The Watchdog
A weekly legislative update of Iowa Legislature activities, e-mailed and faxed to members during the Iowa legislative session.
Current Issue
High Priced State Borrowing Plan Fails to Create Jobs; Iowa Taxpayers in Debt for Next Twenty-Four Years
Over the past two years, the number one legislative priority of Governor Culver has been the controversial I-JOBS Program which is a massive state infrastructure program. However, instead of implementing a pay-as-you-go funding approach, Governor Culver and the Democratic-led Iowa Legislature approved a massive borrowing plan to pay for the I-JOBS Program.
Previous Issues
High Priced State Borrowing Plan Fails to Create Jobs; Iowa Taxpayers in Debt for Next Twenty-Four Years
Over the past two years, the number one legislative priority of Governor Culver has been the controversial I-JOBS Program which is a massive state infrastructure program. However, instead of implementing a pay-as-you-go funding approach, Governor Culver and the Democratic-led Iowa Legislature approved a massive borrowing plan to pay for the I-JOBS Program.
Iowa Taxpayers Will See Property Taxes Increase
Once again, the State of Iowa's budget woes will be passed along in the form of tax increases to Iowa taxpayers. This week, the non-partisan Legislative Services Agency (LSA) released a draft review of the Iowa School District Funding for the budget year which begins on Thursday, July 1. The report shows property tax increases ahead for Iowa taxpayers, which could directly impact Iowans as early as this fall.
WHY Iowans for Tax Relief PAC Endorses Terry Branstad for Governor
Statement by David M. Stanley, Co-Chairman, ITR PAC
Iowa Legislature Adjournment Brings Good News and Bad News for Iowa Taxpayers
On Tuesday, March 30th, the Iowa Legislature completed the 2010 Legislative Session one day ahead of the scheduled end date. The 2010 Legislative Session was shortened from 100 days to 80 days due in part to the record state spending increases approved during the 2009 Legislative Session. The end of session brings both good news and bad news for Iowa taxpayers.
Business Tax Increase Bill Advances Quickly at the Statehouse
The tax credit legislation which was mentioned in last week's installment of The Watchdog has moved quickly through the Iowa Legislature. The bill, now Senate File 2380 was approved by the Iowa Senate on Wednesday, March 17th on a party-line vote of 32-18. The Iowa House is expected to consider Senate File 2380 on Friday, March 19th; it is also anticipated the House will not make any changes to the legislation and the bill will be sent to Governor Culver for his signature.
State Budget Picture Not Complete; Federal Deductibility Still a Possibility
As the Iowa Legislature moves into the tenth week of the 2010 Legislative Session, major details on the complete state budget have not yet been released. However, the spending objectives which outline $2.494 billion of State General Fund spending have begun to move forward through the Legislative process.
Also in this installment of The Watchdog: Panel Estimates State Tax Collections to Increase Slightly and Tax Credit Legislation Introduced
Revenue Estimating Conference to Meet Thursday, March 11
The Revenue Estimating Conference (REC), a three-member state panel which predicts the estimated amount of tax collections received by the State of Iowa, is scheduled to meet Thursday, March 11, 2010. The REC typically meets quarterly to review the tax collection estimates and to confirm state spending is in line with how much Iowans are paying in state taxes.
Also in this installment of The Watchdog: Federal Deductibility Update and State Government Reorganization Legislation Heads to Governor
State Budget Beginning to Take Shape
On Wednesday, February 17th, Iowa House and Senate Democrats released partial budget targets for the State Fiscal Year 2011 budget.
Also in this Watchdog: Second Major Legislative Deadline Approaching
Battle to Protect Federal Deductibility Continues
Reports are circulating throughout the Statehouse of the increasing likelihood of lawmakers attempting to eliminate federal deductibility this year.
Also in this Watchdog: Iowa Department of Revenue Annual Report Sheds Light on How Much Iowans Send to State Government and State Government Reorganization Legislation Approved by House of Representatives
State Auditor Reviews Governor’s Budget
On Wednesday, February 10th, State Auditor David Vaudt released his review of Governor Culver's proposed state budget. The news is not good for Iowa taxpayers; according to Auditor Vaudt, in addition to the bad budgeting decisions of prior budgets, the report states the Governor's budget also goes over the 99% Expenditure Limitation Law.
