LANDON: Iowa House of Representatives Proposes Balanced Budget

During the week of Feb. 25, the Iowa House proposed a balanced and sustainable Fiscal Year 2014 budget of $6.4 billion.  It provides a 3 percent increase over last year’s level and 98 percent of on-going revenue leaving an ending balance of $840.7 million.  Annual revenue growth has averaged 3.34 percent over the past twenty years.  The budget proposal continues the practice implemented two years ago of spending less than the State of Iowa takes in. 

In contrast, the proposed Senate budget of $6.9 Billion represents nearly an 11 percent increase over last year and 105 percent of on-going revenue.

The proposed FY 2014 Iowa House budget:

1. Fulfills the commitment for mental health equalization funding.
2. Fully funds property tax credits.
3. Protects priority services in the areas of education including funding necessary to allow the Regents universities to freeze tuition, $10 million to the community colleges and a 2 percent increase in supplemental state aid for our local schools.

Additionally, the Ways and Means committee advanced the flat tax proposal out of committee on Feb. 28 and it will proceed to the House floor for discussion.  This bill would give Iowa taxpayers a choice, each year, to use the current tax code with deductions or to use a flat tax method of 4.5 percent with no deductions.  Early projections indicate that this method would simplify tax filing for over 450,000 Iowans and save taxpayers about $400 million dollars.  As vice-chair of the Ways and Means Committee, I support this bill.

Finally, a majority of the legislation that started in the Iowa House must be voted through committee by March 8 or the legislation is not eligible to advance this legislative session.  As a result, I’ve spent a lot of time in sub-committees the past couple of weeks, pushing these bills through.

Finally, I would like to invite you to attend the following Saturday legislative updates:

• March 9, 2013, 9 a.m., Neveln Center, 406 S.W. School St.

• March 23, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.

• April 6, 2013, 9 a.m., Neveln Center, 406 S.W. School St.

• April 27, 2013, 8 a.m., Café Diem, 2005 S. Ankeny Blvd.