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Legislative Stage email etc. DesMoinesRegister.com 1 Business Page 1 of 2 · Economy Federal money could help Iowa cities, Democrats say Republicans argue that there are better uses for the U.S. aid By Reaister Staff Report 05/15/2003 Legislative Democrats said Wednesday that $60 million in cuts in aid to local governments could be averted by using federal money that could be available soon as part of federal tax cut legislation. "We think that would avoid a lot of problems," said Senate Democratic Leader Michael Gronstal, D-Council Bluffs. But Republicans have majorities in the Iowa House and Senate, and they cautioned against counting on any federal help to cover cuts to local governments. State Rep. Bill Dix, a Shell Rock Republican who led the biggest budget- cutting bill through the House, said there are several strikes against Gronstal's plan. "It would be a one-time thing," Dix said. "I don't see that as a legitimate option." Dix said if federal money should come to Iowa, the state should use it on homeland security. Gronstal said he met last week with Sen. Charles Grassley, R-Ia., who told him that an economic stimulus plan working its way through the Senate would set aside $20 billion for cash-strapped states. Under the proposal, Iowa would get roughly $130 million. The state could use $60 million to rescind cuts in state aid to local governments, Gronstal said. http://www.dmregister.com/business/stories/c4789010/21261104.html 5/15/2003 DesMoinesRegister. com [ Business Page 2 of 2 However, some U.S. House lawmakers are opposed to using a tax cut bill to deliver aid to states. They say many states haven't done enough to hold down costs. Iowa lawmakers recently approved $128 million in cuts from next year's budget, including a $70 million reduction in aid to cities and counties. The legislation included authorization for local governments to increase property taxes to replace the lost money. A separate $10 million aid program to local governments left the net loss at $60 million. At a news conference, Gronstal said those cuts will hammer cities that already are straggling and force the layoffs of police officers and firefighters, risking public safety. Gov. Tom Vilsack had proposed just $88 million in budget cuts, but probably will approve much of the larger package. Gronstal said he had talked to the governor, who viewed replacing the aid with federal money favorably. "Once we see the final package, we can work to determine where it is most needed in the state," said Vilsack spokeswoman Amanda Cmmley. "Obviously, these federal dollars will go a long way in helping Iowa improve our Medicaid reimbursement rate and aiding local governments in these tough economic times." The Legislature is scheduled to convene in special session May 29, and Gronstal said lawmakers could quickly approve the shift then. News I Sports I Business I Opinion [ Life I Entertainment I Forums I Help Oars I ~lob8 [ Homes I Apartments [ The RAGBRAI Store I Classifieds I Subscribe Copyright © 2003, The Des Moines Register. Use of this site signifies your agreement to the Terms of Service (updated 1/312003). http://www.dmregister, com/business/stories/c4789010/21261104.html 5/15/2003 Konni's Stationery Page 1 of 2 Juanita Hilkin From: bounce-cityvoices-289@iowaleague.net on behalf of Konni Cawiezell [KonniCawiezell@iowaleague.org] Sent: Wednesday, May 14, 2003 12:29 PM To: CityVoices Subject: Senate Democratic Press Release on Federal Assistance to Cities The following press release from state Senate Democratic Leader Mike Gronstal discusses Senator Grassley's plan to provide $10 billion in fiscal assistance to local governments as part of the federal $350 billion economic stimulus package currently being discussed in Washington. Senator Gronstal is pushing for this stimulus package to help repair the $60 million fiscal damage to cities passed in SF 453- the state's Reinvention bill. Cities are encouraged to contact their federal lawmakers and express their continued support of the aid package. Contact information for federal lawmakers is available below. Konni NEWS RELEASE Senate Democratic Leader May 14, 2003 For more information, contact Senate Democratic Leader Mike Gronstal: (515) 281-4610 Painful cuts to local governments and property tax increases can be averted with federal dollars 'We can fix this mistake if we want to' Senate Democratic Leader Mike Gronstal today announced a plan to fix $60 million in surprise cuts to cities and counties imposed by the Legislature in the final days of the regular legislative session. The so- called "reinvention" effort for local government was simply a $60 million cut in property tax replacement dollars. "Balancing the state budget by busting the budgets of local governments was a mistake," said Gronstal today in a statehouse conference. 