SF 2342 – Administration & Regulation FY15 Budget
SF 2347 – Education FY15 Budget
SF 2353 – Apprenticeships & Job Training
SF 2355 – Department of Transportation Omnibus Bill
HF 2458 – Agriculture & Natural Resources FY15 Budget
HF 2463 – Health & Human Services FY15 Budget
FLOOR ACTION:
SF 2342, as amended by the Senate, appropriates $51.7 million from the General Fund for FY15 to various state agencies that are administrative and regulatory in nature. This is a decrease of $3 million compared to FY14. Highlights include:
• Keeping Terrace Hill chef and housekeeper as a line item to ensure transparency.
• Funding a Chief Information Office.
• Continuing to fund Public Information Board and Office.
• Authorizing the Iowa Utilities Board to increase spending to $150,000 to pay an additional engineer to focus on transmission projects.
• Authorizing the Racing & Gaming Commission to hire regulatory staff if additional gaming licenses are issued during FY15.
• The Iowa Utilities Board may audit their building solar panels. There is a $10,000 cap on the audit fee.
• The State Auditor is required to conduct an examination of the Department of Administrative Services, specifically on non-disclosed payouts to state employees who have been terminated.
• Funding the Auditor’s Office at the Governor’s recommended level.
• Funding the Campaign & Ethics Disclosure Board at the Governor’s recommended level for 1 additional FTE.
• Unclaimed Life Insurance Benefits: Changes are made to statutory language concerning how insurance companies regulated by the Insurance Commissioner locate beneficiaries of life insurance policies for deceased policyholders, the use of Social Security Administration’s death master file, and the Insurance Commissioner rulemaking and assessment of penalties. This section is repealed Jun 30, 2016. [4/21: 26-22, party-line (Behn, Segebart absent)]
SF 2347 appropriates a total of $986 million and 12,298 FTE positions for FY15 to the Department for the Blind, the College Student Aid Commission, the Department of Education and the Board of Regents. This is an increase of $87 million compared to estimated FY14. The bill also contains “other funding” from the Skilled Worker & Job Creation Fund, which appropriates a total of $40.3 million for FY15. This is no change compared last year.
KEY FEATURES
The Education Budget Conference Committee appropriates $986 million, an increase of $87 million over last year. Most of this funding is committed to initiatives we have already established.
The last two sessions have seen many new education reform initiatives including:
• $49 million for Teacher Leadership grants. This is the first year of investment in funding to expand teacher roles and to have the best teacher practices be modeled for all teachers.
• $1 million for Principal/Administrator mentoring.
• $1 million for AEAs to support schools in developing teacher and administrator leadership positions.
• $1.5 million for Iowa Learning Online to provide high-quality classes to all Iowa students online.
• $8 million for early literacy. This funds our local schools and their efforts to implement intensive literacy programs for students falling behind in reading in grades K-3. General aid to our community colleges is critical to holding down the rising costs of higher education and training programs for all Iowans. We provide an $8 million increase for Community College General Aid for a total of $201 million.
In order to maintain Iowa’s recovery from national economic recession, we must invest in our workforce and economy. We have taken great bipartisan strides in the last two years. The approved budget includes :
• $40.3 million to support worker-training investments that target specific skill shortage areas and train workers for those jobs.
• $6 million in ACE funding for Community Colleges.
• $5 million for the Kibbie Grant for adults that get training in the most “in-need” certificate-required career fields.
The budget also features increased funding of $24 million to maintain the promise of a tuition freeze at ALL our universities. [4/23: 28-21, party line (Bertrand, Boettger “yes”; Segebart absent)]
SF 2353 makes significant changes to the job training program and fund under Iowa Code chapter 260F and establishes an apprenticeship program under the new Code chapter 260J. As amended in committee, the Workforce Fund Account and the Workforce Fund is transferred from the Economic Development Authority to the Department of Education. The Workforce Fund is increased from $4 million to $6 million. This includes $3 million to the 260F existing worker training and $3 million to the apprenticeship program in the new Code chapter 260J.
Regarding the 260F program, community colleges will continue to enter into agreements with businesses for training workers. Commercial construction and e-commerce are added to the eligible business. Administrative expenses for the jobs training program cannot exceed 5 percent of the total project cost. In addition, 10 percent of the moneys in the Job Training Fund are annually allowed for these purposes: outreach to employers by community college business and industry outreach staff; monitoring the performance of training agreements and accountability measures; development of training projects and program plans; and business development activities. Only reimbursements will be allowed to the businesses for training, no advances.The current Code requirement of 25 percent business match stays in place.
