Iowa Senate Democrats

Fighting for a Better Deal for Iowans.

  • 2018 session poses threat to Iowa retirees

    (Des Moines) Today, two Iowa Statehouse leaders expressed concern that the 2018 legislative session could bring sudden, unnecessary changes to Iowa’s pension system. The two said the changes would harm Iowa public employees and the communities where they live.

    “IPERS and Iowa’s other public pension plans are secure, strong, and sustainable. Some current legislative proposals to change IPERS could break the promise we have made to hard working Iowans since 1953,” said Treasurer Michael Fitzgerald. “The retirement contributions Iowa workers have made to these funds have been invested well and the benefits are reasonable. There is no need to make the type of changes Governor Reynolds and Senate Republicans are talking about.”

    “Last year, Iowa made national news when state Republicans tore up long established collective bargaining laws in a little over a week,” said Senator Matt McCoy of Des Moines, a member of the Iowa Legislature’s Public Retirement Systems Committee and a nonvoting member of the IPERS Investment Board. “Legislation to blow up IPERS, Senate File 45, was introduced last year. It could be voted on during the 2018 session. Just last July, the Senate’s second ranking Republican, Senator Charles Schneider, brought in a right-wing think tank to tell Iowans to replace our successful, stable retirement systems like IPERS with more risky Wall Street-based schemes.”

    Senate File 45 would begin to dismantle IPERS and other Iowa public retirement programs by preventing new Iowa workers from joining the programs on or after July 1, 2019. The existing retirement programs would be replaced by more risky defined contribution plans run by Wall Street traders instead of Iowa’s current non-profit managers.

    In 2017, Governor Reynolds said several times that she supported a task force to propose changes to IPERS. She later dropped that idea but continued to express support for privatizing IPERS, including supporting the July meeting sponsored by Senator Schneider and the Reason Foundation

    “Families, neighbors, and communities see the impact when money from IPERS is reinvested all throughout Iowa. These proposed changes, from the same legislators who earlier this year gutted collective bargaining rights for hardworking Iowans, could destabilize IPERS and negatively impact every community in Iowa,” said Treasurer Fitzgerald.

    “Given how Republicans have been governing, every Iowan affected directly or indirectly by IPERS will be holding their breath until the 2018 session adjourns,” McCoy said.

    On December 18, the Iowa Legislature’s “Public Retirement Systems Committee” will evaluates Iowa’s public retirement systems, including Iowa Public Employees’ Retirement System (IPERS), the Municipal Fire and Police Retirement System of Iowa (Iowa Code chapter 411), the Department of Public Safety Peace Officers’ Retirement System (PORS), and the Judicial Retirement System.

    -end-

    Links to news reports on Governor Reynolds’ support for changing Iowa’s public retirement systems

    Reynolds: Iowa task force will study IPERS changes
    Mason City Globe Gazette 1/26/17
    globegazette.com/news/iowa/reynolds-iowa-task-force-will-study-ipers-changes/article_211d1ad4-4030-580a-ba5b-3414f63826e9.html
    Iowa Lt. Gov. Kim Reynolds told a group in Scott County on Thursday a task force will be formed to study the possibility of long-term changes to IPERS, the retirement system for public employees in the state.

    Branstad calls IPERS’ changes ‘prudent’ to shore up statewide pension fund
    Des Moines Register, 3/27/17
    www.desmoinesregister.com/story/news/politics/2017/03/27/branstad-calls-ipers-changes-prudent-shore-up-statewide-pension-fund/99686464/
    Branstad and Lt. Gov. Kim Reynolds, who are both Republicans, have said that commitments already made to state and local government workers will be honored, but a state task force will review possible long-term changes to Iowa public employees’ pension programs. Among key changes that will be studied will be whether to offer a 401(k)-style plan.

    Reynolds backs IPERS study, but task force is dropped
    Des Moines Register, July 18, 2017
    www.desmoinesregister.com/story/news/2017/07/18/reynolds-backs-ipers-study-but-task-force-dropped/487913001/
    Reynolds noted that Sen. Charles Schneider, R-West Des Moines, is currently heading an interim committee’s study of Iowa’s public employees’ pension funds. The work is being conducted in cooperation with the Reason Foundation, a Los Angeles-based libertarian think tank.
    “I support his efforts in doing that,” Reynolds said.

    PDF of Senate File 45: wwww.legis.iowa.gov/docs/publications/LGI/87/SF45.pdf

  • Governor Reynolds’ claim to balance budget ‘without cuts to education’ is astoundingly false

    Sept. 21, 2017

    Statement by Senator Herman Quirmbach of Ames, Ranking Member of the Senate Education Committee

    “Reynolds apparently wants to forget about the nearly 250,000 students who attend Iowa’s colleges and universities, but they really took it on the chin from her budget.  SF 130 resulted in $4.75 million being cut from the community colleges, $9.24 million cut from the University of Iowa, $8.99 million from Iowa State, and $2.52 million from UNI.  Private college students ducked any cut for FY2017, but they lost $2.8 million from their Iowa Tuition Grant scholarship fund for this school year.

