Property tax accord could be reached this session, Branstad says

Gov. Terry Branstad said Friday he sees hopeful signs that he and the split-control Legislature can forge a property tax relief agreement this session.

Negotiators for majority House Republicans and majority Senate Democrats have expressed optimism they are progressing toward reaching a deal on property tax reductions that would be a hybrid version of competing plans which previously were passed by the House and the Senate.

Branstad shared that optimism Friday, saying “I think it's actually an improvement over what we were looking at last year. It's something that has elements of what we've recommended and also what the Senate and the House have supported.”

Democrats want to provide $250 million in commercial property tax credits targeted at small and Main Street businesses over five years. Backers say the approach would enable all businesses to be taxed at a lower rate on the first $324,000 of their assessed property value. Commercial entities would have property values above that threshold taxed at the current 100 percent rate.

Republicans favor the House-passed approach that combined Branstad's proposal for rolling back the taxable value of all commercial and industrial properties to 80 percent over four years with their plan to devote more state dollars to annual increases in education funding. Additionally, future growth in residential and agricultural tax bills would be limited to 2 percent per year and state funds would be provided to hold local governments harmless from the potential drop in property tax revenue.

“I think we're very close to getting the property tax agreement and education reform. We've got further to go in terms of our healthiest state, but we're going to continue to work on all of those and, obviously, the budget things have got to be done, too,” the governor said in an interview.

“You've got to be patient and hopefully it will get done here in the next week or two. I just hope it gets done in the month of May,” he added. “There are still a lot of details to be worked out and it takes awhile to pass all of this.”

House and Senate conference committee members who are trying to hammer out an education reform agreement expressed surprise with Thursday's revelation that Iowa Department of Education Director Jason Glass has been named as one of three finalists for a superintendent job in Colorado.

Branstad, who tapped Glass in 2010 from an education consultant job in Ohio to help design and push his K-12 reform agenda, was very supportive of his education chief and did not fault his interest in the post at the Eagle County school district in the central Colorado Rockies where Glass previously served as human resources director.

“When you have a talented guy like Jason Glass, it's not surprising that he would be in demand and have other opportunities. But he's not indispensable. He's got a really good staff that he's put together there and we'll continue on,” the governor said.

“I think he's done a great job and I wish him the very best and we'll see. I think he's a finalist but it hasn't been decided yet,” Branstad added. “I'd love to see him stay, but if he gets a great opportunity I would understand that he might be interested in taking it, too. I've always taken a position that you don't stand in people's way if they get a great opportunity.”