Government : Kapucian Korner

This week the Allowable Growth bills passed out of the Senate setting the growth rate for next school year. In FY13, the current school year, the rate was set at 2% making the per pupil cost $6,001 and providing $3.9 billion to Iowa schools. Fiscal Year 14 was set at 4% providing just over $4 billion to schools.

We cannot continue to put the cart before the horse when it comes to education. Every person at the table agrees that we can make the education system in Iowa a top-tier, globally competitive system. Only after we answer some fundamental questions and provide solid solutions should we begin to talk about the funding. We continue to throw money at a system that they admit has unresolved issues.

In addition to Allowable Growth, reducing property taxes was addressed in the Senate this week. Senate File 53 transfers funds from the Taxpayer’s Trust Fund to be used to supplement current funding to the Property Tax Equity and Relief (PTER) Fund, to buy down the highest additional levy property tax rates to the statewide average. The bill also states that it should be used to replace a portion of the Additional Levy related to the regular program cost that would have been property taxes with state funding. All schools will receive the benefit of the adjustment to the Additional Levy.

Reducing property taxes in Iowa is a good thing. However, the bill uses funds from the Taxpayer Trust Fund to pay for the reduction. In the future, during tough economic times this money may not be available. This would potentially increase property taxes for Iowans when they can least afford it. We proposed an amendment to this bill giving the Taxpayer Trust Fund money back to the taxpayer. The amendment we proposed would remove the cap on the Taxpayer Trust Fund and return these funds to the taxpayers. It is estimated that the credit would be approximately $375 a taxpayer or $750 for a family on their 2013 tax return. The other side of the aisle opposed the amendment and it was not taken up and ruled non-germane.

In a few of my committees we heard concern about the ongoing drought. Current weather models would indicate this could be a three year event, similar to the one experienced in the 1950’s. There are procedures in place to follow for priority water uses during drought. These procedures have not been reviewed in several years and there is talk they need to be reviewed, and I would agree.

See you out and about the district.

Please feel free to contact me: tim.kapucian@legis.iowa.gov.