Vilsack announces state plans in address
January 14, 2004
Gov. Tom Vilsack announced plans Tuesday to fund education, health care, tourism and environmental policies through higher taxes.
Vilsack, addressing a joint session of the Iowa Legislature in his annual Condition of the State speech, likened the sacrifice of troops abroad with sacrifices that must be made locally to ensure quality education, health care, a vibrant economy and a healthy environment.
Iowans must show a reciprocal duty and responsibility to the transformation of Iowa’s economy, Vilsack said. Even with the sluggish economy, there are things Iowans can’t ignore, he said.
“We must not and we will not turn our backs on our children, our seniors and our friends and neighbors with disabilities,” he said.
Robert Lowry, associate professor of political science, said he wasn’t sure if Iowa’s struggles to improve its economy were a good parallel to combat in Iraq. He said improving domestic matters is much different than invading a country.
Vilsack offered a three-step plan to ensure proper funding of social programs. He said his economic plan has many benefits.
“Few will pay more, most will pay less, and all will benefit,” Vilsack said.
Rep. Jane Greimann, D-Ames, said Vilsack’s plans were viable.
“I thought he laid out a program that is very possible,” Greimann said.
The first step of the plan requires modernization of sales tax by expanding services subject to it. Vilsack said this would create $131 million to fund education.
Other plans include decreasing class sizes, increasing funding for classroom supplies and making higher education accessible to Iowa families.
Vilsack emphasized education’s importance in creating a quality workforce in Iowa.
“If we are serious about leaving no child behind, we must ensure that no child starts behind,” Vilsack said, alluding to President Bush’s controversial No Child Left Behind Act for public schools.
The second step would raise the price of cigarettes by 60 cents for health care funding.
Vilsack said smoking-related illnesses cost smokers and non-smokers alike millions of dollars each year. The inequity could be corrected if smokers paid a higher price for cigarettes, he said. The revenues from the additional tax would pay for care of disabled and seniors and mobile dentist offices for children.
Lowry said fewer smokers may not increase revenues as drastically as Vilsack hopes.
“Raising taxes usually doesn’t improve the economy,” he said.
The third tier of Vilsack’s plan would close tax loopholes for corporations and absentee landlords in order to help fund local government programs.
Greimann said some of Vilsack’s ideas, including the cigarette tax increase, received bipartisan support, although Republicans were silent during much of the address.