Iowa GOP plan diverts $464 million to water quality

DES MOINES - Water-quality improvement projects would receive $9 million in state funding in the first year and up to $46 million in future years under a plan presented by Iowa House Republicans.

The plan, discussed Monday by a House panel, would raise no new revenue but would divert money from a water-service tax that goes into the state's general fund and from a state account largely paid for by gaming revenue.

'This is a plan that can be very thoughtful, something we can work on and can be sustainable,” said Rep. Pat Grassley, R-New Hartford, who is chairman of the House budget committee.

State lawmakers and Gov. Terry Branstad are searching for ways to pay for programs designed to reduce pollutants in Iowa's waterways. Those pollutants are feeding into the Mississippi River and ultimately the Gulf of Mexico, creating areas where reduced oxygen levels are killing marine life.

The state's nutrient-reduction strategy, mandated by the federal government to address Iowa's water-quality issues, considers three potential scenarios and would cost $1.2 billion to $4 billion. Annual costs would range from $77 million to $1.2 billion.

The House plan is a legislative alternative to a proposal put forth by Branstad. The governor's plan calls for sharing future school infrastructure sales tax revenue with water-quality projects.

The House proposal would commit $464 million in additional water-quality funding during the first 13 years, with another $268 million in programs already being funded by lawmakers. It would require annual renewal, according to House Republicans.

'This proposal is an extremely creative way to make a sizable investment,” said Rep. Ken Rizer, R-Cedar Rapids, who said the numbers would be augmented by matching federal money and private investment. 'That is a sizable new investment in water quality.”

Rep. Kirsten Running-Marquardt, D-Cedar Rapids, doesn't see it that way.

'This is a good start, but I just think it may be too little, too late,” Running-Marquardt said. 'This is a small step, a baby step to address a large issue we have. ... In 20 or 30 years, will we look back and say we should have done something better?”

Branstad's plan would generate $4.7 billion for water-quality projects over three decades, according to estimates from his office. But lawmakers balked at diverting funds from school infrastructure projects to water-quality programs.

Despite little legislative traction for his proposal, Branstad said Monday he supports the House proposal and called it a 'good, significant first step.” However, the issue still needs a long-term solution, he said.