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Iowa House of Representatives
STATEHOUSE NEWS -- September 18, 2006
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INSIDE THIS ISSUE:
Surplus Sign of Strong Economy
Multi-State Voter Registration Project
Disabled Iowans Can Manage Own Service Package
Legislative Fiscal Committee Meets

Twenties Counties Declared Drought Areas
New Child Safety Harness Approved
Minority Business Task Force Meets
House Now Taking Application for Pages
Rural Iowa Fund
Second Annual Iowa Weatherization Challenge
New Gambling Licenses Possible

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SURPLUS SIGN OF STRONG ECONOMY

It is never too early to talk about the good things happening in Iowa.
Governor Tom Vilsack wanted to share good news of strong financial
trends and the anticipated surplus as the books are closed on the past
fiscal year, 2006.  Although it is still a little early, the state will
be sharing similar financial news with the Standard and Poor's credit
rating service later this month.  The State will not officially be
closing the books on fiscal year 2006 until mid-October. 

The fiscal year 2006 general fund budget is projected to have a $332.1
million surplus.  This surplus will allow the state to reimburse the
Senior Living Trust Fund by approximately $50 million, allocate $2.8
million to the state universities, and provide $160 million to fund
property tax credits for fiscal year 2007.  

The remaining $119.5 million will flow into the state reserve funds,
bringing the combined balance to $511.3 million or 9.6% of adjusted
revenues.  The State has two reserve funds that have a combined
statutory limit of 10% of adjusted state revenues.  The Cash Reserve
Fund has a statutory limit of 7.5% of adjusted revenues, and is now
full, and the Economic Emergency Fund has a statutory limit of 2.5% of
adjusted revenues. 

Governor Vilsack noted in his announcement, "We have consistently
managed our budgets in a responsible way which is why we have
substantial rainy day accounts and a near perfect bond rating.  While
many states and the federal government struggle with managing their
finances, we have lived within our budget, provided tax relief for eight
consecutive years, and given Iowans the services they expect from state
government. We have done all of this while continuing to plan for the
future." 

Household Income Up
Recent U.S. Census data shows the median income of Iowans grew 7.17
percent between 2004 and 2005, making Iowa the 11th fastest growing
state.  Iowa's median household income of $46,500 now exceeds the
national average and ranks 21st amongst other states. 

The state is also experiencing a period of record employment growth.
According to Iowa Workforce Development, for the third straight month,
Iowa's nonfarm sector added new jobs, topping the previous all-time high
set in June.  Nonfarm employment increased to 1,510,600 during July,
2,500 more than June and 29,100 more than in July 2005.

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MULTI-STATE VOTER REGISTRATION PROJECT

Iowa Secretary of State Chet Culver has announced completion of a
multi-state voter registration project.  Working with the Secretaries of
State of Nebraska, Missouri, Kansas and Minnesota, the first of its kind
project has resulted in a more current and up-to-date voter registration
list for these four states.

Elections officials in these four states will now have the ability to
cross check their state's voter registration data with that of any of
the other four states who are part of this agreement.  According to
Secretary Culver, this is expected to result in cleaner voter
registration rolls and less administrative processing.  It will also
insure that only persons actually residing in Iowa will be able to vote
in Iowa on Election Day.

According to Culver, the cross-check process identified over 22,000
registered voters on Iowa's list who are also registered in one of the
other four states.  These voters will be moved from Iowa's active file
to a cancelled file and a notice will be sent by the county auditor to
their Iowa address.  If the notice is returned, the county auditor will
know that they have moved and the cancellation was correct. 

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DISABLED IOWANS CAN MANAGE OWN SERVICE PACKAGE

Beginning October 1, Iowa Medicaid officials will allow any person
receiving Medicaid services under one of six home- and community-based
waivers to convert the value of their services into financial credit and
then use that credit to hire their own service providers.  The Iowa
Department of Human Services (DHS) developed the "consumer choice
option" with help from the Robert Wood Johnson Foundation.  

