Happenings on the Hill The Week of January 12, 2015 in review by Representative Greg Heartsill We Are Off and Running! The 86 th General Assembly was sworn in on Monday. As my family was integral in my re-election campaign process, they were very interested in attending opening day of the 2015 Session On Tuesday, we heard the Governor deliver his Condition of the State Address. Wednesday, Chief Justice Mark S. Cady addressed us in Joint Session about the State of the Judiciary. On Thursday, we had 37 bills read into the House journal. Friday Governor Branstad delivered his inaugural address after taking the oath of office to serve his sixth non-consecutive term as Iowa s governor. Saturday, Rep. Josh Byrnes, Rep. Scott Ourth, and I were in the House Chamber getting some work done on bills and correspondence and had the opportunity to give an impromptu tour of the House Chamber to some visitors from several different counties in Iowa. As Rep. Byrnes stated, It is the people s house. Happenings on the Hill January 17, 2015 Page 1
Governor Proposes Significant Changes to Medicaid Budget This week Governor Branstad released his budget proposals, including major reforms to the Iowa Medicaid program. It also includes cost containment initiatives that will save over $70 million in FY16. Below are some of the changes the Governor is proposing in his FY16 Medicaid budget: Cost Containment - The Governor has proposed $70 million in cost containment initiatives. The largest one is a proposal to modernize the way Medicaid services are delivered by transitioning the Medicaid program to a managed care model. This switch will save the Medicaid program $51 million in FY16. The Governor has also proposed implementing a waiting list for the intellectual disabilities waiver. This will result in a $6 million savings. Other cost containment initiatives include payment reform. The Governor has proposed to increase the nursing facility assessment fee to 3%. This will save almost $4 million. Finally, the Governor has proposed that the University of Iowa fund the state share of Disproportionate Share Hospital (DSH) payments. This will save $4.5 million. FMAP - The budget includes an increase of $56 million to reflect a change in the Federal Medical Assistance Percentage (FMAP) rate. Rebase - The budget includes a total of $42.8 million to rebase nursing facilities, hospitals, and home health services. Mental Health Redesign - The budget proposes to eliminate mental health equalization. Mental Health Institutions - The budget recommends eliminating the Clarinda and Mount Pleasant MHIs and transferring control of the campuses to the Department of Corrections. This will save $8.2 million in FY16 and FY17. Branstad Proposes Partnership for Workers and Employers Governor Branstad used his Condition of the State address to join the chorus of business leaders urging state legislators to support and expand programs designed to develop more highly skilled employees. The Governor asked the legislature to pass a bill creating the Center for Human Capital Enrichment. The new public-private partnership would research best practices, study data and make recommendations to help improve both the quality of Iowa s workforce and the way stakeholders utilize their human capital. The private side of the partnership would be represented by the Human Capital Enrichment Council, an advisory body that would represent the needs of employers and the education sector. The council members would also include the state auditor and the directors of Workforce Development, the Department of Education and the Economic Development Authority along with other lead policy agencies. It would also include the 21 largest private employers in the state, such as Rockwell Collins and Principal Financial. An operations team comprised of state employees from those lead policy agencies would comprise the public side of the partnership. This Operations Team will ensure the council has the resources available to carry out its mission. The governor proposed a prototype of the initiative last fall during his reelection campaign as a way to help Iowans align their existing skills or educational opportunities with the needs of Iowa businesses. Happenings on the Hill January 17, 2015 Page 2
The Governor s Education Budget Proposal Education funding was a hot topic during the last election cycle. This week we heard what the Governor proposes. Within the Education budget, which funds the Department for the Blind, the College Student Aid Commission, the Department of Education, Community Colleges, Vocational Rehabilitation, Iowa Public Television, and the Board of Regents, he proposed spending $1.02 billion, an increase of $36.3 million over FY15 s $986 million. Notable changes over FY15 include: College Student Aid Commission $181,787 increase for administrative costs with the Commission $4 million increase for the Iowa Tuition Grant $200,000 increase for the Iowa Tuition Grant for For-Profits $1.3 million increase for the Teach Iowa Scholars Program Department of Education $1.2 million increase for the Department s administrative costs $1.5 million increase for the Iowa Reading Research Center $3.5 million increase for Community Colleges $200,000 new line item for Bullying Prevention $10 million new line item for High Needs Schools $1 million new line item for the Iowa Reading Corps $600,000 for a new State K-12 Career Planning System $1.5 million for a new line item title Iowa Academic Standards $100,000 for a new Principal Leadership Institute Iowa Public Television $282,000 increase for IPTV Board of Regents $4 million increase for the University of Iowa $3.1 million increase for Iowa State University $1.6 million increase for the University of Northern Iowa $4 million new line item to help the Regents implement their new Performance-Based Funding model $164,358 increase for the Iowa School for the Deaf $68,525 increase for the Iowa Braille and Sight Saving School PK-12 School Aid Outside of the scope of the Education Appropriations bill, the Governor also mentioned his proposed increases for PK-12 school aid funding. While he did not release a percent of growth, his proposed increase of $84.8 million for FY16 includes what would amount to roughly a 1.25% Supplemental State Aid amount and his proposal of $143.9 million for FY17 includes what would amount to roughly a 2.45% Supplemental State Aid growth percentage. Here s a breakdown of the proposals: Happenings on the Hill January 17, 2015 Page 3
FY16 (15/16 school year): 1.25% Supplemental State Aid Increase $18.5 million increase for School Aid through the Regular Program $5.9 million increase for Categorical program (Teacher Salary Supplement, Professional Development, and Early Intervention dollars) $3.2 million increase for preschool $5.6 million increase for Property Tax Replacement Payment which picks up the property tax increase $50.2 million for the Teacher Leadership Compensation system, which becomes another Categorical program with the other three. It would also put about half of districts on the Budget Guarantee for a cost of $16.3 million. FY17 (16/17 school year): 2.45% Supplemental State Aid Increase $52 million increase for School Aid through the Regular Program $9.1 million increase for Categorical program (Teacher Salary Supplement, Professional Development, and Early Intervention dollars) $3.7 million increase for preschool $10.8 million increase for Property Tax Replacement Payment which picks up the property tax increase $53 million for the Teacher Leadership Compensation system, which becomes another Categorical program with the other three. This would also put about 37% of districts on the Budget Guarantee for a cost of $18.1 million. The House Education Committee will be looking at Supplemental State Aid amounts in the following week, while the House Education Appropriations Committee will begin working over the budget items. I intend to continue reaching out to the school districts in House District 28 for their comments regarding the budget. Slight Increase in Iowa 529 College Savings Plan Tax Deduction Starting in tax year 2015, each Iowa taxpayer will be able to deduct up to $3,163 in contributions per beneficiary account from state taxable income. A married couple with two children could deduct up to $12,652. The deduction is increased annually for inflation and was at $3,098 for tax year 2014. College Savings Iowa is a way for parents, grandparents, and others to invest in a college education for a future student. The beneficiary of a 529 plan can withdraw the investment tax-free to pay for qualified higher education expenses. Those expenses can include tuition, books, supplies, and room and board at any eligible university, community college, or technical training school. Those wishing to invest in a plan do not have to live in Iowa, but can only take advantage of the Iowa income tax deduction if they are residents. For more information visit: www.collegesavingsiowa.com. Happenings on the Hill January 17, 2015 Page 4
ICAN Presentations In a few weeks, it will be the height of financial aid season. This is the time when the most FAFSA s (Free Application for Federal Student Aid) are completed and when Iowa families and students are in need of the most assistance. The FAFSA is a federal form and helps students qualify for federal financial aid. The Iowa College Access Network (ICAN) works diligently to fulfill their mission to empower Iowans to achieve their educational and career goals through statewide, comprehensive outreach. ICAN offers one-on-one assistance at eight office locations in Iowa: Ankeny, Cedar Rapids/Hiawatha, Council Bluffs, Davenport, Orange City, Ottumwa, Sioux City and Waterloo, for FAFSA and financial aid assistance. To accommodate as many families as possible, ICAN will extend its February office hours to include select Saturdays and evening appointments. ICAN also partners with the Iowa College Goal Sunday program, an event staffed entirely by volunteers from the financial aid community of Iowa. Volunteers assist students and their families with the completion of the FAFSA form at select sites across the state. In 2015, more than 70 events will be held throughout the months of February and March in 43 Iowa communities. For specific dates, visit http://www.iowacgs.org For communities outside the