The bill establishes a new Apprenticeship Training Program Board. This board will review and award apprenticeship training program grants, monitor the performance of those grants, and promote the development of new apprenticeships and the expansion of existing apprenticeships in Iowa. Funding for individual apprenticeship programs would be determined once annually after all applications for assistance have been received by the board. The funding amount depends on the total applicants, the number of apprentices served and contact hours generated. “Contact hours” includes time spent in online training if the total amount of online instruction does not account for more than 30 percent of the total instructional hours.Administrative expenses are limited to not more than 2 percent of the moneys in the fund.[4/17: 26-20, party line (Anderson, Bertrand, Chelgren, Feenstra excused)]
HF 2458 appropriates $43,061,995 from the General Fund to the departments of Agriculture and Natural Resources. In addition, it appropriates $42 million in spending from the Environment First Fund.
The House version of this budget included a large number of non-budget issues that have not advanced through the normal standing committee process and would negatively impact our state’s ability to preserve and protect our natural resources. The House bill proposed to scoop money out of the Resource Enhancement and Program (REAP) statutory allocation formula; cut funding for state parks while increasing funding for Hungry Canyons and Loess Hills, prioritizing a program that only serves a small area of the state over Iowa’s statewide park needs; and appeared to expand information that is confidential regarding the monitoring of demonstration projects conducted under the water quality initiative.
The Senate approved a strike-after amendment to remove all House language and replace it with the Senate proposal. While much of the Senate version is status quo compared to FY14, there are some notable changes. The highlights of this bill include:
• An increase of $2 million for the Water Quality Initiative to help fund projects and practices to reduce nutrients in Iowa’s waterways.
• An increase of $100,000 for the Midwest Wine & Grape Institute, which helps Iowa vineyards and wineries improve the quality of their product.
• An increase of $300,000 for forestry health management programs at the Department of Natural Resources. This will enable them to work with more communities facing infestation of emerald ash borer.
• An increase of $137,364 for the Veterinary Diagnostic Laboratory at Iowa State University.
• A reduction of $375,000 for the Nutrient Research Center. These dollars allow for the funding of all work plans that had already been approved by the Nutrient Research Center advisory council.
• An overall reduction of $150,000 for the Loess Hills Conservation & Development Authority. This reduction is divided between a $75,000 reduction to the General Fund appropriation for this program and a $75,000 reduction to the Environment First Fund appropriation. The program funding is divided between Hungry Canyons and the Loess Hills Alliance at a 3:1 split.
• A new General Fund appropriation of $150,000 for the Silos & Smokestacks program, which connects schoolchildren to Iowa’s farming heritage through grants for school trips, agricultural heritage preservation and education programs.
• A new Environment First Fund appropriation of $75,000 to monitor and activate a statewide soil moisture-monitoring network. This will enable the state to better forecast flood threats and prepare for threats to water supplies and agriculture production in the event of droughts or severe dry periods. [4/17: 26-20, party line (Anderson, Bertrand, Chelgren, Feenstra excused)]
FLOOR & COMMITTEE ACTION:
SF 2355 is the Department of Transportation’s omnibus bill. Highlights include:
DIVISION I – Compliance with federal law
• In compliance with federal law, the bill extends the Iowa DOT’s responsibility to regulate junkyards along the national highway system, in addition to the interstate system. A junkyard may not be within 1,000 feet of the national highway system unless it is not visible from the road or is screened from view, or is located within an industrial area. Junkyards already in existence that do not comply with this law will be grandfathered in and will be screened, if feasible. Compliance prevents Iowa from losing $32 million from the federal government.
• In compliance with federal law, the bill expands the DOT’s regulation of billboards by redefining “primary highways” to include the national highway system and the federal-aid primary system as it existed on June 1, 1991. Certain restrictions on the placement of advertising devices are amended to narrow the application. Compliance prevents Iowa from losing $46 million from the federal government.
DIVISION II – Miscellaneous provisions
• Allows release of a lien on a motor vehicle with a valid certificate of title issued by another state on which the security interest is no longer noted.
• In compliance with federal law, the bill exempts farmers from commercial driver’s license requirements while operating a covered farm vehicle.
• Allows certain third-party testers to administer the driving skills test required for a commercial driver’s license. Approved third-party testers effective upon enactment and sunset them after five years.
• Updates the Code to describe and reflect current practice for new colored lights and lighted symbols used on official traffic-control signals.
• Describes the arrangement of lights on official traffic control signals.
• Establishes a commercial air service retention and expansion committee.
• Extends the deadline from 10 to 30 days to return the certificate of title and claim a refund of the registration fee on an aircraft that is junked or destroyed.
• Changes quarterly reports on the DOT’s implementation of efficiency measures to annual reports.
• Requires county engineers to report on intersections with speed limits 55 miles per hour or greater that do not have signage to direct traffic approaching from every direction.
DIVISION III – Motor vehicle dealers
• Allows dealer plates to be used to haul a load or tow a trailer at a fee of $750 for a two-year period.
• Adopts the “manufacturer’s suggested retail price” for use in calculating repairs that restore a vehicle to factory condition; require disclosure if repairs amount to more than 4 percent of MSRP.
