Iowa House plan separates school infrastructure, water quality funding

DES MOINES - House Republicans are moving forward on extending the school infrastructure sales tax for 20 years, but without Gov. Terry Branstad's proposal to wed it to a long-term source of funding for water quality initiatives.

Based on discussions he's had with legislators and others, Rep. Matt Windschitl, R-Missouri Valley, said Thursday, 'there does not seem to be widespread support to take money from SAVE to address water quality at this point. That's why they've been separated.”

SAVE is the Secure an Advanced Vision for Education, formerly known as the statewide school infrastructure sales and services tax.

In his January Condition of the State speech, Gov. Terry Branstad proposed extending SAVE until 2049. He would divert SAVE revenue in excess of $10 million a year to addressing statewide water-quality issues. Schools would get $20.7 billion for infrastructure otherwise funded by property taxes and $4.7 billion would be channeled into water quality improvements.

Windschitl, who chaired a House Ways and Means subcommittee meeting on a group of SAVE-water quality bills, said he doesn't see that happening.

'Any bill that will move forward from this subcommittee will divorce the water quality issue from the SAVE fund,” he said. 'I don't think there is support in the subcommittee from either side to incorporate the two ideas.”

Windschitl did lay out the skeleton of a bill to increase the percentage of SAVE revenue going directly to property tax relief from 2.1 percent -- $9.5 million a year - to 7 percent or $31.5 million annually.

Property owners now pay an average of $13.76 per $1,000 of assessed valuation to support schools. Windschitl's goal is to provide more property tax relief and greater equity.

Reaction from subcommittee members and the public was muted. Rep. Patti Ruff, D-McGregor, appreciated spending all SAVE dollars on education, but said she needs to know more about the impact of the plan before making a judgment.

Representatives of school boards, administrators and teachers agreed there were some pluses, but weren't convinced Windschitl's approach would increase equity between property-rich districts and those that have a smaller property tax base to support schools.

Ted Stopulos of the Governor's Office said it remains Branstad's position that SAVE should be tapped for water quality funding, but indicated the governor is open to considering other long-term, sustainable and growing revenue sources.

Windschitl also is looking for a way to fund water quality improvements.

'So it's not as though nothing is going to happen,” he said. However, the plan is in early stages and may not come together before the Legislature adjourns for the year, perhaps as soon as next month. He has discussed it with the governor's office and senators at the '50,000-foot level.”

'It doesn't have to be done this year, but if we can build consensus, if we can work it out between the House, Senate and the governor, yeah, if it's good public policy we should do it,” he said.