Wednesday was a difficult day for The American Independent News Network, which is the larger entity that operates The Iowa Independent. Our chief executive and founder announced two of our sister sites would close and their content would be moved to The American Independent.
A recently introduced bill could have far-reaching impact on the U.S. sugar industry, including American Crystal Sugar, a farmer-owned cooperative that locked out 1,300 Midwest workers on Aug. 1.
The chairman for Herman Cain’s Iowa effort says the campaign “relied more on the word of farmers than Washington regulators” in deciding to run an ad containing claims the Environmental Protection Agency says are false.
The Iowa Senate will remain under the control of a slim 26-25 Democratic majority when it reconvenes in January 2012.
Cities can now charge a 5 percent franchise fee for gas and electric utilities under a bill signed into law by Gov. Chet Culver, easing but not solving budget problems for Iowa’s capitol city.
Des Moines City Manager Rick Clark told The Des Moines Register that the city would face a $5 million budget shortfall in 2011, up from an estimated $3.5 million. The city will reach out to its employees to seek salary and benefit cuts to help close the gap. But, if the legislature had not stepped in and officially legalized franchise fees, the city’s budget problems could have become catastrophic.
In 2004, Des Moines resident Lisa Kragnes sued the city saying the franchise fee was an illegal tax. The case, which received class certification for all Des Moines residents and businesses, is now in the hands of a District Court Judge. If the judge rules against Des Moines it could be forced to repay millions of dollars in refunds to customers.
The fee brings in about $12.6 million annually.
The new legislation ensures that even if Des Moines is forced to repay past fees it can still collect in the future, avoiding an even bigger hole being punched into its budget. In addition to Des Moines, 25 other cities in Iowa charge a franchise fee, which is designed to help cover the costs of operating, maintaining and regulating a utility. Supporters of the franchise fee say it helps ease the property-tax burden by spreading the cost of government services to nonprofits and other entities that don’t pay property taxes.
According to The Register, Des Moines cut its 2010 budget by $14 million with a mix of job cuts, privatization, salary freezes and expense reductions.
The franchise fee was included in the catch-all standings bill passed on the final day of the legislative session.
Follow Jason Hancock on Twitter
Do you know where to vote on Election Day? Do you know what to bring with you? Get comprehensive voter information for your state here.
Sign up for our email newsletter