Des Moines Police Department
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Iowa Legislative Report:

We are moving (hopefully) into the last three weeks of the legislative session when the budgets take center stage. On Friday, March 23, the Revenue Estimating Conference (REC) met to review and revise the revenue estimates for FY 2012 and FY 2013. As expected, the REC increased the estimate for both years.

The REC consists of Dave Roederer (Governor’s appointee), Holly Lyons (Legislature’s appointee) and David Underwood (private sector member, appointed by the other two members). By law the REC meets three times a year. It meets in December to set the official estimate for the following fiscal year that must be used for budgeting, again in March (which is only used if the estimate goes down) and then in October after the books close on the previous fiscal year.

This new estimate raised the projection by approximately $80 million dollars, driven largely by a strong Iowa agricultural economy. For FY 2012 (the current fiscal year), the estimate was increased by $50 million. Through March 20, revenue for FY 2012 was running at 3.1 percent. This is above the December REC estimate of 1.8 percent and is about a 1.3% increase.

For FY 2013, the estimate was increased by $29 million which is an increase of less than four tenths of one percent.

Any increase up to $14 million is deposited into the Taxpayers Trust Fund (TTF), which currently is estimated to have $46 million. Once the fund meets its maximum balance of $60 million, the remainder will flow into the general fund and could be spent the following fiscal year.

This $80 million is a significant amount to say the least, and scrutinized alone, would suggest that the legislature has plenty of money to spend. However, it is important to put this amount in context. The state of Iowa’s budget is approximately $6 billion dollars. Iowa also receives about $6 billion dollars from the federal government, bringing total spending up to approximately $12 billion dollars. That “new” $80 million is less than a one percent increase for the overall budget, and some, as indicated in the previous paragraph, must go into the Taxpayer’s Trust fund.

Also, March’s projections by law mean little in terms of legislative action. Iowa law stipulates that the governor is to use the December projections to make a budget recommendation and the Legislature is to use the lower of the estimates. In the past, however, the legislators have used what is know as a “notwithstanding clause” to enable them to use the March figures. That will not happen this year with split control. The Governor has already said he will not abide a budget based on such a clause.

It is important to remember that these estimates are more of an indication of where the state’s revenue collections and overall economy are headed based on today’s indicators – an economic snapshot. Hiring seems to be slowly increasing, Iowa is enjoying high commodity prices, and the housing market is gradually improving but other factors like high gas prices blur a healthy economic picture. In short, state officials are cautiously optimistic but stress a tightly drawn budget for this legislative session which sets the stage for any budget issues.

Given that backdrop, there are 10 major budget bills and only one is on its way to the Governor’s desk. The legislature has passed four budget bills in different forms which are headed to conference committee (Justice Systems; Ag and Natural Resources; Administration and Regulation; Judicial Branch Appropriaiton). Health and Human Services is awaiting debate in the House and Education is awaiting action in the Senate – both of those will probably go to conference committee as well. Only Transportation, Infrastructure and capitals budget has been sent to the Governor. In short, many budget issues need to be resolved in the next three weeks (if they hope to get out on time). Also pending are Education Reform, Mental Health Reform, and Commercial Property Tax Reform.

Finally, another sure sign of spring and the end of session….. sometime Thursday night after adjournment, the House came out with HSB 674 STANDINGS APPROPRIATIONS. Passing the Standings bill is typically the last piece (or one of the last pieces) needed to bring a session to a close.

In terms of our specific issues this week, amendments were filed to the traffic camera bill in the House (HF 2450) and it looks like that bill will be debated in the chamber this next week. The Senate is still maintaining that they will kill the bill. Please look over Amendments H-8392, H-8394, and H-8396 and let us know what you think.

In other action, the House added two bills we are supporting that failed in the funnel (HF 2350 CONTROLLED SUBSTANCES & HF 2398 SCHEDULE I DESIGNATIONS) to SF 2123 SCHEDULED DRUGS.) The “parent” bill, SF 2123, removes benzylfentanyl and thenylfentanyl from Schedule I. Classes ANPP (fentanyl precursor) as Schedule II. Adds three anabolic steroids to Schedule II. Classifies soma as Schedule IV. Classifies ezogabine as Schedule V. Makes ergocristane & its salts a precursor for LSD.

HF 2398 SCHEDULE I DESIGNATIONS adds synthetic cannabinoids (K2) and synthetic cathinones to Schedule I and establishes penalties.

HF 2350 CONTROLLED SUBSTANCES makes it a Class D felony to possess ammonium nitrate, ammonium sulfate or sodium hydroxide with the intent to manufacture a controlled substance (meth).

The bill now returns to the Senate.

Finally, a meeting for interested parties has been called next week on Tuesday at 9:30 AM in cafeteria on SF 2278, the public safety training facility bill. The House has not expressed interest in moving the bill this year but of course in the closing days of session anything can happen. We will attend this meeting.

The following is a list of bills of interest that remain alive for the 2012 session. The list is hot linked to the state system if you would like to view the details of the bills. If you have questions, please call us.