Caucus Newsletter 1-15-2015

Thursday, January 15, 2015
www.IowaHouseRepublicans.com
House Republican Talking Points
2015-16 House Republican
Budget Principles
House Republicans are committed to
these principles to produce a balanced
and sustainable state budget:
 We will spend less than the state
collects;
 We will not use one-time money to
fund on-going needs;
 We will not balance the budget by
intentionally underfunding programs;
and
 We will return unused tax dollars to
Iowa’s taxpayers.
Governor Branstad’s Budget
Proposal
The Governor’s Budget spends $7.3410
billion in FY 2016, an increase of $346.7
million over FY 2015 or 4.95 percent.
Branstad’s FY 2016 proposal spends
more money than the Revenue Estimating Conference’s December ongoing
revenue estimate of $7.1946 billion. The
gap between ongoing revenue and the
Governor’s budget is approximately
$146.4 million.
For FY 2017, the Governor is proposing
a General Fund budget of $7.5252 billion. This would be an increase of
$184.2 million or 2.50 percent.
Each of the past four years, the budget
passed by the Legislature has spent less
than what the Governor proposed. The
FY 2016 budget will continue this trend.
Inside this issue:
Appropriations
2
Agriculture
3
Commerce
5
Economic Growth
5
Education
5
Environmental
Protection
7
Human Resources
8
Judiciary
8
Labor
9
That is a tremendous investment in our K
-12 schools over the last 4-5 years especially considering statewide enrollment
has been relatively flat.
Natural Resources
9
Public Safety
9
In FY 2016, according to the Governor,
Iowa spends about $10,900 per K-12
student every year. That means in a
class of 20, the taxpayers are spending
almost $220,000 per classroom.
Transportation
10
Veterans Affairs
10
Ways and Means
11
percent, and Medicaid grew by 11.7 percent.
55 percent of the Governor’s FY 2016
budget proposal is targeted to education.
House Republicans are looking forward
to working with Governor Branstad and
Senate Democrats to put together a
budget that keeps Iowa in a strong financial position.
School Funding
State Aid to Schools over the last four
years (FY 11-15) has increased $402.3
million or 16.28%. If Education Reform
dollars are included that number jumps
to $452.2 million or 18.30%. If the Governor’s plan for FY 16 is included that
number jumps to $537.1 or 21.74%.
The state’s share of education funding is
at its highest level in the last 30 years.
Governor Branstad increases Supplemental State Aid by $50 million and provides the second installment of $50 million for the teacher leadership component of the 2013 Education reform law.
90 percent of Iowa’s budget goes to
AEA funding is once again be reduced
three areas - School aid ($2.9 billion),
by $15 million. This increase of $84.8
wages and benefits for state employees million raises State school aid funding to
($2.1 billion), and Medicaid ($1.6 billion). $3.0086 billion. Implementation of this
figure for FY 2016 means schools reOver the past decade, state revenue has ceived an additional $537.1 million from
grown by 4.1 percent annually, state
(Continued on page 2)
spending on K-12 education grew by 4.2
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House Republican Newsletter
(Continued from page 1)
Medicaid
the General Fund since FY 2011, a 21.74% To address the continual growth in Mediincrease over five years.
caid, the Governor is proposing major reforms. He expands the use of managed
Among the other K-12 education increases care in Medicaid and other cost containprovided by the Governor in FY 2016 are
ment initiatives, lowering state expendi$10 million for the High Need Schools pro- tures by $70.2 million in FY 2016. The
gram, a $1.5 million increase for the Read- Governor funds the rebasing of Medicaid
ing Research Center, $1.0 for the Iowa
rates for hospitals, nursing homes, and
Reading Corps, and $200,000 for bullying
home health agencies. The Governor is
prevention.
not recommending a supplemental appropriation for Medicaid in FY 2015.
For community colleges, the Governor increases community college general aid
Medicaid is the second biggest program in
funding by 1.75 percent or $3.522 million.
state government, and without major reFor Iowa’s private colleges, the Governor
form it will continue take funding away from
increases funding for the Tuition Grant pro- other priorities like schools.
gram by $4 million. This is an 8.26% increase over the FY 2015 level. The tuition
First Crack at State Contracts
grant for students at for-profit colleges are
increased by $200,000 or 10.1 percent.
Democratic Legislative Leaders have said
that one of their priorities to give Iowa companies preference which it comes to landing state contracts. However, this is al-
Appropriations
ready state law. In fact, it is in the Code of
Iowa in 4 different places and in the Iowa
Administrative Code twice. Furthermore
the House voted to include this idea in every budget bill during the 2014 session. So
it is not only already state law, it is a bipartisan priority.
Bullying
Adults need to respond to bullying quickly
and consistently. Teachers need the training and tools to intervene in simple and
safe ways. Kids need to be empowered to
stand up to it and help each other to stop it
on the spot. Bullying isn’t a partisan issue
nor should it be. Everyone wants schools
and kids to be safe. The Governor, once
again, has tabbed protecting kids from bullying a priority. There will likely be a discussion on our bullying law this session
and that discussion, as any changes to our
bullying law, must include parents.
(Contact Brad Trow at 1-3471)
December Revenue Report Shows Growth
Iowa’s tax receipts experienced a major
rebound in revenue growth during December, according to the Legislative Services
Agency. State revenue in December was
$109.8 million higher than the amount taken
in during December 2013. This increase
raised the revenue growth through the first
six months of Fiscal Year 2015 to 5.8 percent. The state’s revenue growth for the
first six months of the year has been indicative of Iowa’s strong economic position currently.
Personal income tax collections grew by
$49 million in December, an increase of
