April 30, 2008 Advocacy Hotline

April 30, 2008
News from the Capitol Steps
Welcome to the final 2008 edition of the ILA Advocacy Hotline. We will publish one more bill list following the end of the Governor’s 30-day bill review period to show you the final disposition of all bills being tracked for the ILA.

The 2nd Regular Session of the 82nd General Assembly officially completed its work just after 2:30 AM on Saturday, April 26th. Now, legislators will head back to their districts to prepare for what is predicted to be a bruising campaign season leading up to Election Day on November 4th, 2008.

Obviously, each party has a different take on whether the session was a glowing success, a colossal failure, or somewhere in between. It will be up to Iowans to make that judgment themselves based on the major legislation passed by the Legislature this session. That list includes the following:

SILO – Turns the local option sales tax for education into a statewide program and increases the sales tax on some items that previously were taxed at 5% instead of 6%.
Core Curriculum Standards – Requires the establishment of a core curriculum for public and private schools for implementation in 2012.
Collective Bargaining Bill – This bill has been in the news a lot and has now been sent to the Governor for his veto or signature. The bill would greatly expand the list of items public employees could demand be discussed during negotiations.
Health Care Reform – A bill that dramatically increases the number of Iowans covered by health insurance, particularly children.
TIME-21 – Through an increase in a number of registration and license fees, this bill will eventually mean an increase of about $140 million in funding for transportation infrastructure.
Statewide Public Smoking Ban – Places many limits on where cigarettes can be smoked; exempts casinos.

The Governor is anticipated to sign all of the above, except for the Collective Bargaining bill which we would give EVEN odds.

A Word of Thanks – We rely on the hard work of several legislators throughout the session to drive ILA’s priorities. However, this job would be way more difficult without the countless unsung heroes on the House and Senate caucus staffs as well as the experts at the Legislative Services Agency. They toil in the shadows way before the Legislature gavels in and they remain at their desks far beyond each day’s adjournment. One misplaced comma could destroy your provision or turn your program upside-down, but luckily these folks are professionals who take their jobs very seriously and strive for perfection with every assignment. We hope now they all take some time to get some sleep and spend some time with their loved ones!

Status Quo Library Budget
We never thought the words “status quo budget” would be as welcome as they were this year. The library community spent much of the legislative session dodging potential cuts to the budget and your input with legislators and the Governor paid off.

When the Revenue Estimating Conference announced their updated budget projections on April 4th, the Governor immediately released a press announcement that called for investing more in libraries, along with community colleges and private colleges. He heard from libraries all across the state and he clearly responded.

Going forward, this means we have a lot of work to do in preparation for next year. The Legislature will see a huge number of new members due to this year’s legislative retirements, so ILA members need to be out meeting candidates and incumbent legislators and telling them about libraries.

« Invite your legislators to coffee.
« Invite legislators from your region to have their forums in your library.
« Invite the Governor to come and visit your facility and to hold a public meeting there.
« Make sure you tell them all what services the library provides and why you are an important piece of the education and economic development puzzle for your community.

Start laying the groundwork for November’s election and for next session right now! Both will be here before you know it!

Early Childhood Iowa Council
The Health and Human Services budget bill included language creating an early childhood Iowa council to oversee the development of an Iowa early childhood system by integrating the early care, health, and education systems addressing the needs of children ages zero through five and their families. The council will advise the governor, general assembly, and public and private policy and service providers in coordinating activities throughout the state to fulfill its purpose.

The new council will be led by the Iowa Department of Public Health and will include many stakeholders. The state agency liaison team which shall provide input to the council will include the State Librarian, along with several other members.

*The information in this update is prepared for ILA by Campbell/Patterson Consulting, LLP.

Bills of Interest – As of April 25, 2008

Bills being tracked by IFA that have been sent to the Governor for his signature or veto
On appropriations bills, the Governor also has the option of using a line-item veto to strike specific sections.

