Partnership sets legislative agenda, lawmakers spar on solutions

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A panel of key Iowa legislative leaders took turns looking to score points before a pro-business crowd today.

Not surprisingly, the minority Democrats took the opportunity to take a few jabs at the majority Republicans who control the Legislature and the governor’s office. 

But both parties seem to agree that the Greater Des Moines Partnership — which arranged the legislative luncheon today at the Greater Des Moines Botanical Garden — has hit on some key issues with its four main legislative priorities. 

Let’s start with those priorities, not in any order of importance:

  • Reformed corporate and personal income taxes. In an interview, Joe Murphy, the Partnership’s senior vice president of government relations and public policy, said the Partnership is pushing for a “simple, equitable and streamlined” tax system that promotes economic development. The Partnership, again, is asking for individual taxpayers and businesses to have the choice of deducting federal income taxes or choosing to forgo federal deductibility in return for a reduced state income tax. Partnership CEO Jay Byers said in an interview that the move would help Iowa’s competitiveness by making it clearer  that, with federal deductibility, Iowa’s effective tax rate is not as high as some rankings suggest.
  • Economic development tools. This basically means the Partnership wants the full range of tax credits, tax increment financing, state and local aid, and other tools to remain in play so the state can lure a range of development projects. Byers said criticism of the aid packages is off-base and doesn’t recognize the spinoff development benefits of projects such as Apple’s planned data center in Waukee.
  • Future Ready Iowa. The Partnership supports proposals to keep and improve the program, which is designed to bolster Iowa’s workforce. A key proposal would spend $5 million on grants and loans to people willing to work in high-demand fields.
  • Water quality. Key lawmakers and Gov. Kim Reynolds have said they want to sign a bill that would provide substantial, long-term cash for projects that would improve Iowa’s water quality. The Partnership favors a range of options, including a proposed sales tax to support the voter-approved Natural Resources and Outdoor Recreation Trust Fund, tax credits, revolving loan funds and pollution trading.


See the Partnership’s complete agenda here.

Republican Senate President Jack Whitver of Ankeny said overall the GOP wants to focus on “jobs, growth and reform.” He expects quick action on water quality. He also said, “Our top priority is going to be tax reform. Realistically, we need growth in the state of iowa. We need to look at tax climate and make changes to promote growth.”

When Whitver and three other key lawmakers took questions, the ruling GOP leaders, as is usually the case no matter which party is in charge, tried to quell expectations. “We’re going to have a tough budget year this year, again,” Whitver said. 

House Majority Leader Chris Hagenow, a Republican from Windsor Heights, said the GOP is looking for tax reform in Iowa and nationally. “We want them to be flatter and fairer,” Hagenow said. Regarding Future Ready Iowa, which seeks to have 70 percent of Iowa’s workforce obtain education or training beyond high school by 2025, is a key to Iowa’s workforce attraction issues. “The workforce challenge keeps coming forward,” Hagenow said. 

The leaders seemed to agree, to varying degrees, that Iowa’s mental health services need to be, or can be, improved under the current budget conditions. “We aren’t going to spend more than we take in in revenue,” Hagenow said in general reference to the budget.

Senate Minority Leader Janet Petersen, a Des Moines Democrat, had a range of criticism for her GOP colleagues. “Unfortunately, we have a budget that is a horrible mess,” she said at one point. 

At another, she said Democrats oppose the GOP’s move to privatize Medicaid. “The Medicaid mess needs to be fixed,” she said. “It’s not working.” She also criticized the GOP’s move to block local increases in the minimum wage. 

House Minority Leader Mark Smith, a Democrat from Marshalltown, said the water quality debate is off-base in one way. “I think we are making a mistake by focusing on water quality,” Smith said. “We need to be focusing on soil and retaining soil, which is our lifeblood in this state. By doing so, we will help water quality.”

Petersen said any water plan needs to focus on regional solutions in each watershed. “Iowans don’t want to be Flint, Mich.,” which famously faced lead pollution in its water system and a related scandal.

Petersen said last year’s ill-fated attempt to disband the Des Moines Water Works — which had filed a now-dismissed federal lawsuit over agricultural pollution — brought her more calls than any other issue. 

The next session of the Legislature begins Jan. 8. The Partnership’s opening night reception is from 5 to 7 p.m. at the Tea Room.