16.8% over December 2013. The strong
December numbers raised the fiscal year
growth in personal income tax to 5.4 percent, just slightly below the Revenue Estimating Conference’s projection of 5.7 percent growth.
Sales and Use tax collections also experienced a strong month. December revenue
in these categories grew by $46.7 million
over the previous year, an increase of 27.5
percent. Through the first six months of FY
2015, Sales and Use tax receipts have
grown by 5.8 percent. This is stronger
growth than what the REC has projected for
the year, setting Sales and Use Tax collections 4.4 percent higher than FY 2014.
tax revenue is growth of 3.8 percent in FY
2015.
A sizable portion of the revenue growth in
December was due to timing issues. November’s revenue growth was smaller than
projected due to one less processing day
for the Department of Revenue. That lost
processing day was picked up in December. According to LSA’s analysis, approximately $42 million of the revenue growth
last month came from the additional proCorporate income tax also experienced
cessing day. Of this amount, $16 million
growth for the month. This category collect- was personal income tax revenue and the
ed $12.3 million more than December 2013, rest came from sales and use tax collecwhich is an increase of 17.5%. Through
tions.
December, corporate collections trailed FY
2014 by 1.1 percent. But this gap, created While tax refunds increased during Decemby an accounting issue at the start of FY
ber, overall refunds continue to lag behind
2014, has been closing over the past few
FY 2014’s pace. Through December, tax
months. The REC forecast for corporate
refunds were down 3.9 percent.
Governor Branstad Unveils Budget Proposal for FY 2016 and FY 2017
Governor Branstad released his proposed
budgets for Fiscal Years 2016 and 2017 as
part of his condition of the State message
on Tuesday morning. While the budget did
not play a prominent role in the Condition of
the State message, Branstad’s recommen-
dations dominated the conversations under
the Golden Dome afterwards.
The Governor is proposing to spend
$7.3410 billion in FY 2016, an increase of
$346.7 million over FY 2015 or 4.95 per-
cent. Branstad’s FY 2016 proposal spends
more money than the Revenue Estimating
Conference’s December ongoing revenue
estimate of $7.1946 billion. The gap between ongoing revenue and the Governor’s
(Continued on page 3)
House Republican Newsletter
Page 3
(Continued from page 2)
budget is approximately $146.4 million.
tation of the Board of Regents’ performance
-based funding formula. This amount is
below the $13 million requested by the Regents for the University of Iowa.
For fiscal year 2017, the Governor is proposing a General Fund budget of $7.5252
For community colleges, the Governor is
billion. This would be an increase of $184.2 proposing to increase community college
million or 2.50 percent.
general aid funding by 1.75 percent or
$3.522 million. For Iowa’s private colleges,
As is usually the case, the subject getting
the Governor is proposing to increase fundthe most discussion was the Governor rec- ing for the Tuition Grant program by $4 milommendation for state funding to local
lion. This would be an 8.26% increase over
schools. Governor Branstad is proposing to the FY 2015 level. The tuition grant for
increase Supplemental State Aid by $50
students at for-profit colleges would be inmillion and to provide the second installcreased by $200,000 or 10.1 percent.
ment of $50 million for the teacher leadership component of the 2013 Education reform law. AEA funding would once again
“21.74% increase over
be reduced by $15 million. This increase of
$84.8 million will raise State school aid
five years”
funding to $3.0086 billion. Implementation
of this figure for FY 2016 would mean
schools had received an additional $537.1
million from the General Fund since FY
2011, a 21.74% increase over five years.
To address the continual growth in Medicaid, the Governor is proposing major reAmong the other K-12 education increases forms. His administration will expand the
provided by the Governor in FY 2016 are
use of managed care in Medicaid and other
$10 million for the High Need Schools procost containment initiatives, lowering state
gram, a $1.5 million increase for the Read- expenditures by $70.2 million in FY 2016.
ing Research Center, $1.0 for the Iowa
The Governor is proposing to fund the reReading Corps, and $200,000 for bullying
basing of Medicaid rates for hospitals, nursprevention.
ing homes, and home health agencies. At
this time, the Governor is not recommendFor FY 2017, the Governor is recommend- ing a supplemental appropriation for Mediing an additional $141.5 million for school
caid in FY 2015.
aid, including the final allocation of $50 million for implementation of the 2013 EducaAnother major area of discussion on Tuestion Reform law.
day was the Governor’s decision to phase
out services at the Clarinda and Mount
Governor Branstad also proposed giving
Pleasant mental health institutes. The poIowa’s three state universities a 1.75% intential elimination of mental health and subcrease ($8.768 million) in their general aid
stance abuse treatment beds at these two
funding to maintain the tuition freeze for in- beds is raising questions about the ability of
state students getting their bachelor dethose in the rural parts of southern Iowa to
grees. In recent weeks, the Board of Reaccess acute levels of care, while also putgents revised their position by stating that
ting additional pressure on the remaining
this funding is necessary for them to extend two MHI’s (Cherokee and Independence)
the freeze for a third year. The Governor
and other facilities.
also provides $4 million to begin implemen-
Agriculture
In addition to the General Fund proposals,
Governor Branstad also released his recommendations for spending from various
other state funds.
The Governor’s continues to provide additional resources to address ways to improve
Iowa’s water quality. The Rebuild Iowa Infrastructure Fund budget includes an increase of $3,100,000 for the state’s Water
Quality Initiative and $1,920,000 to close
additional ag drainage wells. Governor
Branstad is also recommending the state
