Caucus Newsletter 12-17-15 - Iowa House Republicans

Thursday, December 17, 2015

Appropriations The Revenue Estimating Conference met last Thursday to revise the FY 2016 revenue estimate and to set the official revenue estimate for Fiscal Year 2017. The committee agreed that the state would continue to have revenue growth, at a slightly slower pace than they projected in October. FY 2016 For FY 2016, the three-person forecasting group lowered the estimate to $7.0456 billion in General Fund revenue. This change from the October estimate is a reduction of $8.9 million. The REC made several significant revisions in their estimate this month. First, they increased the forecast for personal income tax collections to $4.5021 billion. This would be a 7.0 percent increase over collections in FY 2015. The December figure is higher than October’s projected increase of 6.7 percent. By comparison, personal income tax collections in FY 2015 grew by 5.8 percent. The even larger growth number in FY 2016 indicates solid growth for the year in the state’s largest revenue category.

www.IowaHouseRepublicans.com (Contact Brad Trow at 1-3471)

forecast. That would amount to a 13.2 percent decline in collections when compared to the actual FY 2015 number of $576.3 million brought in. Through November, corporate collections were 15.7 percent below FY 2015 levels. This is likely due to the continued falling of commodity prices vital to Iowa’s ag economy and the impact of the strong dollar on Iowa exports. So the downward adjustment by the Revenue Estimating Conference to this classification was not a surprise. The REC also raised their projection for tax refunds paid in the fiscal year. This was raised to $1.002 billion today, which is $11 million higher than October’s figure. As compared to FY 2015, the state is expected to pay out an additional $33.1 million in refunds this fiscal year.

FY 2017 For FY 2017, the REC set the official revenue estimate that will serve as the basis for the General Fund budget deliberations next session. The REC determined that General Fund revenue for FY 2017 will be $7.3274 billion. Personal income tax collections are expected to grow by $205 million in the next fiscal The REC also adjusted their estimate for year, which would be a growth rate of 4.6 sales and use tax collections. The group percent over the projected FY 16 levraised its FY 2016 forecast by $33.5 mil- el. Sales and Use tax collections are lion, and now is projecting collections of also expected to grow in the new fiscal $2.8388 billion for the year. This chang- year, with projected growth being 2.7 es the rate of projected growth in this percent. category from 1.9 percent in October to 3.1 percent today. This is an important On the other side, corporate income tax sign of growing confidence in the econo- collections are expected to continue fallmy, as actual sales and use tax collecing in FY 2017 but at a slower rate than tions had been sluggish throughout the in the current year. This category is exfirst part of the fiscal year. pected to see a $5 million reduction in collections, which would amount to a 1 Corporate income tax collections is percent drop from the FY 16’s projected where the REC made a negative revilevels. sion. The group lowered its FY 2016 forecast for this category to $500 million, a drop of $37.8 million from the October (Continued on page 2)

Inside this issue: Appropriations

1

Agriculture

1

Economic Growth

3

Education

4

Environmental Protection

7

Human Resources

8

Judiciary

8

Labor

9

Natural Resources

9

State Government

9

Transportation

10

Veterans Affairs

11

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House Republican Newsletter (Continued from page 1)

OVERALL: Refund payments would also increase by The Revenue Estimating Conference is $9 million, and school infrastructure paycontinuing to project ments would jump by $10 million. revenue growth in both FY 2016 and The FY 2017 projection anticipates addiFY 2017. In the tional growth in Iowa’s economy, just not at current year, perthe level some were hoping for. The estisonal income tax mate of $7.3274 billion means that the and sales and use state would have $153.1 million in revenue tax collections are above the FY 2016 budgeted level of expected to be $7.1743 billion. even stronger than previously projected. And in FY Below is how this amount is calculated: 2017, this growth will continue. CorFY 2017 Revenue Estimate: $7327.4 million porate tax collections are slowing, MINUS as low commodity FY 2016 General Fund Budget : $7174.3 prices continue and the strength of the dolmillion lar is a headwind on exports. But this downtrend looks to lessen in FY FY 2017 New Revenue : $153.1 million 2017. Iowa’s economy, while facing some

Agriculture

turbulence, is still growing this year and is expected to remain on the growth path into FY 2017.

(Contact Lew Olson at 1-3096)

Congressional Leaders Agree to Extend Biofuels Tax Credits for Two years On Tuesday, December 15, 2015, it was reported congressional lawmakers reached an agreement on a $1.1 trillion spending bill that not only funds the government until 2016, but also contains a tax extenders package which includes several provisions of significant importance to the biofuels industry. The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Tax Credit as reported by the Renewable Fuels Association. Additionally, federal lawmakers also included a repeal of Country of Origin Labeling (COOL) in the spending bill. COOL is a labeling law that requires retailers to notify their customers with information regarding the source of

certain food and agricultural products. The World Trade Organization (WTO) had determined COOL violated trade agreements and recently ruled Canada and Mexico could seek up to $1 billion in retaliatory tariffs. Canada had previously threatened to place ethanol on a list of products that could be subject to retaliatory tariffs if the law was not repealed. The tax break package would cost about $650 billion and extend around 50 credits for businesses and individuals while also delaying until 2017 a tax on medical device manufacturers. The approximately $1.1 trillion appropriations package would fund the government for the remainder of fiscal 2016 and contains a two-year delay of the Affordable Care Act’s so-called Cadillac

Tax on expensive employer-sponsored health care plans as well as a delay of a tax on health insurance plan purchases. The spending bill also would lift the 40-year ban on crude oil exports. In exchange for allowing this provision, Democrats secured the extension of tax breaks for wind and solar energy producers for five years. Final approval of the agreement package it expected in the next week before Congress recesses for the Christmas and New Year’s Holidays.

