Monday Meetings

The House Rebuild Iowa & Disaster Recovery Committee met Monday afternoon.

Timelines were presented to the committee by Mike Tramotina of the Iowa Department of Economic Development showing the progress Texas made rebuilding after Hurricane Rita. In Texas, only 13% of their money had been spent 706 days after the storm, because, according to Tramotina, that’s how long it takes to spend CDBG (Community Development Block Grant) money. The presentation was an effort to show legislators by analogy how long it takes to obtain and use federal disaster funds.

CDBG monies must be used for low income people in low income areas. 50% must be spent on people below the median area income. Awards of money must go to a local government and then to some other entity adding to the delay in its distribution.

A Senate Transportation Subcommittee comprised of Senators Larry Noble (R-Ankeny), Tom Reilly (D-Oskaloosa), and Steve Warnstadt (D-Sioux City), and met this afternoon to discuss SSB1182 which increases the excise tax on motor and diesel fuel. The proposed bill would increase the motor fuel and diesel fuel excise tax by 8 cents by January 1, 2010.

It is Capitol Strategies position that this tax increase is too fast too soon. Our motor carrier clients recognize the need to repair roads statewide and would be in favor a 4 or 5 cent increase over time.

We are also interested in a tax preference for biodiesel. This would give carriers the option of purchasing regular diesel and the increased rate or biodiesel at the preferred rate.

Tonight at 7:30 the House Chambers will be hosting a public hearing on the issue of prevailing wage. Speakers are limited to 3 minutes and as of 3:00 about 40 people were signed up.