Legislative update from Sen. Maggie Tinsman (R-Bettendorf)

Tinsman Times - February 3, 2005 Senator Maggie Tinsman 563.359.3624/515.281.3371 maggie.tinsman@legis.state.ia.us

Plan Empowers Parents, Schools to Improve Student Achievement

Senators this week unveiled an achievement-driven education initiative to improve performance among Iowaís schoolchildren. The parent-friendly plan offers tax incentives to help Iowa families afford the cost of preschool and tutoring. It also calls for first-year teacher testing in Iowa schools, phonics-based reading help for kids who fall behind, pay-for- performance measures for teachers and incentives to end teacher shortage areas.

Increasing Opportunities for Students Parents today are faced with tough choices when it comes to their family budgets. We want to help make educational opportunities more affordable for families by expanding a current state tax credit for school tuition and textbooks from $250 per child to $2,500 per family. In addition, we want to make preschool and tutoring eligible for the tax credit so that more parents have the financial flexibility to take advantage of these important educational programs.

Ensuring a Qualified Teacher in Every Classroom In an effort to ensure every classroom in Iowa has a qualified teacher, we also want to initiate testing for first-year teachers. Iowa is the only state in the nation where education graduates are not required to take a test before they are certified to teach. Iowa has always had a reputation for quality education and by setting standards for those entering the teaching profession, we can assure parents that a first-year teacher is competent in the subject area they teach.

Helping Kids who Fall Behind We want children who struggle with reading to receive help as early as possible. We know that reading is the foundation for education, and students who donít master essential reading skills early will face significant hurdles during the rest of their education. By focusing on teaching phonics to kids in early grades who are reading at least one year below grade level, we can help them overcome these hurdles and achieve future academic success.

Empower Schools to Pay Good Teachers More We want to reward good teachers for their performance. That is why our plan calls for implementing pay-for-performance measures that increase accountability in schools and encourage good teachers. ìImproving schools is a top priority for nearly all lawmakers, ìsaid Senator Tinsman, ì Our plan is an achievement-driven proposal that empowers parents and schools to improve student performance. Every child deserves to succeed and we want to do our part to make sure they do.î

Governor Releases Budget

The State budget is built on choices. Just like a familyís budget, it requires prioritizing needs and building upon the items that are most important.

This year the governor has established his budget by using the principles of Budgeting for Results (BFR), a form of budgeting driven by goals and performance that ties funding to the expected outcomes or results of a program.

The governorís budget contains more money for education, healthcare and, of course, the Iowa Values Fund. ìWhile I agree with him on his issues, it is the amount that he asks for that I cannot support,î said Senator Tinsman.

His budget is predicated on increasing taxes. He calls for an increase in the cigarette tax totaling $130 million, increase in speeding fines totaling $1.7 million, and an increase in taxes on business totaling $25 million ñ bringing the grand total to over $156 million in increased revenues. ìThe only increase I can agree to is the cigarette user fee ,îsaid Senator Tinsman, ìFurthermore, I will only consider such a fee if the money raised is earmarked specifically for healthcare.î

The Legislature has not been privy to the governorís decision-making process. We do not know what his goals for state government are or how he will measure the results of his budget. Budgeting for results only works if we all agree on the benchmarks that we expect the government to achieve. ìHowever, the legislature can still be a player if we hold the departments accountable for the results that they have set in their benchmarks.î

The governorís budget also eliminates programs that mean a great deal to Iowans. He eliminates the State of Iowa Scholarship Program for Iowa high school seniors. The program provides around $400 each to students who are ranked in the top 10 percent of their high school graduating class.

In addition, he eliminates the appropriation for the State Fair, the crown jewel of an Iowa summer. Conversely, he found enough money to begin archiving records from the governorís office.

These programs are not glamorous or exciting, but these programs are near and dear to Iowansí hearts. Why is it bad policy to reward any student who achieves academically? Why shouldnít we showcase Iowaís talent at the State Fair? These are the things that form the fabric of our state.

Again, the budget is about choices. Itís up to you to decide if the governor has made the right ones for our future.

Highlights of the Governorís FY 2006 Budget

The Governorís proposed Fiscal Year 2006 budget spends nearly $5 billion on state government. The Fiscal Year 2005 budget is approximately $4.5 billion.

Following is a look at where some of the money would go:

Education -- $3 billion Top priorities include: $73.8 million for comprehensive early care, health and education system. $93.5 million for quality professional development and enhanced compensation strategies for 35,000 teachers and administrators. $2 billion for K-12 education for 483,000 Iowa students. $146 million for community college educational opportunities for 438,000 students $552.6 million to provide the educational component of state universities. $49.1 million for student aid to support 16,000 students at Iowaís independent colleges and universities.

Economic Growth -- $252 million Top priorities include: $160 million to Iowa Values Fund/Bioscience. (The Governor is also recommending $800 million in bonding over five years for the Values Fund. Since a repayment schedule would not fall in FY06, this item is not reflected in the Governorís budget.) $12 million to Iowaís Great Places initiative. $20 million for business and industry regulatory support.

Health Care -- $1.3 billion, including money raised from governorís proposed increase in tobacco tax Top priorities include: $573 million for basic health care to low-income people, primarily children, the elderly and people with disabilities. $127 million for programs and services to keep children safe (Department of Human Services). $207 million to provide mental health care to the needy. $24 million for addiction prevention and treatment.