ITR Budget Savings Measures Offered as State Government Reorganization Legislation Moves Forward
This week the Legislature advanced Senate File 2088, the state government reorganization bill. As the state faces a budget gap of more than one billion dollars, lawmakers are looking at ways to trim the massive budget through the restructuring of some state government operations.
House Committee Revives Proposal Ending Federal Deductibility
On Wednesday, January 27th, House Ways and Means Committee Chairman, Rep. Paul Shomshor (D-Council Bluffs) assigned House File 807, the bill which eliminates federal deductibility, to a subcommittee. This action revives the bill to end Iowans' ability to deduct federal income tax payments on their state income tax return.
Iowans Agree; No Tax on a Tax
On Tuesday, January 12th, the National Taxpayers Union Foundation (NTUF) released results of a statewide poll of Iowa voters showing 77.2 percent of Iowans want to maintain federal deductibility.
Protecting Federal Deductibility: Taxpayer Priority Number One
This week, the Iowa Legislature reconvened and hit the ground running. Amid all of the news of the dreadful condition of the state budget, your Iowans for Tax Relief Team took the lead in outlining Iowa taxpayer priorities for the Legislature.
State Budget $415 Million Short
The state Revenue Estimating Conference (REC) met today in Des Moines to revise the expected tax collections for the current budget year.
State Panel Meeting; Decisions Will Impact Taxpayers
Today, the state Revenue Estimating Conference (REC) is scheduled to meet in Des Moines.
ALERT!!! Senator Grassley’s Town Hall Meetings
ALERT!!! Senator Charles Grassley has been working with Democrats on a health care reform package. Moving toward a single-payer health care system is not a good idea! Government cannot and should not make decisions about your health care. It should be between you, your family, and the doctor you have personally chosen. Help protect this freedom by getting involved!
State Tax Revenues Sluggish; Budget Hole Imminent
Iowa taxpayers were notified of more alarming news about the condition of the State of Iowa finances this week.
Largest Budget in State History and High-Priced Borrowing Plan Receive Final Approval from Governor Culver
Last month, when the Iowa Legislature adjourned for the year, lawmakers had approved the single largest budget in the history of the state.
On Tuesday, May 26, Governor Culver gave his signature of approval on the largest state budget in Iowa history.
Federal Deductibility Intact; Otherwise Lawmakers Bankrupt the Future
Federal Deductibility is Intact;
Otherwise Lawmakers Bankrupt the Future
The 2009 Legislative Session adjourned with one piece of great news, federal deductibility for Iowa taxpayers is intact and unchanged! Yet there is bad news, and plenty of it.
Final Days of Legislature Bring Secret Meetings to Eliminate Federal Deductibility. Your Action Is Still Needed!
As the final days of the 2009 Legislative Session are unfolding, secret meetings with arm-twisting and horse-trading, are being led by House Democrat leaders.
Fight to Protect Federal Deductibility Continues - Contact Iowa Lawmakers
The news continues to be positive, but the fight is not over yet. The Iowa Legislature has not debated the bill to force you to pay a tax on a tax. However, your deduction of federal taxes remains under attack.
Call to Action!
Just say NO to a tax on a tax!
On Tuesday, March 31, 2009 the Iowa House is holding a public hearing on the bill to repeal federal deductibility in Iowa. Federal deductibility, for many is our largest state tax deduction, and it is in grave danger of being eliminated.
URGENT: Federal Deductibility is Under Assault!
This Monday Lawmakers to Vote on Ending Your Income Tax Deduction of Federal Taxes
Contact Legislators Immediately!
On Thursday, March 26, Iowa Senate and House Democrats unveiled their so-called tax reform plan which eliminates federal deductibility. House Study Bill 284 will force you to pay a tax on a tax and Legislative Democrats announced this proposal will be voted on next week.
Transparency Act Approved by Iowa House
THANK YOU!
Your Efforts Made the Difference
The Iowa House of Representatives approved the Taxpayer Transparency Act on a vote of 96-3 yesterday!
ACTION NEEDED: Transparency Legislation is Set for Debate in the Iowa House!
Please call and email your Representative NOW and urge them to vote "YES!" on House File 801.
The Iowa Taxpayer Transparency Act is scheduled for debate in the Iowa House of Representatives tomorrow, Tuesday, March 24.
