Legislative session nears finish line

By Tom Chapman, guest commentary

The weather is finally getting a little better as we enter the homestretch of the session here in Iowa. The majority leader, Sen. Mike Gronstal (D) has said that leadership hopes to wrap up the session within the next two weeks. My guess is that it will take a little longer than that.

The legislature has been in a bit of a holding pattern the last couple of weeks - some big items out there that still have to be dealt with include the health care reform bill, core curriculum, a statewide ban of smoking in public places, collective bargaining for public employees, and the state's budget bills. None of these bills had much movement in the past week.

You can visit our website at www.iowacatholicconference.org, and click on "Action Center" to send a message to your legislators. You can also leave a message for your legislator at the House Switchboard: 515-281-3221 or Senate Switchboard: 515-281-3371. For more information about particular bills or the legislative process, visit www.legis.state.ia.us.

EDUCATION

Very soon you'll be receiving a request from the Iowa Catholic Conference to contact your legislator about an increase in tax credits for the Educational Opportunities Act. The program was created and improved during the past two years thanks to great support from Democratic and Republican leadership.

The Educational Opportunities Act set up school tuition organizations (STOs) to receive private donations for tuition assistance to children attending nonpublic schools. It enables parents to choose the school that best fits their child's learning needs.

Those who give to the STO scholarship fund receive a 65 percent tax credit from the State of Iowa on their donation. So if you give $1,000 to one of these scholarship funds, you get $650 off your Iowa taxes! This helps raise more funds for tuition assistance.

Thanks in large part to your help last year, the amount of tax credits available to donors was increased to $7.5 million statewide. We are hoping to raise the amount to $10 million.

By the way, it was great to meet several education supporters at last week's "Education Celebration" sponsored by Iowa ACE. Many nonpublic schools were represented at this celebration at the state's capitol. In addition to performances by student choirs, there was a rally for school choice on the west steps of the Capitol led by Trish Wilger, director of Iowa ACE, Sen. David Johnson (R), and Sen. Joe Seng (D).

TAXATION ISSUES

The Iowa Catholic Conference opposes legislation that would allow for additional taxes and/or fees for public services to be imposed on not-for-profit organizations.

Two bills filed recently include the legalization of franchise fees, among other provisions. These bills are part of an organized effort to generate more revenue for cities in ways other than property taxes.

House Study Bill 786 would allow Iowa cities to charge a five percent "franchise fee" on all users' utility bills (including charitable institutions). These fees would be very similar to a sales tax. Some cities, such as Des Moines, have collected franchise fees in excess of the cost of administering the franchise, but the legality of that practice is in question. It has already cost Des Moines churches thousands of dollars a year.

House File 2671 would also allow city franchise fees to be five percent but would require 20 percent of those funds to be used for property tax relief. Another part of the bill would allow pilot project cities to impose fees in lieu of property taxes, including for police and fire protection. The bill allows a pilot city without a local option sales tax to impose a one percent sales tax on utilities and an unlimited local option tax on tobacco.

For religious and charitable institutions, a key part of the bill is that it would allow pilot cities to charge nonprofit institutions for police and fire protection. (There would be an exemption for property specifically used for worship.) All alternative revenues collected by pilot cities would have to be used in the proportion of 70 percent for commercial property tax relief and 30 percent for all property tax relief, including commercial property.

The Iowa Catholic Conference is not in favor of fees as a replacement for property taxes because it will mean higher operating costs for our churches and may have the effect of decreasing charitable services. We believe that our Catholic churches and social services provide many benefits to society. That's why we are exempt from paying property taxes.

We also believe that sales taxes and franchise fees can be seen as regressive taxes, which cost low-income people proportionally more of their income to pay. Here's a short excerpt from the 2000 ICC statement on taxation:

"Taxation in any form should be based on one's ability to pay. If Iowa tax policy is to remain faithful to Catholic teachings, it should first assure that the system collects taxes according to one's ability to pay. Catholic social teaching supports a more progressive form of taxation. Our contribution to the common good should reflect our blessings. From those to whom much has been given, much should be expected. Those who make the most profit from our economic system benefit most from the structures and infrastructure that make economic enterprise possible. Tax exemptions and tax incentives should not change the fundamental requirement that taxes should be based on one's ability to pay.