USDA Removes Farm Program Payments On Tuesday, December 15, 2015, the United States Department of Agriculture (USDA) finalized a rule to ensure that farm safety-net payments are issued only to active managers of farms that operate as joint ventures or general partnerships, consistent with the direction and authority provide by Congress in the 2014 Farm Bill. The action,

which exempts family farm operations, closes a loophole where individuals who were not actively part of farm management still received payments. Since 1987, the broad definition of "actively engaged" resulted in some general partnerships and joint ventures adding managers

to the farming operation which qualified them for more payments but did not substantially contribute to management. The rule applies to operations seeking more than one farm manager, and requires measureable, documented hours and key management activities each year. Some (Continued on page 3)

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House Republican Newsletter

(LDP) and Marketing Loan Gains (MLG) realized via the Marketing Assistance Loan operations of certain sizes and complexity program. As required by Congress, the may be allowed up to three qualifying man- new rule does not apply to family farms, or agers under limited conditions. The chang- change regulations related to contributions es apply to payments for 2016 and subseof land, capital, equipment, or labor. The quent crop years for Agriculture Risk Cover- changes go into effect for the 2016 crop age (ARC) and Price Loss Coverage (PLC) year for most farms. Farms that have alPrograms, Loan Deficiency Payments ready planted fall crops for 2016 have until (Continued from page 2)

Economic Growth

the 2017 crop year to comply. For more details, producers are encouraged to consult their local Farm Service Agency office. For more information, visit www.usda.gov/ farmbill. To learn more about Farm Service Agency, visit www.fsa.usda.gov.

(Contact Brittany Tek at 1-3452)

The Sharing Economy is Growing: AirBnB in Iowa Traveling is stressful; airlines can be a mess, finding ground transportation to and from places can get complicated, and handling check-in at a hotel, full of employees, often is the cherry on top of an all-around awful experience. So what if there was an app that took care of your hotel for you and required little to no interaction with another human? Enter AirBnB: an online database that boasts a “community” which allows users to book housing with “hosts” in over 190 countries. This interactive service takes the place of hotels, and allows potential guests the ability to stay in a variety of cities for a cheaper cost than most hotels. One simply searches for a host in an amazing place, books the stay and can travel, yet feel at home anywhere in the world! The company has been around since 2008 and is based out of San Francisco, California. As of right now, the service has hosted over 60,000,000 guests in over 190 countries, and has over 2,000,000 listings all over the world. How does it work? Potential guests simply go to the company’s website, enter their search parameters (where they want to stay, dates they will be in the location, how many traveling in the party, etc.) and select from the hosts provided. Guests are able to choose from various rooms, condos, entire homes, castles, igloos –you name it, AirBnB probably has it. And this is part of the allure; the company boasts unique housing at affordable prices. All communication is done through the company via a messaging system, which the company maintains is a way to ensure the safety for all involved parties. There is an even an app which allows users to communicate away from their computers, yet still keep their personal information private.

a regular nightly price, a special weekend price, weekly rates and a monthly rate. Further, they are able to set custom prices for high demand dates or dates that are difficult to book. AirBnB charges a 3% service fee of what the host charges, which is automatically subtracted before payout, and there’s a guest fee of 6%-12% on top of the price charged. Other than these fees, there is no other cost for setting up the property on the site. Hosts are also able to set their own guidelines for who is able to book at their properties and when. No personal contact information is listed on the site (aside from the property’s address). Further, AirBnB protects their hosts with a $1,000,000 host guarantee that will reimburse eligible bookings for any property damage –an amount the company boasts as “unprecedented” for this type of service, though the company also ensures that hosts will probably never need to use it. Before posting a person’s property, the company urges all potential hosts to check with their landlords, HoA’s and neighbors to ensure a seamless rental process, and just to be courteous.

lar rules to limit this type of rental. Additionally, the Iowa Department of Revenue has stated in an informal opinion that Iowa hosts who put their homes up for rental on these types of sites are actually subject to a hotel and motel tax under this model. Different zoning enforcement officials have also weighed in, saying these types of property rental situations often violate the city’s zoning laws, as they are more like hotel-type situations, of which residential homes are outside. Much like Uber, cities are trying to get a handle on this new and unforeseen method of travel and find a way to ensure the safety of citizens and travelers, alike.

