Flood bill clears panel in House

DES MOINES - Legislation calling for a cost-sharing approach toward flood protection and rebuilding efforts in Cedar Rapids was approved by the House Appropriations Committee 21-4 and will move to the full House as early as next week.

The action came on the eve of a referendum in some Linn County jurisdictions on extending a 1 percent local-option sales tax for another 10 years. If the measure passes in Cedar Rapids, all of the money would go to “establish and maintain” a flood protection system on both sides of the Cedar River.

The bill, approved by the Senate last month on a 50-0 vote, would create a way for Cedar Rapids to keep a portion of future sales tax revenue for flood walls and other mitigation projects.

It would establish a 10-year state flood mitigation program capped at $30 million annually in state sales tax revenue, with a maximum award of up to $15 million a year for any qualifying community to match local and federal funds to be spent on flood protection projects.

Under the proposal, which is similar to one the Legislature set aside last year after voters rejected a 20-year local-option sales tax extension, would let Cedar Rapids and other communities keep some of the sales tax revenue that would otherwise go to the state and use it locally to prevent future flood damage.

Although she acknowledged the need for flood mitigation, both remedial and preventive, Rep. Cindy Winckler, D-Davenport, was a “no” vote because the bill's effect on other priorities is unknown. As much as $30 million a year could be diverted from the general fund, she pointed out to the committee.

“I don't know how that fits into funding for education, mental health” and a plan for the state to pick up a larger share of school funding, Winckler said.

“At a time when we shortchange everything else, we are creating something that comes off the top,” she said.

She was joined by Rep. Mary Gaskill, D-Ottumwa, Rep. Ralph Watts, R-Adel, and Rep. Jason Schultz, R-Schleswig, in opposing the bill.

Rep. Pat Murphy, D-Dubuque, said there was general agreement “that we should allow communities to do this ... not only for things that happened in the past, but to prevent things in the future.”

Earlier in the day, Victoria Daniels of the Department of Revenue warned lawmakers that the bill would strain her department's resources.

She said there are several proposals this session to create sales tax carve-outs for communities.

“With our current staffing levels, it's going to be difficult at best,” she said. “At some point (the) Legislature has to determine whether it's more important to administer these programs or to collect revenue.”