Highlites from the Senate

This week saw the second “funnel” of this legislative session. The only bills viable now are on the debate calendars or in Appropriations and Ways and Means Committees.

Senate committees have taken up fewer bills this year due to the 25-25 split, with control of issues shared equally between the two political parties. Despite the slow pace, progress still has been made on a number of important issues. Legislation approved by the Senate this year includes bills to crack down on Iowa’s meth labs, improve the college readiness of high school students, establish a quality child care rating system, shrink the size of the state’s deer population and deregulate Iowa’s large telephone companies. Lawmakers are also developing legislation to toughen Iowa’s sex offender laws and spur new job and business growth across the state.

In the next few weeks, budget negotiations will continue as we try to find agreement on appropriation 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.

A critical element in the budget negotiations is whether lawmakers will approve an increase in the cigarette tax. Any potential hike would bring more revenue into the state treasury and lawmakers who are supportive of the measure have a number of ideas on how they would like to spend the money. 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.

I received numerous e-mails this week regarding proposed IPERS legislation. As it is now, taxpayers are responsible for 60% of the cost of covered employees contributions, with the employee paying the other 40%. An amendment to the IPERS bill would have the taxpayer and current employees share equally the amount contributed to the IPERS fund. In heated debate, the bill passed out of State Government Committee with the employer/employee sharing the cost.