A sincere thank you to the members of the eighty-fifth general assembly, and in particular, House Republicans  – I appreciate the hard work, commitment and honest debates we had at the state capitol this year.  Thanks also to your families who deal with hectic schedules and our absences all so we can serve the good people of this state.

Thank you specifically to my wife, Cathy, and our children for your continued support, understanding and sharing in the sacrifice of our time together.

I want to thank a great leadership team that I am honored to work with – Reps. Windschitl, Hagenow, Rogers, Smith and Fry – I appreciate your leadership and dedication to the Republican caucus.   To Speaker Pro Tem Steve Olson, thanks for your input, advice and the guidance you provide.

Majority Leader Linda Upmeyer – I appreciate, and House Republicans value, the work that you do. Your service and vision are vital to our efforts and have not only made our caucus more determined, but made the state better.

I’d also like to recognize Leader McCarthy and the minority party.  Thank you for your efforts this year and for continuing to work in a bipartisan manner when you could and keeping your opposition civil when you could not.

Once again, thank you to the leadership staff:  Doug, Terri, Josie, Angie, and Tony.  And, in my opinion, the best caucus staff in the building – the House Republican Caucus staff: Jeff, Lew, Brad, Jason, Kristi, Carrie, Colin, Amanda, Louis and Dustin. Thank you for your hard work and the timely and reliable information you provide year in and year out.

Chief Clerk Boal, thank you to you and your staff, the work you all do right here in front me and behind the scenes make this chamber operate efficiently.

A special thanks to LSA for all of your hard work, much of what you do is not seen but it does not go unnoticed.

I also want to recognize and thank the gentleman to my right, the Speaker’s page, Keith Paulsen.  Keith and I go way back.  Thanks for taking care of me this year, Keith.  Having you by my side these few months has made this one of the most special and memorable sessions I’ve had serving in the legislature.

And finally, a special thank you to Governor Terry Branstad and Lieutenant Governor Kim Reynolds and their team for their resolve and unwavering leadership.

At the start of the 2013 session, I outlined an action plan to promote a strong Iowa – one that encompasses a strong economy, strong budget leadership and strong schools and communities.  As we close the session, I believe we have fulfilled this commitment to Iowans.

Iowa has the third highest commercial property taxes and the 16^th highest residential property taxes in the nation.  I pointed out at the beginning of session if nothing was done to address this problem, the hardworking taxpayers of Iowa were staring down the barrel of a $2.6 billion property tax increase over the next 10 years, with the majority of that falling to homeowners.  Homeowners have been and would continue to be shouldering much of the burden as the rollback turns into the roll up.

Iowans have been very clear that they want property tax reform and relief and we were able to deliver for them in a way that has never been done before.  For over a decade, the legislature has wrestled with this issue without success.

We passed bipartisan tax relief and reform that:

• Includes property tax relief for all classifications of property.
• Is meaningful, inclusive and reliable reform so taxpayers can count on relief from year to year.
• Ensures residential taxpayers receive as much relief as commercial taxpayers.
• Limits assessment growth from 4 percent to 3 percent on ag and residential taxpayers.
• Includes a 10 percent rollback on taxable value for commercial and industrial property.
• Is $560 million in property tax relief, once fully implemented.
• Additionally, this bill enacts a permanent mechanism for the taxpayer trust fund tax credit, giving any overpayment back to taxpayers.

This absolutely will make a difference for every Iowan.

We also fulfilled our commitment to provide strong budget leadership.  Three years ago, Iowa faced a $900 million budget shortfall, behaving much like they do in Washington, D.C.  This was unacceptable and Iowans demanded a change.  In response, House Republicans outlined budgeting principles that have guided our decisions for the last three sessions.  They are:

• Aligning ongoing spending with ongoing revenue.
• Resisting spending one-time money on ongoing expenses.
• Preventing the intentional underfunding of entitlement programs.
• Returning unused tax dollars to Iowa taxpayers.

The bipartisan budget passed this session results in three percent growth over fiscal year 2013 and spends merely 88 percent of what the state is allowed to spend.  Culture change in large, entrenched institutions is extremely difficult to accomplish, yet it happened.  This is not something to be taken lightly.  We have charted a new course for future legislatures, one that puts hardworking Iowa taxpayers first, not the government.

We also took charge in regards to the ending balance.  Our debt relief bill pays off $114 million in commitments earlier than required, fulfills our obligations in regards to pension funds, makes an investment on one-time infrastructure projects at the regents universities and in water quality.

We came together to make Iowa’s schools and communities stronger by moving education reform that offers flexibility for school districts, innovation for teachers, accountability for parents and protection for taxpayers.  Instead of continually throwing money at a less-than-perfect system, we met the challenge to bring about real reform that will provide measurable results.  We were also able to strengthen the role of Iowa parents, not the government.