HF 2663 - School Infrastructure Local Option (SILO) (Status: Sent to Governor) - This bill replaces the local option sales and services tax for school infrastructure purposes by increasing the state sales and use taxes from 5 percent to 6 percent, effective July 1, 2008. The increased use tax rate does not apply to the sale or lease of motor vehicles. The state sales and use tax rates are reduced from 6 percent to 5 percent on January 1, 2030. The increased state sales and use tax revenues are deposited into a new Secure an Advanced Vision for Education (SAVE) fund to be distributed to all school districts. A statewide amount per pupil would be computed each fiscal year based upon the estimated amount that would have been generated by a 1 percent local sales and services tax divided by the combined enrollment of all school districts. Each district will receive an amount equal to the amount that it would have received under the formula if the local sales and services tax for school infrastructure was still imposed. The bill contains several related provisions. Position: Monitor

HF 2679 - Education Budget (Status: Sent to Governor) - Appropriates $988.9 million from the general fund to various educational services and programs, an increase of $5.5 million over the FY08 level. Maintains current funding levels for the State Library ($1,879,827), Library Services Areas ($1,586,000), and Enrich Iowa ($1,823,432). Adds media specialists to community college "Quality Faculty Plans." Requires the Department of Education to establish an Ad Hoc Accreditation Quality Faculty Plan Protocol Committee to advise them on the development of protocols to be used by accreditation teams during site visits. Position: Monitor

HF 2699 - Economic Development Budget (Status: Sent to Governor) - Appropriates a total of $48.3 million from the General Fund, an increase of $7.4 million primarily used to replace lost federal dollars. Maintains funding for the Department of Cultural Affairs' Historical Division and Governor's Archives. Adds a new appropriation for the Iowa Cultural Caucus Project ($20,000), which takes place every four years. Position: Monitor

SF 2400 - Administration & Regulation Budget (Status: Sent to Governor) - Makes appropriations to various state agencies. Requires privately owned libraries and art galleries to file a claim in order to receive a property tax exemption if the library or gallery is used for public purposes and not for private profit. Position: Monitor

SF 2417 - Healthy Iowans Tobacco Trust Appropriations (Status: Sent to Governor) - Allocates money generated from the Iowa's tobacco settlement. Spends at current levels, but includes a $200,000 increase in funding for Before & After School Grants ($505,000). Position: Monitor

SF 2424 - State Retirement System Changes (Status: Sent to Governor) - This bill makes numerous changes to public retirement systems, including the public safety peace officers' retirement, accident, and disability system, the Iowa public employees' retirement system (IPERS), and the statewide fire and police retirement system, as well as other employee benefit matters. Among the numerous other changes in the bill, beginning July 1, 2011, IPERS will determine a required contribution rate for each membership group, including members in regular service, which is the contribution rate the system actuarially determines is the rate required by the system to discharge its liabilities as to that membership group as a percentage of the covered wages of members in that membership category. Code sections concerning annuity contracts for area education agency (AEA) and school district employees, are stricken and rewritten by the bill. If your retirement is under the State of Iowa’s jurisdiction, please take a moment to pull up this bill and review its contents. Position: Monitor

SF 2425 - Health/Human Services Budget (Status: Sent to Governor) - Appropriates funds to various health & human services programs. Establishes an Early Childhood Iowa Council to function as an alliance of stakeholders for early care, health and education systems that affect children ages 0-5 in order to oversee the development of an integrated early care system. The Council will advise the Governor, Legislature, and public and private agencies on these matters. Establishes as the vision of the Council as "Every child, beginning at birth, will be healthy and successful." Invites anyone with an interest in furthering this vision to be a member of the Council. Establishes a steering committee of the council to organize & manage the efforts and a "state liaison team" to include the following state agencies that have an impact on children's lives - Child Health Specialty Clinics, Community Empowerment Office, Department of Education, State Librarian, Governor's Office, Department of Human Rights, Department of Human Services, ISU Extension, and Department of Public Health. Duties and reporting requirements are outlined. Position: Monitor

