Iowa lawmakers still working on priority issues

With less than one week left in the 2012 session, lawmakers face a shrinking list of priority bills standing between them and adjournment. Lawmakers' daily expense money ended on Tuesday's 100th calendar day and leaders in the split-control Legislature believe they can wrap things up next week.

STATE BUDGET

ISSUE: Finalizing fiscal 2013 general fund spending to finance state government for 12 months beginning July 1

STATUS: Majority Republicans in the House and majority Democrats in the Senate are trying to find middle ground on spending differences that likely will settle near Gov. Terry Branstad's proposed $6.24 billion funding proposal. Major disagreements center on funding for higher education after lawmakers agreed last session to give a 2 percent per-pupil funding increase to K-12 schools for the 2012-13 school year. Republicans also want to fully fund property tax reimbursements for local governments while Democrats want to cover about $42 million in lost Medicaid and other federal funding for mental health services rather than cutting other budget areas to replace the federal dollars.

PROPERTY TAX REFORM

ISSUE: Reforming property tax system to provide relief to businesses and industries by gradually rolling back rates similar to residential and agricultural property

STATUS: A top priority of both political parties, Republicans and Democrats are seeking to provide at least $250 million in multiyear relief to reduce tax rates for commercial and industrial property owners. Gov. Terry Branstad and legislative Republicans seek to roll back taxes on commercial property from 100 percent of assessed valuation to 60 percent over eight years while providing state “backfill” payments to cities and counties to make up for some of the commercial property tax money they'd lose as a result of the rollback. Democrats favor a state tax credit they say would give four out of five commercial building owners a 40 percent-plus tax cut without shifting the tax burden on to residential property owners. Sen. Majority Leader Mike Gronstal, D-Council Bluffs, said “I feel relatively good” a resolution is near.

EDUCATION REFORM

ISSUE: Begin multiyear effort to revamp teacher preparation/pay and bolster student achievement

STATUS: A House-Senate conference committee likely will be asked to find middle-ground compromises that will meet Gov. Terry Branstad's expectations. House Republicans want to require more student testing, hold back third-graders who cannot demonstrate reading proficiency, tighten restrictions on online education and create a series of end-of-course exams in high school. Senate Democrats want to continue the focus on reading and small-class sizes in early grades so teachers can help struggling students catch up; expand core classes to include art, music and technology; promote more teacher-to-teacher collaboration and classroom coaching; and expand online course offering and learning resources.

MENTAL HEALTH REDESIGN

ISSUE: Revamp county-based system with statewide focus

STATUS: Lawmakers are moving ahead with plans to redesign Iowa's county-based mental-health system into a statewide effort in which services would be administered regionally and delivered locally. A key sticking point in bipartisan efforts was removed when House Republicans agreed to reinstate county property tax levies slated to sunset by July 2013 that generate about $125 million annually for mental-health services. Diferences remain on funding issues. Negotiators say they are close to an agreement.

OTHER ISSUES

• Efforts to ban traffic enforcement cameras and raise the state's gasoline tax got considerable attention this year but stalled on their legislative journeys
• A measure seeking to create a regulatory framework for a small-scale nuclear energy project by MidAmerican Energy remains eligible for Senate debate,
• Work is still under way to revise tax increment financing (TIF) authority that cities and counties can use for economic development and urban renewal projects.
• A carry-over 2011 issue to establish a public information board to enforce open meetings/open records law is getting an 11th-hour look in both chambers.