Iowa Democrats threaten to kill proposed sales tax for schools

By Dan Gearino | Thursday, April 17, 2008

DES MOINES — Senate Democrats are threatening to kill a proposed statewide sales tax for schools unless more Republicans step forward to support it.

“Senate Republicans have abandoned Iowa’s school children,” said Senate Majority Leader Mike Gronstal, D-Council Bluffs, at a Thursday news conference.

The 1-cent sales tax, which would replace a county-based tax of the same amount, passed the House last week, but it hasn’t been scheduled for a vote in the Senate.

Gronstal said he won’t schedule a debate on the bill until he has assurances of more Republican support. He said only three Senate Republicans are on board, short of the seven or eight he thinks are needed to show broad support.

Senate Minority Leader Ron Wieck, R-Sioux City, said his members have legitimate concerns that the $405 million per year from the tax could be scooped for non-educational uses.

“The money’s not protected,” Wieck said.

He thinks Gronstal’s comments are an indication that Democrats are unable to pass the bill on their own because of internal divisions. Democrats hold a 30-20 majority.

Behind the scenes, two powerful interest groups are working on opposite sides of the issue. Iowans for Tax Relief wants to see the bill die, while Iowa Farm Bureau supports it.

The dispute is worrisome for the bipartisan backers in the House, where the bill got support from 42 Democrats and 17 Republicans.

“This is too big of a policy decision to let politics get in the way,” said Rep. Jeff Kaufmann, R-Wilton.

The bill has gotten much of its support from rural legislators because the statewide tax would give more money to rural areas than the current system.

Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.