Bills Die at Halfway Point of Session

Legislators are celebrating the halfway point of the legislative session – Friday, February 19 was day 40 of the 80-day Iowa legislative session.  They have been working long days and a few Fridays to keep the session on track to end March 31.

February 12 marked the Legislature’s first deadline – called a funnel.  Committees needed to act on bills by that date to keep them alive.  Bills that failed to make it out of committee by February 12 are done for the year.  While hot button issues like a constitutional marriage amendment and long-shot issues like medical marijuana died in the funnel, others that ban texting while driving, toughen laws against puppy mills, and require seatbelts for kids of any age in the back seat all survived to see another day.

• A complete list of bills that survived the “funnel” is available here. 
   
• You can also view our list of bills in our infoNET Bill Tracker here.
   
• You can view a list of bills that didn't make the funnel here.

Capitol News

Legislative leaders held two public hearings at the Capitol over the last two weeks – the first on the proposed reorganization bill and the second on a labor issue called “fair share” that requires non-union employees to pay a fee to unions if they receive benefits of a union-negotiated contracts.  More than half of the 50-plus people testifying at the reorganization hearing came to speak about the closure of a Mental Health Institute.  Half of the town of Clarinda came to show their support for their MHI (okay, it only seemed like half of the town). The other half of the people testifying spoke about a local program called “community empowerment” which funds a number of health and education programs for kids age 0 to 3.  The bill had changed how that program operated; the change was met with intense opposition.

The Iowa Board of Pharmacy surprised Iowans with a unanimous vote this week to recommend the state allow marijuana use for medical purposes.  The bill legalizing medical marijuana (HF 2179) died in the first funnel, but legislative supporters say they will try to bring it back to life.  The Board suggested legislators appoint a committee to discuss details and get input from other states that have done this. 

Sen. Joe Bolkcom (D-Iowa City), a key supporter of medical marijuana, said he would work on a bill for the 2011 legislative session instead of trying to move a bill forward this year.  “I don’t think we are going to find common ground this session on this bill, “ said Sen. Bolkcom.

Under a bill (SF 2215) passed by the Iowa Senate this week, insurance companies would be banned from using information from genetic tests to deny coverage.  Sen. Pam Jochum of Dubuque, the bill’s sponsor, asked for this bill after a group of doctors told her patients and their family members were nervous about testing for the genetic markers for breast cancer and other diseases for fear that their insurance companies would cancel their health insurance or call It a pre-existing condition.  Under the bill, genetic information could still be used for criminal investigations, newborn screening and for scientific research. 

Utility companies would be allowed to explore the development of a second Iowa nuclear power plant under to bills that cleared committee this week (HF 2100 and SF 2314).  These bills would allow utility companies to begin the process of finding a site for a nuclear facility in Iowa.  Iowa’s only other nuclear power plant is located in Palo, just outside of Cedar Rapids.

Budget Targets Released

The first step in state budgeting is the release of budget targets.  Before legislators can decide how to spend money, they have to know how much money they can spend.  Legislative leaders give their budget chairs a “target” – basically telling them how big (or small) their piece of the budget pie is.  This year, the Health & Human Services Budget is going to leave the table hungry.

The budget presented by leaders this week includes a 5% cut in current spending levels.  This cut is after the 10% across the board cut imposed by the Governor last fall.  That means the next year budget will be a lot less than the budgets adopted by legislators in 2009.

The Governor had recommended spending more, but he also included increased revenues and more reorganization efficiencies that would have freed up more money to spend.  Legislators are not banking on the $300-plus millions in efficiency the Governor included. Their reorganization plan only cuts between $65-75 million, most of which is made up by an early retirement package for state employees.

The budget targets are below.  You might notice about $3 billion missing from these budget targets (this year’s budget will be about $5.3 billion).  That is because these budget targets only show money spent in the seven budget subcommittees and does not include general fund money that will be spent in the “standings budget” which funds things like K-12 education) and property tax credits.  You can look at the budget targets here.

• Administration/Regulation - $ 63,836,703 - This is an increase of $2,897,461 over current levels (and is $2,857,461 over the Governor's recommendation).
  