'q'hose cuts passed by just one vote with no Democratic support in both the Iowa House and Senate. Republicans now have a chance to correct that mistake before the local property taxes are raised and public safety suffers due to layoffs of police officers and firefighters." Gronstal said U.S. Senator Chuck Grassley told him on Saturday that Grassley's plan to create a $20 billion fund to help budget-strapped states was making good progress in the U.S. Senate. The state aid package is part of the economic stimulus package Grassley is moving through the Congress as chair of the Senate Finance Committee. Under Grassley's proposal, Iowa would receive $130 million annually. "1 agree with Senator Grassley that $60 million of that new money should go to improve Medicare reimbursement rates," said Gronstal. "1 am suggesting today that $60 million of the rest go to correct the damage done when Republican legislators simply dropped $60 million in debt on Iowa property taxpayers." Gronstal says he will propose that the Legislature allocate the money during the special session contingent on federal approval of the fund. Grassiey has said the state aid is likely to be approved before the May 29th special session of the Iowa Legislature. "If Senator Grassley gets the cooperation of Representative Jim Nussle, the head of the House Budget Committee, and if Republicans in the Legislation seize this opportunity to do the right thing, property 5/14/2003 *, ~ ~ormi's Stationery Page 2 of 2 taxpayers across the state will rejoice," said Gronstal. llllll Iowa Congressional Delegation United States Senators: Senator Tom Harkin 731 Hart Senate Office Building Washington, D.C. 20510 Phone: (202) 224-3254 Web site: www.senate.qov/~harkin/ Senator Charles Grassley 135 Hart Senate Office Building Washington, D.C. 20510 Phone: (202) 224-3744 Web site: www.senate.qov/~grassley/ iowa Office: 733 Federal Building 210 Walnut Street Des Moines, IA 50309 Phone: (515) 264-4574 Iowa Office: 721 Federal Building 210 Walnut Street Des Moines, IA 50309 Phone: (515) 284-4890 United States Representatives: If you are unsure in which district you are located, please visit the House of Representatives web site and enter your zip code. First District Congressman Jim Nussle 303 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-2911 Web site: nussle.house.gov/ Second District Congressman Jim Leach 2186 Raybum House Office Building Washington, D.C. 20515 Phone: (202) 225-6576 Web site: www.house.qov/leach/ Third District Congressman Leonard Boswell 1029 Longworth House Office Building Washington, D.C. 20515 Phone: (202) 225-3806 Web site: www.house.qov/boswell/ Fourth District Congressman Tom Latham 440 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-5476 Web site: www.house.qov/latham/ Fifth District Congressman Steve King 1432 Longworth HOB Washington, DC 20515-1505 Phone: (202) 225-4426 Web site: www.house.gov/stevekin~l/ Iowa Office: 712 West Main Street Manchester, IA 52057 Phone: (319) 927-5141 Iowa Office: 209 West Fourth Street Davenport, IA 52801 Phone: (563) 326-1841 Iowa Office: 709 Fumas Drive, Suite 1 Osceola, IA 50213 Phone: (641) 342-4801 Iowa Office: 909 Lincoln Circle SE, Suite PO Box 136 Orange City, IA 51041 Phone: (712) 737-8708 Iowa Office: 607 Lake Avenue Storm Lake, lA 50588 Phone:(712) 732-4197 5/14/2003 :~onni's Stationery Page 1 of 2 Juanita Hilkin From: bounce-cityvoices-289@iowaleague.net on behalf of Konni Cawiezell [KonniCawiezell@iowaleague.org] Sent: Wednesday, May 14, 2003 12:29 PM To: CityVoices Subject: Senate Democratic Press Release on Federal Assistance to Cities The following press release from state Senate Democratic Leader Mike Gronstal discusses Senator Grassley's plan to provide $10 billion in fiscal assistance to local governments as part of the federal $350 billion economic stimulus package currently being discussed in Washington. Senator Gronstal is pushing for this stimulus package to help repair the $60 million fiscal damage to cities passed in SF 453- the state's Reinvention bill. Cities are encouraged to contact their federal lawmakers and express their continued support of the aid package. Contact information for federal lawmakers is available below. Konni NEWS RELEASE Senate Democratic Leader May 14, 2003 For more information, contact Senate Democratic Leader Mike Gronstal: (515) 281-4610 Painful cuts to local governments and property tax increases can be averted with federal dollars 'We can fix this mistake if we want to' Senate Democratic Leader Mike Gronstal today announced a plan to fix $60 million in surprise cuts to cities and counties imposed by the Legislature in the final days of the regular ~egis]ative session. The so- called "reinvention" effort for local government was simply a $60 million cut in property tax replacement dollars. "Balancing the state budget by busting the budgets of local governments was a mistake," said Gronstal today in a statehouse conference. "Those cuts passed by just one vote with no Democratic support in both the Iowa House and Senate. Republicans now have a chance to correct that mistake before the local property taxes are raised and public safety suffers due to layoffs of police officers and firefighters." Gronstal said U.S. Senator Chuck Grassley told him on Saturday that Grassley's plan to create a $20 billion fund to help budget-strapped states was making good progress in the U.S. Senate. The state aid package is part of the economic stimulus package Grassley is moving through the Congress as chair of the Senate Finance Committee. Under Grassley's proposal, Iowa would receive $130 million annually. "t agree with Senator Grassley that $60 million of that new money should go to improve Medicare reimbursement rates," said Gronstal. "1 am suggesting today that $60 million of the rest go to correct the damage done when Republican legislators simply dropped $60 million in debt on Iowa property taxpayers." Gronstal says he will propose that the Legislature allocate the money during the special session contingent on federal approval of the fund. Grassley has said the state aid is likely to be approved before the May 29th special session of the Iowa Legislature. "if Senator Grassley gets