Culver outlines agenda in Condition of the State
By Charlotte Eby Journal Des Moines Bureau | Posted: Wednesday, January 16, 2008
DES MOINES -- Iowa Gov. Chet Culver saw multiple standing ovations during his Condition of the State speech Tuesday as he ticked off accomplishments from him and the Democratic-controlled Legislature last year including hiking the minimum wage and raising teacher salaries.
But Culver saw a cooler reception to some of the leading proposals he outlined in his speech -- expanding Iowa's so-called "bottle bill" and closing a corporate tax loophole.
Culver proposes widening the state's can and bottle deposit law, enacted in 1978, so more types of beverage containers are recycled.
"After 30 years of keeping Iowa beautiful and keeping bottles and cans out of the ditches and landfills, I believe expanding the bottle bill is an idea whose time has come," Culver said.
The governor also wants to double the 5-cent deposit consumers pay to 10 cents. Only 8 cents would be given back to consumers when they recycle the containers, with a penny going to retailers who take back the containers and another going to state environmental and conservation projects.
Previous attempts to reform the bottle bill have stymied lawmakers in past years.
Sen. Minority Leader Ron Wieck, R-Sioux City, said Culver's proposal would mean Iowans pay more at the grocery store.
"I'm one for cleaning up our roads and doing the things we need to do, but the reality of dumping more fees ... on the back of Iowa's families is not the answer," Wieck told reporters after Culver's speech.
Another measure that could be a tough sell is "combined corporate reporting," which Culver contends would close a tax loophole that allows corporations to avoid paying Iowa income taxes.
"It's just not fair that big out-of-state, multi-billion dollar corporations that do ... business in Iowa avoid paying Iowa income taxes, because of an outdated tax loophole," Culver said in his address. The change is expected to bring in close to $75 million each year if it is enacted.
Iowa House Speaker Pat Murphy, D-Dubuque, said they would have to see whether members supported the bottle bill expansion and combined reporting.
"I think we're probably looking at a different direction than what the governor is," Murphy said. "But we've got to see what people think first."
On changes to Iowa's can deposit law, Murphy predicted a difficult, uphill battle to gain support.
"It's pretty hard to get a consensus to what we can do," Murphy said.
Murphy said lawmakers declined last year to adopt the combined reporting measure, and some businesses object to the idea.
Republicans show no signs of wavering in their opposition to combined reporting.
Wieck, the top GOP leader in the Senate, bashed the combined corporate reporting proposal, which also had been pushed unsuccessfully by former. Gov. Tom Vilsack.
"We're going to drive business right out of the state of Iowa, and we're going to definitely affect our opportunities to bring new business to Iowa," Wieck said.
In his community, Iowa is in competition with neighboring Nebraska and South Dakota to bring in new businesses.
"This would just be one more nail in the coffin, as far as I'm concerned," Wieck said.
Republicans also argued the pro-union measures pushed by Culver would hurt average Iowans.
Culver urged lawmakers to renew talks on "fair share," which would allow unions to negotiate for the right to charge fees to non-union members to whom they provide services.
House Democrats did not have the votes they needed to pass fair share last year, Murphy said, and he didn't know whether that might change this year.
House Minority Leader Christopher Rants, R-Sioux City, said Culver's support for the fair share measure amounted to declaring war on Iowa's right to work law, which prohibits mandatory union membership.
Charlotte Eby can be reached at (515) 243-0138 or chareby@aol.com.
Highlights
Other highlights of Gov. Chet Culver's condition of the state speech:
Health Care
Culver proposed expanding health insurance to an additional 7,500 Iowa children. He also wants to allow parents to cover adult children on family insurance plans up to the age of 25.
Culver also is pushing wellness and prevent efforts, including a minimum requirement for physical activity in Iowa schools. He encouraged Iowans to join him in the Lighten Up Iowa Challenge, directing them to his Web site at www.governor.iowa.gov for more program details.
Livestock confinement regulations
Culver sought to tackle one of the most controversial topics in Iowa's countryside: the growth of large-scale livestock operations.
He called on Iowa lawmakers to find common ground on the regulation of where confined animal feeding operations can be located in an effort to protect Iowa waterways. He proposed a $1 million odor management program to improve air quality and wants a study by experts at Iowa State University.
Can and bottle deposit changes
Culver wants to revamp Iowa's can and bottle deposit law, enacted 30 years ago to encourage recycling. He would expand the types of beverage containers that would be covered to include water, tea and sports drinks. His plan also would double the 5-cent deposit consumers pay when they purchase the drinks. When they return the containers for recycling, consumers would get back 8 cents of their 10-cent deposit. One penny would go to a state program used for environmental and conservation projects and another penny would go to retailers and redemption centers that take back containers. The governor estimates an additional 335 million containers would be covered.
New prison spending
Culver has set aside $250 million in his budget for new corrections spending including the replacement of the maximum security prison in Fort Madison, calling it first and foremost a matter of public safety. The prison, established in 1839, saw two men serving life prison terms escape in 2005. Other prison facilities would be modernized under Culver's budget, including prisons in Anamosa and Rockwell City and the women's prison in Mitchellville. To reduce recidivism among offenders, Culver wants to invest more than ever before in substance abuse and mental health treatment.