SF 2432 - RIIF (Rebuild Iowa Infrastructure Fund) Budget (Status: Sent to Governor) - Spends $484.1 million on various infrastructure projects, and authorizes $130.7 million in bonds to build a new prison. Maintains Enrich Iowa library funding ($1 million, of which $50,000 is distributed equally among the LSAs). Position: Monitor

Bills being tracked by IFA that have already been signed by the Governor

SF 2176 - Cultural Affairs Changes (Status: Signed) - Requires the Historical Division of the Department of Cultural Affairs (DCA) create a digital collection of records for research purposes and make the collection available to the public. Requires DCA establish a statewide culture, history, & arts teams (CHAT) to coordinate cultural efforts. Clarifies that these teams are local organizations. Establishes a Civil War Advisory Committee to help the Historical Division plan a sesquicentennial commemoration of Iowa's role in the American civil war. Effective 7/1/2008. Position: Monitor

DEAD Bills – Bills being tracked by ILA that DID NOT advance to the Governor for his signature or veto

HF 2516 - Property Tax Changes (Status: DEAD) - Division I of the bill makes the assessment limitations of residential, agricultural, and commercial property mutually dependent by limiting the percentage increase in all of those classes of property to the percentage increase of that class of property that is the lowest percentage increase under the allowable (4 percent) limit. Division II of the bill requires that if an equalization order issued to an assessing jurisdiction that is a percentage increase in assessed values, then property taxes are limited to the amount certified in the previous year, unless the city or county adopts a resolution declaring that it does not intend to reduce its levy rates to compensate for the increase in valuation due to the equalization orders. Division III of the bill provides that if an increase in allowable growth causes an increase in property taxes the state shall pay that increase rather than property owners. Position: Undecided

HF 2659 - Property Tax Reform (Status: DEAD) - This bill makes several changes to laws relating to property taxes, assessment of property, city and county budgets funded primarily by property taxes, and school district budgets funded primarily by state and local taxes. Division I of the bill makes several changes relating to local budgets and property taxes, including but not limited to: Requiring all state mandates to be fully funded, increases the regular program foundation base per pupil from 87.5 percent to 95 percent, and reduces the $5.40 foundation levy to $4.32. The division also provides that a school district cannot levy property taxes, other than foundation and additional property taxes, in excess of .25 percent of the taxable value of residential and agricultural property and .75 percent of commercial property and .5 percent of industrial property. The division contains transition provisions for tax levies for the next three fiscal years. The division also contains several other levy provisions and limitations, as well as rules pertaining to county ending fund balances. The division allows a city or a county to impose, by ordinance, a service charge against property located in the city or county, as applicable. The division increases from 50 percent to 75 percent the portion of base year expenditures paid by the state for mental health, mental retardation, and developmental disabilities, removes the square footage tax on mobile homes and manufactured homes and replaces it with the ad valorem tax imposed on other residences. Division II of the bill, relating to assessment of property, provides that the sale price of property sold in the calendar year prior to the assessment year shall be presumed to be the market value of the property for that assessment year if the buyer and the seller were not immediate family members, as well as several other sections pertaining to county assessors, value of new construction, removal of assessment limitations and many other issues. Division III of the bill makes several changes to property tax credits and exemptions, including the homestead property tax credit, the military property tax credit, the elderly, disabled, and the low-income property tax credit. The division provides that any land in a forest reservation is exempt from school district levies only and requires the owner of land in a forest or fruit tree reservation to annually certify that proper management techniques are being followed. The division repeals the family farm property tax credit and the agricultural land property tax credit. Division IV of the bill establishes an implementation committee to study the effects of implementation of the bill and report to the general assembly. Position: Monitor

HF 2670 - Tax Code Updates (Status: DEAD) - Requires privately owned libraries and art galleries to file a claim in order to receive a property tax exemption if the library or gallery is used for public purposes and not for private profit. Position: Monitor