  
• Agriculture/Natural Resources - $ 35,917,312 - This is a cut of $340,780 under current levels (and is the same as the Governor's recommendation).
  
  
• Economic Development - $ 41,754,957 - This is an increase of $1,138,322 over current levels (and is the same as the Governor's recommendation).
  
  
• Education - $ 844,371,902 - This is an increase of $28,514,198 over current levels (and is $11,490,688 below the Governor's recommendation).
  
  
• Health/Human Services - $ 954,340,874 - This is a cut of $168,162,109 under current levels (and is $172,625,510 under the Governor's recommendation).
  
  
• Justice System - $ 634,366,394 - This is an increase of $8,593,422 (and is $920,181 over the Governor's recommendation).
  
  
• Transportation - $ 0  - This is $1,350,000 under current levels and the Governor's recommendation.  This recommendation would shift all administrative funds to federal funds - nearly all of Iowa's transportation spending is from federal dollars.
  

• Reorganization "Savings" - ($ 79,940,500)
  
  
• GRAND TOTAL - $ 2,494,647,642 - This is $208,689,986 below current levels (and $260,831,514 below the Governor's recommendation).
  

Health and Human Services is targeted for a whopping $168 million cut.  Legislators serving on this budget subcommittee were stunned this week when they saw the numbers – none seem to know how they will make up this cut.  To make matters worse, the state loses its enhanced federal Medicaid match in December.  The state had been relying on extra federal Medicaid money coming into the state through the economic stimulus package passed by Congress last year.  That money runs out in December, leaving half of a fiscal year with less federal dollars.  That means Medicaid will really have $375 million less to work with next year. 

The Health/Human Services Budget Subcommittee cancelled its meetings this week, and instead met privately (in caucus) to figure out their game plan.  Legislative leaders have asked each of the seven budget subcommittees to get their budgets done by Thursday, February 25.  Their hope is to have all budgets done and ready to go when the Revenue Estimating Conference  (REC) meets March 11.

The REC is the group of economists that predicts how much money the state will collect in taxes and other revenue during the year.  By law, Iowa can only spend 99% of what it collects, so these estimates are very important.  They tell legislators how much money they can spend.  The October 2009 estimates are what drove the Governor to cut spending by 10% across the board, because the group predicted the state would collect far less than they thought when the Legislature passed its budget bills last year.

If the REC predicts the state’s economy is turning around and we are collecting more money than they thought, legislators can spend more.  They will add that to their budgets and finish up session.  If the numbers come back worse, the Legislature is required by law to adjust its budgets and cut even more.

Again, Iowa’s budgets are much better than some states, including neighbor Illinois that is battling budget deficits bigger than Iowa’s entire budget.  However, many other states can borrow money and spend more than they have in the bank. Iowa cannot.  Iowans want to only spend what they have in the bank, and save a little for a “rainy day.”  March 11 is the day when we’ll know how much it is raining (or snowing as the case may be this year).  Keep your fingers crossed.

Final Reorganization Negotiations Begin

Legislators spent the summer and early part of this session finding ways to save money by changing how state agencies operate.  They hoped to find efficiencies in restructuring government operations.  Their plan, as passed by the Iowa Senate earlier this month, would have saved the state about $74 million. 

By the time the House passed the bill (SF 2088), the savings were down to $60.7 million.  Under both plans, local governments will see about $44.2 million in savings.   The Governor’s original proposal would have saved $341 million, but legislators and fiscal analysts disagreed with the math behind those estimates. 

Here are a few things about the reorganization budget that you might find of interest:

• Area Education Agencies (AEAs) are restructured, giving the Department of Education the authority to standardize services and develop a collaborative plan.  The Senate had required redistricting into five areas after the 2010 census, a study to find alternative ways to finance the AEA system, and restructured local board memberships.  The House took out those parts, and established a local AEA advisory group to help with these changes (which could end up adding to costs instead of saving them).  The AEAs provide special education services to local school districts.
   