Your support has helped move the Iowa Taxpayer Transparency Act through the committee process and now to a vote on the floor of the Iowa House of Representatives; the bill needs approval here to continue along the legislative process. Your phone calls and emails make a difference!
State Revenue Estimating Conference Reduces Tax Collections
The Revenue Estimating Conference (REC) met today to review and revise the State General Fund revenue estimates for Fiscal Year 2009 and Fiscal Year 2010. The REC projected another significant drop in state tax collections.
Also in this week's Watchdog: Legislation to Allow Local Governments to Impose New Taxes Introduced and Property Tax Increases Ahead.
Transparency Act Moves to House Floor for Full Debate
On Wednesday, March 11th, the House State Government Committee unanimously approved House File 74, the Iowa Transparency Act.
Special Watchdog
Iowans for Tax Relief Claims First Legislative Victory of 2009!
Watchdog Alert! Taxpayer Transparency Legislation for Committee Consideration TODAY
Your voice of support urgently needed! The House State Government Committee is slated to consider House File 74, the Iowa Taxpayer Transparency Act in full Committee today, March 11.
Borrowing Dollars to Balance the Budget Plan Moves Forward
This week in the Iowa Legislature, the Senate Appropriations Committee approved legislation borrowing a total of $175 million for various state infrastructure projects.
Public Assault on Federal Deductibility Continues
Please Call Governor Culver; Continue Contacting Legislators
Iowa taxpayers were dealt another blow this week as Governor Culver discussed during a telephone press conference the need to examine the elimination of federal deductibility. Governor Culver joins Senate Democrat Leaders who announced last week the possibility of eliminating one of the largest Iowa tax deductions.
Federal Deductibility Under Attack; Contact Your Legislators Now!
This week at the Capitol, Iowa Senate Democrat Leaders announced at a press conference they may attempt to eliminate federal deductibility this Legislative Session.
Iowa Taxpayer Transparency Act of 2009 Moves Forward
On Monday, February 16, a House subcommittee will meet to consider House File 74.
Also in this issue: How Much Iowans Pay is Revealed; State Budget Update; Gas Tax Increase Bills Filed.Selling the Iowa Lottery and Dismantling Iowa’s Right to Work Law Proposals Revived
This week at the Statehouse was a slow week for tax legislation, with the House and Senate Ways and Means Committees cancelling meetings. However, a move proving no legislative idea ever really goes away, lawmakers revived talks of selling the Iowa Lottery and discussed legislation to dismantle Iowa's over 60-year-old Right to Work Law.
Also in this Issue: Federal Deductibility Update and Taxpayer Transparency.
Governor Culver Releases State Fiscal Year 2010 Budget; $700 Million in Bonding and Property Tax Increases Revealed!
This week at the Statehouse, Governor Culver finally released his proposed budget for the state. While Culver is touting a six-and-a-half percent across the board cut, the numbers do not add up.
Special Edition: Iowans for Tax Relief President Ed Failor, Jr. Meets with The Des Moines Register Editorial Board
Monday, January 26, Iowans for Tax Relief President, Ed Failor, Jr. discussed state budget needs, taxes, infrastructure funding and a variety of other fiscal issues with the Editorial Board.
Iowans for Tax Relief Stands with Legislators to Provide Government Transparency
This week Iowans for Tax Relief took part in a press conference at the Iowa Statehouse with five Iowa lawmakers introducing the Iowa Taxpayer Transparency Act of 2009.
Special Edition. Don't raise taxes, cut over the top spending
Des Moines Register Guest Column by Ed Failor, Jr., President of Iowans for Tax Relief
Second Day of Legislative Session Begins with a 700 Million Dollar Bonding Proposal
On Tuesday, January 13, Governor Culver delivered his Condition of the State speech. In the speech, Culver proposed a $700 million bonding (borrowing) proposal!
New Legislature, New Tax Increases Ahead - A City Income Tax
The 2009 Legislative Session of the Iowa General Assembly is quickly approaching and the true agenda items, the things voters didn't hear about during the 2008 campaigns, are beginning to surface.
TAX INCREASES ON THE HORIZON? FIRST UP – ELMINATING FEDERAL DEDUCTIBILITY?
