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.

“Freedom of association and speech are among the most foundational rights of our republic, and the politically-motivated targeting of Americans by the IRS is a blatant betrayal of the public trust. Attempts by an overreaching federal government to silence voices of dissent are not only un-American, they must not be tolerated and those responsible must be held to account,” said Baltimore. “As investigators continue probing the IRS misconduct, I urge any targeted Iowan or Iowa organization to come forward and make their voice heard.”

Baltimore said that he will work with any targeted Iowan to ensure they are connected with appropriate congressional oversight investigators to ensure any facts pertaining to the IRS scandal are heard.

Senate File 247 an Act providing for the possession of cats classified as bengals and savannahs.

Senate File 386 an Act relating to matters under the purview of the Department of Transportation, including the use of information contained in electronic driver and nonoperator identification records, the form of motor vehicle financial liability coverage cards, motor truck registration periods, regulation of glider kit vehicles, grounds for disqualification of commercial vehicle operators, provisions for the issuance of temporary restricted licenses for persons convicted of operating while intoxicated, county issuance of driver’s licenses, and the administration of highway contracts, and including effective date provisions.

House Joint Resolution 13 a joint resolution relating to the location and exhibition of the statue of James Harlan, currently on display in the United States Capitol.

House File 355 an Act relating to driver’s licenses, including the renewal of driver’s licenses electronically and including effective date and transition provisions.

House File 471 an Act relating to parental rights, including the payment of reasonable attorney fees in juvenile court or appellate proceedings relating to a termination of parental rights petition and the awarding of visitation when a history of crimes against a minor is involved, and including effective, retroactive, and applicability date provisions.

House File 512 an Act providing for the determination of animal units which are part of confinement feeding operations, and making penalties applicable.

House File 527 an Act requiring certain aggravated misdemeanants to submit a DNA sample and including effective date provisions.

House File 566 an Act to establish requirements relating to the transfer of an interest in real estate by or on behalf of certain entities formed or organized on a profit, cooperative, or not-for-profit basis, and including warranties and a limitation on actions.

House File 627 an Act establishing a property tax exemption for fairgrounds owned by a county or a fair and including applicability provisions.

Governor Branstad today named Ames CPA Mary Mosiman, AGE, as Iowa’s new state auditor, following last month’s announcement by David Vaudt that he was resigning to become the new chairman of the Governmental Accounting Standards Board (GASB). His last day was May 3.

Mosiman currently serves as deputy secretary of state under Matt Schultz. Her first day is May 13.

“I had two major requirements for Iowa’s state auditor: that the individual was a CPA, and that the individual would adhere to the sound budgeting principles followed by David Vaudt,” said Branstad. “In Mary, we found that and more. She is a talented, passionate public servant who will keep a very close watch over Iowa’s tax dollars.”

Prior to serving as the deputy secretary of state, Mosiman served as the Story County Auditor and Commissioner of Elections, from 2001-2010. She is a graduate of Iowa State University with a degree in accounting.

“I am honored to accept this position, and will do my best to earn the respect of Iowans as well as validate the confidence of the governor,” said Mosiman. “David Vaudt provided an excellent service to Iowans in his role as the ‘Taxpayers Watchdog.’ I look forward to building on his efforts. Working with Iowa’s leaders to maintain sound budgeting principles, communicating state budget information, and providing all the necessary audit responsibilities will be my top priorities.”

Branstad and Lt. Gov. Kim Reynolds launched their formal search for auditor on April 5, seeking individuals who would adhere to the sound budgeting principles as follows:

• Avoid the use of one-time money for ongoing expenses.
• Refrain from standing appropriations.
• Resist implementing new programs in the middle of the fiscal year.
• Avoid multi-year accelerating commitments.
• Accurately determine state revenue and expenses.
• Align expenses and revenue in the same fiscal year.
• Avoid funding programs through property taxes or fees.
• Reject diversion of funds statutorily authorized for a specific objective to other purposes.