move forward with the revitalization of the
State Historical Building. In his budget, the
Governor recommends $8.63 million in FY
2016 and $20.3 million in FY 2017 from
RIIF for this purpose.
The Iowa Veterans Home would also have
a series of infrastructure projects addressed
through the Governor’s plan. His budget
recommends spending $10.8 million from
RIIF in FY 2016 to address several infrastructure issues at the Iowa Veterans
Home. These include the replacement of
emergency fuel tanks, laundry renovations,
and air quality improvements for residents.
Funding is also provided for several of the
Governor’s new initiatives. To fund his IowaNext initiative for improving the quality of
life in Iowa, Governor Branstad is calling for
the creation of the Iowa Next Fund. The
Governor is recommending an appropriation of $26.1 million to the Iowa Next Fund
in FY 2016, with $20 million coming from
the State Bond Repayment Fund. And to
fund his “Connect Every Acre” initiative, the
Governor is recommending spending $5
million in grants to local communities.
These dollars would come from the Technology Reinvestment Fund ($2 million) and
the State Bond Repayment Fund ($3 million).
Consideration of the Governor’s proposal
now moves to the budget subcommittees.
House budget subcommittees will begin
their work on Thursday, January 15.
(Contact Lew Olson at 1-3096)
IDALS and USDA Announce Program to Improve Iowa Water Quality
On Monday, January 12, 2015, the United
States Department of Agriculture (USDA)
issued a press advisory announcing on
Wednesday, January 14, 2015, there will
be an unveiling of a new project which is
part of USDA’s new program, the Regional
Conservation Partnership Program, that will
partner with Iowa Department of Agriculture
and Land Stewardship (IDALS) nutrient
reduction strategy efforts. This project will
promote farmer-to-farmer education and
practice implementation through demonstration projects to help improve water
quality and is one of two, which originate in
Iowa. This project is one of more than 110
high-impact projects across all 50 states
that will receive more than $370 million as
part of this new effort. USDA’s Natural
Resources Conservation Service (NRCS)
will join IDALS to unveil this new project.
The announcement is scheduled to be
made at the Wallace State Office Building
Atrium at 3 P.M. on Wednesday, January
15, 2015. The NRCS is scheduled to be
represented by State Conservationist Jay
Mar who will be joined by Iowa Secretary of
Agriculture Bill Northey and NRCS Assistant Chief Kirk Hanlin.
(Continued on page 4)
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House Republican Newsletter
servation efforts, and develop new programs to help engage all Iowans in improvIn a related matter, Iowa Secretary of Agri- ing water quality. Branstad also included
culture Bill Northey issued a press release $6.75 million for conservation cost share in
on Tuesday, January 13, 2015, that
his budget which is at the current year’s
thanked Gov. Branstad and Lt. Gov. Reyn- level. For over four decades, Iowa’s soil
olds for including $7.5 million for the Water conservation cost share program has enQuality Initiative in their budget procouraged the adoption of conservation
posal. This proposal continues their strong structures and practices to protect and presupport for a voluntary, science-based ap- serve our state’s natural resources and
proach to improving water quality, building improve water quality. Last year alone, the
on the $2.4 million and $4.4 million restate’s $9.5 million investment generated
ceived from the general fund in fiscal years $13 million in matching funds from Iowa
2014 and 2015 to support water quality.
farmers and land owners to support conservation practices.
The $7.5 million for the Water Quality Initiative would allow IDALS to offer cost share
The Governor’s Budget request proposed
statewide to farmers trying new water quali- that the Water Quality Initiative Funding be
ty practices, continue work in targeted wa- increased from $4.4-million general fund
tersheds to achieve measurable water
appropriation in the current fiscal year to a
quality improvements, expand urban concombined $7.5-million for fiscal year 2016
(Continued from page 3)
with an additional $3.1-million in Rebuild
Iowa Infrastructure Fund moneys. This
recommendation puts funding at the level
of support IDALS sought for Water Quality
Initiative program funding in its budget request to the Governor, but returns funding
level for the program back to $4.4-million of
general fund moneys in FY 2017. The
Governor also proposes to provide the FY
2016 IDALS asking for $1.92-million for ag
drainage well closure alternative drainage
that will allow for the closure of eight additional agriculture drainage wells in the state
to protect groundwater quality agriculture
drainage wells in the state, but proposed
no funding in FY 2017. IDALS had requested $1.92-million for both FY 2016 and
FY 2017 and that would have allowed 17
ag drainage wells to be closed.
USDA Announces More Than $18 Million to Support Training and Development
for Beginning Farmers and Ranchers
On Monday, January 12, 2105 the United
State Department of Agriculture (USDA)
issued a press release in which USDA
Deputy Secretary Krysta Harden announced the availability of more than $18
million in funding to help educate, mentor
and enhance the sustainability of the next
generation of farmers. This support is
available through the Beginning Farmer
and Rancher Development Program
(BFRDP), administered by USDA's National Institute for Food and Agriculture (NIFA).
Winning awards from last year's application
cycle will be announced in the near future.
ganization providing services to beginning
farmers and ranchers. At least five percent
of the funds must go to projects that serve
military veteran beginning farmers and
ranchers, and at least five percent to projects that serve socially-disadvantaged,
limited-resource, or farmworker audiences.
All applicants are required to provide funds
or in-kind support from non-federal sources
in an amount that is at least equal to 25
percent of the federal funds requested.
Priority topics are:

