LANDON: Property Tax Reform, State Health Care Plan Coming Up for Debate

Two key pieces of legislation coming up for debate in the Iowa House are the property tax reform bill and a replacement program for the expiring Iowa Cares health care plan. 

The property tax reform bill will limit the growth of property taxes in Iowa from the current 4.4 percent annually down to 2 percent.   The bill proposes to hold property taxpayers harmless any time the state sets supplemental state aid (formerly known as ‘allowable growth’ funding).  On average this will save Iowa taxpayers $2.70 per $1000 in property valuation when fully implemented.

Additionally, cities’ concerns about lowered revenue are taken into account while at the same time offering close to $400 million in tax relief once fully implemented.  The bill contains a 20-percent rollback for commercial and industrial property values when fully implemented.  After that all four classes of property, residential, agriculture, commercial and industrial are tied together.

In the Iowa House, we remain committed to achieving relief and reform in all property classes that is permanent, predictable and significant.

Currently Iowa has 400,000 people enrolled in Medicaid.  The fiscal year 2014 cost estimate is $1.5 billion, up $88.5 million over last year.  Since the year 2000, Medicaid enrollment has gone up 88% and expenditures are up 226 percent.

The new Federal Medicaid expansion is being sold as not costing Iowa anything.  This is far from the truth.  The Federal program promises to cover 100 percent during the first three years of the proposed expansion for over 150,000 newly eligible Iowans, but then the federal share declines and the Iowa Taxpayer picks up the difference.  The Federal Government will NOT cover Iowans who are currently qualified but not enrolled or cover cost increases for the current enrollees. 

There are between 52,000 and 81,000 Iowans who currently qualify for Medicaid that are not enrolled.  Under Obamacare, these people MUST NOW ENROLL in Medicaid.  The taxpayer cost of providing Medicaid to these Iowans over the next seven years is between $327 million and $564 million.  

No matter whether or not Iowa decides to participate in the Medicaid expansion, the cost to Iowans is going up.  There is very little that is free in life and this program is NOT FREE.

Please contact me about this and other issues that are important to you or join me at the following forums:

• 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.