    “As a direct result of Reynolds’ education cuts, Regents university students this fall got a ‘welcome back’ surprise of a steep tuition hike.  At ISU, the increase was two and a half times what students had initially been told.

    “Bad enough that Reynolds would levy a ‘tuition tax increase’ on students and their families, but then to fib about it and pretend it didn’t happen is just dishonest.  Iowans deserve better.”

    end

  • Quirmbach: GOP’s “tuition tax” will hurt students and weaken Iowa’s economy

    For Immediate Release: Sept. 7, 2017

    State Senator Herman Quirmbach of Ames, the Ranking Member of the Senate Education Committee, released a statement in response to today’s meeting of Tuition Task Force with the Iowa Board of Regents:

    “In a series of meetings, Iowans overwhelmingly urged the Board of Regents not to impose years of sharp tuition increases on Iowa students and their families.

    “Let’s be clear.  During the 2017 session, Republicans balanced the state budget by cutting university funding, forcing a tuition increase this year of more than twice what the Board of Regents had proposed.  Now, instead of ending huge giveaways to out-of-state corporations, Governor Reynolds and legislative Republicans hope a steep, multi-year ‘tuition tax’ on Iowa students will balance Iowa’s busted state budget.

    “However, making college much more costly for Iowa students will only make things worse.  Iowa is in a downward spiral.  Our state’s lack of skilled workers prevents strong economic growth.  The lack of economic growth creates a budget deficit.  Republicans cut education to balance the budget.  Those cuts worsen our skilled worker shortage.

    “The Republican plan to balance the budget through a ‘tuition tax’ on Iowa families will hurt Iowa’s economy and should be rejected.”

     

    -End-

  • Urge Gov Reynolds to let parents affected by individual health insurance crisis to buy hawk-i children’s health insurance

    Iowa Pediatrician Amy Shriver, MD, and State Senator Janet Peterson support allowing parents unable to buy insurance on the individual market to buy into hawk-i, Iowa’s children’s health insurance plan..

    July 24, 2017  (Des Moines)  Today at the Iowa Statehouse, a state senator and an Iowa pediatrician proposed a plan to protect more than 11,000 Iowa children from losing health insurance on January 1 of next year.   The children’s parents are among those who would lose all access to health insurance if the individual market in Iowa collapses or the policies in the individual market are not affordable.

    “There is a very real possibility that 72,000 Iowans could be without health insurance next year.  Governor Reynolds should immediately ask the Trump Administration to allow Iowa families to purchase health insurance for their children through hawk-i, Iowa’s children’s health insurance program,” said State Senator Janet Petersen of Des Moines.  “This is a simple, affordable and straightforward solution that would give thousands of Iowa families the certainty that health care will at least be there for their children.”

    Hawk-i provides health and dental insurance to children aged 18 and under from lower income families.  Parents pay premiums on a sliding scale and the rest of the costs are picked up by the state and federal government.  The program was established with strong bipartisan support in 1999.  Iowa’s program has earned widespread praise for providing high quality care, being easy to use, and having low administrative costs.

    Under the proposal, Iowa families unable to purchase health insurance elsewhere could buy insurance for their children through hawk-i.  Parents would pay the full cost of the premiums, which are expected to be affordable due to the relatively low cost of insuring children.

    “We already collect premiums based on a family’s ability to pay,” said Petersen. “We aren’t asking for additional federal or state dollars to make this plan happen.  All we need is the federal government’s permission to allow Iowa parents to buy into hawk-i.”

    Dr. Amy Shriver, a Des Moines pediatrician, said: “Access to healthcare, including oral care, is essential to children’s healthy development and future success.  Children learn best when they are healthy and safe. Children need regular, preventive well-child checkups.”

    Petersen’s experience with these issues includes her past service on the hawk-i Board of Directors and years of experience working with insurance issues as a leading member of the Iowa Senate’s Commerce Committee.

    “Iowa families on the individual market are small business owners, self-employed, or work for organizations that don’t offer group plans. They are just a few short months away from losing their health insurance and are without affordable alternatives.  With no sign of a viable solution coming from Congress, we need Governor Reynolds to act,” said Petersen.  “Governor Reynolds, please ease these parents’ fears.  Use your power to push for a solution Iowans can actually afford – especially for our kids.”


    Summary: Keeping Iowa’s Kids Insured

    Background:

    • Iowa has consistently ranked in the top states in the country for children’s access to health care and dental care.
    • Iowa’s Children’s Health Insurance Program provides coverage to over 60,000 children.
    • The covered services under hawk-i are approximately equivalent to the benefit package of the state’s largest HMO at the time the program was initiated.
    • Providing medical care through health insurance that includes essential health benefits is less costly, produces better results, and helps prevent unnecessary, costly visits to emergency rooms.

