The 2010 legislative session adjourned on Tuesday, March 30th, and the Iowa Legislature responsibly balanced the state budget without raising taxes while laying the groundwork for Iowa’s economic recovery.

During these tough economic times, we focused on the priorities of middle class families – balancing the budget, good-paying jobs and a quality education. We made tough choices and reorganized state government to find over $265 million in savings instead of raising taxes, which has put Iowa in a much better position than many other states.
For Fiscal Year 2011, which starts July 1, the budget plan approved spends less than last year and even spends less than the state budget approved four years ago. The ending balance next year will be over $180 million and an additional $200 million will still be in the state’s savings account.

The Legislature approved a new $5 million small business loan fund and expanded technical assistance for businesses and entrepreneurs. An additional $100,000 was given to Iowa Small Business Development Centers, which provide one on one counseling and support for business owners at 15 locations across Iowa, and the state also expanded on-line support for Iowa small businesses at MyEntre.Net.

Legislators increased funding for k-12 schools $147 million next year, expanded preschool to all four year olds, and continued plans to make sure every student graduates with the skills necessary to land a good-paying job in today’s global economy.

In another effort to create good-paying jobs, the Iowa House approved a series of initiatives to help small businesses today, including a new Save Our Small Business Fund designed to help business owners having trouble accessing resources to stay open or expand.

The small business initiatives were approved on Senate File 2389. The Save Our Small Business Fund will provide loans up to $50,000 to small businesses with under 35 employees. Other pieces of the initiative include expanding eligible for the state’s loan buy-down program (Linked Investment for Tomorrow Fund), a statewide website of vacant buildings targeted for redevelopment, one comprehensive website with links to all assistance available to small businesses, and a special committee to find ways to reduce regulatory barriers facing small businesses.

In addition to the incentives approved today, lawmakers have already provided an additional $100,000 for Small Business Development Centers, expanded the statewide MyEntre.Net program to help accelerate the growth of firms most likely to create jobs in Iowa, and kept Iowa’s 55 Workforce Development Centers open to help the unemployed find work or get job training assistance.

State Representatives Nate Reichert and Polly Bukta on the last day of session on March 30, 2010.

State Representative Nate Reichert wraps up work at his desk on the last day of session.

End of Session Newsletter 3.31.10

State Representative Nate Reichert meets with Adam Drawbaugh of the Iowa Caregivers Association and Unity Hospital when he visited the capitol on Monday, Feb. 15.

State Representative Nate Reichert meets with Judy Collins of Muscatine as she visits the Capitol with INA on Wednesday, February 17, 2010.

Last Week’s Newsletter

A reminder for all working families that they can claim the Earned Income Tax Credit on their 2009 taxes; many families are also eligible to participate in a free tax filing program.

Workers with one child and earnings less than $35,463 in 2009 are eligible for a tax credit up to $3,043. Workers raising more than one child with income less than $40,295 can get up to a $5,028 credit. Working individuals who are not raising children in their home between the ages of 25 and 64 and had income less than $13,440 are eligible for a $457 tax credit.

The Earned Income Tax Credit is now the largest federal cash benefit to low-income workers, surpassing welfare benefits in total dollars nationwide. Three years ago, Iowa expanded eligibility for the EITC on state taxes and made the credit refundable to more Iowa families.

According to the Internal Revenue Service, about 25% of eligible workers don’t claim the credit. For more information or assistance on the EITC, call 1-800-829-8482 to find your local tax assistance site or log on to www.irs.gov.

A public-private partnership, the Free File Alliance, is also offering middle class families who meet certain income guidelines a fast, free and safe way to do their taxes online.

The program is made possible through a partnership between the IRS and the Free File Alliance. To learn more visit, www.freefile.irs.gov.

According to a new report released today, Iowa is still the nation’s second highest wind energy producer, adding enough wind projects over the last year to power another 879,000 homes. Energy efficiency grants are also available to local governments.

The Iowa Office of Energy Independence has $8,634,400 in energy efficiency grants available for cities and counties across the state to reduce energy use, have a positive impact on budgets and enhance economic development through job creation.

These grants are based on the Energy Efficiency and Conservation Block Grant (EECBG) Program under the American Recovery and Reinvestment Act of 2009 (ARRA).

For more information or an application, go to www.energy.iowa.gov.

Representative Nathan Reichert, Representative Chuck Isenhart, Representative Murphy, Gina Blean, Terry Sullivan, Representative Ray Zirkelbach, and Kelly Heysinger at the Iowa State Capitol on Wenesday, February 3, 2010.