service area of an Iowa College Goal Sunday location or an ICAN Student Success Center, ICAN provides Fill-Out-The-Form events. An ICAN advisor assists families at the community high school, providing assistance within their own community. Please visit www.icansucceed.org, for more information. State of the Judiciary On Wednesday, Chief Justice Mark S. Cady, of the Iowa Supreme Court, delivered the State of the Judiciary. Each year the Chief Justice is required to deliver this speech to the general assembly. In the address, the Chief Justice may express what he believes is important for Senators and Representatives to know about the Court system. Chief Justice Cady used his State of the Judiciary to highlight the goals and successes of the judicial branch. Those goals include; protecting Iowan s children, providing full time access to justice; operating an efficient and full services court system; providing faster and less costly resolutions of legal disputes; remaining open and transparent; and, providing fair and impartial justice for all. The Chief Justice focused on the ways in which courts are working for all Iowans. From specialty courts that focus on families to easier access to court documents through technology. Iowa Courts, now more than ever, are more accessible to all. Keeping the courts open and accessible has been a major focus for the legislature. With additional funding appropriated in the past several years, Court Houses in Iowa were able to expand their hours and ensure better access to justice, no matter where a person is in the state, through the use of the Electronic Data Management System (EDMS). As of today, over 4 million documents have been uploaded on the EDMS system. Iowa Courts are continuing to focus on providing justice for all. Justice Cady promised that members of the Judicial Branch will be reviewing specialty courts, sentencing and other procedures in order to ensure all Iowans are treated fairly. With the conclusion of the State of the Judiciary, members of the Justice Systems Budget Subcommittee began meeting to evaluate the funding for the Courts for the 2016 budget. This Subcommittee will work to ensure the Courts receive appropriate funding to continue their work. Happenings on the Hill January 17, 2015 Page 5
Habitat for Humanity Marion County Charles City Area Development and Habitat for Humanity of Marion County were recently each awarded $20,870 in USDA Rural Development Housing Preservation Grants to assist qualifying rural Iowans in making needed home repairs. USDA Rural Development's Housing Preservation Grant program provides financing to intermediaries such as local governments and public agencies. These recipients distribute the grants to homeowners and owners of multi-family rental properties or cooperative dwellings who rent to low and very-low-income residents. Funds are not provided directly to homeowners. Charles City Area Development is using its grant to help very low and low-income residents in Charles City and Floyd County replace old and unreliable furnaces. Habitat for Humanity of Marion County in Knoxville is helping qualified local residents make needed home repairs. Revolving Loan Fund Workshops in January USDA Rural Development staff will be presenting a workshop January 28 th at Smokey Row in Oskaloosa to help rural community leaders establish, manage and market revolving loan funds. For information or to attend, email Marybeth Foster @ mbfoster@iastate.edu Revolving loan funds are established through a variety of USDA loan and grant programs and are a great way to assist with small business development in rural Iowa. Funds are made available to intermediaries (typically rural electric cooperatives, regional council of governments or local economic development groups) and they make loans to small businesses. As the loans are paid back, the money is then re-loaned to other businesses. Last year more than $2.3 million in loans and grants were provided to rural organizations to help establish revolving funds. These loans helped rural small businesses in a variety of ways including the purchase of equipment, real estate and expansions. Getting Around the District During Session, I hold weekly town hall meetings around the District. This last week, I ve had several changes to some of my upcoming forums. Below is next Friday s updated schedule: January 23 rd: Last Chance Market in Russell 8 am, Mosaic Office in Chariton 10 am City Hall in Monroe 5 pm, Community Center in Sully 7 pm If you are unable to attend a forum, please contact me at 641-218-0185 or greg.heartsill@legis.iowa.gov. If you have a group that is coming to the Capitol, please let me know so that I am able to arrange some time to visit with you and arrange a tour. If you would like to watch us online in the House Chamber, please go to: http://coolice.legis.state.ia.us/cool-ice/default.asp?category=billinfo&service=livevideo Please share this newsletter with those that might be interested and/or send me email addresses of those that wish to be added to my newsletter list. It is a great honor to represent you in Iowa House District 28. God Bless! Happenings on the Hill January 17, 2015 Page 6