The 2002 Iowa legislative session adjourned on April 12, ending two weeks early as predicted. Both sides of the aisle admit it was a grueling session, with many hard decisions to make due to the serious budget deficits facing Iowans. For the first time in Iowa's history, the state brought in fewer revenues than the previous year. This means that the proposed budget for 2003, which incorporates a projected $200 million in new dollars but will only realize $15 million, is obsolete. Not only do legislators have to grapple with no revenue growth, but also with less money than they had for this year's current budget requirements.
The good news is that both Republicans and Democrats made education the top priority in avoiding budget cuts. Both parties, including the governor, also agreed to abide by a policy of revenue-expenditure equilibrium, meaning that expenses will not exceed revenues using performance-based budgeting, therefore no increase in taxes.
According to Senator Maggie Tinsman (R-Davenport), this year's legislative successes include a fully funded teacher's compensation program, based on student performance and teacher's own knowledge, for $40 million; childcare provider state registration; economic development incentives in the form of tax credits for venture capital; creation of a task force to establish a tri-state purchasing cooperative for prescription medicines; maintaining the Hawk-I program that provides health care for children; shifting dollars that allow more home care for seniors before the need for nursing home assistance; mediation for child custody disputes; and maintaining support of the veterans' home program.
"There are some disappointments, too," she pointed out. "Mental health parity failed this session due to the influential insurance lobbies in Des Moines. Nor did we secure pension tax relief for retirement income. This is a tough year for this particular legislation, but we can't give up on it. Also, the implementation of a statewide child abuse assistance team modeled after the one here in Scott County did not get approved."
House Democrat Majority Leader Dick Myers expressed disappointment in the outcome of this year's budget priorities. While he endorsed the budget with regard to "creating a venture capital fund to spur economic growth and enacted better regulation of livestock confinements," he was distressed that "we gave insurance companies the third largest tax cut in Iowa history. What does that say about our priorities?"
Overall, the budget cuts were across the board, with education and Medicaid getting the least slashing. In fact, education's budget is actually increased for certain categorical items, such as instructional support and child development for K-12.
Governor Tom Vilsack wants more than this budget delivers, however. He called a special session to implore the legislators to consider taking $66 million from the $100 million Economic Emergency Fund, and another $60 million from the $1 billion Road Use Tax Fund. Governor Vilsack promises that only the portion of sales tax generated from automobile sales will be appropriated from the Road Use Tax Fund, taking nothing away from the counties and cities. In a statement released last Thursday, April 18, Vilsack framed the issue stating, "I remain optimistic that the citizens of Iowa will help convince lawmakers that supporting education, health care, child protection, and public safety is more important than building 20 miles of four lane roads."
Senator Tinsman's response to the governor's appeal was emphatically against these measures, which she considers imprudent. "The road fund helps create good paying jobs - jobs that would be eliminated by the Governor's proposal." In addition, she, along with most Iowa Republicans, considers invading the emergency fund "fiscally irresponsible." The fear is that should we have another revenue shortfall, "there wouldn't be enough money to protect our education programs from another round of cuts, or to protect taxpayers from potential tax increases."
The legislature voted the governor's budget proposal down, leaving the approved legislative budget in the governor's hands to either sign or veto.
The good news is that both Republicans and Democrats made education the top priority in avoiding budget cuts. Both parties, including the governor, also agreed to abide by a policy of revenue-expenditure equilibrium, meaning that expenses will not exceed revenues using performance-based budgeting, therefore no increase in taxes.
According to Senator Maggie Tinsman (R-Davenport), this year's legislative successes include a fully funded teacher's compensation program, based on student performance and teacher's own knowledge, for $40 million; childcare provider state registration; economic development incentives in the form of tax credits for venture capital; creation of a task force to establish a tri-state purchasing cooperative for prescription medicines; maintaining the Hawk-I program that provides health care for children; shifting dollars that allow more home care for seniors before the need for nursing home assistance; mediation for child custody disputes; and maintaining support of the veterans' home program.
"There are some disappointments, too," she pointed out. "Mental health parity failed this session due to the influential insurance lobbies in Des Moines. Nor did we secure pension tax relief for retirement income. This is a tough year for this particular legislation, but we can't give up on it. Also, the implementation of a statewide child abuse assistance team modeled after the one here in Scott County did not get approved."
House Democrat Majority Leader Dick Myers expressed disappointment in the outcome of this year's budget priorities. While he endorsed the budget with regard to "creating a venture capital fund to spur economic growth and enacted better regulation of livestock confinements," he was distressed that "we gave insurance companies the third largest tax cut in Iowa history. What does that say about our priorities?"
Overall, the budget cuts were across the board, with education and Medicaid getting the least slashing. In fact, education's budget is actually increased for certain categorical items, such as instructional support and child development for K-12.
Governor Tom Vilsack wants more than this budget delivers, however. He called a special session to implore the legislators to consider taking $66 million from the $100 million Economic Emergency Fund, and another $60 million from the $1 billion Road Use Tax Fund. Governor Vilsack promises that only the portion of sales tax generated from automobile sales will be appropriated from the Road Use Tax Fund, taking nothing away from the counties and cities. In a statement released last Thursday, April 18, Vilsack framed the issue stating, "I remain optimistic that the citizens of Iowa will help convince lawmakers that supporting education, health care, child protection, and public safety is more important than building 20 miles of four lane roads."
Senator Tinsman's response to the governor's appeal was emphatically against these measures, which she considers imprudent. "The road fund helps create good paying jobs - jobs that would be eliminated by the Governor's proposal." In addition, she, along with most Iowa Republicans, considers invading the emergency fund "fiscally irresponsible." The fear is that should we have another revenue shortfall, "there wouldn't be enough money to protect our education programs from another round of cuts, or to protect taxpayers from potential tax increases."
The legislature voted the governor's budget proposal down, leaving the approved legislative budget in the governor's hands to either sign or veto.
