Master Builders of Iowa

March 12, 2010
Volume IX, Edition 9

Revenue Estimate Numbers Increase State Tax Revenues Only Slightly

The March revenue numbers are in and legislators will only see the very slightest in relief from major budget cuts.  For the remainder of the current fiscal year, estimates show an increase of $900,000.  The total projected revenues for this year are $5.402 billion, which is down $531 million from fiscal year 2009.  For FY 2011, the state is projected to see an additional $33 million in tax revenues.

With the March 2010 revenue estimates adjusted only slightly from that of the December 2009 estimates, the legislature can continue its current work on targeted budgets without the need to delve into more drastic cuts and almost ensures that the session can stick to its 80 day abbreviated schedule.  Normally, the second session of a two-year general assembly lasts 100 days. 

Prevailing Wage Referred to House Ways and Means Committee
Not surprisingly, the House Democratic leadership pulled a procedural move to keep HF 2421 (state-mandated prevailing wage and benefits) eligible for debate.  This is a common maneuver to usurp House and Senate calendar rules, which state that if a bill has not passed out of chamber and the other chamber’s jurisdictional committee by a certain date (2nd funnel), then it is no longer eligible for debate.  However, this rule does not pertain to bills referred to ways and means committees or appropriation committees – bills in these committees are deemed funnel-proof.  House Majority Leader Kevin McCarthy (D-Des Moines) made this procedural move just in case there is a change of heart by one of the six House Democrats who voted against the bill last year.  (If you recall, a bill that would have established a state-mandated prevailing wage and benefits schedule on all publicly funded projects failed on the House floor.  Six House Democrats joined with all of the Republicans in opposition to the bill, thus not allowing the bill to reach a Constitutional majority of 51 for final passage.) 

Moving a bill to a “funnel-proof committee” often happens on controversial bills in efforts to keep bills eligible for debate.  But in this particular instance with HF 2421, there is not an item that deals with taxes in the bill and if they had the votes to move the bill, they would have already went forth and debated the bill on the House floor.

Senate’s PPEL Bill Still on Debate Calendar
The Senate is scheduled to bring up its PPEL (Physical Plant and Equipment Levy) bill, SF 2290 next week.  SF 2290 is a companion bill to HF 2462.  If you recall HF 2462 passed the House a couple of weeks ago by a vote of 58-39 and would increase the allowable uses of the PPEL levy to include computers, software, technical training and costs associated with the repair of any equipment purchased with PPEL funds (this includes school buses, computers, copiers, etc.). 

MBI is concerned about this blatant expansion and questions the wisdom of moving away from the basic integrity of the PPEL levy.  MBI has long believed that the PPEL levy should be used for school major maintenance and infrastructure needs and paying down debt on bond referendums (i.e. - property tax relief).  However, this will never be achieved if the legislature continues to expand the allowable uses of these funds.

MBI is working on an amendment that would require a school district to first make sure buildings are in compliance with fire and safety codes before any funds could be spent on computer equipment and other technology needs.  Our amendment has bi-partisan support with 6 Democratic sponsors and 5 Republican sponsors.   

Retirements Abound
Legislators have until March 19th to decide if they will put their names on the 2010 election ballot.  So far, there have been a number of legislators who have decided to ride off into the political sunset.

On the House Democratic side, there are six legislators who have made the decision not to run again.  They are:  Polly Butka of Clinton, Marcie Frevert of Emmetsburg, Mark Kuhn of Charles City, Dolores Mertz of Ottosen, Roger Wendt of Sioux City and Wes Whitead who is also from Sioux City.  On the Republican aide of the isle, five incumbents will not be seeking re-election to the Iowa House.  The Republicans are: Mike May of Spirit Lake, Christopher Rants of Sioux City, Rod Roberts of Carroll, Kent Sorenson of Indianola and Jody Tymeson of Winterset.  (Please note that Roberts is running for governor and Sorenson is running for the Senate seat currently held by Staci Appel (D-Ackworth).

Thus far, House Democrats will have 50 incumbents running, whereas House Republicans will have 39 incumbents on the ballot.  All 100 seats are on the ballot.

In the Senate, there are three retirements to date – 2 Democratic and 1 Republican.  Senators Steve Warnstadt of Sioux City and Roger Stewart of Clinton are Democrats and the lone Republican is Ron Wieck of Sioux City. 

For 2010, 25 of the 50 seats in the Senate on the ballot.  Democrats hold a 32-18 majority, but will be defending 19 seats, while Republicans only need to defend 6 seats.  Thus, 17 Democratic incumbents are running and 5 Republican incumbents are on the ballot.