House Journal: Page 2266: Wednesday, June 4, 2003
June 19, 2003
The Honorable Chester Culver
Secretary of State
State Capitol
L O C A L
Dear Mr. Secretary:
I hereby transmit House File 692, an Act concerning regulatory, taxation, and
statutory requirements affecting individuals and business relating to taxation of
property, income and utilities, liability reform, workers' compensation, financial
services, unemployment compensation, employer surcharges, economic development,
and including effective date, applicability, and retroactive applicability provisions.
House File 692 is approved on this date with the following exceptions, which I
hereby disapprove:
I am unable to approve the items designated as Division II, III, and IV that consists
of Sections 44 through 72, in their entirety. These sections would provide for a
reduction in personal income taxes. I have repeatedly called on legislative leaders to
reform and simplify the Iowa personal income tax code in a manner that would be
revenue neutral. I laid out very clear parameters. I specifically told the Legislature I
would not sign any personal income tax reduction that jeopardizes our ability to
educate our children, provide health care to our senior citizens and families, protect our
natural resources, and maintain the public safety.
Instead of reforming our tax system, which is still needed, the Legislature's plan
would ultimately cost an estimated $310 million with no reliable and fair source of
state revenue to replace the lost dollars at a time when all sectors of our state, like
other states, are adversely affected by the national economic downturn. This would
jeopardize the delivery of state services and would severely hinder budget planning in
the future. It does not even provide any meaningful tax relief to lower-income Iowans
who would receive refunds of between only 3 cents and 50 cents per week under this
plan. The cuts in personal income taxes are really nothing more than cuts in services
to all Iowans.
I am unable to approve the item designated as Section 99 in its entirety. This
section which directs the creation of two technology transfer advisors in the office of the
governor. The governor's office performs many functions in a variety of different areas.
The present staff is assigned to duties and receives administrative support in a manner
that assures the efficient functioning of this office. Section 99 would disrupt the
administration of this office and affect the delivery of services to the state.
Furthermore, I believe the office of the governor should be able to control the
administration of its funds and decide how best to staff its office. Section 99 would
diminish this control by imposing on the governor's staffing and administrative
decisions.
I am unable to approve the item designated as Section 108, which requires the
Department of Economic Development to collect data about companies that considered
locating in Iowa but decided to locate elsewhere, in its entirety. Requiring collection of
such data would impose an additional burden on the Department of Economic
© 2003 Cornell College and
League of Women Voters of Iowa
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Last update: Tue Aug 12 09:30:00 CDT 2003
URL: /DOCS/GA/80GA/Session.1/HJournal/02200/02266.html
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