Capitol Digest 3-9-2010

A roundup of legislative and Statehouse items of interest for Tuesday, March 9:

 TAX CREDIT LEGISLATION: A working group of House and Senate Democrats is close to finalizing legislation designed to pare back the state's tax credit programs. Negotiations say the initial reductions will be fairly small since commitments already are in place for various tax credits, but Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the proposed reductions will be “substantial” in the out years. He expected the reductions would reach Gov. Chet Culver's proposed level of $52.5 million in three years. He said the package likely will lower the current $185 million cap on economic development tax credits in future years once the economy rebounds. Earlier this year a panel formed by Culver to study the state's tax credit programs called for eliminating eight credits as well as placing more caps on credits or making other reforms.

MORE FLOOD PREP: Iowa business owners and employees are being urged to prepare for potential future flooding and other disasters. Jami Haberl, executive director of the Safeguard Iowa Partnership, said early precautions and planning ahead of possible spring flooding can help Iowans minimize danger, reduce property damage and speed the recovery process after a disaster strikes. Haberl said business owners are encouraged to think about evacuation and readiness plans, such as whether inventory is stored so it can be moved out of harm's way if flooding is predicted. Also, personal safety precautions should be considered in planning for a disaster. Currently, Haberl is working on disaster planning meetings for businesses in the areas of Cedar Rapids/Iowa City, northwest Iowa and central Iowa. Emergency planning and other tips on how to be prepared are being shared at all the meetings, she said. The Partnership was created in 2007 as a voluntary coalition of the state's business and government leaders to help integrate business resources, expertise, and response plans with government agencies during all stages of disaster management. The Safeguard Iowa Partnership Office can be contacted at 515-246-1707.

TOBACCO UPDATE: New research on tobacco use in Iowa contains mixed results. A 2009 Tobacco Control Progress Report conducted by the University of Northern Iowa found that cigarette consumption dropped by 52 percent form 2006 to 2009. Cathy Callaway, chairwoman of the Iowa Tobacco Use Prevention & Control Commission, attributed that dramatic a drop to the $1-per-pack boost in the state cigarette tax in 2007 and the Smokefree Air Act of 2008. At the same time, researchers found that progress in reducing tobacco use among young Iowans has slowed in recent years. Cigarette use among high-school students was roughly the same in 2008 as it was in 2004. Callaway said a drop-off of state funding for the youth-led tobacco counter-marketing campaign, Just Eliminate Lies (JEL), mirrored the steady trend in youth smoking after a period of significant decline.

SCHOOL START DATE: The Legislature's Administrative Rules Review Committee has declined to get embroiled over the school start date controversy. Sen. Merlin Bartz, R-Grafton, requested a special review out of concern that state Department of Education officials had granted waiver requests from 99 percent of Iowa's 361 school districts requesting to begin classes before Sept. 1 last fall. Department legal counsel Carol Greta said the code requires local districts to hold a public hearing and decide if the start date would have a significant negative educational impact. If districts met that criteria, the department approves a waiver, she said. Given budget cutbacks, Greta said her agency would not have the personnel to review each waiver request, noting that later start dates would have played havoc this year with districts that have built a number of make-up snow days. The review was cut short by Sen. Tom Courtney, D-Burlington, who said the committee's purview is to review rules, not Iowa code and, if the panel was expanding its scope, he wanted a special review of Iowa's right-to-work law as well.

BALLOT ISSUE BOOSTERS: A new campaign has formed to promote voter support for Iowa's Water & Land Legacy constitutional amendment that will be on the 2010 ballot. Two consecutive Iowa general assemblies passed a resolution to seek voter support to establish a natural resources and outdoor recreation trust fund – which would be a constitutionally protected trust fund that would be financed by a share on any future major tax increase approved by the Legislature and signed by the governor. Mark Langgin, former assistant to the Iowa House majority leader, will manage the campaign, which also established    a Web site www.iowaswaterandlandlegacy.com to promote the issue. The Iowa's Water & Land Legacy's formal campaign launch is slated for the end of April.

QUOTE OF THE DAY: “It becomes frustrating when we're trying to just make ends meet and we're seeing declining revenues. We just try to piece together everything we can with money, marbles and chalk to get the budget balanced without raising taxes.” – Rep. Todd Taylor, D-Cedar Rapids, on the fiscal 2011 general fund budget that, he said, will result in “real cuts.”