Schneider Statehouse Report: Sustainable Coverage for Iowa’s Uninsured

By Sen. Charles Schneider

Gov. Terry Branstad unveiled a healthcare plan providing medical coverage for uninsured Iowans while enabling them to take ownership of their healthcare and wellbeing.  The Healthy Iowa Plan would cover all of the approximately 89,000 uninsured Iowans earning below 100% federal poverty level without depending upon Medicaid or the federal government for full funding. 

This program provides outcome-based solutions for Iowans, allowing them to take ownership of their health by providing incentives for healthy behavior.  Much like private insurance, Iowans will pay reduced costs when they take preventative measures to protect their health.  Additionally, local hospitals will participate in the Healthy Iowan Plan, giving Iowans freedom to see their family doctor of choice.  

The Healthy Iowa Plan provides much-needed coverage for eligible Iowans in a responsible and sustainable manner.  Iowans will be able to make informed choices about their healthcare without our state being beholden to the federal government and unreliable funding sources.  Iowans deserve affordable health care without the looming threat of additional tax burdens.

Different Budgets, Different Visions 

Last week, the House Republicans and the Senate Democrats released their budget targets – the parameters within which they plan on allocating and spending state dollars.  Comparing the budgets provides a clear picture of the priorities of each party and the vision they have for our state’s future.

House Republicans spend 98 percent of ongoing state revenue and only 89.5 percent of available revenue. In comparison, Senate Democrats spend roughly $500 million more than the House Republicans and over $200 million above what the state takes in.  This is an 11 percent increase in spending above last year’s estimated appropriations. 

The Republican budget meets the needs of Iowans while adhering to sound budgetary principles of spending within one’s means. The budget proffered by Senate Democrats pushes the state down the road of fiscal uncertainty through out-of-control spending and lack of budgetary restraint.

Just three short years ago Senate Democrats spent the state into the red, leading to across-the-board cuts and the largest spending gap in state history. We cannot revert back to these failed practices.  Iowa is fiscally sound and we must continue to look forward when it comes to budgetary planning.  Senate Republicans will continue to advocate for sustainable budgetary practices for the long-term benefit of Iowans.

Property Tax Reform Critical As Democrats Continue Lip Service

Property taxes are out of control in Iowa and Senate Republicans recognize the need to enact immediate change. 

High property tax rates discourage business and job growth statewide, with some rural community commercial property owners resorting to demolishing functional vacant buildings rather than continue to pay overly-exorbitant tax rates that eat away at a profit.  Property tax reform is critical to the economic health of our state and our ability to compete in the global economy.

Unfortunately for Iowans, Senate Democrats are offering a paper tiger of a property tax bill that will provide no measurable relief to property tax payers.  Their bill offers property tax credits funded at $50 million in the first year and then relies on the state jumping revenue hurdles to grow to a maximum level of $250 million in tax credit. The Democrat plan is an unwise investment for the state because it will do nothing to truly alleviate the property tax burden on hardworking Iowans or attract business.

Gov. Branstad has proposed a property tax reform plan that would provide meaningful change across all classes of property in Iowa. The $400 million plan aims at reducing commercial, industrial, and railroad property taxes.  It also limits annual increases and controls future growth rates on all classes of property. The Governor’s plan is a sound long-term plan that will benefit all Iowans and bolster the health of our economy.

The time is right for meaningful property tax reform across all classes of property.  Our state cannot afford the Democrats’ weak attempt at providing relief that is short-term and dependent upon future revenue gymnastics.   We must give Iowans true, long-term property tax reform so they have the confidence to grow their businesses.

(Sen. Charles Schneider represents Senate District 22, which includes Waukee, Clive, Windsor Heights and part of West Des Moines Contact him at Charles.Schneider@legis.iowa.gov or at 515-281-3371.)