Budget Bill & NAIFA on the Hill

This Wednesday the Iowa chapter of the National Association of Insurance and Financial Advisors (NAIFA) met in Des Moines to discuss their legislative agenda and meet with legislators at the State House. The group had a great turnout as they become stronger and more organized every year.

Representative Rod Roberts, current gubernatorial candidate, spoke at the group’s luncheon about the state of the economy and business climate in Iowa. Roberts fielded several questions from members to this regard and about the Governor’s budget which came out yesterday. By state law, the budget cannot exceed 99% of projected revenue, leaving 1% as savings. In recent years, a budget has been passed “notwithstanding” the law, or exceeding the limit. Roberts filed a bill yesterday that would add the 99% spending limit to the state’s constitution.

The Governor’s proposed budget relies heavily on the “reorganization” of state government, SSB3030. Some however, are calling it “de-organization” because the bill appears to just shift responsibilities from one agency to another. Governor Culver touted the reorganization would save the state $200 million, but the Legislative Services Agency predicts it will come up short and only save $43 million.

NAIFA-Iowa’s day concluded with the group meeting in the offices of House Minority Leader Kraig Paulsen, House Majority Leader Kevin McCarthy, Senate Majority Leader Mike Gronstal, and Senate Minority Leader Paul McKinley. NAIFA-Iowa was well received by all the leaders and had a unique opportunity to directly speak to them about their issues and actively engage in the political process.

By the Numbers: Texting While Driving

Two-hundred thousand vehicle crashes a year are caused by text-messaging while driving. The number of crashes caused by all cell phone use is 1.6 million. A person is 23.2 times more likely to be in a crash while texting. These numbers are staggering, and with 270 million cell phone subscriptions in the United States, they are only going to get worse.

John Ulczycki, of the National Safety Council out of Chicago, addressed the House and Senate Transportation Committee meetings today. Mr. Ulczycki is an Iowa native and said texting while driving is an issue that causes him as well as the NSC grave concern. The NSC is a membership council whose members include cities, organizations, and employers. It represents 20,000 members, 50,000 employers and 8 million employees. It truly represents a cross section of American businesses.

The NSC decided to take a position on the issue of text messaging while driving, and over 500 NSC members companies have prohibited employees from using cell phones while driving. Initially, employers were concerned about decreased productivity of employees, but this has not proved to be the case. Millions of people in the United States are already under some sort of prohibition of using cell phones while driving. Eighty per cent of the nation is in support of a texting ban.

Texting while driving represents a distraction unique from other driving distractions such as reading newspapers or yelling at kids in the back seat – these distractions are not the cause of 200,000 vehicle accidents each year. When a specific behavior causes that much harm, legislation prohibiting it is warranted, Mr. Ulczycki formulated.

Laws actually make a difference in changing peoples’ behavior, whereas we’ve learned in the past, that education alone is not enough. In 1971 a massive campaign was launched in effort to educate the public about the need to use safety belts in vehicles. Ten years and over a million dollars later, seat belt use was the same as it was in the 70’s at 14 per cent. After seat belt laws were passed in the 80’s, seat belt use is now at 84 per cent. This exemplifies the need for legislation banning texting, education on the dangers simply is not enough.

Just today, U.S. Transportation Secretary Ray LaHood announced a ban on texting while driving for commercial truck drivers and school bus drivers nationwide. Nineteen states already have a ban on texting while driving. Let’s put Iowa in the lead among them.

Today at the Statehouse

The Green Cleaning Bill has been assigned to a subcommittee of the House Environmental Protection Committee. The bill encourages public schools and state buildings to use green cleaning products for two and one-half years, and requires such use from then on. Subcommittee members include Chris Hagenow (R-Des Moines), Curt Hanson (D-Fairfield), and Subcommittee Chairman Nathan Reichert (D-Muscatine). The subcommittee is scheduled to meet in the House Lounge today at 11:30, however, we have not yet received our amendment, making procedural changes, from the bill drafters.

Also today, John Ulczycki of the National Safety Council will speak to the House and Senate Transportation Committees on the perils of texting while driving and the need for legislation penalizing the practice. Numerous bills are pending in both houses on the subject. House Transportation meets at 1:00 in Room 103, and Senate Transportation meets at 2:30 in Room 24.

Republican Revolution

Hope and Change belonged to the Republican Party Tuesday night and Republicans in Iowa have something to be optimistic about as well.

“This is the people’s seat!” Republican Scott Brown’s win in Massachusetts is not just huge – it is truly a historic and revolutionary event. Massachusetts voters from all parties went to the polls today intent on sending Washington a message and that message is clear. Americans will not tolerate the kind of closed-door disingenuous politics that we have been plagued with over the last year. While the implications for Washington and national politics may be evident, the trickledown effect on individual states will be a shot in the arm for Republicans and a warning for sitting Democrats and wayward Republicans.