“actually subject to a hotel and motel tax”

However, there are those who really enjoy this type of service, especially in Iowa. Proponents argue this type of rental model Unfortunately, there are some issues with the company. In some cities, larger proper- encourages young people to come to Iowa, and stay longer due to the reasonable pricty rental companies are working with es. They like that the hosts are able to AirBnB to try and get a “cut” of the profits communicate with guests and can give outtheir tenants received from listing their homes on the service. Elsewhere, college of-towners a better feel of the city while also encouraging more economic activity in students are renting out their dorms through the site, which clearly violates uni- the state. versity policies for proper dorm room behavior. In Iowa, several cities have already While AirBnB is not the only type of website taken action against the practice of hosting (there are others like VRBO, HomeAway, visitors under this model. Back in October, Couchsurfing and even sites like Craigslist and Facebook have these types of postWest Des Moines officials approved rules to stop these short term rentals; homeown- ing), and there has been no state-wide legislation passed in Iowa. ers who want to list their properties for a period under 31 days have to be at the Sources: AirBnB, Des Moines Register, Becoming a host is almost as easy. Inter- house during the rental period. These ested users set-up a detailed, accurate rules probably won’t completely shut down Iowa Department of Revenue description of their properties on the comthese types of services, but it is a start to pany’s site. They are then able to set a the effort of keeping residential areas, resiprice for their properties; prices can include dential. Waukee was also looking at simi-

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Education

Contact Jason Chapman at 1-3015)

No Child Left Behind is No More - Now the Every Student Succeeds Act No Child Left Behind (NCLB) is no more. The much-derided 2001 federal law was erased from the books when President Obama signed its successor, the Every Student Succeeds Act (ESSA) last week.

makes it clear that the new vision for K-12 is going to come from the states, not Washington.

The main take-away is that the new law would reduce the federal role in education The main federal law concerning K-12 edu- policymaking. cation, the Elementary and Secondary EdSome of the major points in the plan ucation Act (ESEA) was last reauthorized over a decade ago in 2001 as the No Child included in the legislation are: Left Behind Act (NCLB). Despite being a Allows state-determined accountability landmark law that had overwhelming bipar-  systems tisan support at the time, the now longmaligned bill has shown its shortcomings and is in need of an overhaul. The problem is that there has been no success in finding successor language that Congress can agree on. But that may be changing this month.



Continues disaggregation of student data



Incorporates state-designed turnaround strategies for low-performing schools

Fifty years ago, President Lyndon B. Johnson signed the ESEA of 1965. The purpose  of ESEA was to provide additional resources for vulnerable students through grants meant to serve low-income students, for special education centers, and  for scholarships for low-income college students. 

“school districts saw a jump in proficiency rates on state math and reading tests”

 

In 2001, with strong bipartisan support, Congress passed the NCLB to reauthorize ESEA, and President George W. Bush signed the law in January 2002. It put in place important new measures to expose achievement gaps and worked to promote accountability for the achievement of all students. However, NCLB’s flaws (incentives for lowering state standards, emphases on punishment over reward, focus on scores over growth) left too much concern with the long-term viability of the law. It was due to be reauthorized in 2007, but all attempts to do so failed.

States would still have to test students in grades 3-8 and once in high school in reading and math. But states would get to decide how much those tests count for accountability purposes. And states would be in the driver's seat when it comes to goals for schools, school ratings, and more. States would be required to identify and take action in the bottom 5 percent of schools, and schools where less than twothirds of kids graduate. This identification takes place once every 3 years. States would also have to identify and take action in schools where poor and minority students, as well as other "subgroup" students are struggling. But how many of those schools states identify and how they intervene would be state-level decisions.

Promotes alignment of K-12 standards For state standards (ie, the Common Core) with higher education and career prep- states must adopt “challenging” standards. This could be, but doesn’t have to be the aration goals Common Core (and the Department is now prohibited from forcing or encouraging any Allows for innovation in assessment particular set of standards). design Eliminates “highly qualified teacher” and “adequate yearly progress” metrics Prohibits federal approval or incentivization of state standards or plans Prohibits use of additional/new federal requirements as a condition of waiver approval

Here is a much more detailed list of the take-aways from the bill: Accountability

Accountability plans are still going to be required for states to submit to the federal department. However, the expectation that states get all students up to proficiency is gone. Instead states can pick their own goals that must address proficiency on tests, English-language proficiency, graduation rates, and at least one other state Enter the Every Student Succeeds Act of chosen indicator, such as student/educator 2015 (ESSA). The new bill reverses much engagement, college/career readiness, of the NCLB. Sen. Lamar Alexander, Rschool climate/safety, etc. Tenn., one of the lead architects of ESSA

Additionally, accountability for students identified as English-language learners has shifted to a higher priority. Opt-Outs Allows states to create testing opt-out laws It maintains the federal requirement for 95 percent participation in tests. However, unlike under NCLB, in which schools with lower-than-95 percent participation rates were automatically seen as failures, local districts and states would get to decide what should happen in schools that miss targets. Programs There's much consolidation of federal education in the compromise, including block granting of physical education, mathematics and science partnerships, and Advanced Placement. About 50 programs are included in the block grant, some of which, like education technology, haven't

(Continued on page 5)

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seen much funding in years. Some programs will live on as separate line items. There will be additional investment in early childhood but the new program will be housed at the Department of Health and Human Services, not the Education Department. A new research and innovation program described as sort of a next generation "Investing in Innovation" program made it into the bill. Also included will be a wrap-around services program with parts drawn from existing programs Promise Neighborhoods and other community schools program. School Choice Title I portability is removed, meaning that federal funds won't be able to follow the child to the school of their choice. But the bill does include a pilot project allowing districts to try out a weighted student funding formula, which could also


essentially function as a backpack of funds for kids.

