Education Funding Package Approved
Governor Vilsack succeeded in reaching strong bipartisan support for a major education-funding package. The package consists of a $61 million increase in state aid, by setting allowable growth at 4.0% for FY 2001, and $10 million to provide assistance to growing and declining enrollment school districts in FY 2000.
The bipartisan agreement was reached on Monday and the House on Tuesday and the Senate approved the legislation on Wednesday. This quick action sets shows the importance the new Governor places on working with Democrats and Republicans to improve Iowa’s schools.
This initial education-funding package was approved with the passage of two bills. HF 146 sets the allowable growth at 4.0% for the 2000-2001 school year. This level of growth is estimated to increase state aid $60.6 million, for a total of $1.717 billion in state aid in FY 2001. The local property tax share of school aid would increase $32.7 million, for a total of $936.3 million. A 4.0% allowable growth increases per pupil funding $165 and increases the state cost per pupil to $4,298.
HF 147 combines in one bill both on-time funding for growing school districts and the regular program budget guarantee for schools with enrollment declines.
On-Time Funding: This portion of the bill appropriates $4 million in FY 2000 to the Department of Education to provide funding to school districts with more students enrolled at the start of the school year than they have budgeted for. Schools must apply to the School Budget Review Committee by November 1st to receive their share of the on-time funds. The $4 million will be prorated up to a maximum of the state cost per pupil. The full cost of on-time funding is estimated at $7.2 million. This means schools will receive approximately 55% of their cost for each new student. Enrollment projections estimate 90 schools will qualify for on-time funds in FY 2000.
Under current law, schools receive no state funding for these additional students until the next budget year. Schools have the ability to go to the School Budget Review Committee (SBRC) to receive additional allowable growth (all property taxes) to meet the expenses of the additional new students. The bill allows schools to ask the SBRC for additional assistance (from property taxes), if the on-time funding is not sufficient to meet their budget concerns.
Budget Guarantee: The bill provides a 100% regular program budget guarantee that is funded entirely with state aid. The budget guarantee ensures school districts will have the same regular program budget they have had in the previous school year. The budget guarantee will impact about 106 school districts at an estimated cost of $6.2 million. In the past, this cost has been picked up entirely from property taxes.
Under current law, the budget guarantee is not available to schools for the 1999-2000 school year. A certain amount of urgency is tied to this proposal because school districts are beginning their budget finalization process. Schools need the law changed to propose budgets at their budget guarantee level. Schools must certify their FY 2000 budgets by April 15th, but the hearing process starts well before this date.
1998 Unemployment Rate Hits Historic Low
Iowa’s full-year 1998 unemployment average was 2.6%. That is the lowest unemployment rate since Iowa adopted its current system of figuring unemployment rates in 1978. The mark broke the previous record set the year before of 2.9%.
Under the current conditions, workers may enjoy a greater selection of jobs with better pay, and college graduates may be wooed by companies with signing bonuses. However, employers may not find a sufficient work force for production needs, and expansion may not be a possibility due to a lack of workforce.
The 1999 Legislature is looking at possible ways of increasing the workforce with incentives to encourage young people to learn highly skilled jobs and for older workers to be retrained. There may also be a need to encourage investment into such training by companies.
Like any state, there are some pockets of extremely low unemployment. Hancock County, for example, hit 1.3% unemployment several times in 1998, while Bremer, Dallas and Ida Counties also hit 1.3% at least once. Here is a look at the top five LOWEST unemployment rates in the state by county in 1998:
12 Month Avg. Dec. Rate
| 1) Hancock……...1.51% | 1.3% |
| 2) Linn….…….…1.78% | 1.6% |
| 3) Dallas……...…1.83% | 1.7% |
| 4) Warren……….1.84% | 1.7% |
| 5) Humboldt…....1.89% | 1.8% |
| Buena Vista….1.89% | 2.1% |
On the high side, Floyd and Allamakee Counties each had a 7.1% unemployment rate in January of 1998. The record for in Iowa for unemployment rate average was set in 1982 at 8.5%. Here is a look at the top five HIGHEST unemployment rates in the state by county for 1998:
12 Month Avg. Dec. Rate
| 1) Decatur…...….4.61% | 4.2% |
| 2) Allamakee……4.42% | 5.1% |
| 3) Clayton………4.38% | 4.8% |
| 4) Appanoose…..4.09% | 4.0% |
| 5) Delaware……4.08% | 3.5% |
The United States right now is experiencing one of the longest streaks of peacetime strong economic indicators. Unemployment is low, interest rates are low and the economy is showing slow, but steady growth. For over a year, the national unemployment rate has been lower than 5%. December marked the 15th consecutive month in which Iowa has registered a jobless rate of less then 3%. The December rate was 2.7%.