And finally, House Republicans crafted a bipartisan health care plan that focuses on making Iowans healthier without bowing to federal pressure to expand Medicaid.  The federal government attempted to force Iowa and other states into expanding a broken and outdated system.  Instead of taking the easy way out, House Republicans, led by the Majority Leader and Rep. Rogers, knuckled-down and created an Iowa solution to our own health care needs.  This solution improves the quality of care, lowers costs and makes Iowans healthier.

This has been a remarkable session—we set very high expectations and the 150 of us, working together, met them all.    As I said in my opening day speech, we are not Washington, D.C.  We do not offer ultimatums, push things off until they are nearing a cliff, or wait for a crisis to react.  We’re Iowans and I believe once again this General Assembly has proved that we can come together on behalf of Iowans to accomplish serious and meaningful work.  Our leaders in the federal government, Congress and the Administration, both Republicans and Democrats, should take notice of our process and results.  If Washington operated more like Iowa, America would be much better off.

Again, thank you for your efforts.

Thank you, Mr. Speaker.

A little over two years ago the House Republican caucus set out on a mission.  We wanted to address the fundamental problems in the budget process.

For too long, and at the hands of Democrats and Republicans alike, the state’s budget resembled a roller coaster. One with steep inclines that inevitably led to even steeper declines.

We spent every dollar we had and were only limited by the maximum the law allowed for.  This meant we were ill prepared to handle a downturn in the economy.

It meant that government grew, without regard for the income of Iowans. It meant that we had to borrow money. It meant fees had to be increased to raise revenue.  It meant that the state made commitments and it did not keep them.

I am proud to serve as the Leader of a caucus who committed to change course. We committed to being limited by common sense, not the minimum standards of the law.  We committed to putting the hardworking taxpayers of Iowa first.  We committed to retiring debt, not accumulating it.

We have done this by adhering to some common sense budgeting principles.

• We will not spend more than we take in.
• We will not intentionally underfund obligations to balance the budget.
• We will not use one-time funds for ongoing expenses.
• We will return the over collection of taxes to the taxpayers.

Now I know you all have heard those before, but if you subscribe to the “rule of 7” from the advertising world, those principles are just about ready to sink in!

I admire my caucus for sticking to these principles. It certainly is not the easy thing to do.  Not when the siren song of “more spending” can be heard coming from all directions inside and outside the Capitol.  Like most things in life however, the right thing to do is also difficult.

It is remarkable that we have been able to reach a bipartisan agreement on a budget that grows at a very responsible rate of 3 percent.  While the law allows us to spend 99% of all funds available, that would equal 18 percent growth in one year and would unsustainably build ongoing expenses into the baseline. Instead, we are spending 99 percent of ongoing revenue. That amounts to 88 percent of all available funds and ensures a strong financial position for our state.

Two years ago, we came together and established the Taxpayer Trust Fund.  This was set up to capture unused revenue and send it back to the taxpayers.  Today we move forward by establishing the mechanism by which that money is sent back to the taxpayer.

This is not a one-time deal.  This is a permanent mechanism that will kick in anytime the state collects more in taxes than it needs.  This is another sign that the mindset is changing when it comes to the budget. We must spend wisely and we must continue to put the hardworking taxpayers of Iowa first.

As a result of a strong economy and sound budgeting practices, we have found ourselves in a position to do things that seemed impossible a few short years ago. Rather than accumulating debt, we are retiring it.

We are using available funds to pay off bonds and shore up our pension systems.  This is another example of employing a common sense approach, just like Iowans do at home.

This session is truly historic thanks to the incredible bipartisan work that has been done.  When we opened this session, I asked that we set an example of the best in public service.  Washington D.C.’s divisive politics have no place here.  This session we have shown that there is a better way.

Working together towards common goals means we can achieve great things.  It means in one session we can pass education reform, healthcare reform and historic property tax relief.  All the while, adhering to sound budgeting principles that started as reforms but are now the new standard practice of the legislature.

Iowans can be proud of the progress that has been made here this year, and confident that the state is in a strong position for the days ahead.

Ladies and gentlemen of the House, thank you for your hard work. Thank you for your contribution on behalf of the good people of your districts.  It is truly an honor to serve with you.

To those that keep this building running and always beautiful, thank you.

I want to thank everyone in LSA and the Chief Clerk’s office.  Your hard work and expertise elevates the work we do here.

Thank you to Minority Leader McCarthy, the House Democrat caucus and your staff for your hard work and dedication.

Thank you to Governor Branstad, Lieutenant Governor Reynolds and your team for your dedication to the great state of Iowa.

Thank you to our staff: Jeff, Brad, Jason, Amanda, Carrie, Colin, Kristi, Lew, Dustin, Louis, Terri, Josie, Doug, Tony and Angie. You guys are the best at what you do!

