This week, House Republicans released our Fiscal Year 2013 budget targets. Fiscal Year 2013 actually begins on July 1, 2012. We will craft a budget with job creators in mind and our conservative approach will create stability and certainty for all Iowans.

Our Budget Continues Our Commonsense Budget Approach
As I stated last week, there are three key budgeting principles that House Republicans will adhere to.

We will align ongoing spending with ongoing revenue. Iowans cannot afford a government that spends more money than it takes in. Anything less jeopardizes Iowa’s long-term economic health.

We will end the practice of using one-time money for ongoing expenses. This is not how
Iowans balance their own checkbooks at home and it’s not how House Republicans will balance the government checkbook.
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This week in the House we approved the first bill of the 2012 Legislative session, House File 2042, legislation to require all administrative rules created by state agencies to be accompanied by a ‘Jobs Impact Statement’. During these difficult economic times, we must not let cumbersome bureaucratic rules create uncertainty and add unnecessary expenses on Iowa’s employers.

HF 2042 is just one of many pro-job, pro-growth bills that the House is working on this year. We are committed to creating policies that put Iowans back to work. The best way to put Iowans back to work is to advance policies that create an environment that encourages employers to keep and create jobs right here in Iowa.

We are also making progress on the state budget as the budget subcommittees have begun the process of going through each budget, line by line. House Republicans are committed to making sure state government is efficient and effective. As we continue our work on the budget, there are a few important guidelines House Republicans will follow.
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The second week of the 2012 session is complete and there are several bills moving through committees that will help put Iowans back to work and give the taxpayers a seat at the table.

Over the last two years, there has been a lot of discussion about reforming Iowa’s property tax system – a task imperative to strengthening the economy and putting Iowans back to work. Iowa’s current property tax system is an impediment to economic growth. Our uncompetitive property tax system is a burden to job creators and prohibits employers of all sizes from expanding, hiring or locating to Iowa.

House Republicans are committed to giving the hardworking taxpayers of Iowa more of their money back. We will work to deliver significant tax relief and reform to all Iowa property tax payers.
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This week marks the start of the 2012 session.

We kicked off the week on Monday, when I gave remarks to the Legislature which you can read here.

I am optimistic about this session. I believe we have the ability to do very positive things for the people of Iowa. With a little patience and commonsense, I am confident we will work with one another to make Iowa a better place to live and do business. After all, it is what Iowans sent us to the Capitol to do; they expect and deserve it.

On Tuesday the Governor came to the House to deliver his Condition of the State Address. I was pleased he released his budget quickly as it gives us ample time to go through every detail. We will immediately get to work on crafting a sustainable budget that funds the priorities of Iowans.

A couple of reminders – please visit www.kraigpaulsen.com for constant updates on what is happening at the Capitol. Our research staff compiles a lot of helpful information on the House Republicans’ website which I hope you will find useful.
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By now you have probably heard about the Senate District 18 special election to be held on November 8th in Linn County. A few weeks ago, the governor appointed my former State Senator, Sen. Swati Dandekar to serve on the Iowa Utilities Board, creating a vacancy in the Iowa Senate. Best of luck to Commissioner Dandekar — this is an important position and I have no doubt she will do a superb job.

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This week, State Auditor David Vaudt released his review of the Fiscal Year 2012 state budget. Overall, he gave the Legislature high marks for restoring responsible budgeting practices, proclaiming “huge progress in the area of fiscal sustainability.” He declared that House Republicans have “turned the ship around” putting responsible spending back on the right track. He praised our work and said our budget is, “clearly a win for the taxpayers of Iowa.”

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Following the adjournment of the 2011 legislative session, Governor Branstad has been reviewing budget bills and other legislation approved on or before June 30th. Since then many bills, like the mental health reform bill, have been signed into law.

The Iowa Constitution provides the Governor with 30 days after adjournment to review legislation and either sign or veto the entire bill. In the case of budget bills, the Governor has the authority to line-item veto certain provisions of the bill.

This week, the governor will complete his review of the legislation and the 2011 legislative action will officially conclude. Most recently, Governor Branstad signed four budget bills in to law: Education, Rebuild Iowa Infrastructure Fund, Economic Development, and Standings.

In many of these bills, the Governor exercised his constitutional authority to veto various provisions. This is common practice.

For more information and to see the full list of vetoes, visit the governor’s website https://governor.iowa.gov/2011/07/gov-branstad-signs-four-bills-into-law/

One quick reminder about Iowa’s Sales Tax Holiday weekend. This year beginning at 12:01 am on Friday, August 5th through midnight on Saturday, August 6th, no sales tax will be collected on sales of clothing or footwear having a selling price of less than $100.00 per item. All businesses that are open on August 5th and 6th are required to participate. The holiday does not extend to Sunday. For more information, consumers should visit http://www.iowa.gov/tax/educate/holiday1.html

As always, if you have any questions or concerns, please feel free to contact me at kraig.paulsen@legis.state.ia.us or my office at (515) 281-3521.

The Legislature has adjourned for the year. You can read my closing speech below.

I want to begin by saying thank you to all the members of the Iowa House of Representatives. Thank you for the time you’ve sacrificed away from your families, home and careers; and thank you for your commitment to the people of our great state, this session has certainly been unique.

And, special recognition and thank you to the House Majority Leader, the lady from Hancock, Representative Linda Upmeyer. Madam Leader, your leadership, hard work and resolve during the past six months has been tremendous. House Republicans and Iowans appreciate your tireless efforts.

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This week real progress was made at the State House. We’re continuing our work on the state budget and realizing positive movement in reaching a responsible budget agreement and final adjournment.

Two weeks ago the House passed House File 697, the Omnibus Appropriations Act. The legislation was critical in jumpstarting stalled budget negotiations. There is no question it has moved the process forward and worked to break the stalemate that overwhelmed the budget differences between the House and Senate. This week the full Senate convened and passed a series of budget bills.

Thursday four conference committees met, these committees are comprised of Republican and Democrat legislators from both the House and Senate. The various committees met on the Justice, Economic Development and Agriculture budgets as well as the Mental Health reorganization bill. By the end of the day, all four of the bills had been resolved.

As we move forward and reach agreement on these budgets, we continue to stand firm on our principles. House Republicans will not accept budgets that spend more than the state takes in — we’ve completely abolished the past practice of using one-time money for ongoing expenses.

Much of the negotiating that remains will center on our insistence that the Senate Democrat’s efforts to underfund Medicaid, mental health and nursing homes, in order to spend more money in other areas, is unacceptable. We are not doing our job if we leave the Capitol knowing we have underfunded such critical services.

We will continue to push forward and plan on resolving other budget bills over the weekend and into next week. We will complete our work and pass a budget that meets the needs of Iowans and brings fiscal responsibility back to state government.

One last thought…we’re all still keeping a watchful eye on our western border as the Missouri River threatens our communities. The response by local officials, state emergency workers, and volunteers has been tremendous. Please keep those who continue to battle the floods in your thoughts and prayers.

On Wednesday the House approved House File 697, the omnibus appropriations bill, which is the Republican alternative to break the current budget stalemate. The bill went through a thorough committee process and a public hearing before floor debate and final passage. We’re proud of the finished product, which maintains our strong stand on fiscal responsibility by spending less than $6 billion. It also restores good budgeting practices by increasing transparency and not spending more than the state takes in.

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