April 3, 2012
The 2012 Legislative Session is quickly coming to a close as debate begins on how to align budget bills and move the body to conclusion. The calendar is designed in a way to limit the amount of legislation which can be sponsored in a year and also push politicians to pass budget bills and go home. Notice, the longer politicians have time to mess with policy, the longer it takes to clean up in the future. Only bills dealing with taxing and spending are now available for consideration.
The key is finding the size of the entire pie and then working in baseline appropriations for key projects like education, the prison system, and care of the poor. Leftover funds are either saved for a rainy day, used for additional one-time projects or used to grow and create new, ongoing expenditures. History shows using one-time money for ongoing expenses is rarely wise. The total size of the pie for House Republicans is 1% larger than last year's total budget. Governor Branstad has a budget proposal 4% larger than last year, and Senate Democrats have a budget 5% larger than last year.
House Republicans appear to spend 1% more due to their desire to fully fund property tax credits. Historically, both parties have underfunded tax credits in tight budget years as a means of freeing up cash from the general fund. Otherwise, they hold the line on spending less than they take in.
The only budget bill which was agreed upon and passed by the House and Senate is the transportation budget bill. This legislation covers expenditures for roads and bridges from the Road Use Tax Fund. Since this account is constitutionally protected, it is difficult for politicians to scoop funds; therefore the bill is usually the first to move.
The second bill moving towards passage is the Rebuild Iowa Infrastructure Fund (RIFF), which largely spends gambling revenue for vertical infrastructure like the maintenance of buildings. This bill caused consternation as it appeared in the Senate with funds for a Des Moines Social Club, water and recreational trails, the zoo in Des Moines, and $2 million for buses in Des Moines. Apparently, it's not an earmark for some when the money goes to Des Moines. I beg to differ.
Sound budgeting practices and a fiscally responsible mindset by Iowa politicians will ensure we don't find ourselves in the same self-destructive path as some of our neighboring states.
Thank you for letting me serve you in the Iowa Legislature.
For more information please visit www.shawnhamerlinck.com.
Shawn Hamerlinck
State Senator
District 42
