house republican caucus newsletter · 12/13/2018 · more options in addition to aca-compliant...

House Republican Caucus

Newsletter

December 13, 2018

State revenue collections in November con-tinued to come in higher than projected alt-hough at a slower pace than the previous two months, according to the non-partisan Legislative Services Agency. For the month, state revenue rose 1.9 percent over what was received in November 2017. Through the first five months of fiscal year 2019, state tax collections are 76.5 percent higher than what was experienced in the same period last year. This figure is ahead of the latest projection by the Revenue Estimating Con-ference, which in October said state revenue growth for the fiscal year would be 4.9 per-cent.

Personal income tax receipts rose again when compared to last year. For November, collections were 12.4 percent higher – an increase of $38.6 million when compared to November 2017. As was the case in the past several months, the state experienced growth in all three categories of personal income tax (withholding payments, estimate payments, and payments with returns). For the fiscal year, personal income tax collec-tions are up 8.5 percent. This is significantly

higher than the current REC forecast of 3.8 percent growth. One factor to keep in mind is that state income tax withholding tables will change on January 1, 2019. This step is likely to bring personal income tax growth back closer to the REC estimate.

Sales and Use Tax collections fell in Novem-ber, with revenue coming in 5.4 percent low-er than what was received in November 2017. For the first five months of the fiscal year, sales tax collections are up just 1.8 percent. This is below the current REC fore-cast of 6.6 percent growth. With the collec-tion of sales tax on goods sold on the inter-net starting on January 1, sales tax collec-tions are expected to move upwards.

After corporate income tax receipts fell slightly in October, collections in November rebounded with an increase of $3.7 million over last year’s figures. Corporate tax re-ceipts for the fiscal year remain very strong. Through five months, corporate tax collec-tions are up 20.6 percent over Fiscal Year 2018. The REC forecast is for 8.6 percent growth.

Appropriations (contact: Brad Trow at 1-3471) Inside this issue:

Appropriations 1

Agriculture 2

Commerce 3

Education 4

Environmental Protection 5

Human Resources 6

Labor 7

Natural Resources 8

Public Safety 8

State Government 8

Transportation 9

Veterans Affairs 9

Ways & Means 10

State Revenue Collections Continue Ahead of Place in Novem-

ber

Agriculture (Contact Lew Olson at 1-3096)

House Republican Newsletter Page 2

On Friday, December 7, 2018, the United States Department of Agriculture (USDA) issued a press release in which the federal agency announced that it is improving the process by which it makes wetland determinations, updating guidance to improve con-sistency and timeliness as well as to responding to feedback from farmers and other stakeholders. The updates do not change the definition of a wetland for USDA program participation purposes, but rather provide greater clarity and uniformity in how NRCS makes determinations nationwide. USDA’s Natural Resources Conservation Service (NRCS) is posting this updated guidance in the Federal Register as an interim final rule. NRCS is accepting comments on this rule through February 5, 2019.

Wetland determinations are part of conservation compliance out-lined in the Farm Bill. To be eligible for USDA programs and fed-eral crop insurance, producers must be compliant. Updates to the conservation compliance provisions include:

Identifying that determinations will rely on precipitation data from 1971-2000. Though data and average rainfall have varied over time, using this specific dataset makes determinations more predictable.

Clarifying the certification status of previously completed wet-land determinations, including those completed 1990-1996.

Adding definitions for playas, potholes and pocosins. These terms are found in current policy, but they are added to the regula-tion for transparency.

Clarifying that determinations do not have to cover the entire farm tract, but only the area of the farm on which a producer is planning to make changes.

Establishing that NRCS can now assess offsite, impacts on neighboring wetlands when producers request minimal effects exemptions. For those neighboring wetlands, NRCS can now do the evaluations off-site using aerial photography and other re-sources.

Incorporating criteria to better reflect on-field observations of hy-drology, rather than basing determinations strictly on a set number of days.

These updates were based on responses to comments received as part of the 2015 regulatory review process. Comments includ-ed requesting improved timeliness and customer service in admin-istering the wetland conservation provisions and ensuring these provisions are consistent with the statute.

DNR Reminds Counties About Master Matrix Deadline

On Thursday, November 29, 2018, the Iowa Department of Natural Resources (DNR) issued a press release in which it reminded Io-wa counties that have an interest in using the Master Matrix to evaluate construction permit applications for confinement (totally roofed) animal feeding operations for 2018 that County supervisors must pass and submit a construction evaluation resolution each year. These resolutions may be submitted to DNR between Janu-ary 1

st and 31

st for the Master Matrix year that starts in February

2019. Find more information from DNR or the Iowa State Associa-tion of Counties.

On the same day, but in another press release but on a related matter, DNR also noted that the electronic Manure Management Plan -- eMMPs -- is no longer new, but it is a success. Since it rolled out in late March, nearly 45 percent of producers are using the online system to submit their annual MMP updates (MMP Short Form for Annual Updates DNR form 542-8162). What once took hours – preparing the form, driving to counties for signatures, then submitting it to

USDA Updates Wetland Determination Guidance

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Commerce (Contact Ben Gentz at 1-3452)

The open enrollment season closes on December 15, 2018, and Iowans are encouraged to thoroughly research all coverage op-tions. The ACA-compliant insurance market is available to Iowans, however, most Iowans have been priced out of that market if they are not currently receiving federal subsidies to help pay premiums and, in some instances, deductibles.