“Mary Mosiman will be a partner in ensuring Iowa’s budget remains stable and predictable,” said Reynolds. “We look forward to working with her as we continue the great progress we have made in closing the state’s $900 million budget gap and building up our cash reserve and economic emergency fund.”

Mosiman and her husband Daniel live in Ames and have four daughters. She is a member of the Iowa Society of CPAs, is a past president of the Nevada Rotary, and is an active member of the Gilbert Education Foundation.

House File 112: an Act relating to the forfeiture of bail in a criminal case.

House File 197: an Act relating to certification of adult day services programs and including effective date and retroactive applicability provisions.

House File 210: an Act relating to the practices and procedures of the State Public Defender.

House File 212: an Act relating to conducting condemnation proceedings.

House File 223: an Act concerning issuance of a license or users permit for specified activities regarding explosives.

House File 311: an Act relating to water quality.

House File 312: an Act providing for certification requirements by persons involved in the management of manure, and including provisions for contingent implementation.

House File 361: an Act providing for the issuance of special hunting licenses to certain nonresident disabled veterans and disabled members of the armed forces serving on active federal service.

House File 394: an Act establishing a lifetime fur harvester license for residents who are sixty-five years of age or older.

House File 395: an Act relating to the alteration of the community of a motor vehicle franchisee.

House File 457: an Act providing for the leasing of agricultural land by the Department of Natural Resources to beginning farmers.

House File 472: an Act relating to school district funding by establishing a supplementary weighting program for shared operational functions of school districts and area education agencies.

House File 484: an Act relating to boiler inspections and including effective date provisions.

House File 522: an Act relating to the prevention and control of aquatic invasive species in the state and providing penalties.

House File 530: an Act relating to the Governor’s Office of Drug Control Policy and certain advisory councils.

House File 541: an Act relating to dam reconstruction standards.

NOTE: View the transmittal letter sent by Gov. Branstad regarding HF541, an acting allowing assistance with reconstruction of the dam at Lake Delhi.

House File 575: an Act relating to the technical administration of state financial and regulatory matters, including administration of income taxes, sales and use taxes, currency exchange licenses, and the wireless surcharge for enhanced 911 emergency telephone systems, and including effective date and retroactive applicability provisions.

Senate File 114: an Act relating to the filing of a certificate of deposit by the owner of a motor vehicle as proof of financial responsibility.

Senate File 142: an Act providing that certain activities relating to business opportunity promotions are unlawful practices punishable as consumer fraud and making a penalty applicable.

Senate File 182: an Act relating to credit for reinsurance, including transition, applicability, and effective date provisions.

Senate File 189: an Act relating to a risk management framework for insurers and insurance groups and including penalty and applicability provisions.

Senate File 282: an Act relating to procedural requirements in in rem forfeiture proceedings.

Senate File 288: an Act relating to the placement of a juvenile on youthful offender status and the prosecution of a juvenile in juvenile or district court, and access to child abuse records by a juvenile court intake officer.

Senate File 298: an Act relating to the definition of the term “sex act” in the criminal code, lascivious acts with a child, and providing penalties.

Senate File 316: an Act relating to farm tenancies of less than forty acres by providing procedures for termination.

Senate File 318: an Act relating to the administration of the judicial branch including provisions pertaining to shorthand reporters and the practice of law, and making appropriations.

Senate File 332: an Act related to the administration of the National Guard Educational Assistance Program.

Senate File 340: an Act relating to the length of on-duty periods and required rest periods for drivers of rail crew transport vehicles, and providing penalties.

Senate File 343: an Act authorizing tribal governments to establish a force of reserve peace officers.

Senate File 355: an Act relating to the regulation of vehicles of excessive size and weight, establishing fees, and providing penalties.

Senate File 362: an Act relating to the use of the term relative in child in need of assistance and termination of parental rights proceedings.

Senate File 380: an Act authorizing charitable auctions for alcoholic spirits.

Senate File 384: an Act relating to removing or attempting to remove a communication or control device from the possession of a peace officer or correctional officer, interference with official acts, and providing penalties.