(although Iowa was denied a waiver specifically for this reason).

The new program is said to be a more workable alternative to Title I portability, which looked more dramatic on paper, but which few states would likely have taken advantage of because of its complexity.

Funding will continue for the “Teacher and School Leader Innovation Program” which provides grants to districts to try out pay for performance type programs and other teacher-quality improvement measures.

The pilot would allow fifty districts to combine state, local, and federal funds into a single pot that could follow a child to the school of their choice. Participation would be entirely up to district officials and the language would give them a chance to better target funds to individual school needs.

Other Funding Issues

“reduce the federal role in education policymaking” Teachers

No changes to the Title I funding formula along, unlike previous versions of Senate language that would have steered a greater share of the funds to districts with high concentrations of kids in poverty. But there were some changes to the Title II formula (which funds teacher quality) that would be a boon to rural states. For a “cheat sheet” of the details visit here: http://www.edweek.org/ew/section/ multimedia/esea-rewrite-a-pre-conferencecheat-sheet.html or here: http:// edexcellence.net/articles/the-new-esea-ina-single-table

States would no longer be required to do teacher evaluations through student outcomes, as the NCLB waivers required

97 More Districts Approved for the Teacher Leadership System Ninety-seven school districts have been added to the state system, bringing the total number of districts in the teacher leadership system to 295 (88 percent of Iowa districts). The legislation created a four-year process to develop a statewide teacher leadership and compensation system, with the goal of all school districts participating by the 2016 -17 school year. The new system will allow teachers to work in greater collaboration with colleagues and learn from each other instead of operating largely in isolation in their classrooms. The grantees were selected based on the recommendations of the 19-member Commission on Teacher Leadership and Compensation, created in legislation as part of the system. Each year of implementation adds about 1/3 of Iowa’s PK-12 students, meaning next school year about 2/3’s of Iowa’s kids will be benefiting from the program.

Districts that applied to start teacher leadership systems next fall were required to set a vision and goals for what they plan to accomplish. They also had to address “must-haves,” such as setting a minimum teacher salary of $33,500, improved entry into the profession, including mentoring for new teachers, and a rigorous selection process for leadership roles. The next step for school districts is selecting their teacher leaders.

maining 40 school districts will have an opportunity to refine and re-submit their plans for approval in the next two months. Wise said he is hopeful that all of Iowa’s school districts will join the teacher leadership system by the 2016-17 school year.

Districts selected will receive about $312 per pupil next school year to implement their teacher leadership systems. The annual cost statewide is nearly $100 million in fiscal year 2016 (the second year of the program), growing to about $150 million annually by the third year.

A recent report on the first year of Iowa’s teacher leadership system found progress has been made toward each of the system’s five goals, including attracting new teachers, retaining effective teachers, promoting collaboration, rewarding professional growth and effective teaching, and improving student achievement. In addition, students in the first 39 participating school districts saw a jump in proficiency rates on state math and reading tests.

As of this fall, all 336 Iowa school districts had applied to join the teacher leadership system. The 97 newly accepted districts will implement their teacher leadership plans in the 2016-17 school year. The re-

School districts in the teacher leadership system are at varying stages. Some are in their second year, while others are gearing up for participation.

The 97 newly accepted districts are:

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AGWSR Albert City-Truesdale Algona Anamosa Ar-We-Va Ballard Bedford Boyden-Hull Boyer Valley Brooklyn-Guernsey-Malcom Central Lee Central Springs Charles City Cherokee Clarion-Goldfield-Dows Clarksville Clear Lake Colfax-Mingo Coon Rapids-Bayard Corning Denison Easton Valley Eddyville-Blakesburg-Fremont Eldora-New Providence Estherville Lincoln Central Exira-Elk Horn-Kimballton Forest City Fort Madison Garner-Hayfield Gladbrook-Reinbeck Glidden-Ralston Graettinger-Terril Griswold

Grundy Center Harris-Lake Park Hartley-Melvin-Sanborn Howard-Winneshiek IKM-Manning Interstate 35 Jesup Lamoni Laurens-Marathon Logan-Magnolia Louisa-Muscatine LuVerne Lynnville-Sully Madrid Martensdale-St Marys Mediapolis Missouri Valley Montezuma Morning Sun Moulton-Udell Mount Ayr Nashua-Plainfield Newell-Fonda Newton North Butler North Iowa North Tama County North Union North Winneshiek Osage Paton-Churdan PCM Perry

Pocahontas Area Postville Prairie Valley River Valley Riverside Ruthven-Ayrshire Sergeant Bluff-Luton Shenandoah Sibley-Ocheyedan Sidney Sigourney Sioux Center South Central Calhoun South Hamilton South O'Brien South Page South Tama County Southeast Webster Grand Spirit Lake Storm Lake Treynor Tri-Center Twin Cedars Villisca Walnut West Bend-Mallard West Burlington West Fork West Harrison Woodbine Woodward-Granger

New Iowa School Report Card Measures Public School Performance The Iowa Department of Education today released the Iowa School Report Card, a new web-based system to evaluate and rate each public school based on performance on a required set of measures, such as student attendance and graduation rates.

Commendable, Acceptable, Needs Improvement, and Priority. Schools are grouped by comparable grade configurations (elementary, middle and high schools).



