Three compromises shape session

By The Quad City Times

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The Iowa Legislature's 2013 session is being heralded as a model of compromise with key property tax, education and health care reforms coming together after hours for hurry-up confirmation votes.

The promising results emerged from an Illinois-like legislative sausage grinder, resolving big issues in closed caucuses, then dumping the bills on weary lawmakers eager to escape before a holiday weekend.

We'll spare the accolades. These compromises would have meant more if achieved in waking hours weeks ago.

This session was tough enough with Gov. Terry Branstad making a second attempt at property tax and education reforms, and Senate Democrats insistent on the controversial Medicaid expansion. In the end, the governor and Iowa lawmakers can celebrate modest success on all three fronts, thanks to three key compromises:

1. Branstad blinks on health care

Until the final weeks, the governor continued to condemn reliance on federal funding for Medicaid expansion, an odd concern given that he had no suspicions about federal funding of transportation, education or the billions in federal tax credits lavished on his highly touted fertilizer plants. But in the final days of this session, the governor accepted a Medicaid compromise that offers 150,000 of the poorest Iowans a shot at health care. Those with the lowest income will be added to Medicaid. The poor earning a bit more will get subsidies to buy their own through the Affordable Care Act exchanges due out next year.

2. Democrats defer on property taxes

The property tax reform gave Iowa commercial taxpayers almost everything they wanted: Caps on rising assessments; subsidies directly to businesses to offset tax bills; and an extremely generous gift to landlords: Their rental property businesses will now be taxed like personal homes.

Combined, these tax cuts will total $3.87 billion over the next decade, according to the Legislative Services Agency. Lawmakers committed to using $3.13 billion in general fund money to make up the property tax shortfall to cities, counties and schools. Senate Democrats deferred to compromise, forcing local governments to pick up the difference. Davenport leaders say that difference will require them to cut $4 million a year out of the city's approximate $200 million budget. That's just 2 two percent. But aldermen will struggle to carve 2 two percent from a budget that just went through a serious whacking. So will school boards, counties and other government agencies struggling with a flat tax base.

3. Clumsy conservative concession

Ideologically intransigent House Republicans gobbed up the Medicaid debate by insisting that public money never be used for any abortion, regardless of cause. About a dozen House Republicans were adamant that they – not doctors or any pregnant Iowan – determine the health care options, even for pregnancies that endanger an expectant mother's life or were the result of rape.

Iowa's Department of Human Service reported just 22 of these cases last year. Most of those intransigent Republicans wouldn't budge and still voted “no.” Instead, enough Democrats agree to this truly awful compromise: Under this last-minute deal, the next impoverished Iowa woman who needs an abortion to save her life, or end a pregnancy caused by rape will need Gov. Branstad's personal approval. This may be the first law that puts a woman's front-line medical decision directly in the hands of an elected official, not a medical professional. Iowans should be appalled.

It's a no-win proposition for Branstad if he's forced to personally intervene in any Iowan's medical decision. We hope he uses his line-item veto to respect Iowans and dump this awful compromise.