Basic livestock, forest management,
and crop farming practices;
The Beginning Farmer and Rancher Devel- 
Innovative farm, ranch, and private,
opment Program awards grants to organinonindustrial forest land transfer stratzations implementing programs to train
egies;
beginning farmers and ranchers, including 
Entrepreneurship and business trainworkshops, educational teams, training,
ing;
and technical assistance throughout the

Financial and risk management trainUnited States. Fiscal Year 2015 applicaing (including the acquisition and mantions for BFRDP are due March 13, 2015.
agement of agricultural credit);
Eligible applicants are collaborative, state, 
Natural resource management and
tribal, local, or regionally-based network or
planning;
partnership of public or private entities,

Diversification and marketing strateincluding state cooperative extension sergies;
vice; community-based and nongovern
Curriculum development;
mental organization; colleges or universi
Mentoring, apprenticeships, and inties (including institutions awarding associternships;
ate degrees); or any other appropriate or-






Resources and referral;
Farm financial benchmarking;
Assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers;
Agricultural rehabilitation and vocational training for veterans;
Farm safety and awareness; and
Other similar subject areas of use to
beginning farmers or ranchers.
NIFA will host a webinar for interested applicants on Wednesday, February 11,
2015, from 2:00-4:00 p.m. EST. No password or advance reservation is required. A
recording will be posted on the NIFA website shortly after the event.
Page 5
House Republican Newsletter
Commerce
(Contact Dane Schumann at 1-3626)
Internet Access Takes Center Stage In Washington and Des Moines
President Obama unveiled a series of
measures this week aimed at making highspeed Internet access cheaper and more
widely available. His announcement, made
in Cedar Falls, focused chiefly on efforts by
cities to build their own Internet networks
as competitive alternatives to major web
providers.
The president said he’ll urge the Federal
Communications Commission to help neutralize state laws that effectively protect
established Internet providers against municipal networks that want to build and offer
services. Federal agencies will also expand grants for both municipal and rural
providers.
Wednesday’s speech opens a different
front in another issue that’s before the
FCC: net neutrality. The president’s communique to the FCC marks his second
since November when he asked the agency to apply strong net neutrality rules on
Internet providers that would ban them
from charging different prices for highcontent web traffic from companies like
Netflix. The video streaming service also
urged the FCC last year to preempt the
kinds of state laws that prevent municipal
Internet networks from coming online in
places like Colorado, for example, where a
city must hold a successful referendum
before undertaking such a project.
net neutrality rules.
Meanwhile, existing Internet providers are
pushing back. In August, AT&T warned the
FCC that public investments in municipal
networks will only diminish private-sector
investments that could both expand and
Cedar Falls is one of many cities across
enhance web access. And any move from
the county that have built their own publicly the FCC to neutralize state laws would
operated network, and a high percentage
almost surely meet fierce--and perhaps
of the city’s households are subscribers.
successful--legal resistance from estabNine Iowa cities offer similar services.
lished providers.
President Obama’s visit coincides with the
U.S. Department of Agriculture announcing
“10-year property tax
a multi-million dollar loan program to help
rural carriers build broadband in unserved
exemption”
or underserved areas. It also coincides
with Governor Branstad’s Connect Every
FCC Chairman Tom Wheeler wrote last
Acre initiative, which he announced during
year that the public interest would be
Tuesday’s Condition of the State Address.
served if the FCC moved to “preempt state His proposal would provide a 10-year proplaws that ban or restrict competition from
erty tax exemption for broadband infracommunity broadband.” The FCC’s constructure in place on or after July 1, 2014.
gressional charter gives it the authority to
A $5 million grant program would also help
stimulate broadband deployment, a broadly spur broadband access to farms, school
worded commission that could also be
and rural communities.
used to authorize its equally controversial
Economic Growth
(Contact Dane Schumann at 1-3626)
Branstad Proposes Partnership for Workers, Employers
Business leaders continue to urge state
legislators to support and expand programs
designed to develop more highly skilled
employees. On Tuesday, Governor Branstad used his Condition of the State address to join the chorus by asking the legislature to pass a bill creating the Center for
Human Capital Enrichment. The new public-private partnership would research best
practices, study data and make recommendations to help improve both the quality of
Iowa’s workforce and the way stakeholders
utilize their human capital.
The private side of the partnership would
be represented by the Human Capital Enrichment Council, an advisory body that
would represent the needs of employers
and the education sector. The council
members would also include the state auditor and the directors of Workforce Development, the Department of Education and the
Economic Development Authority along
with other lead policy agencies. It would
also include the 21 largest private employers in the state, such as Rockwell Collins
and Principal Financial.
Education
An operations team comprised of state
employees from those lead policy agencies
would comprise the public side of the partnership. This Operations Team will ensure
the council has the resources available to
carry out its mission.
The governor proposed a prototype of the
initiative last fall during his reelection campaign as a way to help Iowans align their
existing skills or educational opportunities
with the needs of Iowa businesses.
Contact Jason Chapman at 1-3015)
The Governor’s Education Agenda
The legislative session for 2015 began this
week with the usual pomp and circumstance. New legislators took their seats,
returning legislators resumed their work,
and the Governor delivered his State of the shown to education over the past four
State Address. In his speech he laid out
several education claims and proposals,
(Continued on page 6)
continuing the strong commitment he’s
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House Republican Newsletter
(Continued from page 5)
years.
While the speech was short on details and
some proposals are waiting for accompanying language to flesh them out, here are
current details:
Regents Universities
The last two years the legislature provided
funding to the three Regents Universities
(the University of Iowa, Iowa State University, and the University of Northern Iowa)
that allowed the universities to freeze tuition for undergraduate resident students.
This had not been accomplished for over
40 years.
The Regents this year have proposed yet
another tuition freeze, for which the Governor expressed support during his speech.
The tuition freeze is contingent upon the
Regents’ funding request, which amounts
to a 1.75% increase for each university, or
about $9 million in increased funding.
this challenge last fall. Details on the program are yet to be determined, but similar
programs are being created in other states
around the nation.
Private College Affordability
He also made reference to his proposed
increase for the Iowa Tuition Grant, a
scholarship program that provides students
financial help to attend a private college or
university in Iowa. The Governor’s proposal is a $4 million increase. The legislature has made some significant increases
over the past few years to the Tuition
Grant, and last year raised the cap for what
each student could receive from $4,000 to
$5,000.
FY12 - $43.5 million
FY13 - $45.5 million
FY14 - $47.0 million
FY15 - $48.4 million
FY16 - $52.4 million (proposed)
Community Colleges and A Skilled
Workforce
The Governor also reiterated commitment
The Governor also brought up his chalto the Community Colleges and the Skilled
lenge to the universities to create $10,000 Worker and Job Creation Fund. The Govdegree programs for students, allowing
ernor’s proposal for FY16 is an additional
those students to attain higher education at $3.5 million, or a 1.75% increase, in line
a more affordable cost. He first unveiled
with the Regents.
FY12 - $164 million
FY13 - $177 million
FY14 - $193 million
FY15 - $201 million
FY16 - $205 million (proposed)
Bullying
Finally, the Governor mentioned his commitment to passing an Anti-Bullying bill.
The Governor hosted summits on antibullying in 2012 and 2013 and proposed
legislation during the 2013 and 2014 sessions. 2013’s unwieldy bill received no
Floor action in either chamber. 2014’s bill
was altered in both chambers and both
chambers passed a bill, but a reconciliation
on the differences never materialized.
This year’s bill appears to contain some of
last year’s elements but with new ideas
included. Full details are yet to come, however.
The House Education Committee convenes
this week for organization. Next week the
committee will begin its work looking at the
Governor’s proposals and many other proposals brought forward by the members of
the House.
The Governor’s Education Budget Proposal
The Governor released his budget proposal 
this week in conjunction with the legislature’s opening ceremonies and the Gover- 
nor’s State of the State address.
Within the Education budget, which funds
the Department for the Blind, the College
Student Aid Commission, the Department
of Education, Community Colleges, Vocational Rehabilitation, Iowa Public Television, and the Board of Regents, he proposed spending $1.02 billion, an increase
of $36.3 million over FY15’s $986 million.
$200,000 increase for the Iowa Tuition
Grant for For-Profits
$1.3 million increase for the Teach
Iowa Scholars Program
Department of Education

