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Your Capitol Voice: One-time money should not go to ongoing expenses
by Bobby Kaufman, State Representative · Op-Ed · March 29, 2013
This was another full week of debate. Dozens of bills, on a variety of issues, were considered on the House floor.
My two beginning farmer bills passed 93-4 and 97-0. Those two pieces of legislation are proof of how critical issues can be sent on their way to becoming law when you work in a bipartisan fashion.
This week also marked the beginning of votes on budget bills. We voted on a Transportation budget, a Rules and Regulation budget, and an Education budget.
The Education budget funds the Department of Education, Early Childhood programs, and community colleges/regents higher education. This proposed budget reflects a $33.9 million increase from last year. I think this is a fair first number to begin the process that will ultimately lead to a conference committee between the two chambers.
We must not forget history. Iowa is in good fiscal position right now but it won’t last forever. The numbers of groups that ask for money are numerous, with many legitimate concerns. We can’t use one-time money or money that may not be there in a future session for ongoing expenses or we set ourselves up for debilitating across-the-board cuts like in October 2009.
Having said this, I anticipate increases in every aspect of educational funding this session, including an increase to the universities that will lead to NO tuition increase this year. My promise to you is that every decision I make is with empathy and solid fiscal practices.
I did take one vote this week that garnered some attention. I was one of only two Republicans to vote with Democrats to increase funding to Department of the Blind. I believe with an aging population susceptible to macular degeneration, future planning funds are needed. The measure still failed with only 46 votes but I will continue to fight for the dollars when the Senate and House reconcile their budgets.
Expanding Medicaid is a key issue we must resolve this session. Here are some pros and cons regarding this issue:
• Accept Medicaid Expansion
Under the Affordable Care Act, the federal government funds 100 percent of Medicaid expansion costs for the first three years, then 90 percent. More than half of the states have accepted expansion or are leaning towards it; right now 14 have said “No.”
Medicaid expansion is strongly endorsed by the hospitals who say people are using the emergency room for regular care with alarming frequency. The Iowa Hospital Association has been quoted as saying Iowa hospitals provide more than $600 million in charity care each year and an additional $350 million in bad debt, largely from uninsured and underinsured Iowans.
Medicaid also covers mental health services so expanding it would provide local governments with financial relief.
Finally, expanding Medicaid will actually save state dollars because of the federal dollars provided. The governor’s plan to expand the Iowa Cares program will require $163 million from the state the first year.
• No To Medicaid Expansion/Explore Alternatives
Actuarial reports estimate that expanding Medicaid will costs Iowa between $171.2 million and $536.6 million from FY2014-FY2020.
This is just the cost of the expansion, not taking into consideration the growth of the current recipients as well as the whole program itself. Also, our current Medicaid program has increased 50 percent in the last 12 years. Under our current Medicaid system, Iowa has seen its share of the costs go from 58 percent to almost 64 percent in the last 10 years. This is due to fewer federal dollars in the match.
My biggest concern is the fiscal solvency of the federal government. While it is understood that the feds have never defaulted, it is also true that we have never had more debt than we do now. If the federal government chose to go with a blended rate or reduce their match, Iowa taxpayers would have to pay the bill.
I do not take the decision to insure 150,000 more Iowans lightly. I understand the stakes. Education funding has now been eclipsed by Medicaid expenditures as the largest single share of total state spending by the federal government. This trend will certainly continue.
Next week, I will discuss the governor’s proposal and its pros and cons. There will be compromise between both ideas, and I feel certain we will move in a direction to include more Iowans. One thing is for sure — it will cost hundreds of millions in either state or federal dollars over the next decade. We are simply not seeing the savings promised by the new federal health care policy ... at least not yet.
Forums: Saturday, March 30
• Iowa City Chamber of Commerce Forum – 8 am
• Scott Township Listening Post – 10 am – Home of Terry and Karla Anderson – 5176 American Legion Road – Iowa City
• Iowa City School District Forum—12 noon
Visitors to the Capitol: Dave Timmerman of Bennett; Dennis Hill and Mark Henning of Muscatine; Al Kroeger, Andy Coopman, Mike Shuger, and Jim Williams of Wilton; Richard Smith of West Liberty; Dennis Anderson of Moscow; Kirk Trede and Tim Iossi of Durant; Dave Mohr of Tipton; Deb Saul of Davenport; Tom Wall of Iowa City
You may contact Rep. Kaufmann at Bobby.Kaufmann@legis.iowa.gov, 563-260-3355 or 1527 330th St. Wilton, IA, 52778
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