November 21, 2008
Over the past two years, the Iowa Legislature has increased spending in Des Moines by more than $849 million, and created a gaping hole in the next fiscal year.
General Election Results: Voters Support Fiscally Conservative Candidates But Fiscally Liberal Control Still Exists
Friday, November 7, 2008
The General Election on Tuesday, November 4, 2008 was a successful night for fiscally conservative candidates endorsed by Iowans for Tax Relief PAC. Iowans for Tax Relief PAC endorsed a total of 70 candidates with 50 winning and 20 losing, a 71% record.
The candidates Iowans for Tax Relief PAC endorsed believe in the mission of Iowans for Tax Relief, which is to limit the growth of government spending and taxes for the benefit of all Iowans. These candidates put their shoes to the sidewalks to listen to the concerns of voters and share their vision of fiscal responsibility for state government. On Tuesday, voters across Iowa supported their vision and elected fiscally conservative candidates to serve in the Iowa Legislature.
Des Moines Register Guest column: No need to borrow for flood rebuilding
June 20, 2008
The devastating floods have not even receded, and yet there are those already sounding the alarm for massive new spending programs and demands for $1 billion in additional state borrowing to help fund anticipated reconstruction projects.
In our understandable desire to set things right as quickly as possible, let us not throw caution to the wind when it comes to developing strategies to fix the damage.
Our compassion cannot and should not be measured by our willingness to abandon sound budgeting principles and disregard those resources already in place that might play an important role in the reconstruction.
Iowans for Tax Relief PAC goes 7 for 7: Primary Night Shows Voter Preference for Fiscal Conservative Candidates
June 4, 2008
IOWANS FOR TAX RELIEF PAC SCORES A PERFECT 100% IN CONTESTED PRIMARIES. ERIK HELLAND AND JASON SCHULTZ SCORE BIG WINS WHILE PROMOTING A MESSAGE OF LIMITED GOVERNMENT AND PROTECTING THE FAMILY BUDGET:
In 2006, Iowans for Tax Relief PAC, the political action arm of Iowans for Tax Relief, embarked on a controversial strategy to participate in legislative primary elections and, when necessary, even challenge incumbent state legislators.
The results of that program were the resounding defeats of incumbents Paul Wilderdyke and Joe Hutter (neither candidate received even 40% of the vote).
This year, Iowans for Tax Relief PAC successfully recruited candidates to challenge incumbent legislators Clarence Hoffman and Walt Tomenga. When faced with the prospect of having to face a primary opponent with a true commitment to fiscal responsibility and limited government, both Hoffman and Tomenga made the decision to retire.
However, in both cases, the retiring incumbents endorsed and actively supported candidates in opposition to the candidates being supported by Iowans for Tax Relief PAC. This set up a showdown in both races that was a focus on primary night for political activists and the media alike.
2008 Session Ends with Unprecedented Spending Increases and Loss of Local Vote on School Infrastructure Tax
May 12, 2008
Total Spending Increases Approved During First Two Years of Culver Administration Will Exceed the Entire Eight Years of Spending Increases Under Governor Vilsack.
The old line you often hear said in jest is: "Grab your wallet, the Legislature is back in town." Unfortunately, there was nothing funny about the final days of the 2008 Session of the Iowa General Assembly and Iowa taxpayers will be paying these bills for years to come.
Much of the legislation passed during the final week of the Session is still sitting on Governor Culver's desk awaiting his final decisions. He has 30 days to act on those bills he receives after the Legislature has adjourned for the year and, thus, much of the final analysis of the 2008 Session will wait until all these matters have been settled.
As such, please watch for a series of Interim Reports from The Watchdog in the coming weeks and months that provide more in depth looks at the various outcomes of the 2008 Session.
However, in the way of a quick and dirty look at the 2008 Session, here are three negatives and three positives from 2008:
School Tax Increase (House File 2663) Hangs by a Thread: Senate Republicans to Offer Bipartisan Compromise on Monday
April 18, 2008
Senate Majority Leader Threatens to Kill Proposed Statewide Sales Tax Unless More Republican Senators Come Forward in Support.The express train that was House File 2663 came to a screeching halt this week in the Iowa Senate as a determined group of Senate Republicans refused to allow this ill conceived legislation to go forward without a fight.
