Second funnel of '05 session arrives - Sen. Maggie Tinsman (R-Bettendorf)

The second benchmark of the 2005 legislative session has arrived and lawmakers have been busy attending committee meetings and debating legislation in an effort to keep bills alive beyond the second ìfunnelî deadline.

In order for a bill to be eligible for debate after the second funnel, it must be approved by the chamber where it originated as well as a committee in the opposite chamber. That means Senate files are required to have passed the Senate and a House committee by now in order to stay alive for the rest of the session. The funnel deadline does not apply to tax, leadership or appropriations bills.

Senate committees have taken up fewer bills this year due to the 25-25 split where control is shared equally between Republicans and Democrats.

Yet despite the slow pace, progress still has been made on a number of measures. Legislation approved by the Senate this year includes bills to crack down on Iowaís meth labs, improve the college readiness of high school students, establish a quality child care rating system, shrink the size of the stateís deer population and deregulate Iowaís large telephone companies. Lawmakers are also developing legislation to toughen Iowaís sex offender laws and spur new job and business growth across the state.

In the coming weeks, budget negotiations will continue as we try to find agreement on appropriations bills for the 2006 fiscal year. The Senate has approved only one of the nine budget bills that lawmakers must pass before the 2005 session adjourns.

While lawmakers generally agree on many areas of the budget, there are significant differences over funding levels for state employee salaries, education and health and human services. Right now, Democrats and Republicans are about $200 million apart in their spending proposals. Senator Hatch and I are millions of dollars apart in Health and Human Services.

A critical element in the budget negotiations is whether lawmakers will approve an increase in the cigarette tax, or ìuser feeî as I refer to it. Any potential hike would bring more revenue into the state treasury and lawmakers who are supportive of the measure, as I am, have a number of ideas on how they would like to spend the money. I am still advocating the dollars to go into the Senior Living Trust Fund to be used only for Medicaid or long term care. Others do not want to raise taxes on Iowans to increase spending. Lawmakers will have to make some decisions on the issue before our budget work is complete- the sooner, the better.

As we enter the last few weeks of the 2005 legislative session, senators will consider legislation that has made it past the second funnel in addition to budget bills and economic growth measures. As we work towards these goals, senators are committed to developing good public policy that focuses on the priorities of Iowans. I do believe that we will be able to agree on helping our seniors, children, families and the disabled with the budget.

Senate Committee Advances Legislation to Toughen Iowaís Sex Offender Laws

Legislation to toughen Iowaís sex offender laws advanced this week in the Senate Judiciary Committee. The swift action was prompted by the kidnapping and murder of 10-year-old Jetseta Gage of Cedar Rapids by convicted sex offender Roger Bentley.

Under the bill, sex offenders who refuse treatment while in prison would be ineligible to receive early release for good behavior. Sex offenders also would be required to wear an electronic monitoring bracelet while out of jail on conditional release; update their photographs on the sex offender registry website; submit a DNA sample; and be supervised for two years following their release from prison.

In addition, the bill prohibits convicted sex offenders from living within 1,000 feet of a school or day care center. Currently Iowa has a 2,000-foot restriction that is not being enforced because it has been challenged on constitutional grounds. Final action is still pending in the courts; however, the 1,000-foot restriction could be implemented if the 2,000-foot law is ultimately struck down. Still, this concept is really only a ìfeel goodî idea. I am afraid that this gives a false sense of security.

The bill also would create a task force in the Department of Administrative Services to study the stateís sex offender registry and make recommendations for improving it. In deed, sex offenders need to be evaluated by a health professional into low, medium and high risk categories for reoffending. A strong assessment tool is needed, so that communities can be alerted in order to protect themselves.

In addition to the measures contained in the bill, we are working to increase penalties for the offense of lascivious acts with a child. The crime involves a sexual offense against a child who is under 14 years of age by someone who is 18 years or older. Senators want to elevate the offense from a class D felony to a Class C felony, which would double the maximum prison term from 5 years to 10 years.

Sex offenders are among some of the most monstrous criminals in our society and we are taking action to ensure they are dealt with seriously. The state should take every step to protect our children from these sexual predators.

Senate Approves School Start Date Legislation

Iowa children could start school later next year under a bill approved by the Senate this week.

The legislation would require school districts in Iowa to start their year no earlier than Aug. 22. Under current law, the school year is not supposed to start sooner than the week of Sept. 1. However, most school districts receive waivers to start their school year earlier.

As school districts have continued to move up their start dates in August, parents have raised concerns about the number of schools that do not have air conditioning and the amount of classroom time lost when schools dismiss early because of the heat. The earlier start dates also interfere with family vacation plans and special summer tourism events.