Based upon similar efforts in other states, consumer choice is expected
to improve the quality of life of those who participate, by increasing
their ability to control their own living situations.  Projected to be
cost-neutral to the state, this option is available to persons on
Medicaid waivers for AIDS/HIV, brain injury, elderly, ill and
handicapped, mental retardation, and physical disabilities waiver.  

Each consumer choice enrollee will be required to designate an
"independent support broker" to help develop a service plan, and to
designate a financial management service (typically a credit union) to
manage the enrollee's money and pay the bills.  Cost for the brokerage
and financial management services will come out of the consumer's
individual service budget.  Only the financial manager will be an
official Medicaid provider; all other service providers will be direct
employees of the consumer.  The Johnson Foundation is providing start-up
grants to financial institutions to provide financial management
services under this option.

Services to be accessed through the "consumer choice option" could
include a number of services that are already allowed through one or
several existing waivers, such as assistive devices, homemaker/chore
services, unskilled attendant care, day habilitation, home and vehicle
modification, home-delivered meals, prevocational services, respite
care, transportation, and other services.  Additionally, the consumer
choice option provides opportunities to obtain goods or services that
fall outside the typical waiver-allowed expense, if such goods or
services reduce the need for other services.  For example, a consumer
choice enrollee could spend money from their service plan to purchase a
microwave oven, if it would reduce the need for home-delivered meals.
Funds may not be used to purchase room and board, child care, sheltered
workshop, or personal entertainment items.  

The administrative rules contain standards for brokers, financial
managers and service providers, but those standards are minimal, raising
some concerns that enrollees could become subject to abuse or
exploitation.  During a recent meeting of the Administrative Rules
Review Committee, agency staff noted that it would be difficult or
impossible to regulate every possible scenario and still provide
consumers with the flexibility that makes the consumer choice option an
attractive alternative to regular waiver services.

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LEGISLATIVE FISCAL COMMITTEE MEETS

The Legislative Fiscal Committee met on September 13, their first
meeting of the 2006 interim.  The Committee reviewed the latest revenue
figures, fund balances, transfer orders and received updates on the
Honey Creek Destination State Park bond issuance, the capitol complex
building construction projects, group care waiting lists and provider
increases under Medicaid. 

The committee received an update from Arnie Sohn, of the Department of
Natural Resources (DNR), on the Honey Creek Destination Park project.
The park is located on 11,000-acres in Appanoose County.  This will be
Iowa's first state park to offer a full range of overnight
accommodations and a broader range of outdoor recreational activities
for the whole family.  

DNR reported that they are planning to go out for bids soon on phase one
of their proposal.  This bid will include work on the waste water
system, boat ramp and docks, golf course and cabins.  The communities
surrounding the park have contributed toward the construction of this
destination park, both financially and through in-kind contributions.  

Regency Hotel Management of Sioux Falls, South Dakota was selected by
the department to lead construction and management.  This company will
also take the lead on marketing.  There is a groundbreaking ceremony
tentatively scheduled for the first week in October.  The department
reported that they are pleased with all aspects of the project, and are
anxious to see the final result.  

The legislature authorized DNR to issue bonds to provide $28 million in
net proceeds for the construction project.  DNR estimates $33 million in
bonds will be issued, with the bond closing expected October 19-27th.

Capitol Complex Buildings
The committee received an overview from Mollie Anderson, of the
Department of Administrative Services (DAS) on two new buildings.  One
is a new 350,000 sq. foot office building, and the other is a new
building for the Iowa Utilities Board and the Office of Consumer
Advocate.  House File 2782 authorized the construction of both
buildings, but the legislature requested that a return on investment be
done before construction begins.  The return on investment must show at
least a 5% savings in order for the project to be built. 

