FIRST STEP
This last week, the House of Representatives sent to the Senate, House File 45. The bill entitled “The Taxpayers’ First Act” was the legislature’s first response to bring our state’s budget under control. During the election, this last November, candidates on both sides of the aisle, stressed the need for fiscal responsibility. Both sides agreed that something must be done to bring our spending under control and pass out a budget for 2012 that would be sustainable.
The bill, HF 45, is the first step in bringing state spending under control. The bill reduces state spending by over $500 million over the next three years. Spending would be cut $170 million in this year’s budget which would aid us as we face a $700 million deficit in 2012. By reducing spending for the current budget year we would be faced with a $530 million problem for 2012 rather than $700 million making our work much easier as we construct a budget for the upcoming year.
Improved revenues this last year left the 2010 budget with an ending balance of $327 million. This bill would return this one time money to the taxpayer rather than include it in next year’s budget. The money would be placed in a Tax Relief Fund that would receive any additional one time money the state would receive at year end which goes back to the taxpayer first rather than more government spending.
This is the first step in the budget process that will align ongoing revenues with ongoing expenses---delivering a budget for Iowans that lives within its means and meets priority needs.
This bill passed the House not without controversy and debate. Many programs initiated over the past four years would be affected. All 60 Republicans voted for the bill while all 40 Democrats voted in opposition. The majority strongly felt that something urgently must be done to correct our budgetary predicament. The last four budgets have been the largest in history forcing a $500 million property tax increase, borrowed $800 million that will cost double to pay back, and left a $700 million spending gap for the legislature and a new governor to address.
Governor Branstad campaigned on a two-year budget. This bill indicates that the legislature will deliver a two-year budget after our budget reforms are signed into law---including a limit on transfer authority and a process that does not abdicate the legislative authority to appropriate funds. The power to appropriate is maintained by the legislature and the responsibility to administer those appropriations rests with the governor.
The majority in the House will use the two-year budget to fund the long-term tax reductions made possible by the bill and fund minimal growth in essential areas such as public safety, Medicaid, and education.
In addition to budget reductions and reforms, the bill also includes two supplemental appropriations funded from reductions in the current year rather than spending down the ending balance.
First, many Iowans with disabilities have been forced to be put on waiting lists for their services due to a lack of adequate funding. There are 1800 known cases and the list is growing. This bill appropriates $25 million over a period of 18 months to eliminate the Mental Health wait lists in Iowa---and at the same time puts in motion the process that will be started immediately in the House to re-design the mental health delivery system in Iowa. I am serving on the sub-committee to design the new system.
Second, last year the legislature failed to fully fund the Indigent Defense Fund. This fund provides for those low income Iowans who cannot afford for their legal defense in court. All persons should stand equal before the law. This bill would appropriate $16 million to provide adequate funds for the balance of the year.
The bill is now going to the Senate where it will be reviewed and receive additional consideration. Perhaps there could be disagreement with the House proposal---but one thing is clear. The voice of the people has been heard. The election, this past November, sent a clear message---“Legislature, get your spending under control and get our economy back on track.”
The House of Representatives has taken the first step.
Visitor constituents to the capital this week were : Jennifer Lehman, Rebecca Lehman, Taylor Beatty of Mount Pleasant, Henry County Substance Abuse Coalition; Jerry Cain, and Dave Mc Gregor who represented the veterans of Henry County.
Dave Heaton, State Representative, State House, Des Moines, Iowa 50319
Phone: 515-281-7327 ~ Fax: 515-281-6958
E-mail: dave.heaton@legis.state.ia.us
Web page: http://www.daveheaton.net
If you have any issues or concerns, please contact me.
Be sure to include your name and address with any communication to my office.
State Rep. Dave Heaton, R-Mount Pleasant, represents the 91st House District,
which includes all of Henry County and the northern half of Lee County.
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