Eggs and Issues No. 2: Labor issues and taxes

(Photo by Kris Todd) AFSCME representative Preston DeBoer, left, visited with Sen. David Johnson (R-Ocheydan) about proposed fair-share and collective-bargaining bills being considered by state legislators following Saturday's Eggs and Issues session held in the Spencer City Council chambers. [Order this photo]

Labor issues and taxes, which are taking center stage this week as the Iowa Legislature enters its sixth week, also were at the center of several heated comments made during Saturday morning's Eggs and Issues session as the political ideologies of Sen. Jack Kibbie (D-Emmetsburg) and Rep. Marcie Frevert (D-Emmetsburg) differed with those of Sen. David Johnson (R-Ocheyedan) and Rep. Mike May (R-Spirit Lake).

Kibbie, who is serving as the Iowa Senate president, said he introduced the gas tax increase bill Transportation Committee members are currently working on during the day's opening comments. He then noted this will likely be among the "controversial" bills under consideration this session.

"Overall, Iowa's been pretty frugal. Most of our spending has been pay as you go. Iowa is the third from the bottom as far as states in debt. And, our school districts, cities and counties are on the lower end of other states. That's the reason I think we ought to have a gas tax -- because it's pay as you go. If you don't drive, you don't pay for it," Kibbie said.

"I'm assuming we don't have that open for discussion," May replied. "The governor said early on that he wouldn't support a gas tax increase."

While it was announced that Iowa could get as much as $1.9 billion over three years from the $787 billion federal economic stimulus package signed by President Barack Obama on Saturday, May suggested about $350 million of that amount would be earmarked for Iowa roads and bridges.

"Maybe we need to see where that's going to go, because we're also talking about a federal gas tax right now as well," the third-term Spirit Lake Rep. hinted. "So, it might be prudent on our part at least to see how those things play themselves out before those discussions continue."

Johnson also posed two concerns about Kibbie's proposal to raise Iowa's fuel taxes.

"No. 1, fuel tax revenues have gone up every year the past 12 years, except for one year they were flat. No. 2, our previous Department of Transportation Director, Mark Wandro, kept saying ... 'You have to recognize that the commission puts these road projects into play, and that 70 percent of our road-building money is going to 7 percent of the state's highway system. And, when we get those projects completed, we're going to have lots of money laying around to build roads everywhere. What happened," he asked.

As the Eggs and Issues discussion shifted to several labor issues currently being considered by Iowa lawmakers, Del Brockshus of the Clay County Board of Supervisors registered his concerns about two study bills. The first, Senate Study Bill 1096, would set a county attorney's wage as a percentage of the district court judge's. If SSB 1096 passes as it's currently written, it would take effect on July 1.

"The current district judge salary here for our area is $137,700. Using the minimum salary as it relates to that, our county attorney would receive a $12,000 raise July 1. And, his deputies would receive an $8,000 raise," Brockshus told Kibbie, Frevert, Johnson and May. " ... The bill sets out that the funding will be set up in such a fashion that monies collected will go first to fund the county attorney -- which smacks a little bit of commission to me of the better job he does of procuring various fines for violations."

Brockshus then noted House Study Bill 149, otherwise deemed the prevailing wage bill.

"This is where the legislature sets minimum wages for workers who are working on public projects," the Clay County supervisor explained. "As it is set up right now, according to the Iowa Association of Counties, this would add roughly 10-20 percent to every public-funded project. if you look at our West Beltway project of roughly $5 million, and you add 10-20 percent onto that, this gets to be a sizable amount of money."

Frevert explained the threshold amounts currently being considered for state-funded projects are $100,000 and up for the Board of Regents; $300,000 and up for school districts; $100,000 and up for cities with a population of 20,000; $100,000 and up for counties with a population of 40,000; and any public body project valued at $3 million or greater, regardless of population.

"Those are the ones that usually have some federal funding involved. So, I guess I don't really see this as (an issue)," Frevert said.

Johnson then encouraged Kibbie and Frevert, both members of the Legislature's majority party, to ignore this particular bill this year, especially considering Iowa's current economic situation.

"I don't think we've seen the bottom yet," the Senator warned. "And, we don't need to be adding cost to local customers or to private job creators."