"All forms of taxation should be fair and just in their treatment of the poor. Taxation can be used as an economic strategy to level income distribution in a society. Systems of taxation can also grant certain advantages to those in different income brackets. Unfortunately, such advantages are often granted on the basis of power and politics rather than on moral principles. Those who are poor should not pay a disproportionate amount of income in the sum total of taxes paid. This is especially true in the case of property and sales tax, which low- and moderate-income people tend to pay in higher percentages of their total income and are therefore considered more regressive taxes. Those who are wealthier should consider their higher tax bracket as part of their Biblical obligation to tend to the 'widow and the orphan'."

It is easy to see the dilemma that Iowa cities are in. The cities often have an aging infrastructure with increasing costs. Cities find it difficult to raise property taxes in that environment so they are looking for ways to pay the bills. Unfortunately, smaller charitable organizations are often not in any better place to pay additional fees.

HEALTH CARE

House File 2539, the health care reform bill, is scheduled to be debated in the Senate on Monday, April 7. It is anticipated to pass and then be returned to the House to see if it concurs with Senate amendments. We support the purpose of the bill, which ultimately is to provide access to affordable health care for all Iowans.

Among many other items, the bill includes additional funds for children's insurance coverage (about $44.4 million over three years from the state's general fund), and mandated availability of coverage for pre-existing conditions when a person shifts from a group policy to an individual policy. The mandate for parents to buy health insurance for their children has been dropped from the bill.

The bill would also provide some additional options for adults to get health insurance, and includes initiatives in the concept of medical homes (health care coordinated by one provider), chronic care management and preventive care.

Please voice your support for HF 2539 in the Senate and House, and make suggestions for what you feel should be changed in the bill. If you have any particular questions about the bill please let me know.

PRO-LIFE

The draft budget for health and Human Services shows a $750,000 line item from the state's general fund for "family planning". This is a change from $1 million previously set aside for a family planning grant program.

Legislators are being contacted on behalf of Planned Parenthood's "Healthy Families Project" which exists to lobby the legislature for state funds to provide additional family planning services to low-income and uninsured Iowans, including contraception. The Healthy Families Project materials claim that "the state currently does not provide significant funds for family planning services." This is true as far as it goes. The materials do not say, however, that many millions of dollars are directed by the state from federal funds for family planning. In fiscal year 2006, according to the Guttmacher Institute, more than $13 million was spent by government on family planning in Iowa, primarily through Medicaid and Title X.

Planned Parenthood also opposed funding by the legislature for the "Positive Alternatives" project, which would have provided funds for pro-life pregnancy counseling.

We question whether it is a good idea to try and reduce unintended pregnancies, and by inference, reduce the number of abortions, by providing even more money to groups that offer abortion.

IMMIGRATION

The ICC opposes House File 2610, which is still eligible for debate. The bill would create an additional employee identity system for employers to use in Iowa that is separate from the already-existing federal system.

There would be several practical problems with implementing the bill as it creates another hoop for prospective employees and employers to comply with. In addition, we believe it will make obtaining employment more difficult for citizens and non-citizens who look Latino, as employers will not want to take the chance of breaking the law.

I am hopeful that if we can't stop the bill from passing the House we could stop it in the Senate. Once again, if you would like more specifics on the bill and our position, please let me know.

HOMELESSNESS

Both chambers have approved SF 2161, which puts into state code a Homelessness Council to establish the duties of the council in the state code, including evaluating whether state policies should be revised to help prevent and alleviate homelessness. The House added an amendment which means the bill goes back to the Senate.

ENERGY EFFICIENCY

SF 2386 was placed on the legislative calendar under "unfinished business" to keep it alive. The bill sets general energy efficiency goals for the state and provides for transportation and utility energy efficiency advisory councils. The bill calls on the state to develop short- and long-term recommendations on improving the state's energy efficiency by 15 percent or more by 2020. The ICC supports legislation that encourages energy conservation and moving toward an energy future that relies less on fossil fuels and more on environmentally benign energy sources.

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