Community Safety -- $440 million Top priorities include: $302 million to redesign corrections system, including substance abuse treatment and educational services to adjudicated adults and children. $57 million to assist local crime investigations, law enforcement, highway patrol and rescue, traffic safety, fire fighter training and arson investigation. $41 million for legal representation to eligible clients in criminal, juvenile and appellate courts and employeesí and employersí rights and duties cases are interpreted timely and fairly.

Natural Resources -- $130 million Top priorities include: $31 million to fish and wildlife management. $10 million to 85 state parks and 91 preserves. $15.5 million for Resource Enhancement and Protection (REAP)

January Receipts Increase

January 2005 receipts showed an increase of $57.9 million compared to January 2004. Fiscal year 2005 receipts to date are still on a rising curve with July, August, September, November, December and now January receipts exceeding expectations. In December, the Revenue Estimating Conference (REC) estimated that FY 2005 would see an increase of 2.7 percent growth in state receipts. Actual year-to-date revenues have increased by 8.2 percent, or $230.3 million, as compared to FY 2004

Gross personal income tax revenues received in January totaled $279.8 million, an increase of $38.7 million, (16.1 percent) compared to January 2004. Year-to-date, income tax receipts have increased 8.9 percent. In addition, planned revisions to income tax withholding tables will negatively impact the last few months of FY 2005. The REC is estimating a 4.8 percent growth in personal income tax for FY 2005.

Sales tax revenues received in January totaled $105.8 million, an increase of $9.8 million (10.2 percent) compared to January 2004. Year-to-date sales tax receipts have increased by 5.4 percent. The REC is estimating an increase in sale tax receipts of 2.0 percent for FY 2005.

Corporate income tax receipts in January totaled $20.4 million, an increase of $1.3 million (6.8 percent) compared to January 2004. Year-to-date corporate tax receipts have increased 27.0 percent. The REC estimate equals a decrease of 1.8 percent for FY 2005.

Finally, other tax receipts in January totaled $14.3 million, a decrease of $3.8 million (-21.0 percent) compared to January 2004. Inheritance, franchise, and miscellaneous receipts were down for the month. Year-to- date, other tax receipts have increased by 11.5 percent. The large increase is due to insurance premium rate and due date changes taking place in FY 2005 and will result in extra revenue in the first eight months of the fiscal year and reduced revenue during the final four months of the year. The REC is estimating an increase of other tax receipts of 0.7 percent for FY 2005.

The December seasonally adjusted Iowa unemployment rate was 4.7 percent, a decrease of 0.1 percent compared to the November 2004 level and 0.1 percent higher than December 2003. Iowaís total adjusted December 2004 employment registered at 1,554,000, up 26,800 from last yearís level. The number of unemployed persons in Iowa was reported at 76,700 in December, an increase of 3,200 compared to December 2003. The U.S. unemployment rate for December 2004 was 5.4 percent compared to one year ago of 5.7 percent.

ìThis is good news! The economy is going in the right direction,î said Senator Tinsman.

State Employee Salaries

The governor and the state employee unions are in the midst of negotiations regarding a new contract for state employees.

Since FY 1995, the accumulative cost of state employee salaries increases equals $591.5 million. That equals 10 percent of the entire state budget. In the last contract the governor negotiated in 2003, state workers received a 2 percent cost of living increase each year over two years. In addition, workers who were eligible could have received another 4.5 percent increase for merit pay.

The largest union is the American Federation of State, County, and Municipal Employees (AFSCME) with a membership of roughly 22,000 employees. The other unions of state government workers include:

Judicial AFSCME - approximately 600 employees State Police Officers Council (SPOC) - approximately 650 employees Iowa United Professionals IUP - approximately 2,100 employees Public, Professional, and Maintenance Employees (PPME) - approximately 100 employees Service Employees International Union (SEIU) - approximately 2,600 employees at the University of Iowa Hospitals Committee to Organize Graduate Students (COGS) - approximately 250 graduate students at the University of Iowa United Faculty of Iowa (UFI) - approximately 600 faculty at the University of Northern Iowa

We value our state employees. They play a valuable role in protecting our citizens and assisting the needy. However, the system needs to change. We need to bring market forces into the negotiations. ìAllowing the negotiating panel to examine the economy of Iowa, the expected revenues for the state and comparing private employees to public employees would bring a more balanced approach to the process,î said Senator Tinsman.

Malaysian Delegation Visits with Legislators at Capitol

On Tuesday, a ten-member delegation from the southern Asia country of Malaysia visited with Iowa lawmakers. The visit, sponsored by the National Association of State Auditors, Comptrollers and Treasurers, is part of an exchange that began in November 2004 when a nine-member delegation from Iowa visited Malaysia for two weeks.The purpose of the exchange is for leaders of the Malaysian Parliament and Iowa Legislature to share information on how to improve the efficiency, transparency, integrity and efficacy in government.

The meeting began with each delegation exploring the differences between the systems of government in both countries. During the exchange, members of the Malaysian delegation expressed admiration for the access Iowans have to their elected representatives. One of the members of the delegation commended Americaís system of shared powers between the state and federal government. He mentioned that in Malaysia, he once had been detained for vociferously opposing the encroachment of the Malaysian federal government into the stateís ability to assess sales tax and generate revenue. ìI had the honor of escorting the Hon. Philip B. Lasimbang around for an afternoon and we both learned from each other,î said Senator Tinsman, ìI will be having dinner with the delegation on Monday evening.î