Worker shortage
To ready Iowans for the work force, Culver is proposing an expansion of the All Iowa Opportunity Scholarship for college students who need financial assistance and wants schools to adopt the state's Model Core Curriculum across the state by 2010. He also wants to create a $5 million center at the University of Northern Iowa that focuses on science, technology, engineering and math education in an effort to double the number of math and science teachers in Iowa's public schools.
But Culver saw a cooler reception to some of the leading proposals he outlined in his speech -- expanding Iowa's so-called "bottle bill" and closing a corporate tax loophole.
Culver proposes widening the state's can and bottle deposit law, enacted in 1978, so more types of beverage containers are recycled.
"After 30 years of keeping Iowa beautiful and keeping bottles and cans out of the ditches and landfills, I believe expanding the bottle bill is an idea whose time has come," Culver said.
The governor also wants to double the 5-cent deposit consumers pay to 10 cents. Only 8 cents would be given back to consumers when they recycle the containers, with a penny going to retailers who take back the containers and another going to state environmental and conservation projects.
Previous attempts to reform the bottle bill have stymied lawmakers in past years.
Sen. Minority Leader Ron Wieck, R-Sioux City, said Culver's proposal would mean Iowans pay more at the grocery store.
"I'm one for cleaning up our roads and doing the things we need to do, but the reality of dumping more fees ... on the back of Iowa's families is not the answer," Wieck told reporters after Culver's speech.
Another measure that could be a tough sell is "combined corporate reporting," which Culver contends would close a tax loophole that allows corporations to avoid paying Iowa income taxes.
"It's just not fair that big out-of-state, multi-billion dollar corporations that do ... business in Iowa avoid paying Iowa income taxes, because of an outdated tax loophole," Culver said in his address. The change is expected to bring in close to $75 million each year if it is enacted.
Iowa House Speaker Pat Murphy, D-Dubuque, said they would have to see whether members supported the bottle bill expansion and combined reporting.
"I think we're probably looking at a different direction than what the governor is," Murphy said. "But we've got to see what people think first."
On changes to Iowa's can deposit law, Murphy predicted a difficult, uphill battle to gain support.
"It's pretty hard to get a consensus to what we can do," Murphy said.
Murphy said lawmakers declined last year to adopt the combined reporting measure, and some businesses object to the idea.
Republicans show no signs of wavering in their opposition to combined reporting.
Wieck, the top GOP leader in the Senate, bashed the combined corporate reporting proposal, which also had been pushed unsuccessfully by former. Gov. Tom Vilsack.
"We're going to drive business right out of the state of Iowa, and we're going to definitely affect our opportunities to bring new business to Iowa," Wieck said.
In his community, Iowa is in competition with neighboring Nebraska and South Dakota to bring in new businesses.
"This would just be one more nail in the coffin, as far as I'm concerned," Wieck said.
Republicans also argued the pro-union measures pushed by Culver would hurt average Iowans.
Culver urged lawmakers to renew talks on "fair share," which would allow unions to negotiate for the right to charge fees to non-union members to whom they provide services.
House Democrats did not have the votes they needed to pass fair share last year, Murphy said, and he didn't know whether that might change this year.
House Minority Leader Christopher Rants, R-Sioux City, said Culver's support for the fair share measure amounted to declaring war on Iowa's right to work law, which prohibits mandatory union membership.
Charlotte Eby can be reached at (515) 243-0138 or chareby@aol.com.
Highlights
Other highlights of Gov. Chet Culver's condition of the state speech:
Health Care
Culver proposed expanding health insurance to an additional 7,500 Iowa children. He also wants to allow parents to cover adult children on family insurance plans up to the age of 25.
Culver also is pushing wellness and prevent efforts, including a minimum requirement for physical activity in Iowa schools. He encouraged Iowans to join him in the Lighten Up Iowa Challenge, directing them to his Web site at www.governor.iowa.gov for more program details.
Livestock confinement regulations
Culver sought to tackle one of the most controversial topics in Iowa's countryside: the growth of large-scale livestock operations.
He called on Iowa lawmakers to find common ground on the regulation of where confined animal feeding operations can be located in an effort to protect Iowa waterways. He proposed a $1 million odor management program to improve air quality and wants a study by experts at Iowa State University.
Can and bottle deposit changes
Culver wants to revamp Iowa's can and bottle deposit law, enacted 30 years ago to encourage recycling. He would expand the types of beverage containers that would be covered to include water, tea and sports drinks. His plan also would double the 5-cent deposit consumers pay when they purchase the drinks. When they return the containers for recycling, consumers would get back 8 cents of their 10-cent deposit. One penny would go to a state program used for environmental and conservation projects and another penny would go to retailers and redemption centers that take back containers. The governor estimates an additional 335 million containers would be covered.
New prison spending
Culver has set aside $250 million in his budget for new corrections spending including the replacement of the maximum security prison in Fort Madison, calling it first and foremost a matter of public safety. The prison, established in 1839, saw two men serving life prison terms escape in 2005. Other prison facilities would be modernized under Culver's budget, including prisons in Anamosa and Rockwell City and the women's prison in Mitchellville. To reduce recidivism among offenders, Culver wants to invest more than ever before in substance abuse and mental health treatment.
Worker shortage
To ready Iowans for the work force, Culver is proposing an expansion of the All Iowa Opportunity Scholarship for college students who need financial assistance and wants schools to adopt the state's Model Core Curriculum across the state by 2010. He also wants to create a $5 million center at the University of Northern Iowa that focuses on science, technology, engineering and math education in an effort to double the number of math and science teachers in Iowa's public schools.
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