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Davenport Promise grinds to sudden halt in Iowa Senate

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By Dan Gearino | Thursday, April 17, 2008 4:36 PM CDT | () comments

DES MOINES — A bill that would let Davenport use local option sales tax proceeds for college scholarships has run into a wall in the Iowa Senate.

The Senate began debate Thursday on the proposal, known as Davenport Promise.

Minutes into the debate, Sen. Dick Dearden, D-Des Moines, asked that the bill be set aside so he could work on possible amendments. Afterward, Dearden said he is deeply troubled by the bill for many reasons.

“It may help some poor kids, but most of those kids aren’t going to go to college anyway,” he said.

The soonest the Senate can revisit the issue is Monday.

The bill’s lead sponsor, Sen. Joe Seng, D-Davenport, acknowledged that Thursday’s events were a bad omen. The bill needs to pass the Senate and then pass the House before the Legislature adjourns sometime next week.

“Time is of the essence,” Seng said.

The bill would allow Davenport to add another penny to its one-cent local option sales tax. The current sales tax is used for property tax relief and capital improvement projects. The second penny, if the Legislature allows it, could be used to fund the Davenport Promise.

The Promise would provide funding for students from Davenport to go to two- or four-year colleges or universities. A task force has been appointed in Davenport to study the proposal.

Dearden is one of several Senate Democrats who view the sales tax as overly regressive, meaning low-income taxpayers pay a disproportionately high share. He doesn’t think low-income families will get enough benefits from the plan to cover their costs.

In addition, Dearden thinks the bill sets a bad precedent in the way it is tailored to one city. If it were to pass, he thinks other cities would come forward and ask for the same deal.

Seng said he will work on the issue until the final gavel next week, rounding up votes in the Senate and then, hopefully, the House.

“I’ll give as much as I can give,” he said.

The bill is separate from a proposed rewrite the school infrastructure local option tax, or SILO, which is another item on the Senate’s agenda.

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