• The Clarinda Mental Health Institute (MHI) would be closed under the Senate version of the bill, moving the 20 adult psychiatric beds to the Cherokee MHI, and moving the 12 child/adolescent beds to the Independence MHI.  The House had originally considered giving the Department of Human Services the flexibility to close a facility and move other services around, but that language was rejected and the House ended up taking out all language about the closure of an MHI. 
   
• The House added language that would amend the Medicaid Intellectual Disabilities (ID) Waiver to eliminate unnecessary annual evaluations – evaluations would only be done as needed.  About 2/3 of the 10,761 people on the ID Waiver would not need this annual evaluation, which cost about $400 each.  The state’s savings here is $105,000. 
   
• The House also added language that would again amend the Medicaid ID Waiver to cover employment-related transportation provided by Supported Community Living service providers.  Employment-related transportation is currently covered under the waiver when provided by a transportation or supported employment provider, but not a supported community living provider.  This adds them.
   
• The MH/MR/DD/BI Commission duties were revised in both House and Senate versions of the bill, at the request of the Commission.  They will also get a mercifully shorter name – Mental Health/Disability Services Commission.
   
• Both bills still include changes that would take brand name psychiatric drugs off the Medicaid preferred drug list (requiring people try out less expensive drugs first) unless their manufacturers give the state rebates and lower pricing.  Both bills also allow doctors to prescribe a seven-day supply of drugs that are not on the preferred drug list, instead of the current 30-day supply. 
   
• The House and Senate were also in agreement about a controversial review of Medicaid waiver expenses.  Under both versions, the state would review some expense payments that exceed the median. Providers say this will delay services, and could result in more denials for coverage.  DHS says that this will expand their oversight and make sure public money is being spent appropriately and weed out fraud. 
   
• Finally, both House and Senate included the phase-out of the Family Support Subsidy program, ending it after all current recipients are out of the program.  No new families will be accepted, and people on the waiting list will be told the program has ended. 
  
  

You can read a full analysis of the bill (House & Senate versions) here.

What Next?

Things are moving at lightening speed around the Capitol these days.  Even you are under the gold dome every day, it can be tough to keep up on things.  Here is a quick review of what’s ahead this next two weeks:

• Budget Subcommittees are to have their budgets done by Thursday, February 25.  This probably won’t happen – or at least budgets won’t be in final form.
  
  
• The second legislative “funnel” deadline is just two weeks away (Friday, March 5). Bills need to be pretty far along in the process to be alive after this date – they need to have passed out of one chamber (House or Senate) and out of committee in the other chamber.  Again, tax and budget bills can be debated at any time (the funnel doesn’t apply to them).
  
  
• Final decisions on the reorganization bill will be made.  While things change daily at the Capitol, most legislators think the bill will end up in a “conference committee.”  Conference committees are appointed when legislators cannot agree to a compromise.  A group is appointed to a conference committee; they meet and develop a compromise that must be passed by both House and Senate to become law – and conference committee reports cannot be amended.
  
  
• Bake sales.  Laugh away, but the Governor's Supplemental Budget (SSB 3197) calls for a garage sale.  That's right - the bill authorizes the Department of Administrative Services to sell off any unneeded equipment, furniture and fixtures found when they take possession of the Mercy Capitol complex.  The building is being renovated for state office space.I wonder how many lampshades and chairs (or pies) it will take to make up the $1 billion budget gap.

Friend Us on Facebook!

Many of you crave information more frequently than we are able to send out updates.  You want the gossip, the breaking news, the scoop.  We love that about you! 

To help you out – we are now on Facebook. You can post your questions, talk to other advocates, and keep up to date on all things legislative. 

So become a fan - click here.

Advocacy Tools

• Click here to get this issue in PDF format.
  
  
• Click here to review bills being considered this year in the infoNET Bill Tracker.
  
  
• Click here to review the list of bills that didn't make the first legislative funnel deadline (dead bills).
  
  
• Click here to see if your legislator is having a public forum or town hall meeting near you.
  
  
• Click here to use the infoNET Grassroots Action Center to contact your elected officials.
  
  
• Click here to use the infoNET Grassroots Action Center to send a letter to the editor to your local newspaper.