HSB 715 & SSB 3236 - Combined Corporate Reporting (Status: DEAD) - This bill is a major revenue raiser ($70-75 million) in the Governor's budget proposal, however legislators do not believe they have the votes to pass this proposal. This bill requires that the net income of affiliated groups of corporations engaged in a unitary business be computed on a combined return basis for corporate tax purposes if the group meets the requirements for filing a consolidated return for federal tax purposes. The affiliated group would include corporations with common ownership whereby one or more corporations own 80 percent or more of another corporation. The bill would require that one Iowa corporate income tax return be filed that would include all unitary members of an affiliated group. Any nonunitary member that is subject to Iowa tax would file its own separate corporate return. Only Iowa sales of those corporations doing business in Iowa would be included in the numerator of the Iowa sales ratio. The bill also provides that only those corporations doing business in Iowa are jointly and severally liable for the tax of the combined return. Position: Monitor

SF 2402 - Tax Code Clean-Up (Status: DEAD) - Allows a privately owned library or art gallery being used for public purposes (and not for private profit) to receive a property tax exemption. Effective 7/1/2008. Position: Monitor

SF 2411 - Open Records & Public Meetings (Status: DEAD) - Makes many changes to Iowa's open records and public meetings laws, and clarifies many areas of the law that have been misunderstood or misinterpreted. Library patron records are exempted from open records laws, unless the custodian of the record (the library director) permits the access. Language that had been in the bill requiring libraries disclose a minor's library records to their parents upon request was eliminated (so there is no change in law related to this - it continues to be a local decision whether parents should have access to their kids' records). Position: Monitor

SSB 3243 - Local Income Surcharge (Status: DEAD) - This bill authorizes a city that is not part of a combined incorporated area to impose a local income surcharge after an election at which it is approved by a majority of those voting. A combined incorporated area is an area that includes all contiguous cities. The bill contains several provisions and stipulates that revenues would need to be deposited into a property tax relief fund for purposes of providing property tax credits, and the remaining revenues, if any, are to be deposited into the city general fund to be used for any lawful purposes of the city. Position: Monitor
Top Priorities: Library Issues 2008
Þ Provide statewide access to additional high-demand databases, such as test preparation software through the State Library of Iowa.
Þ Increase funding for Enrich Iowa to raise reimbursement rates of the popular and heavily used Open Access program.
Þ Increase funding for the Library Service Areas (LSAs) to support the Early Childhood Initiative and encourage family literacy, and provide valuable support services to Iowa’s libraries.
Þ Support full implementation of the teacher librarian requirement and the end to the two-year waiver period.
Þ Preserve hometown governance in Iowa public libraries by maintaining support for the local decision-making.
Important Dates
Þ November 4th, 2008 – Election Day 2008. All 100 Iowa House seats and one-half of Iowa’s Senate seats (25) are on the ballot. VOTE !!!!
Þ January 12th, 2009 – First Day of the 2009 Legislative Session.

The Best Resources for Your Advocacy Needs:Find Your Legislator - http://www.legis.state.ia.us/findleg/
Contact Your Legislator - http://www.legis.state.ia.us/aspx/Legislators/LegislatorInfo.aspx
Legislative Committee Listings - http://www.legis.state.ia.us/aspx/Committees/CommitteeInfo.aspx
Track Legislation (instantly updated) - http://www.legis.state.ia.us/Legislation.html
Listen to Debate (live) - http://www.legis.state.ia.us/Audio/Audio.html
House & Senate Calendars (weekly & daily) - http://www.legis.state.ia.us/Chambers.html
Session Calendar - http://www.legis.state.ia.us/Current/TimeTable.html
How a Bill Becomes a Law - http://www.legis.state.ia.us/Pubinfo/bill2law.htm
Guide to the General Assembly - http://www.legis.state.ia.us/Central/Guides/gaguide.pdf
2008 ILA Legislative Agenda - http://www.iowalibraryassociation.org/associations/2221/files/ILA%202008%20Legislative%20Agenda.pdf

Your Capitol Team
Mike Dargan, Government Affairs Committee Chair - MikeDargan@iowalibraryassociation.org
Amy Campbell, ILA Lobbyist – amy@campbell-patterson.com
Craig Patterson, ILA Lobbyist – craig@campbell-patterson.com