Des Moines Republicans gathered early this morning at the Conservative Breakfast Club held at RPI Headquarters to hear an address by Jim Gibbons, former ISU wrestling coach and current candidate for U.S. House District 3. Gibbons emphasized his background as an Iowa boy brought up on Iowa values and a strong work ethic, who wants to take some of that to Washington. Based only on this speech, Gibbons appears to be very electable – but so did Jeff Lamberti and Stan Thompson in recent years. Gibbons is just one of five Republican candidates vying for Congressman Boswell's Seat. State Senator Brad Zaun, Dave Funk, Dr. Pat Bertroche, and Mark Rees are also in the race.

Also this morning former governor Terry Branstad officially announced his candidacy for governor at the Iowa State Historical Building. A crowd of over 200 people of all ages gathered to hear the historic announcement. The Governor was introduced by Representative Jeff Kaufman who aptly noted that it was Governor Branstad that signed the Defense of Marriage Act in Iowa in 1998. Branstad gave a great speech, and the event was very well executed overall. Attendees left feeling hopeful and optimistic about the future of Iowa, as well as their own.

Governor Branstad’s announcement and Scott Brown’s win today are just the hope and change needed to get the state and the nation back on the path of accountability, prosperity, and freedom.

Week in Review

Culver Opens Session with Reorganization Plan
Governor Chet Culver told legislators during his State of the State Speech on Tuesday that he would work with them to do a complete reorganization of state government. In fact, House Study Bill 565 is already under consideration with over 250 pages of changes to Iowa’s structure of government. Lobbyists and legislators are scrambling to weigh the impact on clients and taxpayers. The governor did not release details of his budget and was not specific about how he intends to pay for new spending, other than a suggested transfer of Road Use Tax Funds to pay for the operations of the Iowa State Patrol.

Short Session Prompts Rare Friday Debate
The Iowa House of Representatives debated several education funding bill during a Friday morning session today. Leaders are attempting to cut this session to 80 days rather than the normal 100 to save money. This action is prompting a very short window for bill introductions and committee work.

CSG Interests

3M: Work has begun to amend House File 823, the “Green Cleaning” legislation introduced by Majority Leader Kevin McCarthy (D-Des Moines). Representative Nathan Reichert (D-Muscatine) is interested in working with 3M and has asked that he be selected as Chair of the subcommittee to consider the bill. We anticipate that we will have a subcommittee meeting as early as next week.

IAHBPA: CSG has approached Rep. Brian Quirk (D-New Hampton) to approve the drafting process on account deposit wagering, eliminating the sunset date on horse purses, and direct funding of IAHBPA from new revenues generated by ADW. We are also watching the activities of the Standardbred lobby as it appears that they will seek to fund their county fair operations from the current purse pool.

Motor Trucks: Governor Culver’s proposal to scoop over $50 million from the Road Use Tax Fund to pay for the operation of the Iowa State Patrol received a very cool reception at the statehouse this week. Although Democrats cheered wildly for many of the Governor’s initiatives, the chamber was silent when he pleaded the planned transfer. We are on guard for any labor initiatives relating to our ability to choose medical care for workers compensation injuries or any renewed efforts to reclassify our contractors employees.

No Texting While Driving!

Capitol Strategies Group will be working hard to ban texting while driving this year, as we have recently been retained by the National Safety Council.

Two bills in the House and one in the Senate have already been proposed on this issue.

House File 2020, proposed by Representative Adul-Samad and Representative Hanson, goes a little further than just texting, and prohibits a person from using a cell phone in any manner while driving. This new section of code will go in § 321.363A. Exceptions are provided for emergencies and if you’re at a complete stop off to the side of the road. Caught violating the new law will cost you $30 as a simple misdemeanor.

House File 2021, proposed by Representative Tjepkes, amends the “Reckless Driving” section 321.277 of the code to classify text messaging while driving as reckless driving. Specifically it says “[a] person shall not use a wireless handset to write, read, or send a text message while operating a motor vehicle.” While also a simple misdemeanor as in HF 2020, this code section provides for punishment by “confinement for no more than 30 days or a fine of at least $65 but not more than $625 or by both.”

Senate File 2032, proposed by Senator Joe Bolkom, prohibits sending or reading text messages while driving much like HF 2021, but adds a new section to the code at 321.276. Similar to the other bills, it is a simple misdemeanor, but has a fine of $100 as a scheduled violation.

The obvious question that comes to mind is whether “text messaging” includes emails. Currently, all three bills define text messaging as “a text-based communication transmitted using the short message service (SMS), a wireless telephone service, or an electronic communication network.” Emails could easily fit that definition.

CSG and the National Safety Council will try to get some combination of these bills passed this year. Which version do you prefer?

In the meantime, no one at CSG will be texting while driving – the data on accidents caused by cell phone use is undeniably staggering. More on that to come.

RESILIENT

“The condition of the state is resilient because the people of Iowa are resilient,” Governor Chet Culver said Tuesday morning at the Iowa State Capitol.

The State Capitol was filled with Iowans this morning to listen to Governor Culver’s Condition of the State Address. Included in the large crowd were hundreds of Iowans with the “Let Us Vote” campaign advocating giving Iowans the right to vote on a definition of marriage. Overall, the speech was a markedly better presentation than last year’s Condition of the State speech.

