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Your Capitol Voice: Pushing bill to avoid more TIF abuse
by Bobby Kaufmann, State Representative · Op-Ed · April 03, 2014


Last week was dominated by the budget process. After the final spending number was agreed upon, it is now the job of the various Budget Sub-Committees to appropriate the funds to all of the agencies, organizations, and programs.


Next week I will give you a full report, highlighting important parts of each budget.

This week marked the passage of one of the Governor’s top priorities. It is a bill regarding veterans and is yet another area where Republicans and Democrats worked together in a bipartisan way to move our state forward.

Since I was a little boy I heard my grandfather and great uncles tell me stories about their experiences during World War II.

Another grandfather served in Vietnam and many other close relatives sacrificed for our country.

As a boy and even now I get involved with my dad’s projects repairing and renovating veterans graves. My work in the legislature on veterans’ issues has deep meaning to me.

To personalize the sacrifice is a powerful remembrance of the obligation of this State and nation to never forget and to fulfill the promises made to these men and women.

This year’s veterans’ package of legislation is designed to attract veterans back to Iowa and ensure they have the opportunities they need to be successful when they return. It is now back in the Senate and hopefully soon on its way to Governor Branstad’s desk. It includes:

• Military Pension Income Tax Exemption: Fully exempt military pensions from state income tax.

• Survivor Benefits Income Tax Exemption: Fully exempt military survivor benefits from state income tax.

• Occupational Licensure: Directs Iowa’s occupational licensing boards to adopt rules allowing credit for military training and experience in the licensing process.

• Hiring preference: Allows private sector employers to grant a preference in hiring and promoting veterans.

• Plate fees: Eliminates the special plate issuance fees charged for plates associated with military service.

• Monitor credits: Requires community colleges and universities to file reports on the amount of credits they are giving veterans for their service in the military.

• County Veterans Affairs: Helps County Commissions of Veterans Affairs keep veterans records confidential as well as improving the policies dealing with the care and maintenance of veterans’ graves.

This week also marked progress on Tax Increment Financing reform. My stance on TIF has been consistent. TIF can be used as a great economic development tool. I believe West Branch is an example of a city that has used TIF very responsibly. I have also supported their ongoing efforts to hold companies accountable to TIF promises.

However, there are some egregious abuses when it comes to TIF. A bill in the Ways and Means subcommittee this week intends to fix some of those problems. For example, there are some TIF decisions made in Coralville that I can’t support and local taxpayers and school representatives have discussed these with me in detail.

I have heard little to no complaints about how cities in my District have used TIF. I am hoping to hear from those cities and their citizens on this issue. The current bill does three basic things:

• Forbids the use of TIF money for public buildings to avoid a vote of the citizens

• Puts a sunset on TIFs that currently can go on forever

• Limits the amount of debt a municipality can carry to a reasonable level

On Wednesday there was a three-member subcommittee meeting to discuss greyhound racing at Iowa casinos.

The legislation basically requires the two casinos which have dog racing to create a $70 million fund to compensate people working in the industry and kennel owners for losing jobs and investments that were assured when the State of Iowa permitted casinos years ago.

Representatives Vander Linden and Prichard chose to move the legislation forward. I want to see if the dog industry and casino operators can reach an agreement. There is another version of the legislation in the Senate that would provide $95 million to be paid out over seven years.

This week Senator Dvorsky and I had the honor of having Reverend Richard Paulus of West Branch give the prayer to both legislative bodies. He did a wonderful job. It is always nice having folks from back home come and visit.

Capitol visitors: Richard and Ellyn Paulus – West Branch, Tim Powers – Lisbon, Hannah Howard, Dave Cooney – Muscatine.

Listening Post schedule: April 5 —Muscatine Community College, 9 a.m.



You may contact Rep. Kaufmann at Bobby.Kaufmann@legis.iowa.gov, 515-281-3221 or 1527 330th St. Wilton, IA, 52778