After three sites were prioritized for consideration, DAS has selected
the site north of Workforce Development, on the north side of Des Moines
Street as the final location for the office building.  Next, the
department will be evaluating the state's current leases in Polk County
to determine which offices should go into the new office building.
Currently, the state is spending close to $800 million a year on leased
space in Polk County.  Parking for this building, as well as for
visitors to the new building, will also be considered.  DAS will also
take into consideration energy-related issues.  

The new building that will house the Iowa Utilities Board and the Office
of Consumer Advocate will be a model energy efficient building and as
low maintenance as possible.  The site location with the highest ranking
is located on an area between East 14th Street and the maintenance
building.  If the building were to be located here, it would have
numerous solar benefits, would allow for flexibility in design and has
potential for natural ventilation.

Balance Sheet Update
The non-partisan Legislative Services Agency (LSA) provided an update on
the status of General Fund revenues and expenditures for the past fiscal
year, 2006.  The State collected an estimated $5.334 billion and
appropriated $5.014 billion.  The surplus is currently projected to be
$320 million, which is $116 million more than previously estimated.
Final numbers on accruals and tax refunds will be available in
mid-October. 

The Committee received a report from LSA outlining the built-in
increases and anticipated appropriations increases for the next fiscal
year, 2008.  The 2007 Legislature will be working on the FY 2008 budget.
The LSA currently estimates $615 million in total appropriations
increases for FY 2008.  The list includes such big-ticket items as
$117.6 million for K-12 school aid, $196.5 million for property tax
credits, $106 million for Medicaid, $35 million for teacher salaries,
and $89 million for collective bargaining agreements that are yet to be
resolved. 

The committee also reviewed the non-general fund balances, the list of
appropriation transfers and lease purchase notifications. 

Medicaid Update
The Legislative Services Agency also provided an update on FY 2006
Medicaid expenditures and an FY 2007 estimated supplemental amount.
Medicaid revenues for FY 2006 totaled $742.8 million and the current
estimate is that there will be a surplus in the range of $4 million to
$9 million.  If there is a surplus once the state books are finally
closed, this surplus will revert to the Senior Living Trust Fund.  The
FY 2007 Medicaid short fall is estimated to be in $17 million to $37
million range, which means the Legislature will need to consider a
supplemental appropriation in the 2007 session. 

The committee also received an update on the implementation of the 3%
Medicaid provider increase, the group care waiting list, and case
management services. 

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TWENTY COUNTIES DECLARED DROUGHT DISASTERS

The United States Department of Agriculture (USDA) designated 20 of the
22 counties Governor Vilsack requested to be disaster areas.  The USDA
said the 20 counties sustained sufficient production losses to warrant a
Secretarial disaster designation. 

Counties receiving the disaster declaration include Cerro Gordo,
Cherokee, Clay, Crawford, Des Moines, Dickinson, Harrison, Humboldt,
Ida, Lee, Lucas, Madison, Monona, Monroe, Montgomery, Plymouth, Sac,
Sioux, Woodbury, and Worth.

Eligible residents in these counties will be able to request low
interest loans from the Farm Service Agency (FSA) through the USDA
Emergency Loan Program. 

Contiguous counties are also eligible for this assistance.  Adair and
Webster counties were in the original request as primary natural
disaster areas, but will be included as contiguous disaster counties
along with Adams, Appanoose, Audubon, Buena Vista, Butler, Calhoun,
Carroll, Cass, Clarke, Dallas, Davis, Decatur, Emmet, Floyd, Franklin,
Fremont, Guthrie, Hancock, Henry, Kossuth, Louisa, Lyon, Mahaska,
Marion, Mills, Mitchell, O'Brien, Osceola, Page, Palo Alto, Pocahontas,
Polk, Pottawattamie, Shelby, Taylor, Union, Van Buren, Wapello, Warren,
Wayne, Winnebago, and Wright.