$1.2 million increase for the Department’s administrative costs

$1.5 million increase for the Iowa
Reading Research Center

$3.5 million increase for Community
Colleges

$200,000 new line item for Bullying
Prevention
Notable changes over FY15 include:

$10 million new line item for High
Needs Schools
College Student Aid Commission

$1 million new line item for the Iowa

$181,787 increase for administrative
Reading Corps
costs with the Commission

$600,000 for a new State K-12 Career

$4 million increase for the Iowa Tuition
Planning System
Grant

$1.5 million for a new line item title

Iowa Academic Standards
$100,000 for a new Principal Leadership Institute
Iowa Public Television

$282,000 increase for IPTV
Board of Regents

$4 million increase for the University of
Iowa

$3.1 million increase for Iowa State
University

$1.6 million increase for the University
of Northern Iowa

$4 million new line item to help the
Regents implement their new Performance-Based Funding model

$164,358 increase for the Iowa School
for the Deaf

$68,525 increase for the Iowa Braille
and Sight Saving School
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House Republican Newsletter
(Continued from page 6)

PK-12 School Aid
Outside of the scope of the Education Appropriations bill, the Governor also mentioned his proposed increases for PK-12
school aid funding. While he did not release a percent of growth, his proposed
increase of $84.8 million for FY16 includes
what would amount to roughly a 1.25%
Supplemental State Aid amount and his
proposal of $143.9 million for FY17 includes what would amount to roughly a
2.45% Supplemental State Aid growth percentage. Here’s a breakdown of the proposals:
FY16 (15/16 school year):

1.25% Supplemental State Aid Increase

$18.5 million increase for School Aid




through the Regular Program
$5.9 million increase for Categorical
program (Teacher Salary Supplement,
Professional Development, and Early
Intervention dollars)
$3.2 million increase for preschool
$5.6 million increase for Property Tax
Replacement Payment which picks up
the property tax increase
$50.2 million for the Teacher Leadership Compensation system, which
becomes another Categorical program
with the other three.
It would also put about half of districts
on the Budget Guarantee for a cost of
$16.3 million.
FY17 (16/17 school year):