The Governor began by noting the short session and that there was “much to do, and no time to waste.” The Governor said that as Iowa continues to recover from natural disasters, and all Iowans, especially businesses, are affected by the national recession, we will overcome with resilience, optimism, determination, and good old hard work.

In speaking about Iowa values, the Governor acknowledged that with God’s help, all things are possible, and with perseverance there is nothing Iowans cannot endure and together cannot overcome.

In the next year, 3,500 Iowa National Guard members will be sent to Afghanistan. It is the largest single overseas deployment since WWII. The Governor asked that the legislature give them all the tools they need to complete their mission and come home safely. To do so, he asked the legislature to pass a supplemental appropriations bill to support costs to the Dept of Defense.

The Governor claimed that the budget has been balanced three years in a row without raising taxes, but did not explain how he met that constitutional requirement despite record spending. He also did not mention that taxes on cigarettes have in fact been raised. “Some appear confused about the budget situation,” he said, “the budget is balanced and has been balanced every single day I have been governor.” There was no mention of the use of stimulus funds and monies borrowed from the Rainy Day and other funds that have been used to balance the budgets. Next year’s budget will be submitted by the end of January, he claimed, but a shell bill is all that is actually expected.

The Governor’s top priorities for the session that he laid out in his speech are as follows:

1. Jobs:
• “Adequately” fund the Department of Work Force Development
• Fully fund Iowa Power Fund to create more “green jobs”
• Allocate remaining I-JOBS funds

2. Enact remaining recommendations in report:
• Streamline state government operations
• Provide for early retirements, 4-day work weeks
• Strategic purchasing
• Reduce state’s vehicle fleet
• Eliminate redundant information technology services

3. Major reorganization of state government.
Finding the inefficiencies in government was the first step, the Governor claimed, and major reorganization is the next. He advocated “real reform for the 21st century,” to create a smarter more efficient government.

4. Recovery assistance for immediate and long term help for flood victims:
• Fund the Flood Recovery Office
• Fully fund Rebuild Iowa Office, which helped to secure $3.6 billion to rebuild Iowa
• Work to commit a significant portion of I-JOBS funding to flood recovery

5. Explore options to transfer road fund money to adequately fund the Iowa Department of Public Safety.

6. Review tax credits and make sure they work as the legislature intended.

7. Children.
Despite challenges, health insurance was extended to 52,000 kids in Iowa, the Governor noted, and he wants that funding to continue. He also wants to expand access to early childhood education in Iowa

8. Quickly pass legislation required for Federal Race to the Top funds:
• $175 million will go to enable more innovation in the classroom
• Build infrastructure
• Allow more parental choice
• Remain on cutting edge

9. Ask school districts to spend down cash reserves to avoid shifting the burden to property tax payers.
The Governor made a promise to fund allowable growth at 2 %. He proposed to dedicate at least $100 million from the reserves to restore some of the recent cuts to K-12 schools, as a short-term shot in the arm. What “reserves” is the obvious question. He also pledged to support all institutions of higher learning “as much as we can.”

A good portion of the Governor’s speech was spent touting I-JOBS, a three year, $830 million plan intended to help the state recover from natural disasters and create jobs. With I-JOBS funding, he said, every county will receive funds to use on infrastructure of county’s choice. “In Iowa we don’t use public funds to build bridges to nowhere,” the Governor said. A board is appointed to review the applications to fund projects. I-JOBS bonds will be paid back at low interest rates with gambling revenue and without raising taxes, the Governor claimed.

So far, the bonds have been used to expand and renovate the Iowa Veteran’s Home in Marshalltown to make it one of the nicest in the country. The bonds have also been used to help the University of Iowa recovery from floods and secure federal money as well. In Linn and Louisa counties, which were also devastated by the floods, 54 I-JOBS projects are have been approved, with a total of 1,400 projects and an investment of $530 million statewide.

Iowa has the eighth fastest growing economy in the United States, it is the fourth best place to do business, and number one in the nation in terms of low cost of business. Further, Des Moines was named by Market Watch as the number one city in America to do business.

The Governor pointed out three notable companies that have come to the state in the last couple of years: Aviva in West Des Moines, IBM in Dubuque, and Google in Sioux City. Green collar jobs were also on the rise with $200 million attracted in private venture funding of “green projects.”

The Governor said he and Lieutenant Governor Patty Judge would embark on an Iowa Jobs Tour to highlight the good things that are happening in the state, and to talk to business leaders to find out what can be done to keep Iowa moving forward.

Governor Culver finished by stressing the work done at the Capitol is for and “about real people who are counting on us for help.”

We're Back!

Today begins the second session of the 83rd General Assembly of Iowa, and Capitol Strategies is back to bring you updates and insights into the legislative action.

Session this year has been limited to 80 days, and has the potential to be either quick and painless, or nasty and brutish as well as short.

By rule, the first session of a General Assembly is 110 calendar days (which occurred last year), and the second session is normally 100 calendar days. This year, the session has been cut to 80 days - that is, legislators will only be paid for 80 days - in effort to save money. Whether the session actually ends on day 80 is yet to be seen.

Tomorrow: Governor Culver's State of the State Address.