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Iowa lawmakers will turn to Values Fund Tuesday, January 25, 2005
Associated Press
DES MOINES -- The Legislature puts the finishing touches on its opening debate over Iowa schools this week, and lawmakers begin to turn their efforts to proposals aimed at boosting the state's economy by reviving the Iowa Values Fund.
The House is poised to send Gov. Tom Vilsack a measure increasing state spending on local schools by $100 million a year. with little debate expected.
For his part, the governor labeled that measure "a good first step" and said he'll ask the Legislature for additional school spending. The governor will spell out details of his proposal when he presents his budget plan at the end of the month, but said it will include money to raise teacher pay, bolster early education and encourage struggling schools to share programs.
"Every aspect of the education system will get more money under our proposal," the governor said.
Discussions also begin in earnest this week over proposals to restructure the Iowa Values Fund, a $503 million program to lure new businesses to the state. The Legislature created the program two years ago, but the state Supreme Court nullified the bill last summer.
Lawmakers restored the program temporarily and provided for minimal funding in a special session last fall, but this year hope to make the program permanent.
Lawmakers in both the House and Senate are crafting proposals on how they'd like to see the Values Fund work, and Senate Republicans will weigh in with their proposal this week.
"Those are areas where we're going to devote a significant amount of attention," said Senate Republican President Jeff Lamberti, of Ankeny. "We believe we will have some things that are significantly different from what's been put forward. We'll be in a position to discuss those."
Rep. Clarence Hoffman, R-Charter Oak, a leader on the issue in the House, says bargainers from both parties have agreed on the rough structure of how the fund would work and expect to see initial drafts this week.
Senate Democratic Leader Michael Gronstal said he was optimistic the mechanics of that legislation could be worked out quickly.
"I would like to see us, at least on the structure of the Iowa Values Fund, to come to a resolution rather quickly," said Gronstal. "We can assure businesses inside and outside the state that our Department of Economic Development is going to continue to operate."
The item missing from all the proposals is a way to finance the effort.
"The final piece will be funding, we're not even talking about that now," said Hoffman.
Most are waiting for Vilsack to address that issue in his proposed budget, and he declined to provide details in advance.
"We are going to wait until we get the governor's budget," said Lamberti.
For his part, Vilsack said suggested that additional money the state will collect by granting new gambling licenses this spring would be adequate to finance bonds the state would issue to finance the effort. He has not, however, offered financial details.
In the evenly divided Senate, lawmakers running various committees must this week begin sorting through legislation they will consider because Republicans and Democrats must agree before anything gets advanced.
"Those committees are going to have to sort through a lot of those proposals in a divided Senate," said Lamberti.
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