In the closing two weeks of session, Iowa's budget problems will take center stage.  The Revenue Estimating Conference's March prediction included $33 million more in revenue coming to the state than their previous December estimate.  Though this can be seen as a sign Iowa's economy has seen its worst days, the additional revenue will not be enough to make up the nearly half a billion dollar hole.

Funding education will be the one overriding budget item which will foster aggressive discourse in the Legislature.  Politicians should engage in aggressive debate over poor decision making practices which resulted in unfunded mandates, unfunded per-pupil promises, unfunded allowable growth and the play of politicians which resulted in this mess.  Politicians created the problem, and politicians should have a healthy debate on how to fix the problem.


If the 10% across-the-board cut is not backfilled and allowable growth is not funded the cost will fall back on local property tax payers.  Money was promised to school districts which was never provided.  Many of you are noticing your local school boards begin to make the difficult decisions of how to fund schools without promised state dollars.  State law requires school districts to ratify their budgets by April 15th and to publish them thirty days prior for public review.  School districts can't wait any longer for funds which the state spoiled away.  They are now facing the difficult task of turning to local property tax payers to keep schools functioning.


Rather than waiting for the state legislature, school districts in Iowa City, Cedar Rapids, Ankeny and Clinton have already approved substantial tax levy increases.


Last Thursday a new problem in education popped up:  One time stimulus dollars were used to offer additional pay to teachers for training.  Since the Governor's 10% across-the-board cut also cut this teacher quality pay, school boards found they are now on the hook for this pay as well.  Many school districts were notified of this issue after they certified their budgets.  The full breadth these two problems results in nearly $330 million in unfunded mandates falling to the local level by raising property taxes.


Understanding how Physical Plant and Equipment Levy or PPEL, allowable growth, property tax levies, the state sales tax and the 10% across-the-board cut all factor into this problem can be a task in itself.  And I applaud local youth for writing to me on the issue.  I have received many letters from youth frustrated with the fact that programs like art and music may be cut, as well as teacher positions.  I always encourage young Iowans to get involved in government at a local level and I want to thank them for these letters and I strongly encourage their questions and comments.


Another discussion on the Senate floor sparked intense debate this past week.  One section in the Government Reorganization Bill allowed for the sale and lease-back of state owned buildings.  An amendment to ban the authorization of this practice in the future by the Governor and Legislature failed.  It was passed as a way to offer "management flexibility."  This practice has nearly bankrupt New Mexico.


In closing, I received a message on Thursday in a fortune cookie which read, "If a lobbyist asks you to sponsor an amendment which has already failed twice - Run!"


Shawn Hamerlinck
State Senate 42nd District

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