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Representative Ro Foege
Report from the Iowa Legislature
February 13, 2005

Property Taxes & Local Control

The House Education Committee approved a bill this week that would vastly increase state support for Iowa schools, resulting in as much as a $480 million cut in property taxes statewide. Currently, school districts levy $5.40 per assessed valuation for schools. The state then steps in and pays the next 87.5% of the per pupil cost. Property taxpayers then pick up the remaining 12.5%.

The bill would have the state gradually pick up 100% of the per pupil cost after the initial local effort. This could save Iowa property taxpayers hundreds of millions of dollars a year. Of course, that would be good news for all Iowa property taxpayers—homeowners, businesses, farmers, and seniors. The bill will now go to the House Ways and Means Committee for consideration.

I have consistently voted to reduce property tax. It is the most regressive of our taxes as it is not based on one’s ability to pay. Many seniors in Iowa are on a fixed income and have no defense against higher property taxes. As taxes rise and their budgets are squeezed, it becomes increasingly difficult for seniors to afford basic necessities – utilities, food, clothing, medicine. High property taxes could force some seniors out of their homes.

Unfortunately, the bill that came through the Education Committee, of which I am a member, has a huge problem: where does the state of Iowa get the $480 million dollars this bill would cut? What services will have to be cut? What cuts would my constituents want? Do we want to cut assistance to schools, universities, private colleges, community colleges, services to seniors, mental health services, and child welfare services? Are the people of Iowa ready to raise income taxes or sales taxes to make up the $480 million in lost services?

The answers were not provided by the people who were in a hurry to get the bill out of committee. Because of this dilemma, I voted against the measure, and I will continue to oppose it until we learn where the $480 million in cuts will be made. In the current budget situation, I it is not realistic that the Legislature would be able to provide reasonable and reliable allowable growth on top of a new $480 million commitment.

I hope that the Ways and Means Committee will slow the process down until some answers are found. Fortunately, the bi-partisan local governance committee is also looking into this area. It is unfortunate that some on the Education Committee wanted to jump the gun, rather than waiting for the bipartisan group to look at ways to reform the entire property tax system without cutting essential services.

In other news, I reintroduced a bill that will allow local communities to adopt stronger restrictions on smoking in public places. During the past few years several communities in Iowa passed ordinances that would ban smoking in public facilities. However, they were overturned by Iowa courts because the bans were in conflict with state law. I worked with the Attorney General’s office in drafting legislation to support those local decisions.

Iowa is a state that trusts local control. Communities ought to have the option of passing stronger restrictions on smoking in their public spaces. We do not need more rhetoric on home rule, we need to put it into practice. We know that when there are stronger restrictions on smoking in public places, we have a healthier community. California, which has a ban on smoking in public places, has seen a 19.5% reduction in lung cancer, and smoking rates have dropped by 27%.

When we reduce tobacco related illnesses, private health plans will see their claims drop. Additionally, the government will save money on the Medicaid program, which spent $235 million last year on tobacco related illnesses. Smoking restrictions save money and save lives.

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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