Consumers should meet with a licensed insurance agent to deter-mine the best plan for themselves and their families. Changes by the Iowa legislature and by the federal government have provided more options in addition to ACA-compliant coverage. All available options should be reviewed as you plan out their health needs for 2019.

Iowans that wish to purchase ACA-compliant coverage need to complete enrollment between November 1 and December 15, 2018 to have coverage effective by January 1, 2019. During open enrollment, Iowans may call 1-800-318-2596 or visit healthcare.gov for information regarding enrollment and to calcu-late applicable tax credits. Healthcare.gov is the only official gov-ernment website selling health insurance, and buyers should be-ware of imitation websites.

Local insurance agents, assisters, and certified application coun-selors around the state are available to help Iowans review which insurance plan may best fit their needs. Iowans can find local help by visiting https://localhelp.HealthCare.gov/.

Most Iowans access healthcare in one of three ways:

• Employer-Sponsored: It is estimated that 1.6 million Iowans par-ticipate in employer-based health insurance plans. This includes employees of large and small private companies, federal, state and local government employees and active military. Consumers in a small business should talk to a licensed insurance agent to discuss all available coverage options. • Public Programs: Roughly 1.2 million Iowans receive healthcare benefits through Medicare and Medicaid. • Individually-Purchased: In 2018, approximately 107,000 Iowans purchased health insurance on their own. About 39,000 Iowans remain in the individual ACA-compliant market. An additional 68,000 continued coverage in a grandfathered or transitional poli-cy.

Under each category, there are important developments and infor-mation consumers should keep in mind as open enrollment be-gins:

Individually-Purchased Health Insurance or Health Plans

• The 2019 ACA-compliant open enrollment period is Nov. 1 through Dec. 15, 2018. Coverage begins Jan. 1, 2019. ACA plans

are available at healthcare.gov.

• Medica and Wellmark will be offering ACA-compliant individual health insurance plans to Iowans statewide for plan year 2019. • If you currently have coverage through the exchange and do not choose a plan for 2019 by the end of open enrollment, you will be re-enrolled into the same plan offered by Medica. • Changes in federal and state regulation are opening options for Iowans to find health coverage through a Multiple Employer Wel-fare Arrangement (MEWA), an Association Health Plan (AHP), or a health benefit plan sponsored by a non-profit agricultural organi-zation.

Employer-Sponsored Health Insurance

• If you’re already covered by an employer-sponsored plan, pay close attention to your enrollment options this year. Premiums and coverage limits may have changed. • If you are changing jobs, you may be subject to a probationary period, up to 90 days, during which you are not eligible for group coverage. • If you lost coverage from a previous employer, you typically have 60 days to enroll in private individual insurance through healthcare.gov under a Special Enrollment Period. If you have recently lost a job and access to employer-based insurance, you and your dependents may be eligible for continuation coverage under COBRA. • Consumers in a small business should talk to a licensed insur-ance agent to discuss all available coverage options.

Public Healthcare Programs

• Medicare is a federally funded program available to most U.S. citizens and permanent legal residents age 65 or older who have lived continuously in the country for at least five years. People younger than 65 also may be eligible for Medicare if they are disa-bled, suffer from kidney failure or ALS (Lou Gehrig's disease). If you have questions about enrolling in Medicare, you can contact Iowa’s Senior Health Insurance Information Program at http://shiip.iowa.gov or call 1-800-351-4664. • Medicare open enrollment for Medicare Advantage and Medicare Prescription Drug coverage (Part D) takes place from Oct. 15 through Dec. 7, 2018. If you miss the deadline and didn’t experi-ence a qualifying event, you can apply during general enrollment (Jan. 1 through March 31 of each year), though you will have to pay a premium penalty. • Medicaid is jointly funded by federal and state governments. Eli-gibility is means-based with state-based income requirements. To see if you and your family are eligible for Medicaid, please visit the Iowa Department of Human Services at dhsservices.iowa.gov or call 1-855-889-7985.

Open Enrollment Season Closes Soon

https://localhelp.healthcare.gov/http://shiip.iowa.govhttp://shiip.iowa.gov


Education Contact Jason Chapman at 1-3015)

The Governor announced on Tuesday the names of all 16 mem-bers of her first Governor’s Teachers Cabinet, which is being con-vened to give teachers a more prominent voice in education policy decisions. In August, she announced the names of the first seven members and sought additional nominations from the public by Oct. 15. Iowans submitted the names of 46 candidates for consid-eration.

Cabinet members will meet quarterly with the Governor, Lt. Gov-ernor, and Iowa Department of Education Director to offer their advice about how to better prepare all students for the knowledge

economy, elevate the teaching profession and strengthen the di-rect line of communication between the governor’s office, schools and communities. The first meeting will be January 4 in Des Moines.

The 16 members of the Governor’s Teachers Cabinet represent a mix of content expertise, grade levels, and rural and urban com-munities.

