Capitol Digest 4-8-09

Here are some legislative items of interest for Wednesday, April 8:

GESSOW SHOUTOUT: Sen. Jack Hatch, D-Des Moines, appealed to his colleagues, especially minority Republicans, to think twice about voting not to confirm Eugene Gessow as director of the state Department of Human Services. Hatch said it would be an ill-advised move to force a leadership change at a time when the state's largest agency is facing a restructuring due to deep budget cuts that likely will force layoffs in field staff. Hatch warned those job cuts would range from 350 to 500 were it not for federal stimulus help to soften the budgetary blow to DHS programs. Hatch expressed concern Gessow may be short of the 34 votes needed for confirmation and warned it would be very difficult to find a capable replacement if prospective candidates worried there would be “a political lynch mob waiting for him or her.”

NURSING FEE: The Senate Ways and Means Committee voted Wednesday to impose a quality assurance fee on all for-profit and nonprofit nursing facilities of 3 percent for each patient day to help leverage up to $60 million in much-needed federal matching money. The fee, which would not apply to state nursing facilities, was projected to generate $33 million to be deposited in a state-run Quality Assurance Trust Fund. Under Senate File 422, the money would be used to provide a supplemental payment -- matched with federal financial participation -- to help offset assessment costs at nursing facilities similar to 33 other states. Backers said most nursing facilities facing losses now will experience a net gain to hold down rates because the additional Medicaid payments will be more than the assessment paid.

AFFORDABLE HOUSING: Gov. Chet Culver announced $40 million in tax credits Wednesday for affordable housing projects in Davenport, Waterloo and Des Moines. A total of $9.7 million will go to Taylor Heights Village in Davenport to create 41 housing units for older residents at 1430 Warren Street. Gandolf Group LLC is s the developer. In Waterloo, another $9.7 million in tax credits was awarded to build 40 units for families at the southeast corner of Newell and Mobile streets by Commonbound Communities. Two projects in Des Moines totaling more than $20 million are receiving the tax credits.

QUOTE OF THE DAY: “Let's do the hard work here in this Legislature. Let's not put it off for 31 years when folks born this year will have been alumni for 10 years out of the regent universities.” – Sen. Steve Kettering, R-Lake View, arguing for pay-as-you-go funding of University of Iowa flood-damage repairs rather than a bonding plan that won't be paid off until 2040.

Compiled by Des Moines Bureau staff.