2.45% Supplemental State Aid Increase

$52 million increase for School Aid
through the Regular Program





$9.1 million increase for Categorical
program (Teacher Salary Supplement,
Professional Development, and Early
Intervention dollars)
$3.7 million increase for preschool
$10.8 million increase for Property Tax
Replacement Payment which picks up
the property tax increase
$53 million for the Teacher Leadership
Compensation system, which becomes another Categorical program
with the other three.
This would also put about 37% of districts on the Budget Guarantee for a
cost of $18.1 million.
The House Education Committee will be
looking at Supplemental State Aid amounts
within a bill likely next week, while the
House Education Appropriations Committee will begin its budget process next week.
Environmental Protection
(Contact Lew Olson at 1-3096)
Environmental Protection and Natural Resources Commissions Will Meet
Jointly Jan. 21
On Thursday, January 08, 2015 the Iowa
Department of Natural Resources (DNR)
issued a press release in which the state
agency announced that the Environmental
Protection Commission (EPC) and the Natural Resources Commission (NRC) will
meet jointly Wednesday, January 21 at 10
a.m. at the Wallace Building fifth floor conference rooms at 502 E. Ninth St. in Des
Moines. Each commission will present its
annual report followed by reports of mutual
interest from DNR staff. The joint meeting
will conclude at 1 p.m. Commissioners will
gather prior to the joint meeting at the State
Capitol from 7:30 a.m. to 9:30 a.m. to meet
with legislators. At 1:30 p.m. the Environmental Protection and Natural Resources
commissions will reconvene in separate
meeting rooms for their business meetings
with the EPC meeting on the third floor of
the Wallace Building, where it will receive a
presentation on stakeholder recommendations for fully funding the Air Quality Bureau’s programs into the future. Reductions in air emissions have led to declining
revenues from fees assessed on air emissions.
mental interests studied the bureau’s funding structure and developed six recommendations that were fully supported by 19
members of the group. The DNR submitted a report to the General Assembly regarding the findings and recommendations
of the stakeholder group in December
2014. The complete report is available on
the DNR website under Workgroups, AQ
Stakeholder Group at--www.iowadnr.gov/
InsideDNR/RegulatoryAir/
StakeholderInvolvement.aspx.
Thirty stakeholders from small and large
businesses, governments, and environ-
DNR Announces Manure Applicator Training Begins in January
On Thursday, December 18, 2015, the
Iowa Department of Natural Resources
(DNR) issued a press release in which the
state agency announced that Iowa manure
applicators, confinement and commercial,
should plan to take training to renew their
certificates by March 1, 2015. Commercial
applicators were afforded an opportunity of
a January 6th that was program was offered from 9 a.m. to noon at 72 Iowa locations. Commercial applicators can also
take training at three sessions in Minnesota
and Wisconsin. Confinement site applicators can take training at many county Extension offices from January 13th to February 27, 2015. Confinement applicators
should check the training schedule to pick
a convenient location and time.
cattle or hog manure in a dry or solid form.
They are open to both confinement and
commercial applicators. After completing
the training, applicators should submit applications and fees to the DNR prior to
March 1 to avoid a $12.50 late fee. Check
for training times and locations at
Applicators who work with mostly dry or
www.agronext.iastate.edu/immag/
solid manure may want to schedule training mac.html. More information about the proat one of seven February workshops.
gram is available at www.iowadnr.gov/afo/.
These workshops specifically meet the
Testing is available at six DNR field offices
needs of applicators who work with poultry,
(Continued on page 8)
Page 8
House Republican Newsletter
(Continued from page 7)
in lieu of training.
The DNR certified 2,694 commercial and
2,363 confinement site manure applicators
in 2014. Certified applicators annually complete a training session, or pass an exam.
The DNR administers the manure applicator certification program in Iowa. ISU Extension and Outreach provides training
opportunities. State law requires certifica-
tion for manure applicators who handle,
transport or apply manure from a confinement (totally roofed) facility with more than
500 animal units.
Human Resources
(Contact Carrie Malone at 5-2063)
Governor Proposes Significant Changes to Medicaid Budget
On January 13th, Governor Branstad released his FY16 and FY17 budget proposals. The Governor’s proposal includes
major reforms to the Iowa Medicaid program. It also includes cost containment
initiatives that will save over $70 million in
FY16. Below are some of the changes the
Governor is proposing in his FY16 Medicaid budget:
Cost Containment - The Governor has
proposed $70 million in cost containment
initiatives. The largest one is a proposal to
modernize the way Medicaid services are
delivered by transitioning the Medicaid program to a managed care model. This
switch will save the Medicaid program $51
million in FY16. The Governor has also
proposed implementing a waiting list for the
intellectual disabilities waiver. This will
result in a $6 million savings. Other cost
Mental Health Redesign - The budget
containment initiatives include payment
proposes to eliminate mental health equalireform. The Governor has proposed to
zation.
increase the nursing facility assessment
fee to 3%. This will save almost $4 million.
Finally, the Governor has proposed that the
“$70 million in cost
University of Iowa fund the state share of
containment
Disproportionate Share Hospital (DSH)
payments. This will save $4.5 million.
initiatives”
FMAP - The budget includes an increase of
$56 million to reflect a change in the Federal Medical Assistance Percentage (FMAP) Mental Health Institutions - The budget
rate.
recommends eliminating the Clarinda and
Mount Pleasant MHIs and transferring control of the campuses to the Department of
Rebase - The budget includes a total of
$42.8 million to rebase nursing facilities,
Corrections. This will save $8.2 million in
hospitals, and home health services.
FY16 and FY17.
Judiciary
(Contact Amanda Freel at 1-5230)
State of the Judiciary
On Wednesday, Chief Justice Mark S. Cady, of the Iowa Supreme Court, delivered
the State of the Judiciary. Each year the
Chief Justice is required to deliver this
speech to the general assembly. In the
address, the Chief Justice may express
what he believes is important for Senators
and Representatives to know about the
Court system.
which courts are working for all Iowans.
From specialty courts that focus on families
to easier access to court documents
through technology. Iowa Courts, now
more than ever, are more accessible to all.
Keeping the courts open and accessible
has been a major focus for the legislature.
With additional funding appropriated in the
past several years, Court Houses in Iowa
Chief Justice Cady used his State of the
