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Representative Ro Foege
Report from the Iowa Legislature
February 29, 2004

Gambling Wins, Education Loses

It has been an interesting week for me, beginning with a press conference with Lt. Governor Sally Pederson, where I was pleased to join her in supporting legislation that could prevent bullying and harassing in schools. At the end of the week I enjoyed a visit from the international students from Cornell College.

There was also the day-long debate on gambling in Iowa. Last week I wrote that the gambling debate was a complex and non-partisan issue. I also suggested that the outcome of the vote was uncertain, since no gambling bill in the Iowa Legislature had ever passed with more than the bare minimum of votes. As it turned out, the Iowa House voted to expand gambling in the state last Thursday by a vote that was not even close, with 73 of the 100 votes in favor of the bill. I voted not to expand gambling in Iowa.

The key vote was on an amendment devised late Wednesday night after most legislators had gone home for the day. It allowed the state’s three racetrack casinos to expand table games such as blackjack, poker, craps and roulette, all of which are currently prohibited at those venues. It was interesting that many legislators who have opposed gambling on moral grounds were willing to compromise and in the end support an amendment that significantly expands gambling in Iowa.

The bill does not actually authorize any new gambling licenses, but the authority for granting new licenses was shifted from the state’s Racing and Gaming Commission to the Legislature. So, in the future, it will take legislative action to enable more gambling facilities to open. The bill also establishes new tax rates for riverboats and racetracks to replace the tax structure that was recently ruled unconstitutional by the Iowa Supreme. In return for the revised tax structure, the racetracks gave legislative leaders written assurances that they would forgive $112 million owed to them by the state as a result of the recent court ruling.

This bill now heads for the Iowa Senate for consideration, and it is anticipated that the Senate will expand on the opportunities to gamble in Iowa. I am sure there will be another opportunity for House members to vote on a gambling bill when it returns to the House from the Senate.

Two weeks ago, it took only 33 hours for the majority party to propose a school funding bill and rush it through both the Iowa House and Senate. Governor Vilsack has vowed to veto the two-percent Allowable Growth bill, however, that has not happened yet because the leaders of the legislature have not sent him the bill. Normally, it takes only a day or two for a bill to be formally prepared and delivered to the Governor. When asked where the bill was in the legislative process, one leader indicated that the bill was “lost.” I have no idea if it is actually lost or if this is some kind of hide and seek game.

We are nearing the halfway point of the Legislative session, which means that next week bills must come out of committee if they are to stay alive for the session. So far, no work has been done on important measures such as extending the successful class size reduction program or helping seniors with their health care needs. We have not yet debated the utility tax bill. If the legislature fails to act, the tax on utility bills will go up this summer from 2% to 5%.

And we have not discussed finding a reliable and sufficient source of funding for our economic growth initiative, the Iowa Values Program. It is critical that we consistently fund economic growth and the creation of new jobs that pay a living wage. The Iowa Values and Economic Development Boards recently generated the largest group of awards to businesses at on one time in Iowa history. The awards totaled $20 million for 28 new projects and will create or retain 1,740 Iowa jobs. The total capital investment was over $426 million. It was especially good news to learn that a Mt. Vernon business, B4 Ventures was one of those recipients. It is gratifying to have successfully advocated for B4 Ventures with the Dept. of Economic Development.

I look forward to hearing from constituents about the work of the Iowa Legislature. You can write me at the State Capitol, Des Moines, IA 50319; call 515/281-7328 or e-mail me at ro.foege@legis.state.ia.us.
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