GOP, VILSACK AGREE ON TOP ISSUES THIS SESSION, LEADERS WILL GRAPPLE WITH

Fighting Meth And Debating Tax Cuts And Education

Gov.-elect Tom Vilsack and Iowa's top Republicans agree that the
methamphetamine fight, tax cuts and education will be the top
priorities on the table for next year's agenda, but they disagree on
how taxes and education will be handled.

Vilsack and legislative leaders from both parties discussed the coming
session during a meeting with Iowa reporters Friday.

The governor-elect and party leaders said they expect a less partisan
session in the Iowa Legislature, but they also said there will be
disputes on key agenda items pushed by Republicans, who control the
Legislature, and Vilsack, the first Democrat to govern Iowa since 1968.

"The fact is there will be a healthy debate on how much to cut taxes
and how much to spend in education," said Iowa Senate Minority Leader
Mike Gronstal, D- Council Bluffs.

One area Vilsack said he believes both he and Republicans will agree
on is the issue of methamphetamine. The state has seen a growing tide
of meth labs and users in the past couple of years, and Vilsack wants
a comprehensive package to address the problem.

Vilsack said only about 10 percent of the drug used in Iowa is
produced in the state. He wants to talk to federal leaders about ways
other states can stop the flow of methamphetamine.

Vilsack and Republicans want to increase funding for state drug
enforcement agents, and Vilsack suggested using the Iowa National
Guard for interdiction. However, he said demand must be slowed by
treating addicts and educating young people about the dangers of the
drug. He said parents, religious leaders and community activism must
all play a role in curbing the use of meth.

"This particular drug, in my view, is the most dangerous drug we've
had to deal with," he said.

Vilsack also advocated the use of drug courts, a resource also
suggested by Pottawattamie County Attorney Rick Crowl, who has spoken
extensively on the issue.

House Majority Leader Brent Siegrist, R-Council Bluffs, said he didn't
know whether that would require a state appropriation or whether
funding from those courts comes from federal coffers.

"But if there is anything we can do to help with local involvement we
will," Siegrist said.

In the area of taxes, Democrats and Republicans are supportive of
property-tax cuts but might have differing agendas on those reductions.

House Speaker Ron Corbett, R-Cedar Rapids, has proposed a $200 million
tax-cut package, of which $100million would come from increasing the
state's portion of the school-aid formula by 3.75 percent, which would
allow counties to scale back local property-tax levies.

Republicans also want targeted tax cuts on Social Security,
inheritance and pensions that would amount to another $100 million.
They have pulled their plan offered by former gubernatorial candidate
Jim Ross Lightfoot for a 25 percent income-tax reduction. Corbett said
the Republican plan should be right in line with Vilsack's tax strategy.

"He supported this kind of tax relief in the past, so we expect he'll
do the same in the future," Corbett said. "I think he will look very
favorably at this proposal."

Vilsack said that there definitely will be a tax cut but that he
hasn't hammered out a plan with Democrats because the party's
legislative caucus won't take place until next week.

During the campaign, Vilsack advocated having the state take over
funding for mental-health programs, which is now evenly split between
state money and local property taxes. That plan would save about $100
million in property taxes.

"We agree there will be a tax cut; the magnitude and size of the tax
cut is open to debate," Vilsack said.

In education, Republicans want to look at modifying state policy and
test children for competency at an early age. Senate Majority Leader
Stewart Iverson, R-Dows, said he was against taking $60 million in
gambling money annually paid to the state's general fund and shifting
it to pay for school infrastructure.

Iverson said that plan rewarded school districts that haven't made
their own efforts to refurbish buildings.

Republican leaders also noted that they passed legislation offering
voters the chance to give school districts a 1-cent sales tax for
building improvements.

Vilsack said he and Lt. Gov.-elect Sally Pedersen have spent much of
the past month going over budget issues and educating themselves on
the process of selecting gubernatorial appointees. Vilsack said he
would like to improve on the budget process and search for savings in
individual departments.

"One of the frustrations of the process is that we really aren't in a
position to know whether the $4.5 billion spent this year is being
spent in the most effective way," he said.

About 200 people in state government, including 26 department heads,
work at the will of the governor. Vilsack said some department heads
have indicated a desire to stay while others are looking for other
opportunities.

Vilsack has been assisted by volunteer state employees and workers
from human resource departments in private firms, such as Wellmark
Blue Cross and Blue Shield, who are helping the governor-elect pull
together his departments and staff.

"Everyone in state government found it surprising that there was no
list of jobs appointed by the governor," he said. "We've been putting
a list together by going though the state statutes. ... One of the
reasons we haven't accelerated the personnel process more quickly is
because of the budget."

Checked-by: derek rea