The ratings are based on each school’s performance over a two-year span on the The system meets a legislative requirement following educational measures: that was established in 2013’s Education  Reform bill, HF 215 which directed the De-  Proficiency: The percentage of stupartment to develop a process to evaluate dents scoring proficient or better on the performance of each school on certain state reading and mathematics asmeasures and to “arrive at an overall sessments. school performance grade and report card” that is posted to the Department’s website.  College and Career-Ready Growth: The move also aligns with Department efThe percentage of students who are forts to provide Iowans easier access to making the year-to-year growth neces-  meaningful education statistics, to hold sary to be ready for college and career schools accountable for student progress, training by the end of high school. and to support local efforts to improve schools.  Annual Expected Growth: The percentage of students making a year of aca-  The Iowa School Report Card, which is demic growth in a year’s time on state available at www.educateiowa.gov/ reading and mathematics assessschoolreportcard, assigns schools one of ments. six ratings: Exceptional, High-Performing,

Closing Achievement Gap: A measure that reflects a statewide goal of narrowing the gap in achievement for students with disabilities, students who are eligible for free and reduced-price meals, and English Language Learners. College and Career Readiness: The percentage of students who score at or above a level of performance on reading and mathematics assessments that predicts a higher probability of postsecondary success. (Middle/high schools only.) Graduation Rate: The percentage of ninth-grade students who finished high school within five years. (High schools only.) Attendance: The average daily attendance of students, which is the total number of days students were enrolled (Continued on page 7)


and present divided by the total number of possible attendance days. 

Staff Retention: The percentage of teachers, school administrators and other licensed staff members who remained employed in a school over consecutive school years.

Iowa School Report Card scores and ratings are based on data reported by school districts for the 2013-14 and 2014-15


school years. The scores and ratings, which will be updated annually, apply only to public schools – districts do not receive ratings. No consequences or rewards are tied to the school ratings.

grade and report card” that is posted to the Department’s website. In its development phase, the Iowa School Report Card was known as the “Attendance Center Rankings” system.

The Iowa School Report Card delivers on a component of the comprehensive education reform legislation adopted by Iowa lawmakers in 2013. The legislation, House File 215, directed the Department to develop a process to evaluate the performance of each school on certain measures and to “arrive at an overall school performance

The Department sought extensive input from education stakeholders representing teachers, school administrators and others throughout the development of the Iowa School Report Card. Improvements to the site’s methodology and functionality will continue over time.

Environmental Protection

(Contact Lew Olson at 1-3096)

DNR Reminds Livestock Producers of Winter Manure Application Rules On Thursday, December 10, 2015, the Iowa Department of Natural resources (DNR) issued an electronic press release in which the state agency reminded animal producers with confinement (totally roofed) facilities that there are restrictions to applying liquid manure on snow-covered ground that starts on December 21st. The statewide rules kick in then, because runoff and nutrient loss is more likely when manure can’t be injected into the soil or incorporated into a field. Starting December 21st, confinement facilities with 500 or more animal units cannot apply liquid manure on ground covered with an inch or more of snow or one-half inch of ice. Generally, 500 animal units is equal to 1,250 finishing hogs; 5,000 nursery pigs; 500 steers, immature dairy cows or other cattle; or 357 mature dairy cows. Except in emergencies, state law precludes liquid manure application from December 21 to April 1 of each winter year on snow-covered ground unless manure can be properly injected or incorporated. Producers must call the local DNR field office to report emergency applications before they apply. Starting February 1 liquid manure application on frozen ground is restricted. While

the law affects confinements with liquid manure, open feedlots and poultry producers can help keep manure in place by using common sense and choosing application areas far from a stream, on flat land with little snow cover. All producers must follow setbacks from certain buildings and environmentally sensitive areas. More information on separation distances and manure application can be found and accessed at www.iowadnr.gov/afo/. Look for recommendations from the Iowa Manure Management Action Group on applying manure in winter at www.agronext.iastate.edu/immag/pubs/ imms/vol3.pdf. In a somewhat related matter, on the same day and in another press release the DNR also reminded the public and county Boards of Supervisors that counties interested in evaluating proposed animal feeding facilities through the Master Matrix process must adopt and submit a construction evaluation resolution to the DNR between January 1 and 31, 2016. Typically, about 87 counties pass a resolution each year, which allows them to review construction permit applications required for larger totally roofed animal feeding operations (confinements).

The Master Matrix development, submittal and approval process allows applicants and county supervisors to discuss options for site selection, facility type and management. Producers in counties that file the resolutions must meet higher standards than permitted sites in other counties. They must earn points on a master matrix by choosing a site and using practices that reduce effects on the environment and the community. Counties that participate in the master matrix process may accompany the DNR on site visits to proposed locations. The county board of supervisors may also appeal the DNR’s preliminary approval of a permit to the Environmental Protection Commission. County boards of supervisors may approve the resolutions at any time, but must mail resolutions between January 1 and 31, 2016. Sign-ups in January apply to permit applications received in the following February through January of 2017. For historical information on counties that adopted resolutions, check the DNR website at www.iowadnr.gov/afo and search for master matrix. Additional information is available from the Iowa State Association of Counties at www.iowacounties.org/.

