The Iowa’s 41st Governor, Chet Culver, celebrated his 41st birthday by officially signing his first piece of legislation as Governor. The bill was House File 1, which raises the state's minimum wage from $5.15 to $7.25 by next January 1. The bill easily passed the Iowa House with bipartisan support, 79-19. After ten years with no increase, this is a long overdue boost for low-income working families. $7.25 per hour is still not enough for a household to live on, but at least it's a move in the right direction.

In Washington, Congress is also debating an increase in the federal minimum wage, also from $5.15 to $7.25 per hour, but passage by the U.S. Senate is uncertain at this point, making it all the more important for states move ahead. In the end, whichever is higher (state or federal) becomes the enforceable minimum wage.

Similarly, we cannot wait for the federal government to address the critical needs in health care. In a survey I sent to constituents this past summer, you told me that health care was your number 1 issue. Together with Senator Jack Hatch (D-Des Moines), I have proposed a comprehensive health care initiative. Each day in the Health & Human Services Appropriations Committee, which I co-chair with Sen. Hatch, we are hearing testimony from national experts, state agencies responsible for health care, and service providers. The response has been extremely positive to our initiative, and we continue to modify our original proposal based on the information we are receiving. We are looking for ways to assure that all Iowans have access to affordable, quality health care.

Our proposal offers a three-pronged effort to bring comprehensive health care coverage legislation before the General Assembly. The first step will create a bipartisan commission to review insurance reforms necessary to help working families, small businesses and non-profit agencies that have difficulty obtaining affordable private coverage. The proposed commission will be composed of legislators, business leaders, state government agency directors, and consumers. That panel will be charged to explore approaches taken by other states and craft a program best suited to Iowa. They would report to the Iowa Legislature during the 2008 session.

The second part of this legislative effort would plug the gaps in public health programs that currently serve low income, disabled and senior Iowa families. One piece of that effort would be to expand Medicaid to cover adults who are striving to get off of welfare and into the work-force. Sometimes we discourage those who are just beginning to become self-sufficient by pulling away supports such as health care and, in doing so, we inadvertently push them back into dependency on welfare. Currently, although her children are covered, a mother with two children is eligible for Medicaid only if she has an income at or below 29% of the federal poverty level, approximately $4,800 annually. We would like to increase this eligibility to 50% of the federal poverty level or, in the example cited, closer to $6,000 annual income for a mom of two children.

The third component in the process is funding. As I have done in the past, I will encourage the legislature to enact a $1 increase in the state’s tax on each pack of cigarettes. Along with decreasing the use of tobacco, this increase will provide the resources to implement a comprehensive health care package.

Iowa currently has the lowest tobacco tax of any state outside the tobacco producing states. We have data to show that when the price of tobacco products increases, fewer people use them, and we know that tobacco use is the most preventable cause of disease and death in Iowa. Twelve Iowans each day die from tobacco related illnesses, and public and privately funded insurance programs spend about $1 billion per year on tobacco related illness. We can significantly improve the health of thousands of Iowans by simply increasing the price of tobacco products.

Thanks to all the folks who have contacted me so far this year. I encourage anyone with ideas for legislation or comments on specific legislation to contact me at the Capitol. 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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