State legislators are also considering labor-backed bills this session which would: Allow unions to collect a fee from nonmembers for providing services; expand the state's collective bargaining law to allow unions to bargain for issues other than wages; and give workers a greater voice in picking doctors for work injuries.

Spencer businessman Tom Howe expressed his concerns with Senate Study Bill 1037 and Senate Study Bill 1119. The latter would allow an employee to predesignate a physician to treat a workplace injury under Iowa's workers' compensation system.

"This bill has come up before," Howe then said of SSB 1037, "but the seven businesses that are being exempted now are lawyers, banks, accountants, insurance agents, engineers, architects and nearly every type of healthcare professional. So these people now have gotten off scot-free on this deal. But essentially what it's saying is that without any proof, our business can be sued in the current attitude of be somebody, sue somebody."

As the labor issue discussion wound down, May, while alluding to last night's public hearing and ensuing late-night committee meeting, said, "My frustration with this is the same frustration I had last year: It's how we get these pieces of legislation passed. ... I suppose if we (Republicans) were doing this, we would do the same thing. But, let's air this publicly, talk about it publicly and get it out there. Let's not try to hide it. And, let's not try to run it through on Thursday night when everybody's leaving."

Kibbie responded gruffly, "If any of these bills pass, it's going to be in broad daylight. So don't worry about that. ... And, they're not going to pass the legislature without the governor's signature -- because we're not going to vote on them unless the governor agrees to sign them."

In other discussion, the state legislators informed those gathered about a sustainable funding for natural resources resolution being contemplated. The constitutional amendment, anticipated to be voted on in the 2010 election, is proposing to enact a three-eighths of a cent increase to the state sales tax. If approved by voters and then the legislature, these funds would be constitutionally protected for water quality and soil conservation programs, for fish and wildlife habitat, and for state parks and trails.

"As far as I'm concerned, I have no problem with putting that in the constitution. We constitutionally protect the road fund for roads," Frevert said. "And, yes, we all support letting the people decide. But then, we as a legislature have to pass the penny. So, stay tuned to that as well."

Saturday morning, Spencer resident Mike Hoyt also requested an update on a proposal moving through the Senate that would consider changing the way the state's presidential votes are counted. As part of an effort to break from the Electoral College system, it calls for Iowa to enter a compact with other states and pledge to direct its seven electoral votes to the winner of the national popular vote. Support for such a move has been building nationally since 2000, when George W. Bush became president despite losing the popular vote to Al Gore. Once states representing 270 electoral votes have adopted such a resolution, it would go into force.

"I certainly won't support a bill that would in the long run end the Electoral College," Johnson said. "I think it's a good system and it protects small rural states like Iowa."

While Frevert, who serves on State Government Committee, said she hasn't been presented with anything about this proposal yet, May indicated he'd also be reluctant to give the current system up.

"I also think it's important that we protect the system that we have," Kibbie added. " ... With all the issues that we've got to deal with this year, I don't know how far this is going to get."

Agricultural issues were also addressed during this year's second Spencer Chamber of Commerce-sponsored town hall forum with area lawmakers.

"Those counties that don't have the (master) matrix (in place), don't have to have public hearings and don't have to give the public an opportunity for comment. There is a bill which doesn't seem to be like it should be all that controversial," Frevert said. "But, at any rate, we're looking at that also."

Kent Christensen of rural Royal raised concerns about the Environmental Protection Commission's proposed regulations which would ban the Feb. 15 - April 15 distribution of manure on fields.

"That would be very costly for my farming and feedlot operation," he told the legislators in attendance.

While Kibbie told him to participate in upcoming public hearings around the state, the state Senator added, "We'll try to do the best we can on that issue to not make it a deterrent."

Johnson, meanwhile, indicated he'll be keeping an eye on the EPC. Ralph Klemme of Le Mars abruptly resigned from the panel of nine citizens who provide policy oversight over Iowa's environmental protection efforts, in September "because a lot of the decisions are moving -- at least he thinks, and I'm beginning to think that, too -- beyond the statutory obligations of what that commission is supposed to do," Johnson said. " ... I'm really worried about this EPC's change in direction, that they're going to be the final arbiters of any disputes or any disagreements. And, I think that's a concern shared by Republicans and Democrats alike. Whenever a board or commission exceeds its authority under the law, there's going to be some questions raised about politics and what their agenda is."