View the full list of members in the press release here: https://governor.iowa.gov/2018/12/gov-reynolds-names-16-members-to-first-governor’s-teachers-cabinet

Change to School Lunch Nutrition Standards

The First Governor’s Teachers Cabinet Membership Announced

The federal government announced this week revised regulations regarding the standards for school lunches. The changes were made to regulations implemented in 2012, a move made by the former first lady, Michelle Obama. Those changes were:

Flavored milk (ie, chocolate milk) can only be offered as fat-

free milk

All grains offered must be whole grain-rich

Gradually reduce sodium in meals over a 10 year period in 3

phases

But complaints from some schools and students caused the cur-rent administration to revisit these regulations. The challenges identified by include decreased student participation and/or meal consumption, difficulties preparing whole grain-rich food items, and limited ability to offer appealing meals with lower sodium content.

The new regulations are meant to help provide additional flexibility for schools, allow individual school food authorities to include grains that are not whole grain-rich. While whole-grain bread and buns generally aren't a problem, it was noted that other items are difficult to accommodate, in many cases because of cultural or regional preferences. Finding whole-grain biscuits and grits that students like are a challenge in the U.S. South while tortillas are a challenge in the Southwest.

The new changes allow:

Flavored milk (ie, chocolate milk) to be provided in low-fat

variety (1%)

Grains can be not whole grain-rich

Sodium reduction will remain but at a lower level – phase 1

will stay, phase 2 will be pushed back, and phase 3 is being

eliminated.

The changes prompted a host of negative feedback. During the 60-day comment period (November 30, 2017—January 29, 2018) for the rule change, the USDA received a total of 86,247 comments, the overwhelming majority of which were opposed.

But the administration stresses the flexibility here. Schools can still provide nutritious meals but make changes that fit the school and their students best. The new changes will take effect by July 2019.

View the USDA press release:

https://www.usda.gov/media/press-releases/2018/12/06/responding-needs-local-schools-usda-publishes-school-meals-final

View the proposed rule:

https://www.scribd.com/document/395173621/CNFlextoOFR-1

https://governor.iowa.gov/2018/12/gov-reynolds-names-16-members-to-first-governor's-teachers-cabinethttps://governor.iowa.gov/2018/12/gov-reynolds-names-16-members-to-first-governor's-teachers-cabinethttps://governor.iowa.gov/2018/12/gov-reynolds-names-16-members-to-first-governor's-teachers-cabinethttps://www.usda.gov/media/press-releases/2018/12/06/responding-needs-local-schools-usda-publishes-school-meals-finalhttps://www.usda.gov/media/press-releases/2018/12/06/responding-needs-local-schools-usda-publishes-school-meals-finalhttps://www.usda.gov/media/press-releases/2018/12/06/responding-needs-local-schools-usda-publishes-school-meals-finalhttps://www.scribd.com/document/395173621/CNFlextoOFR-1

EPA and Army Propose New “Waters of the United States” Definition


On Tuesday, December 11, 2018, the United States Environmen-tal Protection Agency (EPA) and the Department of the Army (Army) issued a joint press release in which the federal agencies announced that they are proposing a clear, understandable, and implementable definition of “waters of the United States” that clari-fies federal authority under the Clean Water Act. Unlike the Obama administration's 2015 definition of “waters of the United States,” today’s proposal contains a straightforward definition that would result in significant cost savings, protect the nation’s naviga-ble waters, help sustain economic growth, and reduce barriers to business development. EPA Acting Administrator Andrew com-mented--“Our proposal would replace the Obama EPA’s 2015 defi-nition with one that respects the limits of the Clean Water Act and provides states and landowners the certainty they need to manage their natural resources and grow local economies. For the first time, we are clearly defining the difference between federally pro-tected waterways and state protected waterways. Our simpler and clearer definition would help landowners understand whether a project on their property will require a federal permit or not, without spending thousands of dollars on engineering and legal profes-sionals.”

The EPA and Department of Army (United States Corps of Engi-neers) proposal is the second step in a two-step process to review and revise the definition of “waters of the United States” consistent with President Trump's February 2017 Executive Order entitled “Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the ‘Waters of the United States’ Rule.” The Executive Order states that it is in the national interest to ensure that the nation's navigable waters are kept free from pollution, while at the same time promoting economic growth, minimizing regulatory un-certainty, and showing due regard for the roles of Congress and the states under the Constitution. Details on the proposal are summarized in a 5-page fact sheet.

The federal agencies’ proposed rule would provide clarity, predict-ability and consistency so that the regulated community can easily understand where the Clean Water Act applies—and where it does not. Under the agencies’ proposal, traditional navigable waters, tributaries to those waters, certain ditches, certain lakes and ponds, impoundments of jurisdictional waters, and wetlands adja-cent to jurisdictional waters would be federally regulated. It also details what are not “waters of the United States,” such as features that only contain water during or in response to rainfall (e.g., ephemeral features); groundwater; many ditches, including most roadside or farm ditches; prior converted cropland; stormwater control features; and waste treatment systems.

The agencies believe this proposed definition appropriately identi-fies waters that should be subject to regulation under the Clean Water Act while respecting the role of states and tribes in manag-ing their own land and water resources. States and many tribes have existing regulations that apply to waters within their borders, whether or not they are considered “waters of the United States.” The agencies’ proposal gives states and tribes more flexibility in determining how best to manage their land and water resources while protecting the nation’s navigable waters as intended by Con-gress when it enacted the Clean Water Act. Robust, publicly ac-cessible data is also a key component of common-sense, cost-effective environmental protection. In response to requests from some states, EPA and the Army are exploring ways the agencies can work with our federal, state, and tribal partners to develop a data or mapping system that could provide a clearer understanding of the presence or absence of jurisdictional waters.

