March 19, 2010

Week Ten
Tax credit reforms mean big savings, increased accountability
Spending our tax-credit dollars wisely
Misuse of taxpayer funds for education prompts investigation
Beware of costly schemes that get you your tax refund sooner
New local opportunities for cultural, arts and history
ECO Iowa City “Earth Month 2010” Events
March is ‘Flood Awareness Month’

Week Ten

Another week has passed and the Senate appears on track to adjourn late next week. The Senate passed a major corporate tax credit reform package SF 2380 on a party line vote. The legislation is a good start at bringing accountability for almost $500 million in annual tax credit spending. I have spent a considerable amount of time working on this issue. See the details below.

The legislation was developed through the hard work of a group of House and Senate legislators, including: Sen. Roger Stewart, Sen. Swati Dandekar, Sen. Rich Olive, Sen. Pam Jochum, Sen. Bill Dotzler, Sen. Matt McCoy, Rep. Paul Shomshor, Rep. Doris Kelley, Rep. Tyler Olson, Rep. Janet Petersen, Rep. Donovan Olson and Rep. Roger Thomas.

Here is a video clip of my opening statement on the legislation we debated on Tuesday: www.youtube.com/watch?v=k29jwbL35N8. The House is expected to the debate the bill today.

It appears that REAP will be funded at $15 million next year.

Tax credit reforms mean big savings, increased accountability

The recent abuses of some of the state’s film and other tax credit programs have appalled many Iowans.

We’ve listened to your concerns and are planning to give tax credits the same careful, regular examination as the rest of the state budget. This effort will save money and help ensure the dollars we do spend benefit Iowa families.

Senate File 2380, approved March 17 by the Iowa Senate, will end some tax credits, cut many remaining credits and dramatically increase accountability for all tax credits. These steps will reduce Iowa’s tax credit liability by more than $115 million.

When it comes to Iowa’s tax credit programs, we’ll continue to shift the focus away from Wall Street and invest more in our Main Street businesses. These are the businesses whose success will benefit more Iowans because small businesses continue to be Iowa’s job creators.

Far too often, Iowans don’t know if tax credits are creating the promised jobs and economic growth. We plan to change that with this year’s reforms. The public will know who receives each tax credit, the purpose of that credit, and the dollar amount spent on it.

The proposal that passed the Senate includes:
** Suspending the film tax credit program for two years;

** Cutting the Supplemental Research Activities Tax Credit in half for large corporations and shifting part of the savings to research and development incentives for small businesses;

** Lowering the overall cap from $185 million to $120 million on business tax credits;

** Cutting the Iowa Fund of Funds contingent tax credits from $100 million to $60 million;

** Cutting many other tax credit programs by 10 percent;

** Implementing ongoing oversight that will ensure regular scrutiny of all tax credits for results. Credits that don’t produce results will be fixed or eliminated.

If you want to see how tax credits are being across the state, go to the Iowa Department of Economic Development Web site where you can check out the searchable database of tax incentives awarded to businesses. Find the database at www.iowalifechanging.com/AnnualReport/2009/asp/search.aspx.

I argued for tax credit reform at a March 11 news conference at the Iowa Statehouse. From left to right: Senator Pam Jochum of Dubuque, Senator Bill Dotzler of Waterloo, Senator Rich Olive of Story City, Senator Swati Dandekar of Marion, I, Representative Paul Shomshor and Senator Matt McCoy.

Spending our tax-credit dollars wisely

Here is a new report on the tax credit legislation by the Iowa Fiscal Partnership. The report wishes we could have accomplished more in our tax credit reform efforts. I agree with this assessment. That said, I do believe we found a consensus to actually pass a bill.

Proposed tax-credit reform legislation in the Iowa Legislature falls well short of its stated goals for better accountability and savings for Iowa taxpayers.
Backgrounder: www.iowafiscal.org/100317-taxcredits.html.

Iowa's policy makers do have choices to help with the immediate need to encourage a stronger economy, and the long-term need of fiscal policy that assures critical public services are strong when they are most needed.
Backgrounder: www.iowafiscal.org/100317-meetingneeds.html.

I discussed ways to encourage healthy habits among local Iowans with Katie Miller, an associate with Johnson County Public Health.

Misuse of taxpayer funds for education prompts investigation

Iowans are angry about reports that current and former employees at the Iowa Association of School Boards have misused—or even stolen—taxpayer dollars intended for schools, teachers and students.

In response, the Legislature’s Oversight Committee launched an investigation on March 15 into allegations surrounding the Iowa Association of School Boards.

In these difficult economic times, everyone must cut back. Families are putting spending on hold and focusing on the basics. Schools are making tough decisions about layoffs, class sizes and after-school programs. And the Legislature is streamlining services and paring the budget to preserve Iowans’ most essential priorities.

Unfortunately, it appears that employees at the Iowa Association of School Boards have been spending taxpayer money—money meant for our kids and local schools—on vacations to Bora Bora, kickbacks to for-profit organizations and padding their own salaries.

On March 16, the Senate took the first step toward ensuring accountability by passing a bipartisan legislation requiring the Iowa Association of School Boards to comply with open meetings and open records laws.

The Oversight Committee will make further legislative recommendations as the investigation continues.

We will get to the bottom of this. Iowa taxpayers want every penny of their money to be well spent, and families deserve to know why scarce dollars are not being spent to improve Iowa schools.

By demanding answers for local schools, teachers and students, we’ll hold the Iowa School Board Association to the highest standards of transparency and accountability.

