the Iowa Supreme Court, delivered the State of the Judiciary. Each year the Chief Justice is required to deliver this speech to the general assembly. In the address, the Chief Justice may express what he believes is important for Senators and Representatives to know about the Court system. which courts are working for all Iowans. From specialty courts that focus on families to easier access to court documents through technology. Iowa Courts, now more than ever, are more accessible to all. Keeping the courts open and accessible has been a major focus for the legislature. With additional funding appropriated in the past several years, Court Houses in Iowa Chief Justice Cady used his State of the were able to expand their hours and ensure Judiciary to highlight the goals and sucbetter access to justice, no matter where a cesses of the judicial branch. Those goals person is in the state, through the use of include; protecting Iowan’s children, provid- the Electronic Data Management System ing full time access to justice; operating an (EDMS). As of today, over 4 million docuefficient and full services court system; ments have been uploaded on the EDMS providing faster and less costly resolutions system. of legal disputes; remaining open and transparent; and, providing fair and impar- Iowa Courts are continuing to focus on tial justice for all. providing justice for all. Justice Cady promised that members of the Judicial Branch The Chief Justice focused on the ways in will be reviewing specialty courts, sentenc- ing and other procedures in order to ensure all Iowans are treated fairly. With the conclusion of the State of the Judiciary, members of the Justice Systems Budget Subcommittee will begin meeting to evaluate the funding for the Courts for the 2016 budget. This Subcommittee will work to ensure the Courts receive appropriate funding to continue their work. Page 9 House Republican Newsletter Labor (Contact Colin Tadlock at 1-3440) Wahlert Retires from Workforce Development On Sunday, January 11, Governor Branstad announced the retirement of Iowa Workforce Development (IWD) Director Theresa Wahlert. She reportedly gave notice to the Governor’s office the previous Friday. Wahlert had served in the Director role since Governor Branstad returned to office in 2011. AT&T, and Mid-America Group. IWD was ruling against businesses the majority of the time and that rulings in favor While serving as Director of IWD, Wahlert of employees had increased during her received harsh criticism from Senate Dem- time as Director. Additionally, UI rulings ocrats who claimed that she created a hos- were being made in a much timely manner. tile work environment. Additionally, Senate Democrats claimed that she pressured For the time being, Beth Townsend has Administrative Law Judges to make more been appointed to serve as the acting Dipro-business rulings in unemployment inrector of IWD. She most currently has Prior to serving in state government, Wah- surance appeal hearings. During Senate served as Executive Director of the Iowa lert worked as an executive for several Government Oversight hearings however, Civil Rights Commission. No timeline has private sector businesses, including Qwest, Wahlert presented data that showed that been set to appoint a permanent director. National Unemployment Drops to 5.6% On Friday, January 9, the Federal Department of Labor announced that the national unemployment rate dropped to 5.6% after adding 252,000 jobs in the month of December. The national rate was 5.8% in November. ond, adding 48,000 jobs. “Iowa’s unemployment rate sits at 4.3%” Job gains were led by professional and business services which added 52,000 jobs in December. Construction came in sec- Not all of this came as good new however, as the labor force continued to shrink. The labor force participation rate dropped from 62.9% in November to 62.7% in December as 273,000 workers stopped looking for work. Over the last year, the participation rate has hovered between 62.7-63.0%. Currently Iowa’s unemployment rate sits at 4.3% which is tied for 10th best nationally. Natural Resources (Contact Carrie Malone at 5-2063) Deer Harvest Larger than 2013 In 2013, Iowa deer hunters harvested 99,414 deer. In 2014 they reported harvesting 101,500, which is an increase of 2,086. This increase is due to good weather during the first shotgun deer season. 