2007 Issue #9 casinos, and have been pushing for the state to allow smoking in bars, or end it in casinos. Legislative 8 Icy Return for Iowa’s Legislators leaders said this week they will not be bringing this 8 issue up for discussion this year. As House Majority On & Off the Table Leader Kevin McCarthy said, “let sleeping dogs lie.” 8 Budget, Budget, Who’s Got the Budget? 8 However, legislative leaders left the door open this Medicaid Cut Planned, But Delayed week for a few other controversial issues. Sen. 8 Panel Passes Parity Gronstal said increasing the state’s gas tax in order to 8 repair roads and bridges is “still an open issue for us.” Autism Bills First Introduced Other legislators say they will keep an open mind when 8 More Capitol News listening to the Governor’s proposal to sell the Iowa Lottery proceeds for a quick $200 million, but would 8 Bill Tracker only consider it if it is a good deal for Iowans. 8 Forums Listing Online Legislators will also get a chance to debate the merits of a few traffic safety issues, such as requiring all new Icy Return for Iowa’s Legislators school buses to have seat belts, banning teen texting while driving, and a complete ban on cell phone use Legislators were treated to a “welcome back to Des while driving. Legislators have until February 20 to Moines” snow storm on Monday, complete with white- request new bills - so look for many more ideas to out conditions that kept many from attending opening surface in the coming weeks. night receptions. While the weather outside was icy, the reception inside the Capitol was warm and welcoming. The children and families of legislators Governor Culver Announces Two Major made the trip on opening day to watch the swearing in Recovery Initiatives ceremonies and listen to opening speeches. Governor Culver decided to delay the announcement There will be no shortage of challenges for our 150 of his fiscal year 2010 budget until later in the month, state legislators - balancing the budget, helping with hoping to get a better handle on what will be included flood recovery, giving communities the tools to rebuild, in the Federal government’s plans to help states. cleaning up Iowa’s rivers and lakes, continuing to grow Instead, the focus of his annual “Condition of the State” the economy, addressing Iowa’s growing address was one of recovery - economic recovery and unemployment, expanding Iowa’s renewable energy flood recovery. industry, encouraging energy efficiency, and continuing to make progress on health care. Most legislators say Governor Culver unveiled two major initiatives to help they will be happy if they can balance the budget and Iowa get back on its economic feet: help communities hit by floods and tornadoes. But Speaker of the Iowa House Pat Murphy probably $43 million short-term disaster recovery summed it up the best, “I will make only one promise program. The Governor is recommending using this year - to not make promises.” $43 million of Iowa’s emergency reserves to pay for flood recovery, leaving $577 million in our “rainy On & Off the Table day fund.” These funds would be used to: Last year, legislators passed a ban on smoking in most o Pay for property tax replacements in public places, but continued to allow it in casinos. Many communities that lost tax base ($20 million); bar owners said they couldn’t compete with the Issue #1, 2009 January 16, 2009 o Provide more “jump start” program latest revenue estimates were made. But it may be assistance to bridge the gap in what federal one of those “what you don’t know, won’t hurt you” flood assistance will and will not cover ($10 moments. Des Moines Register political columnist million); David Yepsen suggested legislators “take a snow day” since they really won’t be able to do much with the o Give forgivable loans to nonprofit and Governor’s budget recommendation until the March cultural groups affected by floods ($5 revenue estimates are in, and we know just how much million); money the state will have to spend. o Meet additional unmet human services and On another budget note, legislators have decided to social services needs ($5 million); spend only two mornings a week in budget subcommittees. Typically, the seven budget subcommittees meet three mornings a week to discuss o Maintain the Rebuild Iowa Office, which is a their part of the state budget. Since there isn’t any clearinghouse of information and assistance money, legislators decided they can do that work in for flood-affected families, businesses, and only two days. Maybe this way, they can say “no” less communities ($5 million); often. o Fund additional worker training to get people ready to rebuild ($1 million); Medicaid Cut Planned, But Delayed $700 million long-term public works