    The threat to health care coverage for more than 11,000 Iowa children:

    • It is possible that Iowa will have no insurance plans available in the 2018 individual market. Wellmark and Aetna have already dropped out.  Medica intends to stay in the marketplace and has requested a 43% rate increase.  There is no guarantee Medica will not back out later.
    • Iowa’s Insurance Commissioner has responded to the problems with the individual market by with a “Stop Gap Proposal” that is pending with CMS. The “Stop Gap Proposal” would use the federal funding that today provides ACA subsidies and cost sharing reductions to allow Iowans to purchase a public option plan, similar to a silver level ACA plan.  This plan will be available for purchase to all Iowans, some with a subsidy.  Families earning more than over 400% of the federal poverty level would not be eligible for a subsidy.
    • Both options under the “Stop Gap Proposal” will be very expensive. With Medica’s premiums going up 43%, many families will not be able to afford the plans, even if they get a subsidy.  can only buy into the program in January and must stay in all year to remain eligible.

    The Iowa Senate Democrats’ Expanded hawk-i Proposal: Making sure more than 11,000 kids have health care

    • More than 11,000 Iowa children receive their insurance coverage through an individual market plan purchased by their parents. They will not have access to health care if their parents cannot afford to buy a Medica or Stop Gap plan or the plans are not available.
    • In order to keep children insured, it is proposed to allow parents to buy into the hawk-i plan for their children ages 18 and below. It could also cover children up to age 26 as all private plans must currently do.
    • Expanded hawk-i would be available to families with incomes above 300% of the federal poverty level. (Those below 300% are already eligible for hawk-i.)

    Conclusion: Governor Reynolds should ask CMS for emergency approval to allow Iowa parents with incomes over 300% of the federal poverty level to purchase, without subsidy, hawk-i coverage for their children.  These families may be without any other options in Iowa in 2018.

  • Latest state deficit figures show GOP budget is ‘out of whack’ and hurting Iowa families

    A statement from Senator Joe Bolkcom, ranking Democrat on the Senate Appropriations Committee:

    “Iowa is not in a recession. Iowa is experiencing slow revenue growth because the policies of Governor Reynolds and legislative Republicans are out of whack. Delaying tax refunds for Iowa families and other gimmicks will not solve this budget mess.

    “Republicans must stop showering tens of millions on large tax giveaways to out-of-state corporations.  These tax giveaways now top $500 million annually and are the fastest growing part of the state spending.
    “The really bad news is that Governor Reynolds and legislative Republicans are balancing the budget on the backs of working Iowans. Senate Democrats will continue to oppose Republican-sponsored cuts to the services that Iowans depend on.  These cuts threaten public safety, the quality of education, and the safety net for seniors, children and vulnerable Iowans.
    “These cuts to services could have been avoided if Republican legislators and Governor Reynolds had delivered on their promises to increase family income by 25% and create more than 200,000 new jobs in Iowa.
    “So far, working Iowans have seen nothing but broken promises and horrible cuts to state services from Governor Reynolds and legislative Republicans.”
    – end –

  • Gov. Reynolds: Convince Pres. Trump to stop Iowa health care disaster

    June 21, 2017

    (Open letter from Senator Joe Bolkcom to Governor Kim Reynolds)

    Dear Governor Reynolds:

    Today, you will have an opportunity to speak one-on-one with President Trump in Cedar Rapids.

    I support your announced plan to raise the issue of Iowa’s failing individual insurance market.  However, that issue is only one part of Iowa’s health care problems.

    Governor Reynolds, you must be aware that the Republican-controlled U.S. Congress is rushing to send President Trump health care legislation.  This legislation will devastate Iowa families, Iowa health care providers, the State of Iowa’s budget, and the Iowa economy.

    That’s why Iowans are counting on you to convince President Trump to oppose this impending disaster.  Here are some of the reasons why the Republican health care bills are so bad for all Iowans:

    1. Proposed cuts to Medicaid expansion threaten health care for 150,000 Iowans.
    2. More Iowans will be living without health insurance. There will be more uninsured charity care, care that is less effective, more costly, and will increase everyone’s health care costs.
    3. Older Iowans, who make up an increasingly large share of Iowa’s population, will be hit especially hard by these changes.
    4. Cuts, caps or block granting federal Medicaid spending will cost the state of Iowa hundreds of millions of dollars.
    5. Health care providers will be paid less. It will be harder to recruit and keep qualified doctors, nurses and other caregivers, especially in Iowa’s small towns and rural communities.
    6. Health care is a large part of Iowa’s economy. Health care layoffs and wage cuts will hurt all sorts of Iowa businesses and weaken our economy.

    Iowa’s response must be bipartisan. That’s why at tomorrow’s meeting of the Legislative Council, I will propose that we create a special legislative interim committee to examine Iowa’s health care crisis and offer solutions.

    This committee would look at proposed Medicaid cuts, the collapse of the individual market, the repeal of the Affordable Care Act, and the impact on the state budget.

    Governor Reynolds, please use your influence with President Trump to make sure Iowans can keep their health insurance, to protect rural hospitals and health care providers, and to prevent a devastating blow to Iowa’s economy.

    I hope you will return to Des Moines with some good news.  We need some right now.

     

    Signed,

    Joe Bolkcom

    State Senator

    PDF of letter to Gov Reynolds