To my caucus, thank you for your steadfast focus and your hard work. The state is better for it.  To the leadership team: Steve, Chris, Matt, Jeff, Joel and Walt, thank you for your support and counsel.

Mr. Speaker, thank you for your friendship and your leadership.

Gives Senate Democrats a second chance at protecting private property rights

Today, Representative Bobby Kaufmann offered an amendment to Senate File 272 which would protect Iowan’s private property rights and family farms from government overreach.

The amendment, which mirrors House File 219, strengthens property laws in Iowa by preventing the taking of private land for a recreational lake.  Entities would still be allowed to condemn land to create a lake, but only for drinking water. If the lake is designed for recreational purposes, the land must be willingly sold by the land owner.  Additionally, individuals whose land is being condemned for drinking water will have the opportunity to get a second engineering opinion to determine the actual amount of water needed for the community. The amendment also provides an appeals process for land owners losing land to eminent domain for the creation of a lake.  House File 219 originally passed with a bipartisan vote of 93-6 only to die in the Senate.

Rep. Kaufmann proposed the amendment in hopes that Senate Democrats will bring this bill up to protect private property rights.

The amendment was approved and the bill passed, as amended, with a bipartisan vote of 95-2.

House Republicans urge Senate Democrats to bring this bill to a vote and protect private property rights and family farms.

2013 Second Funnel Survivors

• House File 419 DHS Mental Health Bill
  
• House File 487 Mobile Home Titling
• House File 514 Pawn Shop Stolen Merchandise
• House File 526 Vehicle Registration Refund
• House File 532 Police Officers as Driver’s Ed Instructors
• House File 533 Enterpreneurial Education Accounts
• House File 537 Educational Settings of Minors
• House File 539 Architects and Engineers Immunity
• House File 540 Ice Cream Vendor Background Checks
• House File 545 Veterans Trust Fund Brain Expenditure
• House File 553 Medicaid Program Integrity
• House File 554 HCBS Service Providers
• House File 598 ATV Tax Exemption
• House File 599 Beginning Farmer Tax Credit Expansions

• House File 395 Franchise Agreements
• House File 457 DNR Farmland Lease Beginning Farmer Preference
• House File 500 Early Childhood Iowa Area Board
• House File 518 Manufactured Housing Progam
• House File 522 Aquatic Invasive Species
• House File 524 Commerical Rental Property Unpaid Water Bill Lien Prevention
• House File 530 ODCP Advisory
• House File 535 Confidential Permits
• House File 541 Dam Reconstruction Standards
• House File 547 Child Labor in Laundry Operations
• House File 549 Vaccine Administration
• House File 556 Substantive Code Editors Bill
• House File 565 Mechanics Lien Clean Up
• House File 574 Health Care Question on Income Tax
• House File 586 Rulemaking Authority
• House File 589 411 System Technical Bill
• House File 591 Probate and Trust Code Changes

Rep. Baltimore (R-Boone) on the House Floor

Today, House Republicans passed House File 478, a bill that leaves more money in Iowans’ pocketbooks and reduces Iowans’ income taxes.

The bill gives Iowans a choice when paying their income taxes, either the current system or a 4.5 percent flat tax with zero deductions or credits. No one will pay higher income taxes under this plan. Additionally, it raises the filing threshold so that the first $6,235 (or $12,450 for married couple) would not be taxed.

“House File 478 not only cuts Iowans’ taxes, it makes our tax system simpler, flatter, and fairer,” said House Majority Leader Linda Upmeyer (R-Clear Lake).

The nonpartisan Legislative Services Agency (LSA) predicts that with the House proposal, close to 492,000 taxpayers will see their taxes reduced. With the flat tax option, the greatest number of taxpayers who benefit fall in the $30,000 to $40,000 income bracket.

The bill also creates a permanent mechanism to return any overpayment of taxes back to Iowans. Currently, Iowans are paying too much in their taxes. Once the legislature and the governor set budget priorities and reserve funds are full, the taxpayer trust fund collects anything leftover. This bill sends any leftover money back to the taxpayer through a credit on their tax forms. This reduces the tax liability of any Iowan paying income taxes when the state collects more than it needs.

“With this bill, we make Iowa’s state income tax system more competitive, since our current 8.98 percent top rate is simply much higher than many other states,” said Rep. Chip Baltimore (R-Boone), floor-manager of the bill. “When the current top tax rate starts with incomes as low as $67,000 per year, too many middle income families are paying far more in state income taxes than they should.”

The bill passed the House on a party-line vote and was sent to the Senate for their consideration.

Rep. Bobby Kaufmann (Wilton) during debate on House File 219, an bill regarding eminent domain authority and procedures.

