HOUSE TO HOUSE

By Polly Granzow

State Representative

 

Cigarette Tax

 

On Tuesday, March 13, the bill passed to raise the cigarette tax from $.36 to $1.36 per pack.  The Governor signed the bill on Thursday March 15, and it took affect at midnight.  I supported amendments to ensure the revenue would be spent for health related programs.  They were all rejected.  I could not support a tax without knowing how the money will be spent.  We now have a regressive “sin” tax on 20% of the people that may or may not go entirely for health purposes.  It amazes me how quickly a dollar increase can pass with revenue going to the state coffers, but cannot increase redemption of cans and bottles by one cent with revenue going to businesses. 

 

Each year the legislature determines how $70 million is spent from the Tobacco Trust fund, the result of a lawsuit against the tobacco companies.  A portion of that fund is not spent for tobacco related programs.  If legislators cannot discipline themselves to use money from this fund for health reasons, how can we expect this new tax to be different?

 

Road Use Tax Fund (RUTF)

 

Last session, the General Assembly required the Department of Transportation (DOT) to conduct a study of current RUTF revenues, and projected roadway construction and maintenance needs.  They presented their findings and recommendations.  As with the rest of the nation, Iowa is on the verge of a transportation crisis.  With current funding, Iowa is facing a $27.7 billion shortfall in the next twenty years.  At the state level, critical needs exist on the interstate and Commercial and Industrial Network CIN), including highways 20 and 30.  At the county level, structurally deficient bridges and deteriorating conditions on the Farm-to-Market Road System need help.  Cities face deteriorating pavement conditions and a backlog of maintenance needs.  The minimum amount of recommended new funding is $200 million per year.

 

One recommendation to the General Assembly is to create a new fund; TIME-21. This new fund would spend 60% on the Primary Road CIN system, 20% to counties, and 20% to cities of the proposed $200 million.  Currently, the formula for appropriating money from RUTF is 47.5% to the state, 32.5% to counties, and 20% to cities.   This new fund would be in addition to current funding for roads and would not change the existing formula.  All tolled, local, state and federal governments spend over $2 billion on Iowa roads each year.  Iowa has almost 9,400 miles of primary roads, 14,300 miles of municipal roads, and over 90,000 miles of secondary roads, totaling nearly 114,000 miles of roadway.

 

Main sources of funding for Iowa roads are from the federal government, motor vehicle fuel tax, registration fees, motor vehicle use tax, and property taxes.  The DOT offers options for additional revenue by increasing the fuel tax (each per cent generates $43 million), changing registration fees (raising the minimum from $35 to $50 generates $19 million), increasing the registration fee for pickup trucks (generates $57 million), increasing the use tax from 5% to 6% (generates $40 million), among others.  Some of these are hard pills to swallow. 

 

The DOT gives reasons to increase road funding.  Transportation investments support economic development and enhance safety.  Our roads handle increased travel, freight movements, biomass production, and construction costs.  There is not a bill as a result of this study.  There is discussion to determine if, what, or how we proceed with the information.  I would appreciate your opinions.

 

May Baskets

 

The House and Senate clerks are continuing to collect items and money for “Operation May Baskets” which they will send to our Iowa troops in Iraq and Afghanistan.  They have the names of 120 Iowans who will receive the baskets filled with these items.  If you have a name to submit or something to donate, send it to ClerkMayBaskets@aol.com, or contact me and I will make sure they receive it.

 

Visitors this week:  Iowa Falls firefighters, Hardin County Extension, Marshall and Hardin County Corn Association, Foster and Adoptive parents and kids, Republican Women, and Marshalltown Chamber.

 

As always, you can contact me at polly.granzow@legis.state.ia.us or at 641-858-5210 on weekends.