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Apr 24, 2017 at 6:00 am | Print View

DES MOINES What will Iowa Republicans do for an encore?

Given complete state lawmaking control by voters in the 2016 election, Republicans used the recently completed 2017 session of the Iowa Legislature to enact several significant, conservative laws.

Over the course of roughly four months, Republicans enacted measures that dramatically reshaped laws regarding gun and abortion regulations, distracted driving enforcement, the amount of compensation workers can receive from lawsuits and the way public employees bargain for wages and benefits, just to name a few.

But Republicans arent done yet.

They will return in 2018 with more on their agenda and at least one more year of that same unfettered lawmaking control, albeit likely with a new governor.

Statehouse Republicans seem to agree the top priority will be to lower taxes, most likely on working Iowans incomes.

I think probably, realistically, the next step to continue to make Iowa competitive is comprehensive tax reform, said Kim Reynolds, who is Iowas lieutenant governor but soon will step into the chief executives role when Gov. Terry Branstad resigns to become U.S. ambassador to China.

You look at a lot of states, thats where theyre really focusing on, Reynolds said. So I think that really needs to be the next thing that we need to look at to keep Iowa competitive.

Republicans wanted to tackle tax reform immediately under their newfound authority with a GOP governor and majorities in the House and Senate, they have complete lawmaking control for the first time in two decades.

Tax reform hopes

But the state budget did not cooperate. Lawmakers were forced to cut from the current fiscal years spending and wound up with less state money than they expected to be available for the coming fiscal year, which starts July 1. Any tax cut would have removed revenue from an already-shrinking budget pie.

In other words, Republicans hoped to cut taxes this year, but they couldnt afford it.

To me, the biggest disappointment is we werent able to do major tax reform, said Senate President Jack Whitver, R-Ankeny. Thats something weve been talking about for six or seven years. ... Im disappointed that didnt happen, but Im hopeful that we can put forward a really good plan and come back next session and really make a big difference on taxes in this state.

One of Whitvers colleagues in the Senate already has introduced such a plan.

Sen. Randy Feenstra, R-Hull, chairman of the Senates tax policy committee, has unveiled a reform plan that would cut taxes to the tune of $500 million over the next five years, reduce the number of income brackets and phase out federal deductibility.

Feenstra acknowledged the money is too tight to implement his proposal now, but he hopes it gets a chance next year.

We believe that how you grow the economy is to lower rates. Once you lower rates, that should drive an economy, injecting more revenue coming into the state, Feenstra said. So, that is the whole goal. I fully believe that next year is the best opportunity to go down that path of comprehensive tax reform.

Budget spoiler again?

But just as a tight budget spoiled any hope of significant tax reform this year, the same could happen next year.

Everything is going to depend on the revenue picture, and that is totally unpredictable at this point, said Rep. Guy Vander Linden, R-Oskaloosa, chairman of the Houses tax policy committee.

The tax reform conversation also might include a debate about tax credits and incentives. Democrats accuse tax relief programs of causing most of the states budget problems. Although Republicans do not necessarily agree, they have indicated a willingness to re-examine those programs.

School choice

Republicans say they also will try in 2018 to tackle another conservative agenda item that was thwarted this year by the tight budget: school choice programs.

Rep. Walt Rogers, R-Cedar Falls, chairman of the House education committee, said he plans to study school choice programs which generally allow parents to use taxpayer funds in some fashion to help their children enroll at a nonpublic school and will present his findings and recommendations during next years session.

Over the interim, thats one of the things I want to do, is dig down deeper into educational savings accounts: Is it really a beneficial thing for states to try? Rogers said. That will guide me on how much I come back next year with a will to do something.

Democrats worry that any funding to such programs takes money from public schools.

Sen. Rick Bertrand, R-Sioux City, nonetheless said he thinks it is time Iowa expands its school choice programs.

This will create mobility and portability for Iowa students. Its good for Iowa, Bertrand said. If we dont set up the funding next year, at the least, we need to set up the infrastructure that puts Iowa on course for education spending accounts.

School Funding

Just as with tax reform, most any new school choice program will require new funding. And that means legislators will need a healthier state budget to work with.

Another potentially costly solution that was put on the shelf this year was the states complicated formula for funding K-12 public schools. For years, various school districts have complained the formula is antiquated and in need of an update. Some rural districts say they are devoting a larger percentage of their funding to transportation, leaving less money for the classroom. Other districts are frustrated with an inability to spend as much per pupil as neighboring districts because of restrictions in the funding formula.

The Senate this year passed what would have been a solution, but the proposal was not considered by the House in large part because of the funding it required.

Rogers said the school funding formula is another issue legislators will attempt to address next year.

All of those things are going to be on the table, Rogers said, if theres any revenue to play with.

abortion restrictions

Republicans this year landed a big conservative victory in passing legislation that bans abortions after 20 weeks and requires an ultrasound and three-day waiting period before an abortion is performed.

But some Republicans say they hope next year to pass even stronger anti-abortion regulations.

Bertrand said he will encourage Republicans to support a proposal to either define life as beginning at fertilization known as a personhood measure or a ban on abortions just one week after fertilization.

Bertrand said the latter would make exceptions for artificial fertilization techniques, life-threatening issues for the mother and pregnancies that are the result of incest or rape.

Bertrand acknowledged opponents likely would challenge such a law in the courts but said he is ready to see that legal debate play out.

We are in a position that we can challenge the courts, Bertrand said. No doubt about it, this one-week (proposal) is about saving babies, but its also about sending this back to the (U.S.) Supreme Court where this horrific thing started.

Other Issues

Other issues that may return to Republicans legislative plate in 2018:

l Traffic enforcement cameras: The Senate passed a package of new restrictions, but the House did not take up the bill in part because some Republicans there say they will be satisfied only with a total ban on traffic cameras.

l Constitutional carry: Gun rights advocates scored a huge victory this year with passage of sweeping legislation that loosened gun restrictions and implemented a stand your ground measure in Iowa.

Now Rep. Matt Windschitl, R-Missouri Valley, says he will explore the possibility of eliminating the requirement that gun owners possess a permit.

Rod Boshart of The Gazette contributed to this report.

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Top of Iowa Republicans' 2018 agenda: Tax reform - The Gazette: Eastern Iowa Breaking News and Headlines