Iowa Fiscal Partnership / Areas of Research / Budget / Steps forward in ’14 — more ahead?
SHARE:

Steps forward in ’14 — more ahead?

IFP News: Statement on 2014 Legislative Session

Iowa families took a couple of important steps forward in the 2014 legislative session, but those steps paled in comparison to lawmakers’ refusal to address long-term funding challenges for critical services.

PDF (2 pages)

IOWA CITY, Iowa (May 7, 2014) — The Iowa Fiscal Partnership released the following statement today about the 2014 session of the Iowa Legislature:

Iowa families took a couple of important steps forward during the just-completed legislative session, while more — and more significant — advancements will have to wait as the General Assembly and Governor continue to focus excessive attention on giveaways to business.

Steps forward paled in comparison to lawmakers’ refusal to address long-term funding challenges for critical services including K-12 and early childhood education, and Child Care Assistance, among others.

And, inexplicably, lawmakers left Iowa’s minimum wage at a paltry $7.25 — stagnant now for over six years. Failure to improve the livelihoods of Iowa’s low-wage workers puts greater demands on families because public supports are not sufficiently funded. Eligibility for Child Care Assistance in particular has been held too low to help many low-income working families — one of the lowest eligibility ceilings in the country — and lawmakers passed up an opportunity to improve that.

One bright note from the session was that lawmakers approved increased eligibility for child care assistance to working parents who also go to school part time. They also passed a small improvement in the child and dependent care credit. Iowa Fiscal Partnership research has shown child care is expensive for low-income families, and is a major barrier for parents seeking to improve their education.

Another bright spot is that the state will provide 4 percent increases to Iowa, Iowa State and Northern Iowa to meet a commitment by the Board of Regents to freeze tuition for a second straight year. Likewise, community colleges received a 4.1 percent funding boost to restrain tuition. It is important to note, however, that many more years of increased funding will be needed to reverse the long-term trends that have turned tuition into the majority source of support for the Regents institutions and the community colleges. This causes rising debt for families, reduces access to higher education and lessens Iowa’s commitment to opportunity for all.

On the other end of the education spectrum — 4-year-old preschool — only the Senate passed legislation to help eliminate waiting lists and expand access to more families, so it will be at least next year before that can be considered.

Funding is critical to improvements in many areas. For the environment, the Resource Enhancement and Protection Act (REAP) has been around for a quarter century but only once funded at its authorized $20 million. If the Governor signs improvements passed by the Legislature, conservation and environmental advocates will see it at $25 million.

No noteworthy gains were made or seriously attempted to reform corporate tax credits and other tax breaks that have become a significant and chronic drain on Iowa’s treasury with little apparent return.

While poorly targeted “incentives” to business remain a serious problem for Iowa, one limited credit for solar power improvements was expanded and should be able to stand the kind of return-on-investment review that needs to be applied to all business tax credits.

It remains a contradiction that lawmakers can give away tens of millions of dollars to profitable businesses that pay no state income tax — without a vote and without concern about the impact on the budget — yet leave town claiming they cannot set school aid as required by law because they don’t know how much money will be coming in. If education is a priority, the money can be found from the pool now being given away before it hits the treasury.

The Iowa Fiscal Partnership is a joint public policy analysis initiative of two nonpartisan, nonprofit Iowa organizations, IPP in Iowa City and the Child & Family Policy Center in Des Moines. Reports are available at www.iowafiscal.org.