Medicaid Reform Proposal Introduced in the Legislature

This week lawmakers introduced a proposal to expand Medicaid to cover more individuals in Iowa in fiscal year 2006 without spending more money. This legislation was developed in response to the future loss of the stateís intergovernmental transfer (IGT) mechanism, which could cost the state $65 million from the federal government.

The federal government has frowned upon states using IGTs as a way to leverage more federal dollars for the Medicaid program. While Iowa is one of the few states that has used all IGT funds for health care coverage, some other states have used these dollars for non medical expenses such as roads and other infrastructure projects.

In negotiations with federal officials over the loss of funding from IGTs, lawmakers have focused on a way to ensure that the state does not lose the $65 million that is currently in the budget. In a letter to Governor Vilsack, the Secretary of Health and Human Services indicated the federal government would be willing to work with Iowa to ensure greater access to health care while maintaining budget neutrality.

Under the proposal, the state would create a new category of Medicaid eligibility for those who have a family income below 200 percent of the federal poverty limit; are 19 to 64 years old; and are either parents of kids on Medicaid, single adults or married adults.

Approximately 147,000 people fall into this new category, yet it is projected that the state would be able to cover about 30,000 of these new clients each year. Unlike those currently covered by Medicaid, this new Medicaid population would be expected to invest in their health care through several mechanisms including co-payments, a premium based upon their income level ( sliding fee level) and incentives that will help them make healthier lifestyle choices. These changes as well as allowing the state to set a definite finite budget for the program rather than enlarging an entitlement program are some of the recommendations I have made to Representative Nussle and our two U.S Senators. We must be allowed to control the expenditures and not just pay the bill, no matter what it is.

It should be noted that current Medicaid enrollees will not be affected by this program. There will be no change in benefit level or new requirements for those who are currently covered by Medicaid.

Funding for the new program would come from state and local dollars that are currently being used for health care at the University of Iowa Hospitals and Clinics, Broadlawns Hospital in Polk County and the Mental Health Institutions. Right now Iowa appropriates $27 million to the University of Iowa Hospitals and Clinics and $30 million to the Mental Health Institutions. In addition Polk County funds Broadlawns with $34 million in county property tax dollars.

Currently these funds are not leveraging additional federal money. Under the new plan, the state would maintain its funding commitments to these facilities while also using the funds to draw additional dollars from the federal government.

The proposal is in its early stages and I do have concerns about how the new program would work. I will be closely studying the proposal. While it is far from completion, the federal government has shown a willingness to work with Iowa and be a partner in the Medicaid system. This just might be our opportunity to change the system for the entire country.

March Receipts Show No Growth

March 2005 receipts showed an increase of $2.4 million compared to March 2004. Fiscal year 2005 receipts to date are still exceeding expectations even with this flattening of revenues.

In December 2004, 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 6.1 percent, or $230.1 million, as compared to FY 2004. Statistically, the February and March revenues saw no growth, meaning that all your growth to date has occurred during the first six months of the fiscal year. Now we will see if we can maintain some growth to keep our heads above water.

Gross personal income tax revenues received in March totaled $226.3 million, an increase of $13.8 million, (6.5 percent) compared to March 2004. Year-to-date, income tax receipts have increased 8.6 percent. The REC is estimating a 4.8 percent growth in personal income tax for FY 2005.

Sales tax revenues received in March totaled $119.6 million, an increase of $9.3 million (8.4 percent) compared to March 2004. March revenues may have benefited from processing issues, pushing some February revenue into March. The net effect is zero however. Year-to-date sales tax receipts have increased by 2 percent. The REC is estimating an increase in sale tax receipts of 2.0 percent for FY 2005.

Corporate income tax receipts in March totaled $24.1 million, an increase of $2.1 million (9.5 percent) compared to March 2004. Year-to-date corporate tax receipts have increased by 18.5 percent. The REC estimate equals a decrease of 1.8 percent for FY 2005.

Finally, other tax receipts in March totaled $54.7 million, a decrease of $9.2 million (-14.4 percent) compared to March 2004. Year-to-date, other tax receipts have decreased by 1.4 percent. The majority of the decrease is due to insurance premium tax law changes, which lower the rate and alter the payment due dates. The REC is estimating an increase of other tax receipts of 0.7 percent for FY 2005.

The REC will meet today, April 8, to reevaluate their FY 2005 and FY 2006 predictions. I will inform you of the results of the meeting when they become available.

I hope this finds all of you well and enjoying the warmer spring weather! As always, it is an honor to serve you in the Senate and if you ever need to contact me, please feel free to do so.

Senator Maggie Tinsman 563.359.3624/515.281.3371 maggie.tinsman@legis.state.ia.us