NEWS

Iowa Legislature OKs spending for economic development, infrastructure, justice systems

William Petroski, and Brianne Pfannenstiel
Des Moines Register

The Iowa Legislature gave final approval to three budget bills Wednesday, authorizing state spending on infrastructure projects, economic development and the justice system.

One of bills will result in changes in funding for building projects at Iowa State University and the University of Iowa. Another will transfer the Iowa Energy Center from Iowa State University to the Iowa Economic Development Authority with authorization to close the center in five years. The third would remove some funding to the state's victims assistance grant program.

All three are headed to Gov. Terry Branstad for final approval. Here is a breakdown  of the bills:

INFRASTRUCTURE

State spending on infrastructure would total $98.9 million under House File 643, including $11.5 million for major repairs, maintenance and upgrades of state facilities.

Sen. Rick Bertrand, R-Sioux City, said the budget is headed in the direction of putting more of a focus on major maintenance and other projects and he is looking forward to additional funding in the future. Sen. Matt McCoy, D-Des Moines, said that on balance, the bill does a good job, but he was disappointed with the "measly amount of money ($1 million) going to recreational trails."

Sen. William Dotzler, D-Waterloo, said lawmakers have to put more money into programs that will attract people to Iowa, such as removing low-head dams to draw paddlers and recreational trails for bicycle riders.

"We need more people here to help our economy," he remarked.

The bill would particularly affect state funding for three building projects at state universities:  A total of $5.5 million for a University of Iowa Pharmacy Building renovation project will be moved from the 2018 state fiscal year to the 2019 fiscal year. Another $4 million for Iowa State University's Bioscience Building will be shifted back one year to the 2019 budget year, while $3 million for an ISU Student Innovation Center will be moved back from the 2018 fiscal year to fiscal year 2022.

The measure includes $5.2 million for the Iowa Water Quality Initiative and $1.9 million for the closure of agricultural drainage wells. It also provides $3 million for the Renewable Fuels Infrastructure Fund for a grants program.

The Iowa State Historical Building would receive $1 million for maintenance work and the Iowa Great Places infrastructure grant program would receive $1 million. The Department of Natural Resources would receive $9.6 million for lake restoration and state parks would receive $2 million for infrastructure work.

ECONOMIC DEVELOPMENT

Iowa's economic development programs would receive $38.4 million from the state's general fund during the upcoming state fiscal year, a cut of 7.8 percent compared to the current state fiscal year.

Senate File 513 includes language authorizing the transfer of the Iowa Energy Center from Iowa State University to the Iowa Economic Development Authority, a shift supported by ISU and the state's two largest utilities. The legislation also "sunsets" the Legislature's authorization for the Iowa Energy Center on July 1, 2022.

Sen. Mark Lofgren, R-Muscatine, said drafting the bill involved difficult funding decisions recognizing that it plays an important role in economic development and job creation.

"It was not easy getting to this point," he said.

Democrats said the bill shortchanges Iowa's economic development programs, and Sen. Nate Boulton, D-Des Moines, expressed concerns that funding will be insufficient to handle changes in the state's workers' compensation system.

"We hope it will work with limited funding, but we don't know," Boulton said.

The measure would reduce a state appropriation for Economic Development Authority to $15 million, a decrease of $1.6 million. The Iowa Department of Cultural Affairs would be appropriated $5.8 million, a reduction of $51,000.

The legislation provides $25,000 from the state's general fund for cultural trust grants, which are a sensitive topic among the state's nonprofit arts and cultural organizations. Lawmakers angered many Iowans in the arts community earlier this session when they "scooped" about $6 million from the state's cultural trust fund to help fix a state budget shortfall, leaving only about $100,000.

The bill also eliminates a state appropriation of $101,000 for Small Business Development Centers at Iowa State University.

JUSTICE SYSTEMS

Senate File 509 allocates $559 million to the state's justice system, funding departments such as the Attorney General's office, the Iowa Civil Rights Commission, the Department of Corrections and the Department of Inspections and Appeals.

The bill cuts about $1.45 million from victims assistance grants, which support victims of sexual abuse and other crimes. That totals about 20 percent of the state's funding to that program.

It also includes about $1 million more to the Iowa State Patrol, representing a 1.7 percent increase. The additional money is intended to support Department of Public Safety Academy training for new troopers who would replace those who are retiring.

But during House floor debate on Tuesday, Rep. Todd Taylor, D-Cedar Rapids, criticized the $1.6 million in cuts to the Department of Corrections, which come on top of a $5.5 million cut made earlier this year. He said the cuts are "yet another attempt to create separate classes of employees."

The Department of Corrections already has fired some probationary staff, and it has ordered the temporary shutdown of state prison satellite units at Harpers Ferry, Clarinda and Fort Madison, as well as a community corrections facility in Sheldon.

"Corrections officers who endure physical altercations almost on a daily basis with the goal of keeping Iowans safe from dangerous criminals are once again being told they are lesser, they’re not public safety employees, they are not valued," Taylor said.

Rep. Gary Worthan, R-Storm Lake and the bill's floor manager in the House, said the bill is a "checkbook budget" based on what the state can afford to spend.

"This is the hardest budget I’ve ever had to put together," he said. "I devalue no one. I tried to make it work for everybody. … This is what we could accomplish in this budget year with the funds that were allotted to us."

The interior of the dome at the Iowa Capitol