Legislators reach budget agreement; adjourn - Sen. Maggie Tinsman (R-Bett.)

After hours of negotiations, lawmakers and the governor this week reached an agreement over a $5 billion budget for the 2006 fiscal year that begins July 1. The final agreement is a compromise between the different spending plans approved earlier this year by the Senate and the House.

In order to work out the differences, lawmakers from both chambers met with the governor this week to find common ground on these issues. The result is a budget that funds Iowansí priorities without increasing taxes. I am disappointed that the cigarette user fee will not be increased as I truly believe that would have gone a long way in discouraging people from smoking. Although, the budget increases spending by $340 million, or 7.5 percent, over the current year, lawmakers will not raise taxes. Instead, an up tick in state revenues will help cover the additional funding.

Education I have always been very committed to keeping the high quality of Iowa schools in tact and I feel the budget that we have passed this year does just that. We owe so much to the men and women who invest their time and talents with our children and I want to extend a heartfelt thank you to all of you who work in our wonderful schools!

Much of the money we have allocated will go towards improving student achievement, increasing teacher salaries and holding the line on college tuition costs. The budget includes nearly $2 billion for K-12 schools during the 2005-2006 school year; a $100 million increase over the current year. In addition, lawmakers provided $29.3 million for an initiative to improve class sizes and reading scores; $20 million for early childhood education programs; and $69 million for teacher salaries, an increase of $24 million over the current year.

In order to keep college tuition affordable for students, lawmakers also increased funding for Iowaís public universities by nearly $30 million for a total of $619 million. And, we provided more than $150 million for community colleges, an increase of more than $10 million over the current year.

Economic Development In addition, community colleges and regents universities will receive a combined $12 million a year over the next 10 years from the Grow Iowa Values Fund. The economic development program aimed at creating new jobs and attracting growing businesses was re-established this year. The Values Fund will provide $50 million in business assistance and $21 million in tax credits each year for the next 10 years.

Healthcare Access Legislators provided nearly $1 billion for health and human services programs. The funding will help more ill and disabled Iowans receive health services in their homes and communities, expand eligibility for low- income families to qualify for child care assistance, and ensure Iowaís children have access to health insurance.

Public Safety As part of lawmakersí efforts to strengthen Iowaís sex offender and meth laws, weíve included more than $5 million to pay for the needed changes. The State Patrol also will receive $1.3 million for new troopers and patrol cars.

Senate Gives Final Approval to Early Childhood Initiative

More Iowa families could soon receive a tax credit for early childhood expenses under a bill that has cleared the Senate and is now on its way to the governor.

The legislation would expand the number of Iowa families that may take advantage of a current tax incentive for child care expenses. The measure raises the income threshold ñ from $40,000 to $45,000 ñ for Iowans to qualify for the Child and Dependent Care Tax Credit. That means more Iowa families could benefit from the tax savings. The credit is available to families who must pay for child care services for children under age 13.

In lieu of the current expanded tax credit, Iowa families with incomes of less than $45,000 would have the option to take advantage of a new tax credit for educational expenses such as preschool costs and instructional materials. The new credit allows taxpayers with children ages 3 to 5 to deduct 25 percent of the first $1,000 in expenses per child. The provision is similar to a state tax credit that exists for education expenses of older children, such as private school tuition and textbook costs.

I am particularly pleased to see that Iowa is going to be addressing quality childcare. Iowaís families would also benefit from another measure in the bill to create a voluntary quality rating system for child care providers. The goal of the system is to help parents choose a child care provider that best fits their needs and encourage child care workers to deliver the best quality of care possible.

In addition to these measures, the legislation makes a number of changes to better coordinate early childhood education programs across the state. Lawmakers have committed $20 million for these programs as part of the overall spending plan for the 2006 fiscal year that begins July 1. Scott County Empowerment will be heavily involved in identifying and helping to increase the quality of public and private pre-schools.

Early childhood education programs can help Iowaís children become better prepared for school. By providing parents the financial flexibility they need for their children to participate in these programs, we can help lay the groundwork for future academic success.



New Meth Law Takes Effect May 21

Tough new restrictions on the sale of pseudoephedrine, a common cold decongestant routinely used to make methamphetamine take effect in Iowa Saturday.

Lawmakers approved the restrictions as part of an effort to curb meth production in Iowa. Under the new law, most products containing pseudoephedrine will be sold only though a pharmacy.

Retail stores will be allowed to sell single packages of liquid medicine or gel caps containing up to 360 milligrams of psuedoephedrine -- an amount similar to that contained in children's cold medicine. Consumers will be limited to purchasing 7,500 milligrams of pseudoephedrine over a 30-day period without a prescription.

The restrictions are among the toughest in the nation and are expected to dramatically reduce the production of meth across the state.

House Gives Final Approval to Alternative Energy Legislation

Legislation aimed at encouraging small energy producers to invest in wind and other alternative energy sources has received final approval from the House and is now awaiting the governorís signature.

The bill establishes tax credits for Iowa facilities that produce no more than 2.5 megawatts of power from wind, solar, biomass or other alternative energy sources.

Under the legislation, wind facilities would receive a tax credit of 1.5 cents per kilowatt-hour and hydrogen operations would receive a tax credit of $1.45 per 1,000 cubic feet of fuel. Methane or biogas facilities would receive $4.50 per million BTUs.

The goal is to help develop innovative, small-scale energy projects that are locally-owned and operated. Small business owners, farm corporations, school districts and electric cooperatives are among those who would benefit from the tax incentives. I believe that when these groups construct alternative energy facilities, they not only provide for local sources of energy, but also encourage economic growth in the community.

Over the past few years, lawmakers have taken a number of steps to make Iowa a national leader in the development of affordable, renewable, and environmentally responsible sources of energy. According to the American Wind Energy Association, Iowa currently ranks third in the nation for the most wind energy capacity. The Legislation approved by lawmakers this year will encourage further investment in wind and other types of alternative energy production ñ this time by smaller producers.

The bill is a positive step forward for rural economic development and our environment. Developing alternative energy sources is an affordable, environmentally-friendly way to help meet our stateís growing energy needs.

This will be the last Tinsman Times for this session (I can hear the groans already!) It has been an honor serving you in the Iowa Senate and as usual you can always reach me at my Davenport office or by e-mail.

Have a great year and please feel free to contact me with any of your thoughts and/or concerns.

Warmly,

Maggie Tinsman

Senator Maggie Tinsman 563.359.3624/515.281.3371 maggie.tinsman@legis.state.ia.us May 20, 2005