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Representative Ro Foege
Report from the Iowa Legislature
April 25, 2004

Good News, Bad News

No Legislative session accomplishes all that one would hope. This session produced fewer positive results than most in recent history. Although we did pass some initiatives that will make life better for Iowans, they were few and far between.

There is both some good news and bad news coming out of this session. School children and their families face some bad news as nothing was done to help schools in the coming school year. We could have accomplished this. Democrats presented a plan to provide $41 million next year, but it was rejected along party lines.

Some good news, thanks to the persistence of my caucus, the Governor, educators and parents, school districts will see a 4% increase in state aid in the 2005-2006 school year. This is an improvement over the 2% the majority party had insisted on for months, but short of the 6% parents and educators said was essential to maintaining quality schools.

More good news is that we did renew the class size reduction and reading improvement program and the student achievement teacher quality initiative. These programs have produced positive results in the test scores of Iowa school children. We also created a program to evaluate causes and identify measures to prevent stillbirths. The hope is that through improved research, warning signs can be identified, preventive strategies can be developed, and the rate of stillbirths can be reduced.

We made it safer for young children to ride in automobiles by requiring the use of safety seats and seat belts. We will have a study to identify ways to keep older Iowans in their own homes longer. We are going to upgrade our 911 system so that the exact location of cell phone users can be identified when they are facing an emergency. And, we have provided state funding for new, modern election machines, so that we can draw down $15 million in federal funds. Without this federal funding, property taxpayers would have been responsible for the entire bill.

There was not much good news for senior Iowans. Medicaid, the state’s primary health care program for older Iowans was seriously under funded. It is expected that we will run out of money by the time the Legislature returns next January. This means we will be forced to find the money to keep seniors in nursing homes, possibly by raising taxes after the election, as several Republicans have suggested.

Equally frustrating is the decision to raid the Senior Living Trust fund. This program, aimed at keeping older Iowans out of nursing homes, has been nearly depleted. This reduces the possibilities of developing services for seniors to remain in their own home as long as they wish.

On a positive note, I co-sponsored an amendment that through the use of Senior Living Trust funds, we will allocate $7 million to create a revolving loan fund under the Iowa Finance Authority to finance the construction of affordable assisted living and affordable housing for seniors and persons with disabilities. This amendment passed easily and is part the budget bill on the way to the Governor’s office for his signature. These funds will provide adult day services, respite services, and congregate meal sites. Providing those services are the basis of establishing the Senior Living Trust Fund.

At the beginning of this legislative session, the Iowa Farm Bureau had correctly criticized the majority party for shifting some $240 million in state responsibilities to property taxpayers over the past three years. I had hoped this year would be different. The majority party may brag that they did not raise taxes this year, but that statement is not true. By not fully funding the property tax credits, by inadequately funding our public schools, the majority party for the fourth year in a row has balanced the state budget by shifting the burden onto homeowners, farmers, seniors and small business owners. Property taxes will go up. No matter how the majority party wishes to spin it, to Iowans that is a tax increase.

The budget may be balanced this year, but it has many flaws. It will leave us with a structural deficit of between $400 and $500 million next year. The budget depletes our cash reserves fund, leaving the state in a precarious position. If revenues fall short, as they have in the past few years, the only solutions will be additional across-the-board cuts, delayed payments to schools and/or tax increases.

I appreciate hearing from constituents. Now that we are out of session, you can write me at P O Box 128, Mount Vernon, IA 52314, or email me at ro.foege@legis.state.ia.us.
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