• Clarifies that the exemption for dealers on the fee for new registration applies to loaner vehicles, whether they are being offered for sale or not.
• Allows commercial brokering/consignment sales of used heavy-duty trucks if they are sold to businesses or farmers. The consignor must maintain financial liability coverage, and the dealer assumes no liability for damages resulting from a test drive.
The Senate adopted an amendment on the floor to shorten the license revocation for a Minor School License to 30 days and eliminate high-risk insurance requirements. Currently, when a Minor School License holder is convicted of two or more motor vehicle violations, the DOT must revoke their license for a year and require high-risk insurance for two years. The amendment makes revocation and insurance requirements consistent with the other levels in Iowa’s Graduated Driver’s Licensing system. After the 30-day revocation, the teen will be required to go back to their Instruction Permit. This amendment ensures teen drivers face consequences for traffic violations while still giving them plenty of supervised drive time before they turn 18. [Floor 4/21: 42-6 (Black, Courtney, Dearden, Hatch, McCoy, Taylor "no"; Behn, Segebart excused); Committee 4/17: 19-0 (Ernst, Kapucian excused)]
HF 2463, as amended by the Senate budget proposal, appropriates a total of $1.858 billion from the General Fund for FY15 to the Department of Human Services, Department of Public Health, Department on Aging, Department of Veterans Affairs and the Iowa Veterans Home. This is an increase of $107.4 million compared to estimated FY14. The bill contains $431.8 million in “other funding” in FY15, a decrease of $43 million compared to FY14, for health and human services programs.
KEY FEATURES
The Senate Health & Human Services Budget Proposal appropriates $1.858 billion from the General Fund for FY15, an increase of $107.4 million (6.1 percent) over FY14. Most of this funding is committed to initiatives already established.
Iowa’s relatively strong economic position relative to other states hurts our federal reimbursement rate for Medicaid and some child welfare programs. From FY14 to FY15, Iowa’s federal reimbursement rate will drop by 2.21 percent, the largest drop in the nation, costing Iowa approximately $87 million in FY15.
Other than administrative costs, the Iowa Health & Wellness Plan (Iowa’s answer to Medicaid expansion that began on January 1, 2014) is fully funded by the federal government.
Of note, the House Republican’s budget proposal does not include:
• Funding for the Medicaid hospital rebasing. This is typically funded every three years. The Senate Democrat’s budget funds the rebase beginning January 1, 2015.
• Funding for Medicaid nursing facility rebasing. This is typically funded every two years and was partially funded last year at $14 million. The Senate Democrat’s budget funds the rebase beginning January 1, 2015.
• Funding and policy language to reopen a residential treatment and educational facility for girls adjudicated delinquent to reverse the Governor’s decision to the close the Iowa Juvenile Home at Toledo.
PRIORITY INVESTMENTS & POLICIES
• Investments in Iowa’s Children & Working Parents – Provides eligibility for the Child Care Assistance Program for parents who are working part-time while attending professional training or continuing education. This ensures that parents can work toward improving their career trajectory while feeling secure that their children are receiving high-quality childcare. Additionally, the 1st Five Program, which ensures that children up to age five have access to health and community services, is expanded to 49 of Iowa’s counties.
• Increased Access to Health Services for Vulnerable Populations - Provides $7.5 million to reduce the waiting list for Medicaid waiver services. These programs allow children and adults to receive specialized health and support services in their homes rather than in institutions. It currently can take up to two years for those on certain waiting lists, including those with brain injuries or children with mental health issues, to receive services.
• Additional Resources for Iowa’s Seniors – Provides an additional $1.2 million to improve services for Iowa seniors, including reversing Governor Branstad’s veto of two additional long-term care ombudsmen to assist seniors in nursing facilities, reestablishing the Office of Substitute Decision-Maker to assist those with no one available to serve in a position of trust and confidence, and state funding for the first time for local elder abuse support services through the Aging & Disability Resource Centers. Additionally, this budget streamlines the Medicaid Elderly Waiver, making it easier for seniors to access home and community based services, which will allow them to stay in their homes longer.
• Equitable Services for Troubled Youth – Reestablishes a State Training School at Toledo for female youth adjudicated delinquent in the wake of the Governor’s abrupt closing of the Iowa Juvenile Home. The modern residential treatment and education program enhances accountability for expected outcomes, requires accreditation of treatment and education services, and ensures that equitable services are available to both male and female youth in Iowa.
• Protection of Mental Health & Disability Services Redesign Progress – Fully funds the state’s commitment for mental health services, delays the “Medicaid clawback” that threatens to destabilize the newly redesigned system by reducing resources, and clarifies service eligibility standards to ensure that services are not cut as the system begins operation as regions on July 1, 2014. [Floor 4/21: 26-22, party line (Behn, Segebart excused); Committee 4/17: 13-6, party line (Ernst, Kapucian excused)]