In Vinton, Branstad's property tax plan plays better than preschool

VINTON – Gov. Terry Branstad's plans to cut property taxes played better than his plans to strip down the state's preschool programs during a visit here Wednesday.

Branstad repeated his goal of creating 200,000 jobs in five years and said, “I intend to be held accountable to that.” But to achieve the goal, he said he'd need cooperation from the legislature.

The plan includes reducing commercial property taxes by 40 percent over the next five years, lowering the top corporate income tax rate to 6 percent, and raising the top tax rate on gaming receipts from a maximum of 24 percent to 36 percent. Branstad said he wants all new regulations proposed by state agencies to meet a cost-benefit and jobs impact test.

It sounded reasonable to Dave Coots, owner of Coots Materials, a Vinton-based stone business.

“Things are getting out of control, so we need your help,” Coots said, adding that regulatory compliance has become the hardest part of running his business.

Superintendent of Schools Mary Jo Hainstock said she felt obligated to mention the needs of “working poor” families whose children would no longer qualify for free preschool under Branstad's progressive payment plan.

“Our parents are struggling to know what to do next year,” Hainstock said, reminding the governor that the Iowa Business Council has supported universal preschool.

Branstad responded by clarifying the terms of his administration's proposal, which he felt would allow truly needy families to have preschool without cost.

“With the budget callenges we're facing, that's what we put together,” he said.

The Branstad administration's commercial property tax plans have many cities worried. Vinton Mayor John Watson said after the meeting that he'd feel more comfortable if the governor guaranteed his promise to “backfill” the 50 percent of lost revenues Branstad hasn't already promised to reimburse from state funds instead of more unpredictable indications that the cities would be saved expense through removal of unfunded mandates.

Vinton was able to avoid city tax increases this year only by taking “some awful hard cuts” to its fire department, library and parks department budgets, Watson said. The city's projection of the commercial property tax rollback's implications for the budget indicates “it's going to be really a challenge,” Watson said.

About 12 people spoke at the meeting at the Vinton-Shellsburg Community Schools board room, receiving answers from Branstad, Lieutenant Gov. Kim Reynolds and Iowa Secretary of Agriculture Bill Northey.