DES MOINES — Representatives for Iowa’s public employees, school teachers and universities are feverishly opposed to the cuts to education included within House File 45, presented by Republicans as the “Taxpayers First Act.”
Jan Laue, secretary-treasurer of the Iowa Federation of Labor AFL-CIO, said her first question about the bill is “where are the jobs?” Laue said House Republicans were focusing too much on cutting services at a time when she felt most Iowans wanted job creation.
“Only if people are working and making money are they going to be able to buy products and services and pay taxes,” Laue said. “Businesses can’t grow if they don’t have any customers.”
Kelly Soyer, chairperson of Iowa Human Needs and executive director of Iowa Chapter of Social Care Workers, said cuts to education would have an impact on Iowa’s economy in the long-term.
“In this bill there are cuts to education at all levels, which will make Iowa less competitive in the long run,” Soyer said. “What’s worse is that these are just starts, with inevitability more after the legislature gives away over $300 million in tax cuts.”
Republicans are planning to turn the money saved through their budget cuts — around $300 million — into income tax cuts.

Photo by Tyler Kingkade/Iowa Independent
Area Education Agencies are being cut $10 million from in the current fiscal year, with $10 million in cuts on the way in subsequent fiscal years.
“That’s in addition to the budget cuts they’ve taken in the past that they’ve never really recovered from,” Laue said.
The 15 Iowa AEAs were established by Iowa Legislature in 1974, as a result of a history of merging school districts and sharing resources. While Laue appreciated the intent to spend more money on mental health, which is aimed at eliminating the current waiting list, she worried further cuts to the AEAs would jeopardize the ability of schools to provide psychologists and interpreters for disabled children within the K-12 public schools.
Laue said they constantly hear districts should merge or at least share resources, but they still must comply with the mandate that all special needs children be served. The AEA does that, she said.
Gov.-elect Terry Branstad proposed during an education budget briefing removing AEAs from the block they’re currently in for the state school aid and fund them instead in an alternate method.
Regents universities would take a hit in 2010-11 appropriations by $10 million with intent of taking another $15 million cut in the two succeeding fiscal years.
Iowa’s public universities have already gone from being funded by 77 percent with state aid and 20 percent from student tuition to only 41 percent is funded by state appropriations and 47 percent covered by student tuition in the current fiscal year. The proposed cuts to the Regents universities would increase that gap and continue the decline in state funding.
“I think Iowans want us to look at ways to do their business differently,” said House Speaker Kraig Paulsen (R-Hiawatha) on Thursday. “There’s no reason to assume that education is an exemption to that rule. In fact, I think that is part of the charge.”
While Regents would take another hit in funding under the Taxpayers First Act, community colleges already receive only a quarter per student in state aid as Regents.
Senate Majority Leader Mike Gronstal (D-Council Bluffs) noted the importance of community colleges to local business communities in his opening day speech in the Iowa Senate. But in the final days of Gov. Chet Culver‘s administration, community colleges received an unexpected $6 million cut as a part of Culver’s obligation to slash $83 million from the budget before his term expired.
“In this final parting shot to the citizens of Iowa, Gov. Culver has not only sent community colleges and their students and faculty into turmoil, he has dealt a major blow to the lone jobs idea put forward by the two most prominent Democrats in the state,” said Senate Minority Leader Paul McKinley (R-Chariton) in a statement.
Soyer said the Republican plan, however, would hit low income and middle class families twice. She worried about a cut funding government in general which would impact public services, and also with cuts to education.
“We’re talking about peanuts–one-tenth of one percent of the general fund budget,” said state Rep. Tyler Olson (D-Cedar Rapids).
The top Democrat of the House Appropriations committee said he was disappointed children were targeted by the cuts.
Olson criticized the savings Republicans identified in the proposed bill by claiming “what they’re asking to trade is the future of Iowa’s children. That’s not a smart trade.”
Laue also criticized idea of the tax cuts at a time when many lawmakers claim the state is broke.
Branstad continues his push for commercial property tax cuts as an effort to attract new businesses, while legislation has been introduced to reduce personal income taxes by almost a third.
Danny Homan, president of AFSCME Iowa Council 61, said the cuts included in the Taxpayers First Act were a “strong indication” that public K-12 schools, community colleges and universities would not see adequate funding. Especially not when the general revenue would be reduced by further tax cuts.
“And quite frankly, that’s what at least one individual campaigned on — returning Iowa to a quality education,” Homan said. “This bill cuts education, as I read it.”
The bill would also cut the universal preschool program enacted by Democrats, but would direct the legislature to create an alternate voucher program. Democrats have hammered the proposal, even launching a website dedicated to fighting against it. They are also dedicated to fighting against the part of the GOP budget bill that would end Iowa Core Curriculum and kill a program aimed at helping smokers quit, including children.