Capitol Comments

Legislative Coffee This Weekend  
Sunday, April 13, at 2:00 p.m. for voters in neighborhoods along         Glass Road.
I hope you can attend, as your input is always appreciated! Please contact Susan Staed at 319-573-7501 or susanstaed@gmail.com for details.

Local Forum Next Weekend
Saturday, April 19, 10:30 to 11:45 a.m.
League of Women Voters Legislative Forum
Mercy Medical Center, 701 10th Street SE, in Cedar Rapids

The forum topic is “Youth & Adolescent Mental Health Issues.”

Panelists will include mental health providers who will discuss issues affecting youth and adolescent mental health in the current MH/DD redesign and funding environment.

ECONOMIC INVESTMENT IN IOWANS, JOBS & COMMUNITIES

In the final weeks of the 2014 session, we continue our work to strengthen Iowa’s hard-working middle class and generate additional economic activity in communities across the state.

A large part of that effort is in the Economic Development Budget. House File 2460 would fund small business development centers, entrepreneurial research, the arts, cultural and historical projects, workplace safety, and assistance for employers and workers. Highlights include:

• Boosting support for apprenticeships and job retraining programs at our community colleges. Apprenticeships are a great way to prepare Iowans for the workforce because they provide structured vocational skill training through on-the-job and classroom instruction.

• Increasing funding for Iowa’s 16 Small Business Development Centers, which conduct research, provide counseling and train Iowans in management, financing and operating a small business. They also offer affordable workshops on market research, cash flow projections, accounting, writing a business plan and much more.

• Investing in internships for Iowa students studying science, technology, engineering and math (STEM). This year’s funding will be used to expand the Innovative Business Internship Program, which places STEM students in internships with Iowa employers.

• Boosting incentives and additional loans for businesses that locate and expand in Iowa when they commit to making a strong contribution to our economy and creating good jobs for residents.

• Funding for innovative programs at our state universities that spur economic growth when they work with communities and businesses on technology commercialization, marketing and entrepreneurship.

• Investing in the arts, cultural endeavors and historic preservation. These projects draw visitors to our communities and improve the quality of life for local Iowans.

• Financial assistance and community-based assistance to help vulnerable Iowans stay in their own homes and remain a part of their communities, when they might otherwise be forced into more costly nursing homes.

EDUCATION INITIATIVES TO OPEN DOORS FOR IOWANS

The Senate approved an Education plan this week that will boost student achievement, open college and career doors, and strengthen Iowa’s middle class.

Senate File 2347 invests $986 million in educational opportunities at all levels. That’s an increase of $87 million over last year. Highlights include:

• Helping beginning readers – Children have a lifelong advantage if they learn strong reading skills early in life. These dollars will fund intensive literacy programs for students in grades K-3 who are behind in reading.

• Recruiting Iowa’s future teachers – Additional funding for the Teach Iowa Scholars initiative will help recruit the next generation of great Iowa teachers and allow them get a top-notch college education.

• Supporting Teacher Leadership – This will be the first year of the Teacher Leadership initiative approved in 2013. Teachers want to see their students succeed, but teaching is a tough job. Iowa’s most effective educators will act as Teacher Leaders, working with new teachers and mentoring those looking to improve their classroom results.

• Boosting support for worker training – Reducing Iowa’s skilled worker shortage is critical to growing our economy. To tackle that problem, Iowans need job training in specific skills to fill job openings in their local communities. Funding will help adults get certified in a career field where jobs are available.

• More funding for community colleges – An increase of $8 million will help keep tuition affordable at Iowa’s community colleges, the first place many Iowans go for higher education, job training and better career opportunities.

• Expanding support for state universities – Iowa State, UNI and the University of Iowa are among the best public universities in the country, helping Iowans get life-changing skills and professional education.  An increase of $24 million will help continue a tuition freeze for in-state students for a second year.

• Student aid for private colleges – More financial aid for private college students will ensure all Iowa students can afford the education that’s right for them and reach their full potential.

Senate File 2347 will be considered by the Iowa House next week.

TAXPAYER MONEY WILL NO LONGER BE USED FOR SECRET AGREEMENTS

Over the last month, we’ve learned that more than $500,000 in taxpayer dollars have been paid in secret settlements since January 2011 to former state employees who were asked to sign confidentiality agreements.

After weeks of delay and denial, Governor Branstad finally fired a top administration official responsible for “hush money” payments. The Governor has also issued an executive order to end the use of confidentiality agreements, make employee settlements available to taxpayers and increase scrutiny of settlement agreements.

In the Legislature, we are taking our own steps to prevent this from happening again, including:

• Amending all state budget bills to ensure that no taxpayer money is used for secret settlements.

• Amending the Administration & Regulation Budget (SF 2342) to call for an independent audit of “hush money” and secret settlements. The State Auditor will review personnel settlement agreements with terminated state employees, especially the agreements made outside of normal channels. The audit will focus on “hush money” payments, where the money came from and those who authorized secret settlement agreements.

• Approving legislation on who qualifies as an “at-will employee” (SF 2244). In recent years, hundreds of merit employees have been converted to at-will employees. Unlike merit employees, at-will employees can be fired at any time and for any reason. Our legislation allows state employees who had been merit employees to retain their jobs as merit employees.

More Background:

Last week, Director Mike Carroll of the Department Administrative Services testified to the Government Oversight Committee that he did not approve any additional payments to employees to keep them quiet.  On Monday, Governor Terry Branstad said state workers were wrong and he had full confidence in Director Carroll.  However, emails released from DAS officials explicitly prove state workers were offered “hush money” payments by the Branstad Administration.  On Tuesday Director Mike Carroll was fired after the new information was released.

This is one of the latest developments in the scandal that started nearly a month ago and has engulfed the Branstad Administration.  Another Government Oversight Committee hearing scheduled for Wednesday was cancelled by Branstad officials. The next hearing is scheduled for Monday.

Lawmakers of both parties are concerned about the transparency and openness of the Branstad Administration after it tried to cover up the “hush money” payments.  From the speeding trooper incident, to the closing of the Iowa Juvenile Home, to Workforce Development Director Teresa Wahlert’s alleged intimidation of Administrative Law Judges, this is the fourth scandal that has embroiled Branstad in the last year.  However, in every case Governor Branstad has said that he didn’t know any of it was happening.

IMPROVED HOUSING FOR WORKING IOWANS

Iowans deserve housing that is affordable, safe and high quality. House File 2448 seeks to increase quality, affordable housing for middle-class families throughout the state by providing incentives to build and rehabilitate housing in the areas most in need.

Across the state, older housing could be rehabilitated and repaired. In other fast-growing communities there is a demand for new construction. A new Workforce Housing Tax Credit program will encourage redevelopment of dilapidated housing, brownfield areas and upper-story apartments in multi-use buildings, as well as new construction in communities with demonstrated workforce-housing needs.

The Workforce Housing Tax Credit will provide two different incentives. The first is a refund of the sales and use taxes directly related to the housing project. The second is an investment tax credit up to 10 percent of the qualifying new investment in the housing project. The investment tax credit is nonrefundable but may be credited to the investor’s tax liability for five years.

Tax incentives will go to housing businesses that complete housing projects that meet specific requirements. For example, the project must be supported by the local community, receive matching funds, adhere to local safety standards and meet the United States Department of Housing & Urban Development’s housing quality standards.