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Human Resources

(Contact Carrie Malone at 5-2063)

Iowa Improves Two Spots in America’s Health Rankings The state of Iowa has improved to the num- tes is now 10% of the population. Twenty ber 22 spot in a study of the healthiest years ago, diabetes was only 4.4% of the states. Last year, Iowa was number 24. adult population. Hawaii is the healthies state, followed by Vermont, Massachusetts, Minnesota, and New Hampshire. Louisiana is the un“Iowa also has one of the healthiest state, according to the 2015 edihighest percentages of people tion of America’s Health Rankins issued by the UnitedHealth Foundation. who have health insurance.” Nationally, the report found that smoking has decreased from 19 to 18.1% of adults. Fewer people died of cancer, and air pollution continues to decrease. However, obesity is up 7% in the last two years. Diabe-

than two vegetables per day. The good news: Iowa ranked best in the nation for students who graduated within four years of starting ninth grade. Iowa also has one of the highest percentages of people who have health insurance. The annual report can be found here.

The bad news: Iowa was one of the worstranked states in the nation for excessive drinking. Iowans also reported eating less

Judiciary

(Contact Amanda Wille at 1-5230)

Supreme Court Rules on Length of Traffic Stops How long can a peace officer hold a vehicle during a simple traffic stop? That is one of the issues addressed by the Iowa Supreme Court in the Matter of Property Seized from Robert Pardee . In a 5-2 decision the Justices determined that a simple traffic stop can violate the 4th Amendment if it takes longer than would be reasonably necessary to write the ticket. In June of 2012, State Patrol Officer Eric Vander Weil was patrolling I-80 in a criminal interdiction effort focused on out of state license plates. Officer Vander Weil saw a car with California license plates and eventually pulled the vehicle over for a nonworking taillight. There were two occupants in the vehicle and Officer Vander Weil observed several things that made him suspicious, including a vehicle that appeared to be lived in, and a strong sent of air freshener. These items lead him to wonder if they men were traveling without making unnecessary stops, and if the air freshener was being used to hide the smell of drugs. Officer Vander Weil questioned the driver,

John Saccento and the passenger Robert Pardee, separately and noticed both men appeared nervous. The Officer planned to write a warning for the taillight but he decided to ask the men if he could search the vehicle, they refused. Officer Vander Weil then called a drug dog and the dog indicated there were drugs in the vehicle. Upon a search, trace amounts of marijuana were found, along with over $33,000 in a case. Both men were arrested and charged with possession of marijuana and the state filed a forfeiture notice for the money. Pardee, the passenger, was acquitted of the marijuana charges and he filed a motion to get the $33,000 returned to him, claiming it was his money and it was illegally seized. Instead of focusing on just civil asset forfeiture, Pardee made several claims, including that the traffic stop took longer than necessary to write the warnings, and therefore was unconstitutional. In the majority decision, the Justices relied on a recent United States Supreme Court Case, Rodriguez, to determine if the length

of the stop was a violation of the 4th Amendment to the Constitution. In his majority opinion, Justice Mansfield wrote that even though the stop may have been valid, the amount of time the stop took was not. A traffic stop becomes unconstitutional when it is prolonged beyond the reasonable time to complete the mission of issuing a warning or a ticket. In this case, Officer Vander Weil, had detained the two men for 25 minutes, much longer than it would have taken to write a simple warning. Because of the additional detention, the Officer was able to call the dog who then found the drugs. The Supreme Court remanded the case for further proceedings. While it is unclear the impact this ruling will have, Officers are aware it may change how they conduct traffic stops. An officer who keeps a vehicle stopped longer than necessary could face a Court challenge in the future.

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Labor

(Contact Mackenzie Nading at 1-3440)

National Unemployment Rate Down .8 Percent from November 2014 On December 4th, the Federal Department of Labor released its latest national jobs report, showing the unemployment rate remained unchanged at 5% from October to November of this year. However, compared to the November 2014 rate of 5.8%, the unemployment rate has fallen .8% in one year, an overall good sign for the nation’s work force. According to the Bureau of Labor Statistics report, approximately 211,000 jobs were created in November, which is slightly below the three month average of 218,000.

Areas of employment seeing the greatest percentage of job growth last month include construction, professional and technical services, health care, leisure, hospitality, and retail trade.

“ranking our state as having the 6th lowest unemployment rate in the country”

Natural Resources

The Iowa Workforce Development reported last month that Iowa’s unemployment rate dropped to 3.5% in October, ranking our state as having the 6th lowest unemployment rate in the country. This low percentage positively contributes to the national unemployment rate of 5%, the lowest the country has seen since April of 2008.

(Contact Carrie Malone at 5-2063)

DNR Proposes Alcohol Ban at State Park Beaches In a press release issued December 15. The Iowa DNR is seeking public comment on a proposed rule that would ban alcohol year-round on all beaches in state parks and state recreation areas.

The ban would apply to the sand or fenced area of the beach. It would also apply to the adjacent swimming area and a 200 foot land buffer surrounding the sand or fenced area.

“ban alcohol year-round on all beaches”

The ban is being considered because of a continued pattern of excessive alcohol consumption at multiple state beaches. The DNR says this pattern of alcohol consumption threatens the safety of the public.

State Government

Comments can be directed to Jessica Manken at 515-725-8488 or at [email protected]. You can submit comments until Monday, December 21, 2015.