Senate File 388: an Act relating to sponsor projects under the water resource restoration sponsor program.

(DES MOINES) – Thursday afternoon, Republican Education Conference Committee members released a new proposal to come to resolution on education reform.  Nine concerns raised by Democrats are addressed in the new proposal.

“Republicans are focused on crafting meaningful education reform on behalf of Iowa’s students, parents and teachers,” said House Education Chairman Ron Jorgensen (R-Sioux City).  “We remain committed to coming to resolution on these issues in a timely manner.”

The House proposes the following offer:

• 2% Supplemental State Aid + 2% equivalent payment for FY14
• 4% Supplemental State Aid for FY15
• 2 year extension on the sunset for the Early Intervention Block Grant

House File 215 language with the following changes:

• Move minimum salary to $33,500
• Create comparable model language and criteria
• Local districts comparable model proposal reviewed by the commission, which makes a recommendation to the director, who will decide whether to approve. Add an appeal option to the State Board of Education.
• Eliminate Teach Iowa Marketing program (HF 214 section 43) – move the money from that program to fund the Competency-Based Provisions in the Senate language (H-1248 sections 38 and 48)
• Mentor teachers experience, move from 2 to 3 years (eliminate HF 215 section 77, subsection 7)
• Take Senate language on preschool funding uses (H-1248 section 41)
• Take Senate language on kindergarten assessment (H-1248 section 45)
• Add language to ensure that the Teacher and Administrator Development Systems must be accomplished in a collaborative manner (SAI provided suggested language)
• Remove letter grades from Attendance Center Rankings program developed per section
• Take Senate language on School District Reporting Requirements Task Force (H-1248 section 49)
• Take Senate language on Instructional Hours (H-1248 Division 1)

House Education Committee Chairman, Rep. Ron Jorgensen (R-Sioux City) offered the compromise plan during the conference committee.  The details include:

• Keep intact policy language and appropriations for House File 215.
• 2 percent increase in allowable growth for Fiscal Year 2014, plus a one-time payment equivalent to 2 percent allowable growth.
• 4 percent increase in allowable growth for Fiscal Year 2015.

“This compromise plan offers flexibility for school districts, accountability for parents and protection for taxpayers,” said Rep. Jorgensen.  “I am hopeful that the Senate will take our compromise under serious consideration and we can resolve this issue today.”

The House previously passed $87.5 million in Fiscal Year 2014 and $119.3 million in Fiscal Year 2015.  The Senate originally passed $135 million in Fiscal Year 2014 and $305 million in Fiscal Year 2015. The House compromise plan is $144.7 million in Fiscal Year 2014 and $195 million in Fiscal Year 2015.

Auditor David Vaudt announced Thursday he is resigning to take over duties as the new chairman of the Governmental Accounting Standards Board (GASB).

Vaudt, who served as Iowa’s state auditor since January 2003, recently was elected to the post.

Gov. Terry Branstad praised Vaudt as a “dedicated public servant for the taxpayers of Iowa, and we will miss his incredible work as steward of our tax dollars.

Vaudt, he said, “embodied the principles of good budgeting, including not spending more than we take in, and avoiding the use of one-time money for ongoing expenses.”

Branstad, who will appoint a successor, said the search for Vaudt’s replacement will begin immediately.

• According to Iowa Code Chapter 69, when there is a vacancy in the office of auditor, the governor has the duty to fill the office by appointment.
• Until an auditor is appointed by the governor, the governor is responsible for maintaining the office and its records in the interim.
• The person appointed by the governor will serve through the end of the current unexpired term.
• The next election for auditor will occur during the next regularly scheduled election in 2014.
• The salary of the auditor is fixed by the General Assembly.

Representative Chris Hagenow also praised Vaudt today saying, ”Thank you to State Auditor David Vaudt for his service to the great state of Iowa. Congratulations on the new post as Chairman of the Government Accounting Standards Board. The Vauditor will be greatly missed,”

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.