The agencies invited written pre-proposal recommendations and received more than 6,000 recommendations that the agencies have considered in developing this proposal. The agencies lis-

tened to those directly affected by the regulations, and this pro-posal balances the input the agencies received from a wide range of stakeholders. The agencies will take comment on the proposal for 60 days after publication in the Federal Register. EPA and the Army will also hold an informational webcast on January 10, 2019, and will host a listening session on the proposed rule in Kansas City, KS, on January 23, 2019. More information including a pre-publication version of the Federal Register notice, the supporting analyses and fact sheets are available at: https://www.epa.gov/wotus-rule.

Two of the issues that concerned many Iowans included the Obama WOTUS expansive control over ‘wetlands and ditches’. The new proposed Trump Administration rule narrows those cate-gories. Some important specifics of the proposed rule. Under the proposal, wetlands that physically touch other jurisdictional waters would be “adjacent wetlands,” such as Horicon Marsh in Wiscon-sin. Wetlands with a surface water connection in a typical year that results from 1) inundation from a “water of the United States” to the wetland or 2) perennial or intermittent flow between the wet-land and a “water of the United States” would be “adjacent.” Wet-lands that are near a jurisdictional water but don’t physically touch that water because they are separated, for example by a berm, levee, or upland, would be adjacent only where they have a sur-face water connection described in the prior sentence through or over the barrier, including wetlands flooded by jurisdictional waters in a typical year. Likewise, concerning ditches-- “A ditch under the proposed rule would be an “artificial channel used to convey water. Under the proposal, ditches would be jurisdictional where they are traditional navigable waters, such as the Erie Canal, or subject to the ebb and flow of the tide. Ditches may also be jurisdictional where they satisfy conditions of the tributary definition as proposed and either 1) were constructed in a tributary or 2) were built in ad-jacent wetlands.”

The proposal also clearly outlines what would not be “waters of the United States,” including:

Waters that would not be included in the proposed categories of “waters of the United States” listed above—this would pro-vide clarity that if a water or feature is not identified as jurisdic-tional in the proposal, it would not be a jurisdictional water under the Clean Water Act.

Ephemeral features that contain water only during or in re-sponse to rainfall. Groundwater.

Ditches that do not meet the proposed conditions necessary to be considered jurisdictional, including most farm and roadside ditches.

Prior converted cropland.

This longstanding exclusion for certain agricultural areas would be continued under the proposal, and the agencies are clarifying that this exclusion would cease to apply when cropland is abandoned (i.e., not used for, or in support of, agricultural purposes in the preceding five years) and has reverted to wetlands.

Stormwater control features excavated or constructed in up-land to convey, treat, infiltrate, or store stormwater run-off. o Wastewater recycling structures such as detention, retention and infiltration basins and ponds, and groundwater recharge basins would be excluded where they are constructed in up-land.

(Continued on next page)

Environmental Protection (Contact Lew Olson at 1-3096)

https://www.epa.gov/sites/production/files/2018-12/documents/factsheet_-_wotus_revision_overview_12.10_1.pdfhttps://www.epa.gov/wotus-rulehttps://www.epa.gov/wotus-rule


Recently, House Republicans participated in the first of two Medi-caid managed care oversight meetings. At this first meeting, mem-bers of the Health Policy Oversight Committee heard from the Io-wa Medicaid Enterprise (IME) on how the capitation payments to the MCOs are calculated. MCOs are paid a per-member, per-month (PMPM) rate for a variety of different populations and condi-tions of Medicaid members. This discussion revolved around how the Centers for Medicare and Medicaid Services (CMS) approves the actuarially sound rates built on the experience of the Medicaid program and the MCO’s risk in covering different types of individu-als based on provider reimbursement and utilization of covered services.

In the last year, IME changed the actuary used to determine these capitation rates. Iowa now uses Optumas to develop the MCO payments, and formerly was using Milliman. You can find Op-tumas’ FY2019 Rate Development information here.

These rates must include any policy changes passed by the legis-lature or implemented by IME. For instance, last legislative session House Republicans required new mental health services to be developed, like Access Centers and Intensive Residential Service Homes, as well as an expansion of additional services throughout all communities in the state (Assertive Community Treatment Teams, Crisis Residential, Mobile Response, and 23-hour crisis observation and holding). When the legislature passed this bill, we also required the MCOs to pay for these services. This is one of many examples that the actuary takes into account when setting actuarially sound capitation rates.

The actuary also reviews what the MCOs spent on medical pay-ments and administrative costs in the last year, to then determine what an appropriate administrative cost could be for the MCOs to implement in the following year. In this rate development process, Optumas developed Non-Medical Load rates, which incorporate both the MCOs administrative costs as well as any care coordina-tion done by the MCOs for their members. The range for Non-Medical Load for FY 2019 is 7.3% (1.0-2.0% care management; 5.3-5.6% for all other non-medical costs) of the total payment to the MCOs.

After discussing how rates are developed, the committee went through the most recent managed care contract. Information on this contract can be found in the September 7

th House Republican

Newsletter.

