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Iowans for Tax Relief: Watchdog
3/6/2009

Friday, March 6, 2009

Eighth Week of Session

Borrowing Dollars to Balance the Budget Plan Moves Forward

This week in the Iowa Legislature, the Senate Appropriations Committee approved Senate Study Bill 1274, which creates the Appropriations Bond Capitals Fund. This fund would allow the state to borrow a total of $175 million for various state infrastructure projects. It is a dangerous game to play when we start borrowing long term dollars based off of a one year budget revenue source. This places state budgeting in a perilous position, because each year Iowa Legislators will have to decide how to fund the repayments of these borrowed dollars.

The proposal to borrow $175 million is just the start for this year. Legislative leaders have stated they have plans to borrow another $500+ million this year. Also recently, Governor Culver announced he is increasing his bonding proposal from $700 million to $750 million.

If Governor Culver's proposal were to gain approval of the Legislature, taxpayers would be on the hook to pay back the $700 million - $750 million of borrowed money for this year alone at a whopping rate of $56 million a year for the next twenty years.

Just a reminder, Iowa taxpayers sent over $7.1 billion to state government last year, yet somehow government wants to borrow more. Government does not have a revenue problem, it has a spending problem -- and we need our State Legislators to fix the spending problem.

Iowans for Tax Relief OPPOSES state borrowing for expenditures which can be funded through other mechanisms. Iowans for Tax Relief prefers plans based on a pay-as-you-go concept for government projects.

Federal Deductibility Update

The fight to protect you from paying a tax on a tax continues in the Iowa Legislature. Although we are half way through the Legislative Session and no bills have been introduced to eliminate federal deductibility, we are not out of the woods yet. Ways and Means bills and Appropriations bills, where all tax and spending bills must be approved, are not subject to Legislative deadlines; any attempt to repeal federal deductibility would have to go through one of these committees. We continue to monitor all committee work and read all introduced bills.

Iowans for Tax Relief continues to lobby Iowa Legislators telling them it is unfair for Iowans to pay a tax on a tax. With your help of making calls and sending emails they are getting the message. Please continue to contact your Legislators and the Governor to let them know you think a tax on a tax is unfair.

Bill to Destroy Iowa's Right-to-Work Law Introduced in the House

On Wednesday, March 4th, Rep. Bruce Hunter (D-Des Moines) introduced House File 555, which effectively repeals Iowa's Right-to-Work Law. The proposal would force non-union employees to pay dues to a union, and directly flies in the face of Iowa's Right-to-Work Law.

Iowa's Right-to-Work Law guarantees no person can be compelled, as a condition of employment, to join or not to join, nor require any person to pay dues, charges, fees, contributions, fines or assessments to any labor union, labor association, or labor organization.

House File 555 was referred to the House Labor Committee, and will likely be debated in Committee next week. Iowa has been a Right-to-Work State since 1947. Businesses agree Iowa's Right-to-Work Law draws job growth to Iowa.

Iowans for Tax Relief OPPOSES efforts to destroy Iowa's Right-to-Work Law.

First Legislative Funnel Week Begins March 9

The Legislature operates under a schedule which sets deadlines for Legislative action. There are self-imposed deadlines for the purpose of paring down what bills are to be considered by the Legislature. This is referred to as the Funnel Week.

During the first Funnel Week, in order for a bill to remain eligible for further consideration, House bills must be approved by House Committees and Senate bills must be approved by Senate Committees. The first funnel concludes Friday, March 13th, and the second funnel takes place April 6th-10th.

However, these deadlines do not apply to all legislation. Ways and Means bills and Appropriations bills, where all tax and spending bills must be approved, are not subject to this requirement. We will continue to watch all bills in these two committees through the end of the Legislative Session.


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