Legislative Issues LettersTHOMAS J. VILSACK
GOVERNOR
For Immediate Release
Thursday, May 15, 2003
OFFICE OF THE GOVERNOR
STATE CAPITOL
DES MOINES, IOWA 50319
SALLY J. PEDERSON
LT. GOVERNOR
ForMorelnformafion:
Amanda Crumley or Matt Paul
515-281-0173
Statement by Governor Vilsack on the
U.S. Senate Economic Stimulus Package
Des Moines--Govemor Vilsack released the following statement in response to the U.S.
Senate's passage of an amendment providing fiscal relief to the states in the Jobs and Economic
Growth Reconciliation Bill by a vote of 95-3:
"Cities and counties in Iowa and across the country are responsible for providing
resources to educate our children, deliver health care services for our families and senior citizens,
protect our environment and natural resources, and ensure public safety and homeland security.
That's why we are so pleased today that the United States Senate voted overwhelmingly to
provide direct fiscal relief to the states and local governments."
"Direct fiscal relief to the states and local governments has to be a part of any true
economic stimulus package. I have been a leading proponent of fiscal relief to the states and
local governments, which are currently going through their most difficult budget challenges
since World War II. I would like to thank Senator Grassley, Senator Harkin and others in the
United States Senate for including this $20 billion state fiscal relief package as part of the
economic stimulus bill, and I urge the U.S. House of Representatives--particularly members of
Iowa's congressional delegation--to support it as well."
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THOMAS J. VILSACK
GOVERNOR
OFFICE OF THE GOVERNOR
SALLYJ. PEDERSON
LT. GOVERNOR
May 12, 2003
Michael C. Van Milligen
City Manager
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
Dear Mike:
Thank you for your letter concerning the City of Dubuque and its great challenge. It is a
story I know all too well. There will be a reduction in aid to cities and other local governments.
Under the circumstance of our budget, there is no other real alternative.
I appreciate the difficult choices that will impress on you and other city officials, but the
state has literally no other place to go. We've cut our budgets. We've cut our workforce.
We've cut services. Our strategy this year is to grow the pie through the Iowa Values Fund. I
believe we can begin the transformation of Iowa's economy with this fund and the tax reform
being discussed. I believe we can add $175 million to state revenues which will go a long way in
the future to alleviate the pain we are all experiencing.
I appreciate your suggestions, but under the circumstances of the legislature as I know it,
I am not hopeful that your plan will be fully created. The legislature is bent on using tobacco
revenue for reducing income tax rates in the hopes that it will generate more net revenue through
growth. They have also rejected out of hand the idea, of the single factor tax despite our
suggestion in our original budget.
I'll continue to do the best I can, but I'm afraid there are few viable options at this time. I
would suggest you work with PSG to determine if there are ways to extend the efficiencies
you've already brought to Dubuque city government.
Sincerely,
Thomas J. Vilsack
Governor
STATE CAPITOL
DES MOINES, IOWA 80318
515 281-5211
City Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 589-4110 office
(563) 589-4149 fax
ctymgr@cityofdubuque.org
VIA E-mail and
1st Class Mail
mike_connolly@legis.state.ia.us
May 29, 2003
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
Re: Tax Cuts
Dear Senator Connolly:
The State of Iowa has reduced revenues to local governments in Iowa by $77 million for
Fiscal Year 2004. The City of Dubuque will be forced to cut almost $2 million. This
could mean the elimination of over 35 positions.
When the federal government passed a $20 billion financial assistance package for
state and local governments, I had high hopes that some of that money would make it to
the City of Dubuque to delay some of these budget problems and create more time to
plan the expense reductions. I just heard that the legislature is considering not passing
down money to local governments, even though that was the clear intent of the federal
legislation.
I urge you to provide $77 million in federal funding to local governments to delay the
cuts the City of Dubuque must make.
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:jh
cc: Mayor Terry Duggan
Dubuque City Council
Susan Judkins, Director of Governmental Affairs, Iowa League of Cities
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Stew Sandstrom, President & CEO, Dubuque Area Chamber of Commerce
Rick Dickinson, Executive Director, Greater Dubuque Development Corporation
Bill Baum, Economic Development Director
The Honorable Mike Connolly
Iowa State Senator
3458 Daniels
Dubuque, IA 52001
The Honorable Roger Stewart
Iowa State Senator
3936 317 Avenue
Preston, IA 52069
The Honorable Pat Murphy
Iowa State Representative
155 N, Grandview Avenue
Dubuque, IA 52001
The Honorable Steven Lukan
Iowa State Representative
7365 Columbus Street
New Vienna IA 52065
Govemor Tom Vilsack
Governor's Office
State Capitol
Des Moines, IA 50319
The Honorable Julie Hosch
Iowa State Senator
22852 Butterfleld Road
Cascade, IA 52033
The Honorable Pam Jochum
Iowa State Representative
2368 Jackson
Dubuque, IA 52001
The Honorable Robert Osterhaus
Iowa State Representative
216 Austin
Maquoketa, IA 52060
The Honorable Gene Manternach
Iowa State Representative
9608 Maple Road
Cascade, IA 52033