were able to expand their hours and ensure
Judiciary to highlight the goals and sucbetter access to justice, no matter where a
cesses of the judicial branch. Those goals person is in the state, through the use of
include; protecting Iowan’s children, provid- the Electronic Data Management System
ing full time access to justice; operating an (EDMS). As of today, over 4 million docuefficient and full services court system;
ments have been uploaded on the EDMS
providing faster and less costly resolutions system.
of legal disputes; remaining open and
transparent; and, providing fair and impar- Iowa Courts are continuing to focus on
tial justice for all.
providing justice for all. Justice Cady promised that members of the Judicial Branch
The Chief Justice focused on the ways in
will be reviewing specialty courts, sentenc-
ing and other procedures in order to ensure
all Iowans are treated fairly.
With the conclusion of the State of the Judiciary, members of the Justice Systems
Budget Subcommittee will begin meeting to
evaluate the funding for the Courts for the
2016 budget. This Subcommittee will work
to ensure the Courts receive appropriate
funding to continue their work.
Page 9
House Republican Newsletter
Labor
(Contact Colin Tadlock at 1-3440)
Wahlert Retires from Workforce Development
On Sunday, January 11, Governor Branstad announced the retirement of Iowa
Workforce Development (IWD) Director
Theresa Wahlert. She reportedly gave
notice to the Governor’s office the previous
Friday. Wahlert had served in the Director
role since Governor Branstad returned to
office in 2011.
AT&T, and Mid-America Group.
IWD was ruling against businesses the
majority of the time and that rulings in favor
While serving as Director of IWD, Wahlert
of employees had increased during her
received harsh criticism from Senate Dem- time as Director. Additionally, UI rulings
ocrats who claimed that she created a hos- were being made in a much timely manner.
tile work environment. Additionally, Senate
Democrats claimed that she pressured
For the time being, Beth Townsend has
Administrative Law Judges to make more
been appointed to serve as the acting Dipro-business rulings in unemployment inrector of IWD. She most currently has
Prior to serving in state government, Wah- surance appeal hearings. During Senate
served as Executive Director of the Iowa
lert worked as an executive for several
Government Oversight hearings however,
Civil Rights Commission. No timeline has
private sector businesses, including Qwest, Wahlert presented data that showed that
been set to appoint a permanent director.
National Unemployment Drops to 5.6%
On Friday, January 9, the Federal Department of Labor announced that the national
unemployment rate dropped to 5.6% after
adding 252,000 jobs in the month of December. The national rate was 5.8% in
November.
ond, adding 48,000 jobs.
“Iowa’s unemployment
rate sits at 4.3%”
Job gains were led by professional and
business services which added 52,000 jobs
in December. Construction came in sec-
Not all of this came as good new however,
as the labor force continued to shrink. The
labor force participation rate dropped from
62.9% in November to 62.7% in December
as 273,000 workers stopped looking for
work. Over the last year, the participation
rate has hovered between 62.7-63.0%.
Currently Iowa’s unemployment rate sits at
4.3% which is tied for 10th best nationally.
Natural Resources
(Contact Carrie Malone at 5-2063)
Deer Harvest Larger than 2013
In 2013, Iowa deer hunters harvested
99,414 deer. In 2014 they reported harvesting 101,500, which is an increase of
2,086. This increase is due to good weather during the first shotgun deer season.
15 percent more bucks than last year.
The harvest of does decreased 6% from
last year. This reduction is part of a management plan that will allow the herd to
stabilize. Hunters also reported harvesting
Public Safety
Iowa’s deer season ended on January 10.
(Contact Amanda Freel at 1-5230)
Roxann Ryan Named Acting Commissioner of the Department of Public Safety
Earlier this month, Governor Branstad appointed Roxann Ryan as the acting commissioner of the Iowa Department of Public
Safety. This appointment comes as Larry
Noble retired as Commissioner.
ment of Public Safety since 2006. Prior to
working with DPS, Ryan was employed by
the Attorney General’s Office in the criminal
division from 1980-2004. She has also
taught at Simpson College.
Ryan earned her Bachelor’s Degree from
Iowa State, her law degree from the University of Iowa and a PhD in Criminal Justice from the University of Nebraska Omaha. She has worked with the Iowa Depart-
The Department of Public Safety oversees
the Iowa State Patrol, Fires Marshall’s Office, Narcotics Enforcement as well as investigative and law enforcement intelligence divisions. According to the Iowa
Code, the Commissioner of the Department
of Public Safety is the Chief Executive Officer of the Department. The Commissioner
position is a full time job. Whoever is appointed Commissioner must be a person of
high moral character, in good standing in
the community where he or she lives, of
recognized executive and administrative
capacity and who shall not be selected
because of political affiliation.
Page 10
House Republican Newsletter
Transportation
Transportation Alternatives Program
Yesterday, the Iowa Transportation Commission had its monthly meeting where
they approved $1 million in total funding for
various statewide Transportation Alternatives program projects. The Transportation
Alternatives program was approved in federal law through the Moving Ahead for Progress in the 21st Century Act (MAP-21) in
2012.
The purpose of this program is in its name:
to provide funding for a variety of alternative transportation projects. Many of these
programs were eligible under separate
funding schedules, but the TAP replaces
funding from before MAP-21 to combine
them into one funding source. Some of
these programs include: trail funding, community improvement activities, safe routes
to school, among others. The program is
funded through contract authority from the
Highway Trust Fund’s Highway Account,
which is subject to the same obligations
and limitations as the overall federal-aid.
Each fiscal year, an amount equal to 2% of
the total amount authorized for federal-aid
highways must be reserved for the TAP.
There are also set-asides, suballocations
and transfers of fund provisions defined
throughout the program’s description.
Each state’s funding is determined by dividing the total among the states based on
the proportionate share from the FY 2009
Transportation Enhancements funding,
with the amount for TAP being set aside
from the State’s National Highway Performance Program. More detail about TAP’s
governing authority, funding provisions,
eligible programs as well as all reference to
the program’s general code provisions can
be found here.
In Iowa, most of the program funding goes
to metropolitan planning organizations and
regional planning affiliations for the selec-
tion of local projects, and is available to:
cities, counties, school districts or others
through an annual application procedure.
The following projects received approval
this year:





