Iowa House OKs two spending amendments

Andy Tofilon

The Iowa House approved two constitutional amendments Wednesday that will restrict state spending growth and the state’s ability to increase taxes.

On a party-line vote of 57-40, the two amendments to the Iowa Constitution were approved nearly a month after Senate approval.

One amendment states that the Legislature and the governor would be required to spend no more than 99 percent of projected state revenues.

The other requires lawmakers to have a three-fifths “super majority” vote — 60 votes in the 100-member House and 30 votes in the 50-member Senate — to raise sales or income taxes.

“The 99 percent limitation … has language that is found already in the Iowa State code that the Legislature uses,” said Gary Stenke, assistant director of government relations.

“The Legislature has been using it since 1994. Now they want to have the people of Iowa vote on it and make it a part of the constitution,” he said.

However, the amendments have sparked debate in both houses and parties.

“It would affect, in essence, everybody in the state, but the fact is that we have been doing this since 1994,” said State Senator Johnie Hammond of District 31.

“There is no one suggesting that we need to spend that last 1 percent on anything. The Legislature has been very fiscally responsible on the way we go about business,” she said.

Hammond said the amendments are not needed and could end up hurting the state.

“We have them in the law. When you put it in the constitution, there is no flexibility to it. You need flexibility to help in emergency situations,” Hammond said.

“I believe in the law, but I don’t think we to need to be restricted and binded by it,” she said.

The second amendment will not have much effect on whether the state can raise taxes, Hammond said.

“A super majority could be dangerous. I have been here for 17 years, and we have passed two major tax bills,” she said. “Both were penny sales tax increases in 1983 and 1994. Both of those were passed with a vote of 60 percent or higher.

“The purposes of those tax hikes were to get [the state] out of a slump in the economy,” Hammond said. “What the public doesn’t realize is how much legislatures don’t want to raise taxes.”

Stenke said the amendments could prove to be a positive step for the state.

“The state is in a strong financial state and has developed a surplus—in fact, a large one that has the state in the best financial shape in a long time,” he said.

“State agencies are feeling it because they have to save that 1 percent, and it has been hard on some. Who will get pinched the most because of the amendment if it is approved is not clear at this time,” he said.

State agencies always have been restrained financially, Hammond said.

“We know the voters do not want us to get into wild spending, and although most people don’t believe it, we are restrained on what we vote out,” she said.

Iowa voters will have the final say on the two amendments in a special election on June 29, but the date was the subject of much debate during deliberations on Wednesday.

“There is no reason to have the vote then, and it is obvious that [Republicans] don’t trust themselves, and in turn, they are restraining the Legislature,” Hammond said.

“There is no reason to hold the elections when the next vote will be the general elections in 2000, unless they don’t think they are financially accountable,” she said.