Iowa Farmer Today

Lawmakers are preparing to return to the golden dome of the Iowa State Capitol where budget concerns are expected to dominate the 2009 legislative session.
IFT photo by Gene Lucht

DES MOINES --- It’s all about the budget.

When the Iowa Legislature’s 2009 session gavels in on Jan. 12, there will be little talk about new programs.

Instead, as will be the case in almost every other state, the discussion will be about what the state can afford and what it might need to cut.

That doesn’t bode well for those who were waiting for new funds from the Legislature, even if those funds have been promised as part of multi-year plans.

“The budget will be a big deal,” concedes Jack Kibbie, D-Emmetsburg, a farmer and Senate president. “I’m hoping it’s not as bad as some are predicting.”

Kibbie says Iowa is in better shape than many states because the ag economy has been stronger than many other economic sectors. But, he says there is little doubt lawmakers will be looking at a very tight budget.

Also, they will be looking at cuts in the present fiscal year that ends June 30 and the next fiscal year that begins July 1.

House Minority Leader Kraig Paulson, R-Hiawatha, says Democrats control the governor’s office and both houses of the Legislature, but Republicans will push for more-efficient government.

Any new legislation will need to help grow the state’s economy or make the government more efficient and less expensive to run, he says. And, new taxes are unacceptable.

One new tax that could potentially breach that unacceptability gap might be the gas tax.

Some lawmakers from both parties have in the past year or two suggested raising the gas tax a few cents to pay for road and infrastructure repairs in the state.

Paulson says Republicans are unlikely to introduce a gas-tax proposal. But, he also didn’t completely rule it out, saying such a proposal would have to come from Gov. Chet Culver.

Culver has not come out in favor of a gas tax increase to fund infrastructure projects. Last year, his opposition to the idea effectively ended any chance of passage for the idea in the Legislature.

Supporters of the idea stress gas prices are presently low, they often vary by more in a day than the actual tax increase would account for and the gas tax is easier on Iowa taxpayers than other infrastructure ideas because out-of-state drivers would pay a part of it.

They also say the infrastructure repairs are badly needed, particularly in light of last summer’s floods. But, so far the idea appears to be on the back burner.

Iowa farm organization have legislative-priority checklists.

For example, the Iowa Corn Growers Association (ICGA) continues to support the ethanol and livestock industries, says Mindy Larson Poldberg. That means continued support for Iowa’s renewable fuels standard and any state funding for water quality or odor research.

The ICGA and the Iowa Soybean Association support a review of the state’s grain indemnity fund. That fund, established in 1986, has worked well, says John Heisdorffer, a Keota farmer and ISA president.

However, the recent bankruptcy of ethanol producer VeraSun and the fact the fund did not help farmers in that situation has producers and farm organizations reconsidering the fund’s role and scope.

Heisdorffer also says he is concerned lawmakers who are trying to balance a tight budget might use some of the $8 million in the grain indemnity fund for other purposes.

Some other lawmakers are interested in tweaking the matrix that is used in state approval for the siting of livestock facilities. Still others are looking for the state to support funding for conservation and odor mitigation around livestock facilities.

And, representatives of Iowa State University are still hoping the Legislature carries through on its pledge for another $38 million for phase two of improvements at the College of Veterinary Medicine there.

This an item of great importance to livestock producers in the state and also to the university if it wants the vet school to retain its accreditation when inspectors return in 2010.

But, that funding — along with any other big-ticket spending items — might face challenges this year.

“The budget will be the biggest issue,” says Joe Johnson, Iowa Farm Bureau Federation state policy adviser.

With that in mind, lawmakers who want to push new programs are looking for ideas to improve the state without spending money.

One idea now being bandied about would be to increase the dropout age in Iowa high schools from 16 to 18.

Democrats, who have been pushing for more education spending in past legislative sessions, say that move would not cost the state money and could boost education by dropping the dropout rate in the state.

Whatever happens, it’s clear the budget will be a big word under the Capitol dome.