Lawmakers Discuss What To Do About Meth
Amid consensus that drug abuse involving methamphetamine is one of the most serious problems facing the state, lawmakers are considering a number of legislative proposals to enhance criminal penalties and expand law enforcement and prevention efforts.
A subcommittee of the House Judiciary Committee met with a group of county attorneys who said they were opposed to a proposal that would establish a life sentence for anyone who sells meth to a child.
Instead of further clogging the state prisons with small-time operators and high school seniors who sell to their friends, comments from the prosecutors reflected an interest in more funding for investigation and law enforcement tools to expedite the apprehension and conviction of big-time dealers and manufacturers.
Governor Vilsack and Lt. Governor Pederson have used their recent election victory to highlight a few key issue themes, with fighting meth at the top of the list.
Vilsack and Pederson want to allocate $4 million on a number of new or expanded programs, including more staff for the state’s crime lab, establishment of a new multi-agency meth response team, and adding 18 narcotics agents over the next three years. They are also looking at better treatment and prevention programs, as well as life terms for those who manufacture and sell to minors.
Vilsack, Pederson Unveil Environment Agenda
Governor Tom Vilsack and Lt. Governor Sally Pederson announced their comprehensive plan to protect Iowa’s environment. The plan provides an additional $4.1 million from the state’s general fund, and establishes a new $50 million recreation, environment and cultural infrastructure fund.
Improve Water Quality
Key components of this goal include:
Improve Safety of Livestock Facilities
Iowans understand and appreciate the importance of our livestock industry. The Vilsack/Pederson plan would provide local officials with control over siting large hog confinement facilities. County planning and zoning commissions would make recommendations to the boards of supervisors, who would have the final say.
The proposal would be based upon statewide minimum standards and the establishment of a county land use plan, which could include stricter siting standards. Producers could ask county supervisors for a waiver from the stricter local requirements if they could establish that their livestock facility would not pose environmental problems.
The Vilsack/Pederson plan will also create a program that demonstrates best practices in livestock management and utilization. The expertise of the Leopold Center will be used to conduct demonstrations.
Promote Clean Air
The Vilsack/Pederson agenda adds an additional $1 million for the State’s air quality program and maintains that State’s priority on compliance assistance.
Supporting ethanol is also a priority. The Governor supports a proposal that all gasoline sold in Iowa contain 10% ethanol, with a few exceptions. A fuel quality standard for Iowa, that includes ethanol, will provide both environmental and value-added economic benefits.
Environment and Recreation
Quality of life will be a key factor in shaping Iowa’s future as we head toward a new century. That’s why Governor Vilsack and Lt. Governor Pederson want to establish a $50 million recreation, environment, and cultural (REC) infrastructure fund.
One-time environmental initiatives will be funded through the REC fund, and it will phase in full funding for the Resource Enhancement and Protection (REAP) program over the next two years. REAP is provided $15 million for fiscal year 2000 and $20 million in fiscal year 2001 and beyond.
Iowa Concern Hotline Provides 24-Hour Assistance
The Iowa Concern Hotline (formerly called Rural Concern) has been in place since 1985. It is a free, confidential hotline for anyone in Iowa, not just rural Iowa. The hotline provides information and referral for:
Margaret VanGinkel, coordinator of the hotline, spoke to the joint House and Senate agriculture and natural resources budget subcommittee on the current situation at the hotline. She noted that since last August, the calls started to increase, especially from farmers. Eighty percent of the calls right now are from farm families. The hotline has an attorney and stress counselors who spend time with the callers.
The hotline gets more than just agriculture-related calls. They also receive calls on landlord-tenant problems, financial problems from small businesspersons, and have gotten a few calls on gambling.
Since 1985, the hotline has received more than 115,000 calls.
Secretary of Agriculture Proposes $10 Million Emergency Program for Livestock Producers
Secretary of Agriculture Patty Judge is proposing a $10 million program to provide financing assistance to struggling Iowa independent livestock producers. To be viable, livestock producers must be Iowa residents and their operation must be located in Iowa. They must also raise or feed out their own livestock, their gross farm income must be greater than $50,000, and 50% or more of their gross farm income must be derived from livestock sales.
The Livestock Economic Emergency Program contains three packages:
Governor's Economic Plan Focuses on Developing the Iowa Workforce and Value-Added Businesses
Governor Tom Vilsack and Lt. Governor Sally Pederson unveiled the following four goals for developing Iowa's economy:
1. Make Iowa "Food Capitol of the World."
2. Growth and Jobs in All Iowa Regions.
3. Expand Iowa's Skilled Workforce.
4. Attract and Retain Quality Workers
Iowa Economy Would Be Less Affected Today By A Farm Downturn Than It Was 15 Years Ago
State economist Harvey Siegelman told the Economic Development Budget Committee that, because Iowa's economy is more diversified than during the early 1980s, it would less affected today by a downturn in the farm sector. He cited the following data: