Weekly Report- February 25, 2010
School property taxes go up each year because each year K-12 allowable growth increases state aid and property taxes. Enrollment and taxable valuations are usually key factors in predicting the property tax bill for individual districts. However, the FY 2011 cost to fully fund the 2% allowable growth (passed by the 2009 Legislature) will cost $514 million. This is an extraordinary high cost as it includes $270 million from two across-the-board cuts, $202 million in one-time federal stimulus money and a $15 million increase in preschool costs. How much of these funds will be paid by the State and how much will the property tax payer’s be required to pay? Iowa school districts must cut spending, use dwindling cash reserves, or ask the property tax payer to make up the difference in shortfalls in State aid.
In his proposed budget, Governor Culver funds $344 million in State aid of the $514 million cost. Thus there is a potential of $170 million in property tax increase. Included in the Governor’s $344 million, $100 million will come from cash reserves. At this time it is unknown how the Legislature will address the $514 million cost. With Iowa school districts in teacher contract negotiations, with an April 15 budget certification date, and April 30th “pink slipping” of teachers, critical decisions will need to be made soon. Iowa taxpayers may be required to pay the difference.
Battleship Iowa Project: If you have visited the Iowa Capitol, you have probably seen the scale model of the battleship Iowa on the First Floor. A group is soliciting support to permanently dock and preserve the original U.S.S. Iowa ship at Vallejo, California, near the Mare Island Naval Yard. More information about this project can be located as HYPERLINK "http://www.battleshipiowa.org" www.battleshipiowa.org.
Last week HF 2280, the “Puppy Mill” Bill passed the House. The Bill is intended to better regulate breeders and try to rid the State of breeders who do not follow humane practices. Farm livestock is excluded. However, the Bill creates new fees, increases present fees, with no guarantee that the problem will be eliminated with this legislation.
This week HF 2456, An Act concerning the use of electronic communication devices while driving, including prohibiting a person from writing or sending a text message while driving a motor vehicle and providing penalties, passed the House.
Please feel free to contact me regarding issues that are or will be before the Legislature. My e-mail address and phone numbers are in the above letterhead.
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