LEE COUNTY - Lee County Supervisors continue to bang on state legislators against a Senate bill that would "dramatically" impact the county's ability to meet operational funding.
At Monday's regular meeting of the Board of Supervisors, the board approved a hiring freeze from March 1 – Sept. 30 of this year as a first step to help curb increased county spending.
Supervisor Chairman Garry Seyb said he doesn’t want to trigger panic in the discussion or in the public’s perception of the freeze, which was approved 5-0.
“I don’t want to scare people or the headline to read we’re doing layoffs. We’re not doing that – at this time. With the hiring freeze, I don’t want people to feel that way, and I don’t want any employees to be nervous about that,’ Seyb said.
“This is just a way for us to start putting conditions in place to start dealing with budget issues, so we don’t have to lay anyone off. That needs to be the message.”
The move comes as the county looks forward to possible legislation that would mandate counties stay under a $3.50 general levy rate. The county was planning on bumping the levy to help offset the added costs of running an ambulance service and creating an IT department budget, both of which supervisors have said are vital to county operations.
Senate Study Bill 1124 would place a $3.50 cap on the county’s levy and is moving through a Senate Ways and Means subcommittee. Deliberation on the bill is set for Tuesday.
The Iowa State Association of Counties has four lobbyists registered on the bill as undecided and three lobbyists for the Iowa League of Cities are registered against the bill. The Iowa Association of School Boards has two lobbyists registered against the bill. Farm Bureau has three lobbyists in favor of the property tax cap.
Seyb said this is a way of contracting Home Rule designation.
“This body is the one to set those rates, and it shouldn’t be artificially controlled by the state. At that point you’re taking away the power of local control and local people to affect the government directly,” he said.
“The last time the levies were below $3.50 was approximately 40 years ago. Just think about that - the services we’re providing today and the cost of things. Our general fund is our operating budget and if you think about your family and your family’s budget and what it’s done over the past 40 years, it’s done nothing but go up.
“I’ve seen this higher than $3.50, but never seen it below $3.50. For the legislators to now cap counties at $3.50 with all the other expenses we have – I think that’s kind of a big deal."
Renstrom said if the levy were to ever have gone below $3.50 for the basic levy, they would not be able to levy for general supplemental which pays employee benefits including IPERS.
Matt Pflug said he spent about 30 minutes on the phone with the Iowa State Association of Counties and they are undecided on the proposed legislation. Pflug said there are a lot of other things tied to the legislation.
Supervisor Tom Schulz said it all seems to be bad.
“I don’t see a lot tied to it that’s positive, though,” he said. “There is a lot tied to it and most of it’s bad.”
Schulz said the bill is so detrimental to the county that State Sen. Jeff Reichman, State Rep. Martin Graber, and State Rep. Matt Rinker all should be in front of the bill trying to stop it due to the damage it could cause the county.
Seyb said he’s spoken with Reichman and Graber and he said they are still investigating and listening to all options.
“They definitely hear our concerns. They know where we stand.”
Pflug said this could be disastrous for the county.
“It will be disastrous,” said Supervisor Ron Fedler.
Schulz said the larger, more wealthy counties like Polk are seeing surges in their economies, but may be making bad management decisions. Those decisions are driving the legislation, he said, and smaller and more rural counties will suffer the consequences.
“What are we, like, 90th in per capita income out of 99 counties, and in similar position on property values. This will affect the smaller counties much more dramatically and it will affect the poorer counties more dramatically because we just don’t have that base,” Schulz said.
“They’re not fixing a problem, they’re fixing a perceived problem,” Schulz said before doubling down on the issue.
“I have suggested if they don’t get behind us, that they consider moving.”
Schulz said holding to the same EMS functionality will be tough if the new legislation is passed.
"I think it would be safe to say that it would be difficult, if not impossible, to maintain an effective EMS service if the bill passes in its current form," he said.
Seyb said it was incumbent upon the county and other counties around the state in similar financial situations to keep communicating with legislators on the issue. He said there are about 30 counties in the state that are currently over the $3.50 limit.
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