project. When the Governor announced the need to make a The Governor is proposing to borrow $700 million 1.5% across-the-board cut to all government agencies, to pay for public infrastructure improvements services, and programs, human services advocates (housing, trails, highways, roads, bridges, mass prepared for the worst. The cut meant $10 million from transit, railways, airports, water quality, wastewater Medicaid, which provides health care and support treatment improvements, energy infrastructure, services for children, low-income Iowans, and persons flood control improvements, disaster relief with disabilities. And to make matters worse, since infrastructure, and public buildings). Iowa recently each state dollar is matched by three dollars in federal become one of only 10 states with a “triple A” bond funds, the $10 million cut really translated into a $30 rating, the best you can get. That means Iowa has million cut. a good credit score, and can get a good interest rate on money it borrows. The Governor’s proposal State officials said this week they will delay making the would borrow the money and repay it over 20 years proposed cuts to Medicaid, hoping to hear some using gambling dollars. The repayment cost would positive news from Congress. Congress is currently be around $56 million each year. considering some type of assistance to states, including an enhanced match rate that could help ease The Governor’s proposals received rounds of applause some of the pressures on Medicaid. from Democrats, who called his plan “bold.” Republican leaders gave the Governor a mixed review, Legislators serving on the Joint Appropriations with new House Minority Leader Kraig Paulsen of Subcommittee on Health & Human Services said this Hiawatha saying, “Borrowing money after you’ve week they would be looking for other places to cut in already spent too much is the exact cause of the the state budget, so they could avoid any Medicaid national financial meltdown. Borrowing just because cuts. The new chair of the subcommittee, Rep. Lisa you can is not the way Iowans manage their budgets, Heddens of Ames agreed with the decision to delay and neither should we.” cuts, “I think it’s appropriate because there are a number of people out there with a lot of needs.” Budget, Budget, Who’s Got the Budget? If you had any doubt about the effect of the economy The Governor has until February 1 to present his on the state’s Medicaid budget, new figures show that budget for the next fiscal year - fiscal year 2010 - which there were 16,700 more Iowans receiving Medicaid begins July 1. Everyone is anxious to see how the benefits in December than there were in July. Governor will reallocate limited resources and fill the nearly $800 million budget gap that appeared after the Issue #1, 2009 January 16, 2009 However, the Department of Human Services (DHS) is A number of organizations showed up in support of the realistic, and knows it has to have a plan in place in the bill, including many health care providers, mental event Congress doesn’t come through with the needed health and substance abuse providers, county assistance, and lawmakers are unable to make enough advocates, mental health and disability advocates, cuts elsewhere to avoid Medicaid cuts. So this week, community service organizations, older Iowan they came out with their plan to eliminate $10 million advocates, and members of the faith community. They from their Medicaid budget. presented information from other states that had passed full parity, showing passage caused a much In order to reduce Medicaid dollars by $10 million, DHS smaller insurance rate increase of 0-2% will reduce all Medicaid provider payments to 96% of their otherwise reimbursable amount, beginning March “When parity passed for federal employees, insurance 1, 2009. They do not plan to revise their current rates increased by only .9%. An independent review reimbursement schedules, just reduce payments by showed six states had very small increases, ranging 4%. It is important to note that county mental from 0-2%. And since most of the costs of parity are in health/disability services (MH/DS) payments will also the treatment of biologically based mental illnesses, be reduced by 4%, so county-funded service providers Iowa should expect a much smaller impact on rates, will take a cut as well. probably less than 1%,” said the lobbyist for the Iowa Psychological Association. DHS announced the rest of their cuts last month; details were reported in the last issue of infoNET. You Rep. Bruce Hunter of Des Moines voted for the bill, and can find more information on all of the proposed cuts in asked that opponents provide hard facts to back up the human services online at: information they had presented.