(Contact Monica Young at 1-3626)

New Employment Management System At all levels, citizens criticize government for being inefficient. Thus, legislators and government officials are constantly looking for ways to reduce costs and maximize productivity. Despite best efforts, every fiscal year new reforms, cuts, and/or technologies are introduced as a means to a never-ending end.

finitively correct manner.

hired, retained and developed; (3) Knowledge Processes: Creating, acquiring, As Iowa continues to facing budgeting chal- sharing and applying relevant knowledge, lenges, it could be beneficial to look to pri- and measuring and tracking profitability; (4) vate business models of employee manDecision Rights: Ensuring the right people agement in order to create a constant vari- are in the right roles with the right authority able in the equation that solves governto make decisions and holding them acment inefficiency. countable; (5) Incentives: Rewarding people according to the value they create for Koch Industries, which is one of America’s the organization.” In Iowa specifically, legislators have dislargest private companies and has an ancussed (and in some cases implemented) nual revenue of 115 billion, has a unique new technologies, human resources conBy using the 5 dimensions, Koch Industries employee management model that allows solidation, reduction of state owned vehihas created a workplace culture “where the company to be as efficient as possible. employees are empowered to act entreprecles, cutbacks on overhead, and telework options to help solve issues of government This management model is called Market neurially”, are incentivized to preform, and Based Management (MBM). MBM relies on where “long-term value is created for evewastefulness. While these ideas are great places for the legislature to start, there may 5 dimensions: “(1) Vision: Determining ryone”. In plain language, employees are be a more permanent element in the equa- where and how the organization can create placed into positions that fit their skill sets the greatest long-term value; (2) Virtue and and then are trained and provided the reqtion of solving government inefficiency. After all, (x + y = government efficiency) is Talents: Helping ensure that people with uisite knowledge to preform the job. After an impossible equation to solve in any de- the right values, skills and capabilities are (Continued on page 10)


that employees provided some decisionmaking power and are rewarded for the value that they create. Organizations using the MBM model encourage employees to earn bonuses by hitting certain quotas, performing exceptionally, saving the organization money, or by creating some sort of value. Additional-


ly, employees are encouraged to respectfully question the decisions of superiors to create the best possible outcomes.

With an employee management system based on value equation, the equation While MBM is surely not the only the only goes from (x + y = government efficiency) effective employee management system, a to (efficient employee management syssystem encouraging value creation tem + y = government efficiency). Unthrough employee action effectuates posi- doubtedly (y) becomes much easier to tive change and could promote governsolve. ment efficiency.

Transportation

Contact Monica Young at 1-3626)

The Smart City: A Brilliant Idea or a Potential Blunder? Going into the 2016 Legislative Session, several questions are likely to arise in regards to transportation and how much money the Iowa Department of Transportation will need in FY2017 to effectively manage road infrastructure. Members of the legislature may want to keep in mind that some of the issues (both monetary and legislative) presented to the Transportation Committee could become obsolete in the next decade or two if Iowa chooses to engage in the Smart City Initiative. Regardless of whether or not Iowa chooses to build Smart Cities or reject them, it is worthwhile to understand the dynamics of Smart Cities, that implementation of Smart City initiatives might come slowly and in small pieces, and that there are legal and privacy concerns associated with Smart City data collection. Dynamics of Smart Cities In September of 2015 the Obama Administration announced a Smart City Initiative that provides federal funding in support of research “to help local communities tackle key challenges such as reducing traffic congestion, fighting crime, fostering economic growth, […] and improving the delivery of city services.” As part of this initiative, the Department of Transportation issued a Smart City Challenge, where the DOT shall award “[f]unding of up to $40 million […] to one mid-sized city that puts forward bold, data-driven ideas to improve lives by making transportation safer, easier, and more reliable.” The Obama Administration, some federal agencies, along with some experts believe that Smart Cities will be necessary to sustain urbanization. The Beyond Traffic Study produced by the DOT concluded that midsized cities “will experience rapid population increases and rapidly growing de-

mands on their transportation infrastructure in the next few decades.” Another study from Green Capacity indicates that by “2025, the 600 biggest cities in the world are projected to account for 60% of global GDP.” If these studies hold true, bigger cities will require a better transportation infrastructure to allow for easier travel and shorter commute times. Could a Smart City transportation infrastructure be the answer? Or would this Smart City infrastructure be too costly and cause too many le-

“every movement an individual makes can be tracked” gal issues? The DOT surmises that a Smart City shall differ from a traditional city in three areas. First, a Smart City shall utilize “intelligent infrastructure,” where the “city’s world of data with its physical reality, creating data based on the real world and following databased commands to act on the real world as well”. More simply put, and at the risk of over simplification, an “intelligent infrastructure” will permit machine-to-machine communication. Second, a Smart City will connect citizens more. For example, the Smart City shall “crowdsourc[e] to gather data and solve problems.” Lastly, a Smart City requires a Smart Grid, which is a “programmable and efficient electricity transmission and distribution system that responds to dynamic electricity demands.” Legal and Privacy Concerns for Smart Cities While some believe that Smart Cities are the future and will contribute to a smooth transportation infrastructure, others are

