Iowans deserve a state budget that helps create new jobs
This year, the state budget must help Iowa workers and businesses recovering from the national recession. That means doing all we can to encourage new jobs.
The plan we’re working on in the Senate balances the state budget without raising taxes. It includes:
· A commercial property tax cut that is especially helpful to Iowa’s small businesses and communities.
· New workforce training opportunities to help Iowans fill skilled job openings.
· Strengthening our commitment to student achievement through increased support for local schools.
· A pro-family, pro-work tax cut that also boosts local economies.
These ideas will help create jobs, expand educational opportunity and make Iowa a more attractive place to do business. Do you have ideas for growing the Iowa economy? Please send them my way!
Supporting our local schools
This week in the Senate, we approved a 4 percent increase in basic state support for local schools for the 2013-2014 school year. These funds are used for textbooks, heating bills, technology and other necessities required for students and teachers to be successful.
For years, the Legislature has set state support for local schools well in advance. The practice helps school districts plan wisely, and, to echo Governor Branstad, helps make budgeting more predictable, stable and sustainable.
Iowa’s state budget has recovered from the national recession to the point that we have a billion dollars in the bank. After several tough years, it is time to ensure our local schools recover as well.
The 4 percent increase approved by the Senate equals the 40-year average increase (see chart at http://tinyurl.com/iowaschoolsfunding).
More support for local schools is the first of several initiatives the Senate is working on to improve educational opportunity for Iowa students. As we consider various ways to increase student achievement, we’ve got to make sure state government is a reliable, predictable partner.
Below are estimates from the Iowa Department of Education for what school districts in our area will receive if the legislation becomes law.
School District
State 2014 total
Burlington $30,207,763
Columbus $5,524,237
Danville $2,894,307
Lone Tree $2,636,868
Louisa-Muscatine $4,150,241
Mediapolis $4,177,569
Morning Sun $1,324,250
Muscatine $33,194,098
New London $3,443,893
Wapello $4,439,376
West Burlington Ind $3,000,611
West Liberty $8,169,881
Cutting taxes for working families
If new legislation becomes law, more than 260,000 Iowa households could see an increase in their state tax return, including the families of 37 percent of Iowa’s children.
The Senate Ways & Means Committee has approved Senate Study Bill 3116 to increase Iowa’s Earned Income Tax Credit (EITC) from 7 percent of the federal EITC to 13 percent.
Last year, the Iowa Legislature twice approved a similar tax cut for Iowa’s working families, once by unanimous votes in the Iowa Senate and the Iowa House. Governor Branstad, however, vetoed the legislation twice.
Iowa is one of only six states that taxes families earning less than poverty-level wages. That’s one reason the United Way of Iowa has made increasing the state Earned Income Tax Credit a high priority. Research shows that EITC is one of the best anti-poverty programs in the nation.
This $25 million tax cut will also help Iowa’s small businesses. When you cut taxes for struggling, working families, those dollars are spent locally on such necessities as food, gas, car repairs and medical bills.
At a time when special interests are pushing for hundreds of millions of dollars in new corporate tax cuts, we should put working families first.
Boosting the EITC supports work, places value on raising children and puts money into local economies.
Raising the Iowa Earned Income Tax Credit should be the first priority for tax reform in Iowa.
Iowa’s universities help build our economic future
State government is a partner with our public universities in promoting excellence in teaching, research and services to Iowans. Part of that job means keeping a watchful eye to ensure our public universities are accountable and good stewards of taxpayer dollars.
Unfortunately, over the last three decades, there has been a steady decline in state funding for higher education. Today, the state provides less than 36 percent of general education funding. Tuition has risen to the point where students pick up 58 percent of the cost. To keep college affordable, we need to reverse this trend.
This week, Iowa’s university presidents asked for a $20 million increase in funding, an amount that would still put university funding below 2010 levels. Community college funding is also in the doldrums, according to a report by the Iowa Fiscal Partnership (http://tinyurl.com/6pe6q9m).
We should increase support of our public universities. They are a key to Iowa’s future economic growth. A privately-funded research study found that the University of Iowa alone brings in more than $6 billion annually to the Iowa economy and is one of the state’s largest employers.
Yet the most important job of our universities is providing a quality, affordable education to Iowans. Despite a 25 percent drop in state support since 2009, universities held undergraduate, resident tuition increases to an average of only 4.6 percent per year. In fact, Iowa’s public universities have some of the lowest tuition rates among their peers.
Affordable higher education means greater lifetime earnings, better career opportunities, higher quality of life and lower unemployment. But our universities also make Iowa more economically competitive, help build our tax base and encourage job creation.
What do you think about passenger rail between Chicago and Omaha?
The Federal Railroad Administration and Iowa Department of Transportation are conducting a planning study for a Chicago to Omaha Regional Passenger Rail System.
An online open house on February 13 will be the first opportunity for the public to participate in the study, which is intended to determine a preferred Chicago to Omaha route, evaluate levels of service and ridership, and analyze environmental impacts.
Comments can be submitted at the online open house. Meeting materials and a comment form can also be downloaded at www.iowadot.gov/chicagotoomaha/ and mailed to Tamara Nicholson, Office of Rail Transportation, Iowa Department of Transportation, 800 Lincoln Way, Ames, Iowa 50010.
Contact Tom
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