Vetoes by Vilsack bring threat of lawsuits

Andrea Hanna

Gov. Tom Vilsack’s vetoes on parts of the economic incentive plan have disappointed some legislators, who are meeting with attorneys to discuss the possibility of a lawsuit.

Chairman of the Senate Appropriations Committee, Sen. Jeff Lamberti, R-Ankeny, said legislators are visiting with attorneys to get their take on what happened Thursday at the Monsanto facility in Ankeny.

Two weeks after the special session ended, Vilsack announced he would line-item veto two of the four legs of the “economic stool,” also known as House File 683. Regulatory reform and income tax reform were illegally vetoed, some state lawmakers said.

Vilsack said in a speech last Thursday income tax reform would have cut $310 million to support schools, health care, the environment and public safety, and he wouldn’t support it.

“I made it clear to legislators from day one that I couldn’t accept a proposal that would result in cuts to essential services,” Vilsack said. “Iowans do not want them and I cannot approve them.”

Rep. Jane Greimann, D-Ames, agreed with Vilsack’s decision to turn down income tax reform.

“I support the governor’s move to veto parts of that bill,” Greimann said. “We didn’t fund education the way we should have.”

Regulatory reform dealt with worker’s compensation and civil justice reform, Vilsack said.

Regulatory reform disturbed the fair and balanced approach Iowa has, Vilsack said.

Lamberti said what Vilsack did was beyond his constitutional authority.

“It’s more likely than not that he will be challenged on it,” Lamberti said.

Greimann said she thinks Vilsack has solid legal ground for taking the actions he did.

More than one item in HF 683, the appropriations bill, and HF 692, the policy bill, has caused threats of lawsuits, Greimann said.

“The Constitution says we shouldn’t combine more than one item in every bill,” Greimann said.

Republican lawmakers said they were trying to make it harder for the governor to veto HF 683 and 692, during the special session, Greimann said.

The democratic governor signed into law the Grow Iowa Values Fund which is supposed to bring 50,000 new jobs to the state.

“These funds will allow us to become a national leader in the life sciences, modernize our manufacturing facilities and to continue to expand our efforts in financial services, information solutions and insurance,” Vilsack said. “With the values fund, we can begin aggressively marketing our state.”

Another part of the bill, property tax reform, which will tax houses and other structures on the basis of square footage, was also signed into law Thursday.

Lamberti said these laws are scheduled to take effect July 1.

Giving money to people and taking away regulatory reform and income tax reform will not help Iowa, Lamberti said.

“No state has grown simply by handing out money,” he said.

Lamberti said he is not angry, but disappointed that Vilsack caved to special interest groups.

“We believed we had a package that would grow the economy,” Lamberti said. “The big losers here are the people of Iowa.”

Greimann said the legislation the governor was given did not show responsibility to the citizens of Iowa.

Vilsack is hopeful for the future of Iowa with the bills he signed into law.

“Today begins a better, more promising day for our state,” Vilsack said.