concerned with the legal and privacy implications of Smart City data collection. “In a fully “smart” city, every movement an individual makes can be tracked. The data will reveal where she works, how she commutes, her shopping habits, places she visits and her proximity to other people.” The data will also “be centralized and easy to access.” Due to the potentially unfettered ability of the government to track personal data through ‘smart’ monitoring, there is the potential for a slew of lawsuits over the use/gathering of such information; invasion of privacy, misuse of personal data, 4th Amendment improper Search and Seizure Concerns, and 1st Amendment violations and chilling effect concerns. In addition, there is a possibility of disparate impact/discrimination claims if a government that adopts the Smart City Initiative eventually creates laws requiring all citizens to have updated technologies that conform to the Smart City. With these legal questions already being considered in some states and some citizens being vehemently opposed to “smart” initiatives, it is evident that a Smart City could cost the government thousands of dollars if plaintiffs were to prevail in such suits. Thus, it is conceivable, to some, that legal and privacy concerns will outweigh the perceived benefits of a Smart City and the “smart” transportation infrastructure that would presumptively come with it. Smart City Implementation in Iowa Smart City initiatives have already begun in Iowa. For example, Dubuque implemented Smarter Sustainable Dubuque in 2006. According to the city, the purpose of this initiative is to “[…] integrate community engagement and education, more energyefficient ways of operating municipal services and buildings, decreased carbon (Continued on page 11)



Because Smart Cities are a controversial topic, which could bring about legislative/ funding issues sooner rather than later, it might worthwhile to ponder:

emissions, new job creation, increased financial savings, resource conservation and a higher quality of life for the entire community.” The Iowa Association of Mu nicipal Utilities also recently engaged in a project that implemented new “smart” utility measures to allow for “better manage,  measure, and verify targeted demand reductions during peak periods and reduce overall operating costs” of utilities. These initiatives are representative of an effort, by some, to build Smart Cities. If Smart Cities continue to grow in number and capabilities, it is conceivable that “smart” infrastruc-  tures, with “smart” transportation systems where “smart” cars communicate to “smart” traffic signals, will become increasingly



Do the benefits outweigh actually the cons to such a system?



How can technology in the original Smart City transportation system be implemented to ensure that updates to technology are cost effective?



How would the Smart City operate as to preemptively deter lawsuits?



If we do not think Smart Cities and their transportation systems are good idea, how will Iowa handle its transportation infrastructure to keep it modern, accessible, and durable?

Are Smart Cities inevitable? Or will the cons prevent the rise of Smart Cities? If we believe Smart Cities are inevitable, should a study be put in place to determine what resources and funding would be needed to achieve a “smart” transportation infrastructure and what that infrastructure would look like? Is there a “smartest” way to do “smart” infrastructure so that the transportation system is uniform across the state?

prevalent.

Veterans Affairs

(Contact Kristi Kious at 2-5290)

Army National Guard Reduction by More than 15,000 by September 2017 The Army National Guard is currently undergoing restructuring because of the changes in our country’s defense needs and strategies. Because of these changes, the Iowa National Guard has announced force structure changes directly affecting four Iowa communities.

The approximately 80 Soldiers in Co. A, 224th Engineer Battalion will be assigned to either the Headquarters, 1034th Composite Supply Company, a new unit of approximately 95 Soldiers to be based in Fairfield, or Company E, 334th Brigade Support Battalion based in Cedar Rapids, which currently consists of approximately 100 Soldiers.

from Detachment 1, Company A, 1st Battalion, 133rd Infantry, currently at the Clinton armory, will transfer to the Dubuque Readiness Center. A newly-formed specialized logistics detachment, the 1034th Composite Supply Company (55 Soldiers), will be stationed at the Clinton armory. A second specialized logistics detachment of the The Brigade Special Troops Battalion of 1034th CSC (approximately 55 Soldiers), the 2nd Infantry Brigade Combat Team, will also be stationed at the Dubuque ar34th Infantry Division (“2/34 BSTB”) will Only the HHC of the 224th Engineer Battal- mory. transition to the 224th Brigade Engineer ion will physically move from Fairfield to the Battalion (BEB) and remain headquartered Cedar Rapids Armed Forces Readiness According to current plans, the Army Nain Cedar Rapids. The 224th BEB will be a Center in late 2016. These changes will tional Guard's present end strength of subordinate battalion of the 2nd Infantry have no impact on either the 34th Army 350,200 is scheduled to drop to 342,000 by Brigade Combat Team, 34th Infantry DiviBand or the Fairfield Field Maintenance September 2016 and to 335,000 Soldiers sion. This change will affect the Headquar- Shop. Both of those organizations will reby September 2017. ters and Headquarters Company (HHC) main in Fairfield in their entirety. The imand Company A (Forward Support Compa- pact on the Fairfield armory will be a temny), 224th Engineer Battalion, both current- porary reduction of approximately 60 partly located in Fairfield, Iowa. time Soldiers. Every Soldier transitioning from the Fairfield armory, both full-time The force structure for both the HHC and and part-time personnel, will have the Co. A, 224th Engineer Battalion will transoption to either remain at Fairfield, transfer to the Nebraska Army National Guard. fer to Cedar Rapids, or transfer to another The approximately 80 Soldiers currently Iowa Army National Guard unit. serving in the HHC, 224th Engineer Battalion will transition to the HHC, 224th BEB in In addition to the changes in Fairfield and Cedar Rapids. Cedar Rapids, approximately 45 Soldiers

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