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NEW CHILD SAFETY HARNESS APPROVED

In early September, the Federal Aviation Administration (FAA) approved a
harness-type device created by AmSafe for children on airplanes weighing
between 22 and 44 pounds.  Parents can still use their safety seat that
is used in the motor vehicle; this new device is meant to be another
option for parents.  If parents want to check the safety seat that is
used in the vehicle as a piece of luggage, rather than lug it through
the airport, the AmSafe device gives parents an alternative device to
use on the plane.  Safety seats that are used in motor vehicles will
continue to be allowed for use on airplanes.  

Right now, the only way to purchase the AmSafe device is through
AmSafe's website, www.amsafe.com.  It is expected that the harness will
be available to consumers in stores in the near future.  This device is
only approved for use in an airplane, not in a motor vehicle.  Again,
there is no reason for parents to purchase both, a safety seat that is
used in a motor vehicles is and will continue to be approved for use on
airplanes.  The FAA approved this device to give consumers options and
to support the continuation of new technology with child safety seats.  

The following are the recommendations from the FAA concerning a child's
weight and proper safety seat usage:

* If the child weighs less than 20 pounds, use a rear-facing seat
(although children under the age of two are allowed to ride on the lap
of an adult).
* If the child weighs 20 to 40 pounds, use a forward facing safety seat.

* If the child weighs more than 40 pounds, use the airplane seat belt.
* Booster seats (ones with a bottom and no backs) are prohibited from
being used on airplanes.  

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MINORITY BUSINESS TASK FORCE MEETS

The Governor's taskforce on Iowa's Targeted Small Business (TSB) program
has had two meetings, with an additional six meetings tentatively set.
The TSB program is designed to assist in the creation and expansion of
Iowa small businesses that are at least 51 percent owned, operated and
managed by minorities, women, persons with disabilities or low-income
individuals.

Governor Vilsack signed Executive Order 49 to establish a taskforce to
study the TSB Program.  It is represented by a broad section of
government agencies, members of the business community and elected
officials.  

The taskforce will look at all aspects of the program, including
certification, which is administered by the Department of Inspections
and Appeals; the state procurement goal of having 10% of state bids
filled by TSB's; and the financial assistance end of the program
administered by the Department of Economic Development (DED).  Outreach
and marketing efforts of the program to encourage participation of the
program will also be examined.  

Through DED, the program provides low-interest loans or equity grants of
up to $50,000 to eligible small businesses with $3 million or less in
annual sales.  In January, DED released a report on women and minority
owned businesses in Iowa.  The report provided some analysis of why more
minority-owned businesses and women owned businesses have not applied
for assistance.  Only 11 businesses received assistance from the TSB
program in Fiscal Year 2006 compared to 41 in Fiscal Year 2003.  

Funds for the program have dwindled to the point where currently it is
existing on loan repayments.  Once a loan is repaid from a previous
business receiving a loan, money becomes available for another business.
In addition, TSB's are having problems meeting the requirements to be
eligible to receive assistance, such as the development of a business
plan.  For last year, Iowa's procurement of bids filled by a TSB was
just less than 3%.  

The taskforce will provide recommendations on improvements and
efficiencies to the Governor and Legislature by December first.

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HOUSE NOW TAKING APPLICATION FOR PAGES

Iowa high school juniors and seniors who want to learn more about the
legislative process can do so by applying to serve as a Page in the Iowa
House of Representatives next legislative session.

Pages participate in many aspects of the legislative process.  Pages
provide invaluable assistance to Representatives and House staff by
running errands, delivering messages, and distributing bills and
amendments.  Pages also "staff" committee meetings and help the
chairperson by handing out materials during the meetings.  

Pages are actually hired as employees of the Iowa House of
Representatives.  They receive $8.08 per hour and work from 8 a.m. until
the House adjourns for the day.  Uniforms are provided.  Work begins on
January 8, 2007, and goes to the end of the session, which usually runs
until the end of April.  Some House Pages work only half of the session,
some work the entire session.