15 percent more bucks than last year. The harvest of does decreased 6% from last year. This reduction is part of a management plan that will allow the herd to stabilize. Hunters also reported harvesting Public Safety Iowa’s deer season ended on January 10. (Contact Amanda Freel at 1-5230) Roxann Ryan Named Acting Commissioner of the Department of Public Safety Earlier this month, Governor Branstad appointed Roxann Ryan as the acting commissioner of the Iowa Department of Public Safety. This appointment comes as Larry Noble retired as Commissioner. ment of Public Safety since 2006. Prior to working with DPS, Ryan was employed by the Attorney General’s Office in the criminal division from 1980-2004. She has also taught at Simpson College. Ryan earned her Bachelor’s Degree from Iowa State, her law degree from the University of Iowa and a PhD in Criminal Justice from the University of Nebraska Omaha. She has worked with the Iowa Depart- The Department of Public Safety oversees the Iowa State Patrol, Fires Marshall’s Office, Narcotics Enforcement as well as investigative and law enforcement intelligence divisions. According to the Iowa Code, the Commissioner of the Department of Public Safety is the Chief Executive Officer of the Department. The Commissioner position is a full time job. Whoever is appointed Commissioner must be a person of high moral character, in good standing in the community where he or she lives, of recognized executive and administrative capacity and who shall not be selected because of political affiliation. Page 10 House Republican Newsletter Transportation Transportation Alternatives Program Yesterday, the Iowa Transportation Commission had its monthly meeting where they approved $1 million in total funding for various statewide Transportation Alternatives program projects. The Transportation Alternatives program was approved in federal law through the Moving Ahead for Progress in the 21st Century Act (MAP-21) in 2012. The purpose of this program is in its name: to provide funding for a variety of alternative transportation projects. Many of these programs were eligible under separate funding schedules, but the TAP replaces funding from before MAP-21 to combine them into one funding source. Some of these programs include: trail funding, community improvement activities, safe routes to school, among others. The program is funded through contract authority from the Highway Trust Fund’s Highway Account, which is subject to the same obligations and limitations as the overall federal-aid. Each fiscal year, an amount equal to 2% of the total amount authorized for federal-aid highways must be reserved for the TAP. There are also set-asides, suballocations and transfers of fund provisions defined throughout the program’s description. Each state’s funding is determined by dividing the total among the states based on the proportionate share from the FY 2009 Transportation Enhancements funding, with the amount for TAP being set aside from the State’s National Highway Performance Program. More detail about TAP’s governing authority, funding provisions, eligible programs as well as all reference to the program’s general code provisions can be found here. In Iowa, most of the program funding goes to metropolitan planning organizations and regional planning affiliations for the selec- tion of local projects, and is available to: cities, counties, school districts or others through an annual application procedure. The following projects received approval this year: Iowa’s Living Roadway Projects Program (Trees Forever) - $200,000 Iowa Safe Routes to School Partnership (Iowa Northland Regional Transportation Authority and Iowa Bicycle Coalition) - $157,893 Lewis & Clark Multiuse Trail Implementation Phase 1 (Iowa Department of Transportation) - $230,607 Native Grass and Wildflower Seed for County Road Rights of Way (University of Northern Iowa and UNI Integrated Roadside Vegetation Management) - $336,500 Urban Youth Corps (Iowa Department of Transportation) - $75,000 Also, the Commission approved funding for Iowa’s Clean Air Attainment Program for the following projects (total $3,929,782): Other Commission Actions: The Commission also approved funding for the Recreational Trails Program projects, for a total of $1,204,133 for the following programs: Gypsum City OHV Park – Phase 3 Trail Construction (Iowa Department of Natural Resources and Webster County Improvement Corporation) - $195,559 Iowa DNR AmeriCorps Trail Crew (Iowa Department of Natural Resources) - $280,000 Mitchellville to Prairie City Rails to Trails Corridor Acquisition (Jasper County Conservation) - $450,599 Raccoon River Valley Trail to High Trestle Trail Connector Phase 1 Acquisition/Construction - Veterans Affairs Perry to Bouton (Dallas County Conservation Board) - $119,575 Snowmobile Trail Grooming Equipment Purchase (Iowa Department of Natural Resources and Iowa State Snowmobile Association) $240,000 Support for Program and Bicycle/Trails Summits (Iowa Department of Transportation) - $18,400 #2 Green/#6 Brown/#3 Blue Service Expansion & Bus Expansion (Ames Transit Agency) - $860,734 Adaptive Traffic Signal Control System - 50th Street/60th Street (West Des Moines) - $397,960 Express Routes #92, #93, #98 Service Improvements (Des Moines Area Regional Transit Authority) - $227,453 I-380 and Boyson Road Interchange Improvements (Hiawatha) $1,000,000 Smart Transit: Midtown Loop (Grey Line) and Feeder (Express) (Dubuque dba The Jule Transit) - $442,735 University of Iowa/Iowa City Bike Share Program (University of Iowa and Iowa City) - $135,300 US Hwy 6 Adaptive Traffic Control System Implementation (Clive and Urbandale) - $665,600 Windsor Heights Transit Station and Park & Ride (Des Moines Area Regional Transit Authority and Windsor Heights) - $200,000 A summary of all other Commission actions can be found here. (Contact Kristi Kielhorn at 2-5290) University of Iowa Champions Veteran Students Last year’s Home Base Iowa package was not just about pension exclusions and reciprocal licenses. The legislation also sought to help veterans obtain higher education and find jobs. That goal required colleges and universities to have on-campus resources geared toward veterans and recognizing their unique needs. If a college or university wants to become a Home Base Iowa school, certain criteria 1. On-Campus Veteran Resources have to be met. If those criteria are met, the a. Full Time Veterans Services Coordischool becomes a Certified Higher Acanator or Veterans’ Representative and demic Military Partner (CHAMP). office. b. Veterans Center/study space dedicatEducation institutions must meet three of ed to veteran student population with the four criteria in each of the three categories below: (Continued on page 11) Page 11 (Continued from page 10) House Republican Newsletter c. Offer veterans sections for new student orientation. d. College President Signature on Principles of Excellence laid out in Executive Order 13607 possibility of computers to sign up for benefits or meeting area for Vet Club. c. Veterans’ Services Support Group (made up of Veterans’ Representative, Advisors, Faculty, Staff) to ad3. Financial Considerations dress issues veterans face and ena. Automatic in-state tuition for former courage veterans clubs and meetings. active-duty service members, National d. Career placement assistance Guard and Reserve members, spouses and children domiciled in Iowa, 2. Mindfulness of Service Member Transiregardless of residency requirements. tions b. Deferred billing options to ensure tima. Consistent credit honored for all of the ing of VA benefit payments does not established military training and hinder academic success. schools (Joint Services Transcript, c. Deferred billing or options to assist Community College of the Air Force student veterans in purchasing books, credit, ACE recommended credit, tools and supplies required for vocaCLEP, DSST). tional programs. b. Advanced/Preferential registration dates for student veteran population. d. Specific scholarship for transitioning service members and/or their dependents. The University of Iowa joined seven other schools by achieving the certification. The University of Iowa’s program boasts in-state tuition for all veterans and a “Life After Service” course aimed at helping veterans navigate through college life and beyond. The school is also working on creating a training course for faculty and staff to cover issues related to teaching and assisting the veteran population effectively. The University of Iowa estimates that there are about 500 veterans, dependents, and active-duty service members at the school. That number is expected to go up as service members return from duty. Ways & Means (Contact Kristi Kielhorn at 2-5290) Slight Increase in Iowa 529 College Savings Plan Tax Deduction Starting in tax year 2015, each Iowa taxpayer will be able to deduct up to $3,163 in contributions per beneficiary account from state taxable income. A married couple with two children could deduct up to $12,652. The deduction is increased annually for inflation and was at $3,098 for tax year 2014. college education for a future student. The vantage of the Iowa income tax deduction if beneficiary of a 529 plan can withdraw the they are residents. For more information investment tax-free to pay for qualified visit: www.collegesavingsiowa.com. higher education expenses. Those expenses can include tuition, books, supplies, and “www. room and board at any eligible university, community college, or technical training CollegeSavingsIowa school. College Savings Iowa is a way for parents, grandparents, and others to invest in a Those wishing to invest in a plan do not have to live in Iowa, but can only take ad- .com”
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