Committee members also heard from Amerigroup, UnitedH-ealthcare, and UnityPoint on value-based contracts that they are implementing with providers to improve the overall health of the individuals they are care for. Rather than pay for each service in a unit-cost model, these innovative value-based contracts are an outcome based model in which incentives are paid for value that is represented by outcome and quality of services delivered. The MCOs are required to have 40% of their members covered in con-tracts with value-based payment arrangements in 2018, and many arrangements are under way with primary care practices, nursing facilities and personal attendant care. For example, these con-tracts may provide an upside bonus payment by demonstrating lowered inpatient readmissions as a result of higher quality of care coordination post discharge from the hospital. These innovative contracts are an example of opportunities Iowa Medicaid has un-der a managed care model.

The second oversight meeting will be held on December 17th. You

can find the agenda here.

As always, if you are a Medicaid member or provider experiencing any issue with a MCO, please reach out to me and I will help assist in resolving the problem.

Many Changes Coming for Child Welfare in Iowa

The Family First Prevention Services Act (Family First) is a federal law that changes the direction of child welfare services across America. The bi-partisan legislation was enacted as part of the Bipartisan Budget Act of 2018, which passed in February. The new law makes several major changes to how kids are served by the child welfare system. They are:

(Continued on to next page)

Human Resources (Contact Natalie Ginty 5-2063)

Legislature Holds Managed Care Oversight Meeting

(Continued from page 5)

Waste treatment systems.

Waste treatment systems have been excluded from the defini-tion of “waters of the United States” since 1979 and would continue to be excluded under this proposal; however, waste treatment systems are being defined for the first time in this proposed rule.

A waste treatment system would include all compnents, in-cluding lagoons and treatment ponds (such as settling or cool-ing ponds), designed to convey or retain, concentrate, settle, reduce, or remove pollutants, either actively or passively, from wastewater or stormwater prior to discharge (or eliminating any such discharge).

An extremely important aspect of this proposed rule is the restate-ment of the federal-state relationship. In accordance with section 101(b) of the Clean Water Act, EPA and Army’s proposed rule would recognize and respect the primary responsibilities and rights of states and tribes to regulate and manage their land and water resources. Under this proposal, there is a clear distinction be-tween federal waters and waters subject to the sole control of the states and tribes. The Clean Water Act envisions an approach whereby states, tribes, and the federal government work in part-nership to protect the nation’s waters from pollution. The agencies’ proposal is in line with that intent, and appropriately

identifies waters that should be subject to federal regulation under the Clean Water Act. States and many tribes have existing regula-tions and programs that apply to waters within their borders, whether or not they are considered “waters of the United States.” Together, the agencies’ proposed definition and existing state and tribal regulations and programs would provide a network of cover-age for the nation’s water resources in accordance with the objec-tive and policies of the Clean Water Act.

In addition to seeking comments on the specifics of the proposed “waters of the United States” definition itself, the agencies are re-questing comment on the discussion and definition of terms within it, such as whether tributaries should be limited to rivers and streams that flow year-round and whether lakes and ponds should be defined more precisely. In response to requests from some states, the agencies will be exploring how to develop a data or mapping system to provide a clearer understanding of the pres-ence or absence of jurisdictional waters that landowners and mem-bers of the regulated community could rely on in the future. The agencies are also taking comment on the underlying legal interpre-tations that provide the foundation for the proposed rule. Finally, the agencies are requesting comment on how the proposed rule can best be implemented so as to maintain clarity when it is used in the field; examples of such implementation questions include whether to establish specific flooding frequency or magnitude to determine when certain wetland features may be jurisdictional.

https://dhs.iowa.gov/sites/default/files/IA%20Health%20Link%20SFY19%20Rate%20Certification%202018.07.13.pdfhttps://www.legis.iowa.gov/committees/meetings/agenda?meetingID=28156


Earlier this year the Board of Regents approved the closure of several centers on the University of Iowa campus. President Bruce Harreld explained that the University of Iowa did not really close the centers, but rather furloughed them which gave each of them time to find an alternative funding source. President Harreld contin-ued by stating, “If they can find sources of funding, and we are more than willing to help them find sources of funding that are not general-education based, here we go, they can stay open. And most of the centers, many of them, have done exactly that.” How-ever, he elected not to elaborate on which centers would remain open.

The University of Iowa Labor Center, which is housed at the Uni-versity of Iowa College Of Law, received $557,000 from the Uni-versity of Iowa general fund last year. Labor Center Director Jen-nifer Sherer stated that the center “stands firm” that University of Iowa must commit some financial resources. She stated that the center could operate at a 25% reduction from the University. This would equate to the University of Iowa still paying $417,750 to keep the center open. The center also plans to raise fees and ap-ply for more grants.

“We’re serious and dare I say even enthusiastic about doing our part,” Sherer said in an email, noting the center is committed to a “joint fundraising appeal — as soon as we have some assurance of UI funding that allows us to confidently tell any potential donors that we will indeed remain open next year.”

President Bruce Herreld was recently interviewed by the Daily Io-wan and asked “Have you been a part of those conversations since its closing, and do you think that there are ways that the UI could still support the Labor Center. His answer was as follows:

“I think the key question in my mind is, is the Labor Center willing to support the Labor Center? We announced in June that there were a series of centers and institutes that could no longer be. I couldn’t subsidize them from student tuition. And so we said, ‘Hey look, you’ve got a year to find alternative sources of funding.’ Many of them decided to close. And we actually sought the regents’ ap-proval to close them all, just to make the process cleaner.