Iowa’s Living Roadway Projects Program (Trees Forever) - $200,000
Iowa Safe Routes to School Partnership (Iowa Northland Regional Transportation Authority and Iowa Bicycle
Coalition) - $157,893
Lewis & Clark Multiuse Trail Implementation Phase 1 (Iowa Department
of Transportation) - $230,607
Native Grass and Wildflower Seed for
County Road Rights of Way
(University of Northern Iowa and UNI
Integrated Roadside Vegetation Management) - $336,500
Urban Youth Corps (Iowa Department
of Transportation) - $75,000


Also, the Commission approved funding for
Iowa’s Clean Air Attainment Program for
the following projects (total $3,929,782):



Other Commission Actions:

The Commission also approved funding for
the Recreational Trails Program projects,
for a total of $1,204,133 for the following

programs:




Gypsum City OHV Park – Phase 3
Trail Construction (Iowa Department of
Natural Resources
and Webster County Improvement
Corporation) - $195,559
Iowa DNR AmeriCorps Trail Crew
(Iowa Department of Natural Resources) - $280,000
Mitchellville to Prairie City Rails to
Trails Corridor Acquisition (Jasper
County
Conservation) - $450,599
Raccoon River Valley Trail to High
Trestle Trail Connector Phase 1 Acquisition/Construction -
Veterans Affairs
Perry to Bouton (Dallas County Conservation Board) - $119,575
Snowmobile Trail Grooming Equipment Purchase (Iowa Department of
Natural Resources and
Iowa State Snowmobile Association) $240,000
Support for Program and Bicycle/Trails
Summits (Iowa Department
of Transportation) - $18,400



#2 Green/#6 Brown/#3 Blue Service
Expansion & Bus Expansion (Ames
Transit Agency) - $860,734
Adaptive Traffic Signal Control System
- 50th Street/60th Street (West Des
Moines) - $397,960
Express Routes #92, #93, #98 Service
Improvements (Des Moines Area Regional Transit Authority) - $227,453
I-380 and Boyson Road Interchange
Improvements (Hiawatha) $1,000,000
Smart Transit: Midtown Loop (Grey
Line) and Feeder (Express) (Dubuque
dba The Jule Transit) - $442,735
University of Iowa/Iowa City Bike
Share Program (University of Iowa and
Iowa City) - $135,300
US Hwy 6 Adaptive Traffic Control
System Implementation (Clive and
Urbandale) - $665,600
Windsor Heights Transit Station and
Park & Ride (Des Moines Area Regional Transit Authority and Windsor
Heights) - $200,000
A summary of all other Commission actions
can be found here.
(Contact Kristi Kielhorn at 2-5290)
University of Iowa Champions Veteran Students
Last year’s Home Base Iowa package was
not just about pension exclusions and reciprocal licenses. The legislation also sought
to help veterans obtain higher education
and find jobs. That goal required colleges
and universities to have on-campus resources geared toward veterans and recognizing their unique needs.
If a college or university wants to become a
Home Base Iowa school, certain criteria
1. On-Campus Veteran Resources
have to be met. If those criteria are met, the
a. Full Time Veterans Services Coordischool becomes a Certified Higher Acanator or Veterans’ Representative and
demic Military Partner (CHAMP).
office.
b. Veterans Center/study space dedicatEducation institutions must meet three of
ed to veteran student population with
the four criteria in each of the three categories below:
(Continued on page 11)
Page 11
(Continued from page 10)
House Republican Newsletter
c. Offer veterans
sections for new student orientation.
d. College President Signature on Principles of Excellence laid out in Executive Order 13607
possibility of computers to sign up for
benefits or meeting area for Vet Club.
c. Veterans’ Services Support Group
(made up of Veterans’ Representative, Advisors, Faculty, Staff) to ad3. Financial Considerations
dress issues veterans face and ena. Automatic in-state tuition for former
courage veterans clubs and meetings.
active-duty service members, National
d. Career placement assistance
Guard and Reserve members, spouses and children domiciled in Iowa,
2. Mindfulness of Service Member Transiregardless of residency requirements.
tions
b. Deferred billing options to ensure tima. Consistent credit honored for all of the
ing of VA benefit payments does not
established military training and
hinder academic success.
schools (Joint Services Transcript,
c. Deferred billing or options to assist
Community College of the Air Force
student veterans in purchasing books,
credit, ACE recommended credit,
tools and supplies required for vocaCLEP, DSST).
tional programs.
b. Advanced/Preferential registration
dates for student veteran population.
d. Specific scholarship for transitioning
service members and/or their dependents.
The University of Iowa joined seven other
schools by achieving the certification. The
University of Iowa’s program boasts in-state
tuition for all veterans and a “Life After Service” course aimed at helping veterans navigate through college life and beyond.
The school is also working on creating a
training course for faculty and staff to cover
issues related to teaching and assisting the
veteran population effectively. The University of Iowa estimates that there are about
500 veterans, dependents, and active-duty
service members at the school. That number is expected to go up as service members return from duty.
Ways & Means
(Contact Kristi Kielhorn at 2-5290)
Slight Increase in Iowa 529 College Savings Plan Tax Deduction
Starting in tax year 2015, each Iowa taxpayer will be able to deduct up to $3,163 in
contributions per beneficiary account from
state taxable income. A married couple
with two children could deduct up to
$12,652. The deduction is increased annually for inflation and was at $3,098 for tax
year 2014.
college education for a future student. The vantage of the Iowa income tax deduction if
beneficiary of a 529 plan can withdraw the they are residents. For more information
investment tax-free to pay for qualified
visit: www.collegesavingsiowa.com.
higher education expenses. Those expenses can include tuition, books, supplies, and
“www.
room and board at any eligible university,
community college, or technical training
CollegeSavingsIowa
school.
College Savings Iowa is a way for parents,
grandparents, and others to invest in a
Those wishing to invest in a plan do not
have to live in Iowa, but can only take ad-
.com”