the cooperation of Representative Jim Nussle, the head of the House Budget Committee, and if Republicans in the Legislation seize this opportunity to do the right thing, property 5/14/2003 ,J ~onni's Stationery Page 2 of 2 taxpayers across the state will rejoice," said Gronstal. IIIIII Iowa Congressional Delegation United States Senators: Senator Tom Harkin 731 Hart Senate Office Building Washington, D.C. 20510 Phone: (202) 224-3254 Web site: www.senate.qov/-harkin/ Senator Charles Grassley 135 Hart Senate Office Building Washington, D.C. 20510 Phone: (202) 224-3744 Web site: www.senate.gov/~grassley/ Iowa Office: 733 Federal Building 210 Walnut Street Des Moines, IA 50309 Phone: (515) 284-4574 Iowa Office: 721 Federal Building 210 Walnut Street Des Moines, IA 50309 Phone: (515) 284-4890 United States Representatives: If you are unsure in which district you are located, please visit the House of Representatives web site and enter your zip code. First District Congressman Jim Nussle 303 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-2911 Web site: nussle.house.gov/ Iowa Office: 712 West Main Street Manchester, IA 52057 Phone: (319) 927-5141 Second District Congressman Jim Leach 2186 Rayburn House Office Building Washington, D.C. 20515 Phone: (202) 225-6576 Web site: www.house.flov/leach/ Iowa Office: 209 West Fourth Street Davenport, IA 52801 Phone: (563) 326-1841 Third District Congressman Leonard Boswell 1029 Longworth House Office Building Washington, D.C. 20515 Phone: (202) 225-3806 Web site: www.house.gov/boswell/ Iowa Office: 709 Furnas Drive, Suite 1 Osceola, IA 50213 Phone: (641) 342-4801 Fourth District Congressman Tom Latham 440 Cannon House Office Building Washington, D.C. 20515 Phone: (202) 225-5476 Web site: www.house.clov/latham/ Iowa Office: 909 Lincoln Circle SE, Suite 1 PO Box 136 Orange City, IA 51041 Phone: (712) 737-8708 Fifth District Congressman Steve King 1432 Longworth HOB Washington, DC 20515-1505 Phone: (202) 225-4426 Web site: www.house.qov/steveking/ Iowa Office: 607 Lake Avenue Storm Lake, lA 50588 Phone:(712) 732-4197 5/14/2003 Re: Tuesday's Phone Conference with Governor Vilsack Page 2 of 3 Dear Governor Vilsack: Thank you for spending an hour today on a phone conference with representatives of the Iowa League of Cities and Iowa State Association of Counties. On behalf of the League's executive board, we wish to reiterate the following points: 1. Please concur with the legislature's decision in the Standing Appropriations bill (SF 458) to elirnluate the $10 million Local Government Inuovatiun Fund. Cities and counties akeady have access to low interest funds. We also ask that every effort be made to reduce the remaining $60 million in cuts to cities and counties, and any fi. mding that might remain available to create an Lrmovation Fund be directed to reducing these cuts instead. 2. We appreciate your recognition that the "Reinvention" bill (SF 453) did not include the mandate relief your office had anticipated. Please consider vetoing the $60 million in cuts, asking legislators to reduce the cuts by any possible available fancying and to include additional mandate relief. We will be glad to work with your office on the improvements that offer the most help to cities. 3. It was helpful to review the need for establishing a floor to the property tax rollback as part of the property tax reform bill (HF 692) that will be addressed in the upcoming special session. We encourage your support for retaining rollback percentages at their FY04 levels, or allowing residential rollback to fall no lower than 50% for FY05 (a 2.5% decrease) with ag valuations also allowed to drop no lower than 2.5%. As discussed, this will not only provide some stability to the existing property tax system, but will yield important information as our state moves toward datermining what system will be best for Iowa in the futare. We would also support ISAC's request for uncoupling ag and residential valuations, but recognize the political concerns that may be raised. 4. The Iowa League of Cities has chosen to monitor the Iowa Values Fund bill (HF 683) until we can achieve some assurance that the state plans to honor its commitments to fund local governments in the next several years. We also need a sense of assurance that tax increment financing (TlF) will remain a viable financing tool for cities. Our previous support for removing the uniform levy for schools as quickly as possible from the increment has been impacted by the tremendous pressure forced by the budget cuts to cities and counties. We would appreciate additional discussion with your office on the commitment and TIF issues as soon as possible so our position on the Iowa Values Fund can be clarified. 5. We appreciate your willingness to ensure that cities are welcomed early in the process to future state discussions that affect their welfare and viability. We will welcome the oppormuity to forge a stronger partnership not only with your office, but with legislators and state agencies. Again, thank you for your time today. We look forward to hearing from your office as soon as possible regarding items #2 and #4 above, and stand ready to address any additional questions you may have. Sincerely, 5/14/2003 Re: Tuesday's Phone Conference with Governor Vilsack Page 3 of 3 Thomas G. Bredeweg Executive Director cc: Iowa League of Cities Executive Board Members You are currently subscribed to cityvoices as: susanjudkins@iowaleague.org To unsubscribe send a blank email to leave-cityvoices-I396N~iowaleague.net 5/14/2003