Governor Vilsack presented his budget proposal for the next fiscal year. It is important to note that the Governor proposes a budget, but the Legislature actually appropriates the state funds. The Governor is recommending a small increase in funding, targeted to improve the education our children receive, to provide better health care to Iowans, to promote the creation of jobs, and to make our communities safer and our environment cleaner.

The Governor had no sooner released his proposed budget for next year when Republican leaders were on the attack. Although inaccurate, majority party members were quick to claim that Governor Vilsack is recommending a 10% spending increase. The actual increase in spending is a meager 3 percent. This was confirmed by Dennis Prouty, Director of the non-partisan Legislative Fiscal Bureau.

The difference in this proposal is in the way services are funded. Last year, the majority party decided to balance the budget by using money from non-general fund sources. Those sources have dried up, and the Governor must now fund these services out of the general fund. An example of this is the property tax credits that most Iowans receive. As you may recall, the majority party balanced the state budget in the past several years by denying cities and counties promised property tax relief. This forced cities, counties, and schools to turn to local property taxes to continue functioning. They simply shifted governmental costs to the property owner. The majority party also acknowledges that they deliberately under-funded the state’s Medicaid program, which provides health care to seniors, children and people with disabilities.

The morning after he submitted his budget to the legislature I was invited to meet with the Governor. He requested feed-back from me on his proposals in the health and human services areas. I told Governor Vilsack of my concern that if we do not increase the tobacco excise tax, we will have to make painful cuts in the Medicaid budget. He is recommending an increase of 80˘ per pack of cigarettes, to help fund our Medicaid budget. Our tobacco tax is currently lower than in most surrounding states. For example, Iowans currently pay 36˘ per pack compared to 98˘ in Illinois. The Governor’s recommendation is actually less than my proposal of the past three years to increase the tax by $1 per pack. The $1 per pack increase is also recommended by the American Cancer Society, American Lung Association, American Heart Association, and the Iowa Medical Society, to name a few of the 51 organizations supporting this $1 a pack increase.

If we do not raise the tobacco tax, reimbursement rates to health care providers will be lowered, and health care will be less accessible for low-income and disabled Iowans. When health care and medical equipment, such as walkers and wheel-chairs, are no longer available for elderly and people with disabilities, many will be forced to move into a nursing home, costing the state more in the long run.

I also told the Governor that I was very pleased that he has placed a high priority on early childhood care, health and education. We know that 85% of the human brain develops in the first three years of a child life. When children are in environments that are not nurturing, caring and safe, their brains lack the development allowing them to adequately learn when they go to school. If we do not make this investment, it is a terrible waste of our most valuable resource.

The familiar old commercial said, “Pay me now or pay me later.” If we continue to under-fund health care, child welfare services and education, we will be paying the price in the future, when we will be required to build additional prisons. As a chief of prison correctional officers once told me, “Quit building prisons. Put more money into early childhood care and education.”

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 me at 515/281-7328 or e-mail me at ro.foege@legis.state.ia.us.

Ro

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