House Rejects Constitutional Protection for School Building Funds: Votes to Raise Taxes on 13,000 Iowa Businesses by Over $40 Million
April 11, 2008
House Votes to Take Away the Right of Local Voters to Approve the Sales Tax for School Buildings and Leaves School Infrastructure Funds at The Mercy of State Politicians
This Wednesday, April 9, the Iowa House approved House File 2663 on a vote of 59-41. HF 2663 is the legislation that would eliminate the local option sales tax for school infrastructure and replace it with a statewide increase in the sales and use tax. Iowans for Tax Relief strongly OPPOSES HF 2663.
Proposed Tax Legislation Would Bury Taxpayers with New Local Option Taxes and Massive Tax Shifts: Voter Approval Not Required
April 4, 2008
This week a small group of State Representatives introduced House File 2671, a massive revision of city government finances that would create numerous additional sources of city government revenue and, if passed, would shift tax burdens onto the backs of mid- and low-income taxpayers in an attempt to provide tax relief for commercial property owners.
Make no mistake, Iowans for Tax Relief SUPPORTS efforts to reduce property taxes on commercial and industrial property. However, we strongly OPPOSE efforts to raise taxes on one group of taxpayers in order to reduce taxes on others. This "rob Peter to pay Paul" approach to tax reform simply shifts tax burdens and does nothing to limit the growth of local government or actually reduce local government tax burdens in any meaningful way.
Fate of Collective Bargaining Bill in the Balance: New Research Shows
March 28, 2008
New Data Shows 19 of the 25 States (76%) With the Highest Per Capita Property Taxes Allow "Open Scope" Bargaining.
The fate of House File 2645, legislation written to make radical changes to Chapter 20 of the Iowa Code and open the scope of collective bargaining for public employee unions, hangs in the balance at the writing of this week's Watchdog. Iowans for Tax Relief is OPPOSED to HF 2645.
House Ways and Means Committee Votes to Make Local Option Sales Tax a Permanent State Tax and Rejects Constitutional Protection
March 21, 2008
HF 2066 Takes Away Your Right to Vote, Raises Taxes on Iowa's Biggest Employers, and Gives State Politicians the Power to Steal These Funds from Local Schools.
This week the House Ways and Means Committee voted in favor of House File 2066, a bill that would replace the current local option tax for school infrastructure (SILO) with an additional penny of statewide sales and use tax (each additional penny of sales and use tax raises about $400 million).
Rich States, Poor States: Iowa Ranks 27th in Economic Outlook Based on New Analysis by the American Legislative Exchange Council
March 14, 2008
Famed Economists Arthur Laffer and Stephen Moore Team to Create New Economic Competitiveness Index:
This week members of the Iowa Legislature were provided with an opportunity to review an important new ranking system to measure economic competitiveness and identify areas of state government policy where prompt action would improve Iowa's economic outlook.
The American Legislative Exchange Council (ALEC) is the nation's largest individual membership organization of state legislators with more than 2,400 members. Iowans for Tax Relief is a private sector member of ALEC and our President, Jeffrey Boeyink, serves on ALEC's Tax and Fiscal Policy Task Force and Executive Committee.
Voters in Scott and Muscatine Counties Approve Extensions of Local Option Tax for School Infrastructure: The Current System Works!
March 7, 2008
On Tuesday, March 4, voters in Scott and Muscatine Counties voted to extend their participation in the local option sales tax for school infrastructure (SILO) for another 10 years. Nearly 78% of those voting in Scott County approved the tax extension while nearly 85% of those voting in Muscatine County said YES.
Perhaps more significant than the overwhelming approval percentages, voters were also giving their consent to sharing a portion of the local proceeds generated by SILO with school districts in sales tax poor areas to allow greater statewide equalization of SILO resources among school districts.
State Auditor David Vaudt Says Governor Culver’s Proposed State Budget “Maxes Out” Iowa’s Charge Cards: Predicts Tough Times Ahead.
February 29, 2008
Auditor Says Proposed Budget Enhances Clarity, But Sets Iowa Up For Difficult Challenges In Fiscal Year 2010:
State Auditor David Vaudt takes seriously his charge to serve as the "Taxpayers' Watchdog" (a title we are happy to share with him). In that capacity, he annually reviews the budget proposals put forth by our state's Governor in January and provides a similar review of the actual budget adopted by the Legislature in late spring.
