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You Can't Spell `Statehouse Sausage Grinder' Without GRI

Apr. 5, 2011 11:58 am
Rick Smith does a fine job this morning checking in with the members of a Statehouse task force looking at Cedar Rapids GRI proposal. That's the Growth Reinvestment Initiative, if you're just joining us.
The GRI would allow Cedar Rapids to keep state sales tax growth generated here to help pay for flood protection. If state sales tax collections rose by $2 million, for example, that money would stay here. Cedar Rapids is hoping to keep $200 million over time to help pay for levees, flood walls and storm sewer pumping stations in the city's prevention plan.
The GRI is one leg in Mayor Corbett's famous (overused?) three-legged prevention funding stool - state, federal and local option sales tax.
But it sounds like our lawmakers may be sharpening their leg-cutting saws:
Both the House and Senate co-chairs of the 12-member panel have expressed concerns with the plan that would allow Cedar Rapids or any other community to be eligible for up to $30 million a year for 20 years for disaster recovery.House Co-Chairman Jason Schultz, R-Schleswig, is hesitant to commit state sales tax revenues to the $375 million plan million to protect both the east and west sides of the river with a system of levees, concrete walls, and removable flood walls and pumps. He wants to explore whether flood protection could be paid for by a local option sales tax. Cedar Rapids voters approved a local options sales tax and will be asked to extend it for 20 years later this spring.“I don't have confidence this is the final product,” Schultz said.Senate Co-Chairman Tom Courtney, D-Burlington, also expressed reservations. Without offering details, Courtney said he will bring an alternative to the next task force meeting.“As is,” he said referring to the Cedar Rapids plan, “it won't pass the Legislature.”
House Co-Chairman Jason Schultz, R-Schleswig, is hesitant to commit state sales tax revenues to the $375 million plan million to protect both the east and west sides of the river with a system of levees, concrete walls, and removable flood walls and pumps. He wants to explore whether flood protection could be paid for by a local option sales tax. Cedar Rapids voters approved a local options sales tax and will be asked to extend it for 20 years later this spring.
“I don't have confidence this is the final product,” Schultz said.
Senate Co-Chairman Tom Courtney, D-Burlington, also expressed reservations. Without offering details, Courtney said he will bring an alternative to the next task force meeting.
“As is,” he said referring to the Cedar Rapids plan, “it won't pass the Legislature.”
OK, we've reached the "no way this gets done" stage in the legislative process. Not surprising.
We've been through the "say, what have you got?" phase. Then we moved on to the "hey, that's not a bad idea" phase. That's followed by the "let's let this simmer while we do other stuff" phase.
Now, with sand trickling from the hour glass, lawmakers are starting to think about what they can jettison as they ponder just how in the heck they'll ever get done and go home.
It's still possible some sort of legislation comes together. Probably not exactly what the city wants, but something local officials can work with.
It's also possible lawmakers punt and call for a scintillating summer study committee. Don't forget the sunscreen! The only thing lawmakers love more than birthday brownies or a pizza caucus is doing nothing on a tough issue. It's so easy.
In this case, timing is the wild card.
The Legislature is supposed to be done April 29, but with deep budget differences and several big issues still out there, it would take a miracle for lawmakers to be finished by then.
If the session lasts just a few extra days, lawmakers will still be at work when Cedar Rapids voters render a verdict on the 20-year sales tax extention. If the tax goes down, lawmakers won't be able to drop the GRI fast enough.
And if lawmakers waive off the GRI before the May 3 vote, some local voters may see that as a reason to reject the sales tax. The three-legged stool could suddenly become a no-legged doormat.
As the calender slips away, the stakes get higher.
It's easy to get caught up in all the local intrigue. But really, lawmakers need to address a broader question. How can the state assist communities with big needs on their hands after a disaster? That's a pretty fundamental question of governance. We expect public health and safety to be top government priorities.
We know how to throw money at business prospects and big state programs. But what about disasters? Last time, the state made it up as it went along.
Keeping sales tax growth for this sort of expense would seem to have advantages. It doesn't raise taxes. It squeezes dollars from economic activity that could be adversely affected without state assistance. It's not like I-JOBS where the state takes on a bunch of debt.
Maybe lawmakers will come up with something better. They've still got time.
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