Rep. Sandy Salmon (Janesville) during discussion on House File 222, an bill regarding confidentiality of information filed with the court for the purpose of obtaining an arrest warrant.

Rep. Mark Costello (Imogene) explaining House File 350 which deals with absentee voting at County Auditors offices.

Rep. Quentin Stanerson (Center Point) during debate of House File 381 which deals with dosage amounts of phenylbutazone given in horse races.

Rep. Rob Taylor (West Des Moines) during debate on House File 488 regarding the Alcoholic Beverages Division of the Department of Commerce.

floor debate 3-19-08

Thank you Representatives Chambers, Grassley, and Swaim. You are friends and colleagues and I will do my best to not let you down. And my appreciation to all of my fellow legislators; I have the greatest respect for all of you.

The first President of the United States born west of the Mississippi River was a resident of my District. Herbert Hoover was born in a tiny home in Cedar County Iowa. Many of you have probably seen this humble abode. He is buried within a few hundred yards of the place of his birth.

The most important part of a trip to the graves of President and Mrs. Hoover is the view. As you stand at the foot of the graves there is an unobstructed view straight to his birth home. The President wanted it this way. This great Iowa-born humanitarian never forgot where he came from. And in his permanent rest, he sends that message each and every day.

I would propose to all of you today that this is what we all need: an unobstructed view straight home–no curves, no barriers, just the simple vision of our Districts and who sent us to work in this beautiful chamber.

If every one of us is reflecting on home, it makes it easier to find common ground. It makes it easier to disagree, sometimes strongly, but in a civil manner. And it makes it easier to listen to that still small voice that urges all of us to try to do the right thing for our communities, our counties, and our state.

I wish the newspaper headlines would announce one time, at the end of session, how many times we worked together and the legislation that passed this chamber unanimously or near unanimously. Count the bills–they dwarf the major battles we will have. This is not a reflection of watering down our principles, this is a matter of adding an element of communication and long tough discussions to those principles and values we bring with us to this chamber.

Amidst the disagreement we will have this year; I hope we will remember what we all have in common… a precious view back home. And when we do disagree and we will, often with passion and zeal, we do so from positions of principle.

Speaker Paulsen, one of the reasons I believe in you and your leadership is because I know you will lead us through those battles with a civil and respectful demeanor that will be reflected in this chamber. The best of you is the integrity you have always possessed.

Leader Upmeyer I have every confidence that your decisions will not just be for the good of our caucus but the good of Iowa. Your past dedication to health care and fiscal prudence, along with your mental toughness that you have consistently shown in my six years serving with you, is just what this chamber needs.

Leader McCarthy I have every confidence that you will find those many and varied opportunities to work together. And when we disagree, to do so with passion not rancor. Our Democratic colleagues have chosen you again as their leader and we respect your leadership.

Thank you former Speaker Murphy for your service. And certainly on this day, our caucus and this entire chamber send our warm support and friendship to the family of Paul Bell. And I hope Representative Wendt in Sioux City knows we continue to care.

We all must find our unobstructed view back home. As we work on creating an environment for our entrepreneurs to flourish and create jobs, my eye will be on Lynch’s Plumbing and Bennett Trucking. I know all of you have your own hometown businesses that motivate you to make the right decisions.

As we work on the economic climate of this state, my heart will be with the class of 2011 who have the same hopes and dreams we did and do. And to the class of 2022: we will do our best….you started Kindergarten this fall.

And as we work on our priorities for spending I will remember the recently widowed, young mother who left a tearful and grateful message on my voicemail that her daughter had just been accepted at Glenwood and she was off of the mental health waiting list….at last.

And to my friends in Clark County Iowa who are entering their second decade of uncertainty, stress, and the threat of government driving them off their family farms and homes, I hear you and you are also a part of my mental vision of home.

My Bible I used today to take my oath belonged to my older brother who long ago was killed in a traffic accident at age 19. He remains my hero. We are all here due to the inspiration of people — most of them from home — most of them without the full knowledge of how much they motivate us to try to do the right thing.

So, in closing–let us debate with passion, let us advocate with sincere fervor, and let us flourish in this sometimes dog-eat-dog environment. But also let’s remember what binds us together as a House of Representatives—our shared sacrifice, no more than our Iowa constituents, but certainly a part of our shared experience as we miss our families, debate for hours upon hours, and take those holiday phone calls from citizens in need.

We are the result of the people’s voice. We are the fruits of democracy. And as long as we look home we won’t, in fact we can’t, forget that.

Let me end with a quote from President Lincoln: “Be sure you put your feet in the right place, then stand firm.” The right place will not be found here in this chamber, but rather in the hearts and minds of our constituents.

Best wishes to all of you. And may God Bless our work here in the People’s House, the Chamber with the unobstructed view back home.