Governor Culver Opens the Door to Spending Statewide Sales Tax Dollars on Teacher Salaries and Other Needs: Was There Ever Any Doubt?
February 22, 2008
After Speaking To Members Of The Iowa State Education Association, Governor Agrees Dollars Could Be Used For Spending Other Than Just School Infrastructure:
One of the reasons Iowans for Tax Relief has so strongly opposed legislation (House File 2066) to convert the current local option sales tax for school infrastructure to a permanent statewide sales tax is our belief state politicians cannot be trusted with these funds. We believe a $400 million state infrastructure fund for school construction would be a tempting target for politicians looking to find resources for other state programs.
House Education Committee Votes to Make the Local Option Sales Tax a Permanent State Tax and to Raise Taxes on Car Purchases
February 15, 2008
This week the House Education Committee voted in favor of House File 2066, a bill that would replace the current local option tax for school infrastructure (SILO) with an additional penny of statewide sales and use tax (each additional penny of sales and use tax raises about $400 million).
The Subprime Prison: Governor Culver Proposes New Prison at Fort Madison using Interest Only Revenue Bonds
UNDER CULVER'S PLAN, STATE WOULD REPAY INTEREST ONLY ON ABOUT HALF OF THE $275 MILLION OF REVENUE BONDS FOR THE FIRST FOUR OR FIVE YEARS:
The budget proposal for Fiscal Year 2009 put forward by Governor Culver calls for the "...issuance of revenue bonds for approximately $260 million in net proceeds..." to fund a variety of prison construction programs (and the Iowa Veterans Home), the largest of which is the building of a new state penitentiary in Fort Madison. (The actual amount of new revenue bonds to be issued would be $275.3 million.)
Iowans for Tax Relief Mourns the Passing of Senator Richard Drake:
SENATOR DRAKE LED THE SENATE EFFORT IN 1997 TO REDUCE INCOME TAXES FOR EVERY IOWAN BY 10%:
The Board of Directors, staff, and members of Iowans for Tax Relief mourn the passing of former State Senator Richard Drake this past Saturday. Senator Drake retired from the Iowa Senate in 2004 after nearly four decades of dedicated service to the people of Iowa. He was 80.
"PROPERTY TAX RELIEF" MEASURE EXPOSED AS NOTHING MORE THAN A SPENDING SHIFT:
When the Iowa Senate recently passed Senate File 2023 on a 46-0 vote, the media releases proclaimed a victory in the battle to lower property taxes and a first step toward meaningful property tax relief this Session. Unfortunately, upon further examination by some strong taxpayer advocates in the Iowa House, SF 2023 has been exposed as a funding shift, not additional resources for property tax relief.
Battle Over Control of School Infrastructure Funds Renewed: Iowans for Tax Relief Works to Save Your Right to Vote!
January 25, 2008
Yesterday, 14 members of the Iowa House introduced House File 2066, a bill that would replace the current local option tax for school infrastructure (SILO) with an additional penny of statewide sales and use tax (each additional penny of sales and use tax raises about $400 million).
Voters in all 99 Iowa counties have adopted the SILO and are collecting the tax. HF 2066 would eliminate local voters from the approval process and make the tax a permanent statewide penny. In addition, HF 2066 increases the state use tax by a penny (the use tax is exempt from the current SILO) and that will result in a tax increase of about $120 million beyond the current tax.
Iowans for Tax Relief strongly OPPOSES HF 2066.
Taxpayers, Labor Unions, and Business Groups All Agree: Statewide Sales and Use Tax for Schools (HF 854) is BAD Public Policy!
April 13, 2007
Groups from across the political spectrum have found common ground on House File 854, the proposed legislation to replace the school infrastructure local option tax (SILO) with a permanent statewide increase in the state sales and use tax.
House Education Committee Votes to Make $390 Million Sales Tax Permanent: Eliminates Your Right to Vote on Local Option Tax
March 9, 2007
Bill Would Raise Taxes On Iowans By $100 Million And Open Door To Property Tax Increases.
Voters in all 99 Iowa counties have adopted the SILO and are collecting the tax. HSB 250 would eliminate local voters from the approval process and make the tax a permanent statewide penny.