Talking taxes, school safety considerations, state tax receipts growing: Iowa Capitol Digest, March 1

TALKING TAXES: Brad Hudson of the Iowa State Education Association was one of several people to speak about Gov. Kim Reynolds' $1.7 billion tax reform and relief proposal at a House Ways and Means subcommittee hearing Thursday on House Study Bill 671.

The governor's plan seeks to cut income tax rates by 23 percent, resulting in $1.7 billion accumulated relief by 2023. According to the governor's office, state individual income tax cuts would total $290 million through tax year 2019, $296.4 million in 2020, $337.7 million in 2021, $377.8 million in 2022 and $448.6 million in 2023.

SCHOOL SAFETY:

A day after Gov. Kim Reynolds convened a meeting of state agency leaders to review Iowa school safety, House Speaker Linda Upmeyer, R-Clear Lake, said Thursday that lawmakers will be gathering information from school administrators and others over the weekend. What they learn may be put into legislation, she said, but added that it's too soon to know what might go into a school safety bill.

Upmeyer expects that the governor will have some recommendations that apply not only to schools but more broadly to community safety.

'I think the conversations will be broad,” the speaker said.

WEIGHTS AND MEASURES:

The Iowa Department of Agriculture and Land Stewardship is observing Weights and Measures week through March 7.

It commemorates John Adams signing the first United States Weights and Measures law March 2, 1799.

The department's Weights and Measures Bureau inspectors 'are on the front line of consumer protection, ensuring the accuracy of small devices, like gas pumps and counter scales, as well as large devices, such as truck scales,” said Iowa Secretary of Agriculture Mike Naig. 'Customers can have confidence that they are getting what they pay for at the pump and in the checkout lane at the grocery store thanks in part to these inspections.”

There are more than 70,000 annually licensed commercial weighing and measuring devices in Iowa, which 10 inspectors check for compliance. This includes approximately 42,000 gas pump meters and more than 16,000 scales, including 5,600 large truck, livestock, platform and railroad scales, as well as 10,500 small counter scales such as those at grocery stores, farmers markets, and precious metal (gold) buyers.

Learn more about the bureau at http://www.iowaagriculture.gov/weightsandmeasures.asp.

Weights and Measures Week is celebrated March 1-7.

GRAHAM REMEMBRANCE:

Gov. Kim Reynolds has ordered all state flags in Iowa to be lowered to half-staff from sunrise until sunset on Friday in honor and remembrance of the Rev. Billy Graham, who died Feb. 21 at age 99. The governor's order is issued in conjunction with President Donald Trump's proclamation to lower all U.S. flags to half-staff for the same length of time. Flags will be at half-staff on the State Capitol Building and on flag displays in the Capitol Complex. Flags also will be half-staff on all public buildings, grounds and facilities throughout the state. Individuals, businesses, schools, municipalities, counties and other government subdivisions are encouraged to fly the flag at half-staff for the same length of time as a sign of respect.

FOREIGN AGENTS: Three members of a House subcommittee signed off on SF 2323, legislation that would require appointees to state boards subject to Senate confirmation and people seeking executive-branch employment to disclose if they were registered as an agent for a foreign government.

Approved 50-0 in the Senate, SF 2323 would not prohibit someone from acting as a foreign agent, but it does require the person to disclose that information either before being confirmed for a state post or if the arrangement occurs after confirmation.

It is response to a situation that arose last year when it was reported that Kim Schmett, chairman of the Iowa Employment Appeal Board, and his wife, Connie, a member of a State Health Facilities oversight board, operated a consulting firm that was paid more than $101,000 by Saudi Arabia to lobby against a federal law that allows victims of the Sept. 11, 2001, terror attacks to sue that country.

Gov. Kim Reynolds asked lawmakers to close what she considered a 'loophole” in the law that could result in conflicts of interest.

GUBERNATORIAL APPOINTMENTS:

Gov. Kim Reynolds on Thursday reappointed Brian Ohorilko of Altoona as administrator of the state Racing and Gaming Commission and Steve Larson of Polk City as administrator for the state Alcoholic Beverages Commission and named scores of Iowans to serve on state boards and commissions effective May 1.

The appointments are subject to Senate confirmation, which requires at least 34 affirmative votes to meet the two-thirds majority threshold.

Among the gubernatorial appointees are Penny Gonseth Cheers of Afton and Kristine Kramer of New Hampton to the state Racing and Gaming Commission; Kraig Paulsen of Kelley and John Putney of Gladbrook to the state Transportation Commission; Sherrae Hanson of West Des Moines and John Quinn of Urbandale to the Iowa Lottery Authority board of directors; Joshua Byrnes of Osage, William 'Mike” May of Spirit Lake and Kimberly Wayne of Des Moines to the state Board of Education: Harold Hommes of Windsor Heights to the state Environmental Protection Commission; Robert Brownell of Des Moines to the Iowa Council on Human Services; Linda Crookham-Hansen of Oskaloosa, Mark Kittrell of Cedar Falls, Bruce Lehrman of Cedar Rapids, Christian Murray of Ankeny and Emily Schmitt of Clear Lake to the state Economic Development Authority; Mary Chapman of Des Moines to the state Board of Corrections; Katherine Asjes of Nevada, Philip Bear of West Des Moines, Mary Romanco of Pleasantville, Kyle Ulveling of Carroll to the Iowa Board of Medicine; Carrie Duncan of New London, Becky Jacobsen of Denison, John Krogman of Atlantic, Rich Kurtenbach of Waterloo, Randy Moore of Davenport and Lynn Schreder of Granger to the Iowa Workforce Development Board; Mike Cormack of Des Moines as chairman of the Iowa Public Employment Relations Board; Emil Giovannetti of Urbandale, Keith Luchtel of Clive, Monica McHugh of Zwingle, Frederick Morain of Jefferson and Suzan Stewart of Sioux City to the Iowa Public Information Board; and Norman Granger of Waukee (vice chairman), Kathleen Kooiker of Osceola and Jeff Wright of Ankeny (chairman) of the Iowa Board of Parole.

STATE TAX RECEIPTS GROWING:

Slower-than-normal payment of state income tax refunds again this year has contributed to rosy state revenue outlook that likely will finish closer to the 2.4 percent growth expectation when the current fiscal year ends June 30, according to the Legislative Services Agency.

State tax receipts in February were down 2.7 percent from a year ago but collections through eight months of fiscal 2018 are running 9.3 percent higher, according to the LSA monthly report, putting revenue growth $428.6 million above fiscal 2017 at this time.

However, LSA senior tax analyst Jeff Robinson said there are five factors that complicate the year-to-year and month-to-month comparisons, including a decrease in personal income tax refunds being issued from December through February that have positively and temporarily impacted revenues by $71 million.

'Total refunds issued at this point in the fiscal year total are very low, even by last year's standards of slow refunds being issued,” Robinson noted. Also, an accounting change made in April 2017 negatively impacted last month's receipts and a timely factor for withholding and sales/use tax receipts benefited year-to-date comparisons by $42 million. Other significant factors that skewed this year's figures include a significant increase ($109.4 million) in personal income tax estimate payments received due to federal tax law changes and a significant increase in sales/use tax refunds ($33.6 million) being issued this fiscal year. Robinson expects the complicating issues to shake out by May after state tax returns are due and receipts like will be closer to the 2.4 percent yearly growth estimate set by the Iowa Revenue Estimating Conference. The REC is scheduled to meet March 9 to preview its revenue projections.