DES MOINES – State funding for K-12 schools, a possible gas tax increase of eight to 10 cents a gallon, and tax breaks for working families are among the issues that are expected to capture state lawmakers’ attention this week.
Senators on Tuesday are slated to debate a measure that proposes to raise the amount of state aid that K-12 schools can expect for their 2013-14 school year by 4 percent. That would provide about $142.6 million in state aid – a significant jump from the zero percent level set for the current year and a promise of 2 percent “allowable growth” for fiscal 2013.
“I think it’s important that we continue this procedure, and that we produce a number that’s going to help our schools survive,” said Sen. Herman Quirmbach, D-Ames, chairman of the Senate Education Committee.
Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the Senate will take action to abide by Iowa’s educational forward-funding law that requires lawmakers and the governor to finalize the per-pupil state aid number more than a year in advance and to do it in within 30 days of the date the governor submits a budget plan to the Legislature. That took place on Jan. 10 so this year’s deadline to comply with state law is Thursday.
Gov. Terry Branstad has called for the split-control Legislature to repeal the law and consider new reforms in how resources are allocated to elementary and secondary schools that will produce better results in student achievement. He also noted that lawmakers have not abided by the forward-funding law in the past.
“I remember my mother saying to me that just because other people do something wrong doesn’t mean you have to do something wrong. The law says we shall set. It’s our intent to act appropriately,” said Gronstal, leader of a chamber where Democrats hold a 26-24 majority.
For their part, Republicans who hold a 60-40 edge in the House plan to consider a bill in committee this week that proposes an immediate modification to existing law by changing the requirement to say the state K-12 education growth rates would be set in each odd-numbered year for the two upcoming budget years. The new deadline would be within 30 days of the date the governor submits a proposed two-year budget in each odd-numbered year.
“We’ve always thought they we should do it in the same year,” said House Speaker Kraig Paulsen, R-Hiawatha. “My expectation is next year we’ll set allowable growth for (fiscal years) 2014 and 2015,” noting that last session the Legislature set the allowable growth rates for the current year and fiscal 2013 as part of a protracted budget negotiation that produced the framework of a biennial state budget.
Also on Tuesday, the Senate Ways and Means Committee is expected to take up a measure proposing a $25 million increase in the state’s earned income tax credit for working families earning $45,000 a year or less. Committee chairman Sen. Joe Bolkcom, D-Iowa City, said the bill seeks to raise the state’s 7 percent tax credit to 13 percent of the federal tax credit for the 2012 tax year.
Last week Bolkcom warned that a property tax relief package would not clear the split-control Legislature this year unless Branstad agrees to sign a tax break for working Iowa families that he twice vetoed last year. On Friday, Branstad said he would consider the earned income tax increase as part of a comprehensive tax reform measure this year.
Sen. Tom Rielly, D-Oskaloosa, said he expects a Senate subcommittee will begin work this week on a bill that proposes a phased-in increase in the state’s gasoline tax – with a five-cent per gallon hike to take effect on Jan. 1, 2013, and another five-cent increase to follow on Jan. 1, 2014, as a way to help cover a projected $215 million shortage in money needed to address Iowa’s critical transportation needs. He said the Senate approach dropped a registration fee increase on new vehicles in favor of a slightly higher user fee for drivers – including out-of-state people – who operate motor vehicles on state roadways.
A similar House version to increase the gas tax, House Study Bill 547, also has been assigned to a subcommittee. It seeks to increase the state gas tax by eight cents a gallon by May 1, 2104, raise the registration fee for new vehicles from percent to 6 percent of the vehicle price, add $50 in annual registration fees to hybrid and mixed-fuel vehicles, and add $100 in annual registration fees to alternative fuel, fuel cell, and plug-in electric vehicles.
Leaders of Muscatine-based Iowans for Tax Relief say they plan to “fight against this blatant tax increase on all Iowans.”
Rep. Scott Raecker, R-Urbandale, chairman of the House Appropriations Committee, said his panel will begin work this week on a supplemental appropriations bill that will provide an extra $6.5 million to the state Department of Corrections to fund existing staffing levels at the state’s prisons and community-based corrections system through the current fiscal year that ends June 30.
Last week, Senate Democrats approved an $8.5 million supplemental level, but Raecker said House Republicans plan to stick with the $6.5 million level the governor recommended and to cover the appropriation with savings from other budget areas rather than boost spending by lowering the state’s projected ending balance.

Comments: (515) 243-7220; rod.boshart@sourcemedia.net