Many of them have, in fact, closed, several of them are looking for new alternative, sustainable, long-term sources of funding. I’m pretty optimistic some of them will come forward with such funding. The Labor Center seems to be stuck in a mode that says the uni-versity owes us, and this university should continue to subsidize $550,000. I’m frustrated with that, because that’s not going to hap-pen. Now then, what might the university do? If they can find sus-tainable, long-term sources of funding, which I’m willing to work with them to find, then we would be glad to let them use our name, keep offices, keep using our payroll and administrative systems, so

actually we’re contributing quite a bit in that process.

To date, no one from the Labor Center has reached out and said, ‘Please involve us in philanthropic or help us write grants or what have you.’ But I am aware there’s a group of Labor Center leaders and state officials, as well as administration members, and actually in some cases the Board of Regents members are actively dis-cussing what they might do. I’m still optimistic they’ll find some-thing, but the clock is ticking.

Also … if they can find a long term source of funding, I’m more than willing to go back to the Board of Regents and ask to rein-state it. But I’m not willing to do that if the answer is we don’t have a long-term, sustainable source of funding. Just like anything else on the campus these days.”

According to the website, the University of Iowa Labor Center states that there core functions are the following:

delivering non-credit classes and short courses both on and off campus on subjects important to Iowa workers and unions,

disseminating information and conducting applied research on labor issues,

acting as a point of contact between Iowa labor unions, work-er organizations, and University faculty, research facilities, and credit programming opportunities,

developing innovative curricular materials and methods for delivering adult education, and

providing unique labor-related research and teaching opportu-nities to students.

It is a bit ironic that during the most robust labor discussion, Ch. 20 collective bargaining reform, in the last 40 years that no one from the University of Iowa Labor Center submitted written comments or registered to speak. It is logical to expect that during this public debate that the Labor Center would have chosen to provide infor-mation useful to the discussion, but ultimately did not view it as worth their time. The Center’s core functions clearly outline a pro-labor union political stance. Yet, now the Center is in need of funding, Iowa’s two largest unions have not stepped forward to help. In 2018 the two largest Iowa unions (AFSCME & ISEA) do-nated over $1.5 million dollars to candidates and organizations affiliated with the Democratic Party. Apparently the unions do have resources but are either unwilling or unable to help the University of Iowa Labor Center.


Federal child welfare dollars will now be able to be used to help keep children out of the foster care system. Under the previous federal law, most federal dollars could not be accessed until a child was placed in foster care. This change will hopefully allow states like Iowa to expand access to services that help keep families together before a child is placed in foster care.

The new federal law places heavy emphasis on keeping fami-lies together. The new law emphasizes that states should work to maintain families and prevent kids from being placed with strangers in foster care.

The new federal law puts significant restrictions on where

kids in foster care can be served. The use of federal funding for placement in a group foster care setting is significantly restricted, with a strong emphasis placed on recruiting and utilizing foster families to provide care. This will be a major change for Iowa’s child welfare system, where the use of group foster care facilities has been a central part of the program. Currently around 500 chil-dren are served in group foster care settings in Iowa.

Iowa has elected to fully implement this law by July 2020, however much work will need to be done by the legislature, Iowa Depart-ment of Human Services, child welfare providers, Juvenile Court Services, the Judicial Branch, and county attorneys in preparation. Please watch for more information on Family First in this newslet-ter throughout the year.

Labor (Contact Logan Murray at 1-3626)

Labor Center Director Expects Handouts from University of Iowa


University of Northern Iowa RIIF Request

DNR Urges Safety a top priority this hunting season

Natural Resources (Contact Natalie Ginty 5-2063)

The Department of Public Safety will be losing two of its leaders in the upcoming weeks. Commissioner Roxann Ryan, and Colonel Jeff Ritzman, the Chief of the Iowa State Patrol, have both an-nounced their retirements effective on January 2, 2019.

Commissioner Ryan has served in her position for the last four years, but has been heavily involved in the public safety communi-ty her entire life. From 1980 until 2004 she worked in the Iowa Attorney General’s Office and then served as an Assistant Profes-sor at Simpson College until 2006.

Colonel Ritzman served with the Iowa State Patrol for 36 years

and was the 16th Colonel in the history of the patrol. Throughout

his distinguished career, the Colonel has served as a Sergeant in District 13 (Mount Pleasant), a District Commander in Des Moines and a Camp Commander at the Basic Academy in 2010. He also spent time in the Professional Standards Bureau; in the Division of Intelligence and Fusion Center and as an Executive Officer.

Governor Reynolds will appoint a new commissioner sometime in the new year. The commissioner will then need approval from the Senate before taking their post. Once a new commissioner is ap-

pointed, they will select the next Captain of the State Patrol.

Public Safety (Contact Amanda Wille at 1-5230)

Bill Changes Coming for the Department of Public Safety

State Government (Contact Logan Murray 1-3626)

Earlier this interim an article was written about how since FY 2009 the Rebuild Iowa Infrastructure Fund has appropriated $647,845,917 to the Board of Regents. This is an average of $64,784,591.70 for each fiscal year from FY 2009 to FY 2018. This includes $270,912,917 in tuition replacement. Tuition replacement has been described by the Legislative Service Agency as an “appropriation [that] replaces student tuition and fees that pay the debt service on academic revenue bonds authorized in prior fiscal years.” The tuition replacement appropriation averages out to $27,091,291.70 from FY 2009 through FY 2018.

