Fiscal year ends with a bang - State Rep. Maggie Tinsman (R-Bettendorf)

Last monthís receipts, which ended fiscal year 2005, showed a large increase of $43.5 million compared to June 2004. In total, fiscal year 2005 receipts exceeded the Revenue Estimating Conferenceís (REC) estimate by nearly $78 million. In April 2005, the REC estimated that FY 2005 would see an increase of $214.6 million, or 4.1 percent growth, in state receipts. Actual year-to-date revenues have increased by 6.8 percent, or $311.7 million, as compared to FY 2004. The final numbers on FY 2005 will not be in until the books are closed late September, but unlike other years the stateís budget has some wiggle room for the unexpected.

Gross personal income tax revenues received in June totaled $216 million, an increase of $12.4 million, (6.1 percent) compared to June 2004. For the fiscal year, income tax receipts increased by 7.3 percent. The REC estimated a 6.1 percent growth in personal income tax for FY 2005. Withholding receipts in June dropped for the second time. May and June withholding receipts decreased $27.4 million (-7.2 percent). This is the only troubling spot in the sea of good news. Changes in the withholding tables implemented in April are expected to reduce tax revenues, but this drop exceeds the projected impact of the table changes. This will be something to watch for in the coming fiscal year.

Sales tax revenues received in June totaled $151.6 million, an increase of $24.6 million (19.4 percent) compared to June 2004. Juneís increase compensates for a drop in May due to a large amount of receipts received in May and not deposited until June. For the fiscal year, sales tax receipts increased by 4.6 percent. The REC estimated an increase in sale tax receipts of 3.8 percent for FY 2005.

Corporate income tax receipts in June totaled $44 million, an increase of $4.7 million (12.0 percent) compared to June 2004. For the fiscal year, corporate income tax receipts increased by 19.6 percent. The REC estimate equals an increase of 8.2 percent for FY 2005.

Finally, other tax receipts in June totaled $63.4 million, a decrease of $9.4 million (-12.9 percent) compared to June 2004. For the fiscal year, other tax receipts decreased by 3.0 percent. The REC estimated a decrease of other tax receipts of 3.7 percent for FY 2005.

Tax refunds paid from July 1, 2004 through June 30, 2005 totaled $702.9 million, a decrease of $0.6 million (- 0.1 percent) compared to the previous year. Refunds issued during the cash year were approximately $18.0 million higher than projected by the REC.

Fiscal Committee to Meet in September

Fiscal Committee is scheduled to meet September 28 in the State Capitol Building. The Committee will discuss the status and future of the Wallace Building, the close of the budget books for FY 2005 and the process by which the Department of Revenue deposits tax receipts, and a variety of other subjects.

Court Upholds Residency Restrictions on Sex Offenders

The federal appeals court last week upheld Iowaís residency restrictions on sex offenders.

The 8th Circuit Court of Appeals refused to revisit a decision made earlier this year that a state law limiting where sex offenders can live does not violate the Constitution.

The legal battle stems from a 2002 law that prohibits sex offenders who have victimized children from living within 2,000 feet of schools or child care centers. In June 2003, the Iowa Civil Liberties Union (ICLU) filed a class-action lawsuit arguing the law violated the Constitution. A month later, a U.S. District Judge ruled the law was unconstitutional.

In response, Iowaís attorney general appealed the ruling. And in April of this year, a three-judge panel ruled the law does not violate the Constitution because it applies equally to all sex offenders who have been convicted of certain crimes against children. The ICLU then sought a review by the full appeals court. The full courtís refusal to hear the case has the effect of upholding the limits on where sex offenders can live.

Although a judgeís 2003 order that stopped enforcement of the law is expected to remain in place pending an appeal by the ICLU to the U.S. Supreme Court, the 8th Circuit ruling is anther step towards enforcement of the law.

When senators first worked to pass residency restrictions in 2002, Iowa was one of the first states to do so. During the 2005 legislative session, Senators again fought to strengthen Iowaís sex offender laws in the wake of the kidnapping and death of 10-year-old Jetseta Gage of Cedar Rapids, allegedly by a convicted sex offender. The legislation approved this year toughens penalties for sex offenders, including longer prison sentences, increased treatment and more supervision upon release from prison.

I will continue fighting to ensure our laws better protect Iowaís kids from sexual predators. The State should do everything necessary to stop those who prey on children from committing these heinous crimes.

Hope your summer is going well.

Maggie