Students interested in serving as Pages must submit their application by
October 6.  Students will also be interviewed as part of the selection
process.  Applications must be filed with the Chief Clerk of the Iowa
House.

Students who are interested in becoming a Page can obtain applications
and more information through the General Assembly's web site at
www.legis.state.ia.us.  Parental permission is required to participate
in this program.  

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RURAL IOWA FUND

The Iowa Farm Bureau has introduced a program called the Renew Rural
Iowa.  It is designed to help entrepreneurs in rural communities who
want to develop or expand a business.

The program will commit $5 million to a rural vitality fund to assist
entrepreneurs with funding resources to develop their business.  The
entrepreneurs will have to complete a mentoring program that will help
them through all phases of developing a business such as writing a
business plan, determining appropriate financing, and analyzing market
research and various funding sources. 

The Cedar Rapids based Entrepreneurial Development Center (EDC), a State
of Iowa Business Accelerator, will partner with the Farm Bureau to
implement the program.  The EDC was incorporated in 2003.  It has
successfully assisted over 250 small businesses in Iowa, primarily in
the Cedar Rapids and Iowa City corridor. 

Through the partnership, EDC will ramp up its operations to bring
business education and mentoring to rural communities statewide and to
support them through their early development and growth phases.  The
program is targeted at communities with less than 30,000 people

"We believe that Iowa's rural heritage and entrepreneurial spirit is
what makes our state unique and why Iowans ultimately want to live
here," said Farm Bureau President Craig Lang.  "Our goal is to help
rural communities prosper for future generations."

Currently, through the Grow Iowa Values Fund, $35 million annually is
targeted for business assistance through economic development programs.
There are 12 Small Business Development Centers statewide to assist
Iowans with starting a business.  There are also four business
accelerators up and running in Iowa.  They are located in Cedar Rapids,
Davenport, Mason City, which are all in their second year of three years
of assistance from the Grow Iowa Values Fund, and Dubuque, which is in
its first year.  

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SECOND ANNUAL IOWA WEATHERIZATION CHALLENGE

The Iowa Utilities Board (IUB) has announced the second years of the
Iowa Weatherization Challenge.  Through this program, the IUB works with
local community groups to help Iowans prepare for high winter heating
bills.  The IUB wants to help them recruit volunteers and raise funds to
help low-income, elderly, and disabled Iowans weatherize homes.  

Matching Grants
The IUB will provide at least $10,000 in matching grants of up to $500
to assist community groups develop weatherization projects.  The
application deadline is November 1, 2006, and proposed weatherization
projects must be completed by November 30, 2006.

The IUB will assist community groups with volunteer training, obtaining
donated or low-priced supplies, and communicating with the media. 

Information Kit
An Iowa Weatherization Challenge information kit is available from the
IUB web site at: http://www.state.ia.us/government/com/util/IWC.html.

The web site also provides videos regarding how to find air leaks,
weatherizing windows and doors, heating and heating safety tips, and
natural gas price information.  For more information about the Iowa
Weatherization Challenge, contact Teresa McConnell by calling
515-281-5192 (877-565-4451 toll-free), or by email at:
teresa.mcconnell@iowa.gov.

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NEW GAMBLING LICENSES POSSIBLE

At its August 31 meeting, the state Racing and Gaming Commission
announced it will begin discussing the possibility of issuing new
gambling licenses in March 2007.  Last year the commission approved four
new licenses but denied three more.  They indicated, at that time, they
would revisit the issue in 18 to 24 months.  

Commission chair, Kate Cutler, of Council Bluffs, cautioned that the
discussion would not be for putting in new applications, but for the
commission to discuss whether they want to proceed with granting new
licenses, and if so, what the appropriate timeline would be.

In other action, the commission asked staff to proceed with changing
rules to double the fines against casinos for underage gambling.
Currently, the fines are $10,000 for the first offense and $15,000 for
the second offense in the same year.  The fine has not been changes for
about ten years.