Leaders expect overtime session will finish soon

DES MOINES - “Sharp differences” remain, but Iowa legislative leaders say the end of their overtime session is in sight.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, is predicting the Iowa Legislature can finish its work this week, including approval of a historic commercial property tax relief package that includes a break for renters and increases the Earned Income Tax Credit for low-income workers.

“I think we're in a position where we can see the light at the end of the tunnel and the ability to finish this session maybe the middle of next week,” Gronstal said Thursday.

“I think we're moving in that direction,” House Speaker Kraig Paulsen, R-Hiawatha, said, but deferred to Gronstal's sense of the session's status.

“He's been at his business longer than me so I will let him establish the timelines, but I'm pleased with the progress we've been making,” Paulsen said.

Despite the length of time it's taken - the session was to have ended on April 17 - Gronstal is “quite excited” about the Legislature's output.

“We're looking forward to finishing up the places where we have disagreements,” he said. “There are some sharp disagreements, but we're tackling those kind of one at a time and working through them.”

Paulsen offered similarly encouraging words, saying both sides are “working in good faith ... and we're continuing to resolve some of the issues that were before us.”

One area where negotiators have reached an agreement is on reforming commercial property taxes, which has been a priority for both parties and Gov. Terry Branstad. The plan calls for $350 million in tax relief, limits on local government property tax growth and $250 million in state assistance to “backfill” local governments for the potential loss of commercial property tax revenue.

Gronstal called it the largest property tax cut in the state's history.

“Except for the one (House Republicans) passed earlier in the year and last year,” Paulsen said, adding that the latest attempts at property tax reform accord are built off the same general framework.

“Unquestionably, property tax reform or relief is something that I've worked on a lot of years and this bill is important to me,” he said. “I also want to make sure it is meaningful.”

One place where disagreement remains is in the health and human services budget, where negotiators say they haven't begun to discuss policy differences. The GOP-controlled House approved a measure that would prioritize health care funding in a way that likely would reduce or eliminate state funds for Planned Parenthood. It also would prevent using state funds for Medicaid abortions.

Democratic Senate negotiators have said they will not accept that language.

In terms of the human services budget, the differences between the House and the Democrat-controlled Senate have narrowed, Gronstal said.

“They've cut in half the differences over the last week or 10 days,” he said. “They're not done yet, but they are continuing to work together and I'm encouraged by that.

The HHS budget is “kind of the last game in town,” said House Health and Human Services Appropriations Subcommittee Chairman Dave Heaton, R-Mount Pleasant. He described the budget gap as in the millions, but not tens of millions.

“Both of us have moved a lot,” Heaton said. “I think I promised when it came out of the House that it would look better than when it left, and it does, but we still have a ways to go yet.”

Lawmakers have a ways to go on other priorities, too. Education reform negotiators have identified what aspects of reform packages proposed by Branstad, the House and Senate they agree on and what they don't, said Rep. Royd Chambers, R-Sheldon.