The University of Northern Iowa has received $51,900,000 in ap-propriations from the Rebuild Iowa Infrastructure Fund from FY 2009 through FY 2018. Over ten years, this averages out to $5,190,000 per fiscal year. These funds have been used for Bart-

lett Hall and Schindler Education Center. Between FY 2009 – FY 2018 there was four fiscal years (FY 09, FY 10, FY 11, FY 18). This amount is significantly less than what the University of Iowa ($124,700,000) and Iowa State University ($189,333,000) has been received in that same time frame.

The University of Northern Iowa (UNI) is requesting $38 million over three years to modernize and expand the Industrial Technolo-gy Center (ITC) which will serve the workforce needs of Iowa in-dustry and better prepare teachers to teach STEM and career and technical education disciplines. UNI will only raise $4 million for this project. These funds will modernize the 44 year old building’s current spaces and system and expand the facility by 47,829 GSF. This would increase the facility to 100,071 GSF.

(Continued on next page)

The following information was provided by the Iowa DNR:

DNR conservation officers responded to numerous hunting inci-dents this weekend during the second shotgun season for deer. The following are incidents that are currently under investigation by the Iowa DNR and any possible charges will be forthcoming.

On December 8, DNR conservation officers responded to a property damage report in Reasnor in Jasper County. A 13-year-old Jesup boy, shot numerous times at a moving deer with a 20-guage shotgun, with one hitting a residence.

On December 9, DNR conservation officers responded to a report in Madison County of a man that dropped his loaded muzzleloader causing it to discharge and striking himself in the left wrist and chest.

On December 9, DNR conservation officers responded to a fatal hunting incident at Robert’s Creek Park on the north side of Lake Red Rock. Blake E. Schroder, 23, of Leighton, Iowa, was fatally struck by a round believed to be fired from a mem-ber of his large hunting party. An autopsy is pending on Schroder at the Iowa Office of the State Medical Examiner in Ankeny.

On December 9, DNR conservation officers responded to a

property damage report in Dickinson County just west of West Lake Okoboji. A man was inside a steel building when a bullet entered through the walls. Officials believe it was a stray bullet from a deer hunter, but have not been able to locate a hunter.

On December 9, DNR conservation officers responded to a property damage report in Butler County. Homeowners heard a loud noise on their window shortly after hearing a gunshot. The owners noticed their window was broken and a shotgun slug was recovered from the scene.

On December 9, DNR conservation officers responded to a property damage incident in Decatur County. A Tama man fired a shot at a deer and missed, hitting a house in Leon.

DNR officials remind hunters of the following safety tips:

Treat every firearm as if it is loaded

Always keep the muzzle pointed in a safe direction

Know your intended target and its surroundings

Do not touch the trigger of the gun until you're ready to shoot Wear as much blaze orange as possible

Transportation (Contact Ben Gentz at 1-3452)



UNI currently believes that the ITC’s graphic technologies lab space is ill-equipped for the current functional and storage needs of the program. It also believes that the ITC’s main hallways are lined with lockers that are more than 40 year olds. Like many other features original to the building, the lockers no longer serve the current needs of students. The ITC’s production lab, a central lab space for many department programs including manufacturing and technology and engineering education, is too small for current needs. The size of the space leads to tightly packed equipment and cramped work environment which poses potential safety haz-

ards for students and staff.

The Department of Technology currently enrolls 500 students in six programs: Construction Management, Electrical Engineering Technology, Technology Management, Manufacturing Engineering Technology, Graphics Technologies, and Technology & Engineer-ing Education – Teaching. This program has 2,800 alumni that work in Iowa. Upon graduation there is a 95% job placement and 90% of those students stay in Iowa. UNI believes that this expan-sion will increase their enrollment by 20% (500 to 700).

DOT Submits Annual MVE Activities Report

Veterans Affairs (Contact Ashley Beall 1-3440 )

The Iowa Department of Transportation (DOT) is required to annu-ally file a report with the Legislature regarding the activities of Mo-tor Vehicle Enforcement (MVE) officers. Motor Vehicle Enforce-ment is housed within the Motor

vehicle Division of the DOT and is dedicated to highway safety. MVE officers are Iowa Law Enforcement Academy (ILEA) certified peace officers, who patrol Iowa’s highways and operate weigh station facilities. While they have the ability to enforce all state law (traffic and criminal) the core mission of MVE officers is the en-forcement of the Federal Motor Carrier Safety Regulations (FMCSR), vehicle size, weight, registration, and travel authority of

commercial motor vehicles.

The MVE activity report was filed on December 3, 2018 for the Federal Fiscal Year (FFY) 2018. DOT data shows that MVE offic-ers’ citation activity was 97% for commercial motor vehicles and only 3% for non-commercial motor vehicle stops. This is an in-crease from the previous year of 94% for commercial vehicle activ-ity in FFY 2017. Non-commercial stops were primarily for speeding (44%) and speeding in work zones (26%).

The full report can be found here.

.

The VA Announces New Veteran Health Application Programming Interface

The U.S. Department of Veterans Affairs (VA) recently launched its first Health Application Programming Interface (API) that will power the next generation of Blue Button features by enabling Veterans to interact with their own personal health data within innovative mobile and web-based apps.