Audio recordings of the Oversight Committee hearings on Iowa Associations of School Boards are available at www.legis.state.ia.us/AudioVideo/Oversight/83GA/.

Beware of costly schemes that get you your tax refund sooner

This tax season, some tax preparers may invite you to get a Refund Anticipation Loan. This is a loan borrowed against your tax refund. The catch is you’ll pay extremely high fees to get your money a few days faster.

These fees can range from $25 to hundreds of dollars. This means the annual interest rate on your Refund Anticipation Loan could be as much as 1,300 percent!

A Refund Anticipation Loan is not a good deal when you can get your refund in just 7 to 10 days by simply filing electronically.

For more on getting a quick, fair income tax return electronically, visit www.iowa.gov/tax/ or call the Iowa Department of Revenue at 1-866-503-3453.

New local opportunities for cultural, arts and history

Iowa Cultural Trust Sustainability Challenge Grants could help strengthen a cultural, arts or history organization in your community. They were created by the Iowa Legislature in 2002 to improve the financial stability of non-profits across the state.

Organizations awarded Sustainability Challenge Grants must raise a minimum of $3 in new endowment funds for every $1 in grant funds awarded.

The Iowa Department of Cultural Affairs is accepting applications through May 20. For more on the grant program, go to www.culturalaffairs.org or call the Department of Cultural Affairs at 515-281-5111.

I met with Mike Carberry, Executive Director of the Iowa Renewable Energy Association, about major changes in Iowa wind tax credits. The IWEA was founded in 2007 to promote increased wind energy in the state of Iowa and includes members from the utility industry, manufacturers and land owners.

ECO Iowa City “Earth Month 2010” Events

ECO Iowa City, an initiative to improve environmental sustainability in Iowa City, will be hosting a series of events during March and April in honor of the 40th anniversary of Earth Day. For more information, please visit www.icpl.org/eco-iowa-city/

ECO Iowa City Film: Blue Gold -- World Water Wars
Friday, March 26, 7-9 p.m. @ ICPL, Room A

The energy crisis might just be trumped by another problem...water. Across the globe, fresh water is becoming scarcer through development, agriculture, pollution, as well as a growing population. Come watch several stories of people intent on keeping clean water a basic human right. Popcorn will be provided.

Improving water quality—starting with your property
Thursday, April 1, 7 p.m. @ ICPL, Room A

Discover what you can do to improve water quality at your home by capturing the rain that falls on your property. Learn about best management practices including rain barrels, rain gardens and more to improve water quality and reduce the quantity of water that runs off your property. By Amy Bouska, Urban Conservationist with the Iowa Department of Agriculture and Land Stewardships-Division of Soil Conservation.

ECO Iowa City Film: The Great Squeeze
Friday, April 2, 7-9 p.m. @ ICPL, Room A

This documentary takes a look at the ecological and economical problems associated with our reliance on energy that was once cheap and abundant. For a more sustainable future, the filmmakers argue that we must take action to save the planet as well as human civilization. Popcorn will be provided.

A Watershed Year -- Anatomy of the Iowa Floods of 2008 by Connie Mutel
Saturday, April 3, 2-3 p.m. @ ICPL, Room A

Connie Mutel will read from her new anthology, “A Watershed Year: Anatomy of the Iowa Floods of 2008,” published by the University of Iowa Press. Other readers include Witold Krajewsk, Wayne Petersen, and John Castle. Co-sponsored by Prairie Lights Bookstore, University of Iowa Press and ECO Iowa City.

2010 Annual Town/Gown Civil Society Symposium
Reviving Civility and Respect: Everybody’s Responsibility

In its second year the University of Iowa invites scholars, students and community members to join a dialogue exploring the role of education in bridging social capital to enhance a more civil society. Please visit www.icgov.org/humanrights for more information.

Getting Us on the Same Page: The Responsibility of Newspapers in Society
Keynote address by Jeff Charis-Carlson, Opinion Editor, Iowa City Press-Citizen

Tuesday, March 23, 2010
7:00 PM
Iowa City/Johnson County Senior Center
28 South Linn Street
Free and open to the Public

Wednesday, March 24, 2010
Illinois Room, Iowa Memorial Union
Free and open to the Public

Unpacking Incivility
1:30 PM – Community Panel
3:00 PM – Student Panel

Well Intentioned Incivility: Reviving, Creating and Sustaining Civility
5:00 PM – Interactive Process Theatre

March is ‘Flood Awareness Month’

With the heavy snowfall this winter and a soggy start to spring, the possibility of flooding is a concern to many.
Here are some tips to prepare for flood season and minimize potential damage:

** Learn about local flood risks, family emergency and evacuation plans, and how to put together an emergency kit at www.bereadyiowa.org.

** Consider flood insurance through the National Flood Insurance Program by going to www.FloodSmart.gov.

** Volunteer to help. You can register or search for volunteer opportunities at www.volunteeriowa.org. Organizations seeking volunteers can post their opportunities at http://volunteer.united-e-way.org/icovs/agency/.

** Help the National Weather Service prepare for future floods by submitting photos of flooded areas from the past five years. Forecasters will use them to give the public easy-to-understand information about flooding.

Submit electronic photos to dmx.spotter@noaa.gov with “Impact Flooding Pictures” in the subject line. Hard copy photos may be mailed to: National Weather Service, Impact Statement Project, 9607 NW Beaver Dr., Johnston, IA 50131. Be sure to include the date, time, name and location of the river or creek, along with information about roads, fields and landmarks in the picture.