Introduced on Dec. 4, at the White House Executive Forum on Healthcare Data Interoperability, Health APIs will power the next generation of Blue Button features by enabling Veterans to interact with their own personal health data within innovative mobile and web-based apps.

Sponsored by the White House Office of American Innovation, the forum brought together senior health care leaders from both the public and private sectors.

Health APIs will also support new clinician-focused applications, and can also serve as a foundation for data sharing between health systems to support Veteran care.

Healthcare data interoperability is a key role in all four of the VA’s top priorities from modernizing their electronic health record, to transforming their business systems and delivering better custom-er service as well as implementing the MISSION Act.

Consistent with VA’s Open API Pledge, the Health API conforms to the Argonaut Fast Healthcare Interoperability Resources (FHIR) API standards. The VA believes that open FHIR-based APIs are an essential component in a modern interoperability strat-egy, and that government and industry must collaborate to expand available FHIR resources and its use.

The VA is committed to leveraging APIs to accelerate creation of transformational digital tools to support Veterans as they engage with VA’s core health, benefits and memorial services. Since launching its Lighthouse API Management Platform in March, VA has delivered a developer portal, a Benefits Intake API and a Facil-ities API.

VA continues to provide Veteran patients easy digital access to their own health care data. Since the launch of our Blue Button product in 2010, more than 2 million Veterans have downloaded over 32 million personal health data files from the VA’s patient portal.

For more information on the Veterans Health API, please vis-it https://developer.va.gov.

https://www.legis.iowa.gov/docs/publications/DF/971746.pdfhttps://developer.va.gov/https://www.va.gov/bluebutton/https://www.va.gov/bluebutton/https://www.oit.va.gov/developer/pledge.cfmhttps://www.va.gov/opa/pressrel/pressrelease.cfm?id=4029https://www.va.gov/opa/pressrel/pressrelease.cfm?id=4029https://www.va.gov/opa/pressrel/pressrelease.cfm?id=4022https://developer.va.gov/

Ways & Means (Contact Kristi Kious at 2-5290)


Tax Year 2019 Almost Here

A new tax year is almost upon us, and with that the bulk of the individual income tax changes from last year’s reform bill will be-come effective. House Republicans prioritized tax reform last ses-sion to fix the outdated and overly complex tax code—and one of the most important reforms was an average tax cut of 10 percent in tax year 2019. To illustrate one common scenario—a married couple with two children and a household income of $75,000 will see a tax reduction of 25.7 percent. That is meaningful tax relief to working Iowa families.

To achieve the tax cut—individual tax rates will be reduced and eventually, Iowa would move to federal taxable income (an ac-counting simplification) with additional reductions in tax rates and brackets in tax year 2023, assuming specific revenue targets are met. Having specific revenue requirements will ensure the state’s budget is sound and its obligations are met before additional tax cuts are enacted.

Current vs. Senate File 2417 Individual Income Tax Brackets and Rates

In addition to the rate changes illustrated above, Senate File 2417 made other changes to individual income tax that will take effect in tax year 2019 and beyond. These include simplifications as well as substantive changes.

The tax reform bill conforms with the Internal Revenue Code effec-tive for tax year 2019 and later, and thus couples with:

AGI changes

Elimination of the domestic production activities deduction

Elimination of the moving expenses deduction for non-military moves

Elimination of alimony payment deduction and elimination of alimony received as income for agreements after December 31, 2018

Itemized deduction changes

Elimination of the income limitation on itemized deductions

Elimination of home equity interest deduction and casualty deduction for non-disaster related losses

Elimination of itemized deduction for unreimbursed job ex-penses and tax preparation services

Senate File 2417 does not provide for bonus depreciation and does not couple with the state and local tax deduction cap that the IRS put in place (often referred to as the $10,000 SALT cap). Addi-tionally, in tax year 2019 the tax reform bill expands the Section 179 cap and investment limit to $100,000/$400,000 (recall that it is

set at $70,000/$280,000 for the current tax year). Then in tax year 2020 the Section 179 cap will fully couple with the federal cap at $1 million/$2.5 million and be annually indexed—a change that will help businesses plan for equipment upgrades and invest in them-selves.

Businesses will also be able to take 25 percent of the federal quali-fied business income deduction on their Iowa return in tax years 2019 and 2020 with that percentage increasing to 50 percent in 2021 and 75 percent in 2022. Other changes will also happen in tax year 2020, including coupling with the federal repeal of like-kind exchanges (1031) for all but real property.

As mentioned above, further rate cuts are dependent on meeting specific revenue targets. There are also several other changes in tax year 2023 that are dependent on those revenue targets being met. They include:

Use of federal taxable income as the basis for Iowa taxable income with various adjustments

Elimination of federal deductibility

Elimination of the Iowa Alternative Minimum Tax, allow nonre-fundable claims of any available Iowa Alternative Minimum Tax Credit in TY 2023 and eliminate the tax credit effective in TY 2024

House Republicans put together a tax reform bill that would pro-vide immediate and significant relief. The legislation provided for both simplification and substantive relief. Most importantly, the bill provided safeguards to ensure our state remains fiscally responsi-ble and sustainable for years to come. Happy New (tax) Year! .

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