Overview / Major Events Week 2 has concluded and there is still NO deal on the need to cut approximately $100 million from the current FY16 state budget. Yesterday afternoon delegations of House and Senate Republican leaders were seen going into the Governor’s office for continued negotiations in an effort to seek resolution on what is becoming a difficult problem to solve. As we are already more than half way through the FY16 budget year, every day that passes means the ultimate cuts that are approved will be that much more difficult for the impacted agencies and programs to absorb. State law requires general fund spending in any year may not exceed 99% of anticipated state revenue. With the December revenue estimate for FY16 being lowered once again, the current level of spending would likely exceed that legal limit – thus, the need for a spending cut during the first part of the current legislation session. With some leaders leaving Des Moines this morning for Washington, DC and the Trump Inaugural activities, resolution of this problem will likely remain as unfinished business until next week. |
November Survey Results at a Glance:
OMAHA, Neb. (Nov. 17, 2016) – The Creighton University Rural Mainstreet Index remained weak with a reading again below growth neutral for the 15th straight month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy. Overall: The index, which ranges between 0 and 100 rose to 36.6 from October’s 31.8. “Farm commodity prices continue to slam Rural Mainstreet economies. Over the past 12 months, livestock commodity prices have tumbled by 27.2 percent and grain commodity prices have slumped by 16.6 percent. The economic fallout from this price weakness continues to push growth into negative territory for seven of 10 states in the region,” said Ernie Goss, Jack A. MacAllister Chair in Regional Economics at Creighton University's Heider College of Business. On average, bankers expect one of five livestock producers, or 20.7 percent, to experience 2016 cash expenses greater than cash revenues. “This is approximately the share of grain farmers with expected negative cash flows for the year,” said Goss. States trending higher: Iowa and South Dakota; States trending lower: Colorado, Kansas, Illinois, Missouri, North Dakota and Wyoming; States treading water: Minnesota, Nebraska. On a more positive note, Michael Flahaven, president of Wenona State Bank in Wenona, Ill., said, “A generous government payment this fall helped keep some farmers' cash flow on the positive side.” Community Bankers of Iowa Political Action Committee (CBI PAC), originally formed in the 1970s, has been vigilant in defense of the views and needs of independent bankers. Last week community bankers around Iowa showed their support of their local legislators by personally delivering contributions from the CBI PAC fund.
Shown meeting with Iowa congressmen are (top left photo): (left) Rep. Dave Maxwell (R-Dist. 76) and Mike Geiger, Vice President with County Bank in Sigourney; (top center photo): (L-R) Dave Caris, CEO-Community Bankers of Iowa, Senator Roby Smith (R-Dist 47), Jay Johnson, 1st Vice President-Quad City Bank & Trust (OCB&T) in Bettendorf, Mark Kilmer-QCB&T Board Chair, Chuck Topinka-Board Chair, Keystone Savings Bank in Keystone; (top right photo): (left) Rep. Lee Hein (R-Dist. 96) and Aaron Zumbach, Market President with Fidelity Bank & Trust in Anamosa. Click each photo to see larger. CBI has evolved their political efforts to concentrate on issues that are of benefit to Iowa’s community banks and their local economies. Our ability to bring forward those issues and projects and to coordinate with other like minded organizations, is supported by our ability to make political contributions to candidates and legislators. 100% of your contributions stay right here in Iowa. Iowa's elected officials and challenging candidates responded to questions about the Farm Credit System (FCS) at CBI's 4th State Fair Conference, a gathering of Iowa's community bankers and Iowa's leadership held yesterday in Altoona. The 80 banks in the Farm Credit System do not have to pay taxes on mortgage loan interest and other banks are lobbying congress to end that tax break. Supporters of the system say it’s a crucial source of financing for all of rural America, not just farmers.
Republican Senator Chuck Grassley says he supports the FCS, but it has operated outside its charter. “They came to my office to talk to me and I brought up some of the loans that were very questionable loans,” Grassley says. “I got the feeling that they were very embarassed by the issues that I brought up with them.” Former Iowa Ag Secretary Patty Judge is the Democrat who’s challenging Grassley this year. “There are probably reforms that need to be made and I would suggest to you that we are going to have a real opportunity to do that next year as we write the new Farm Bill,” Judge says. Republican Congressman Steve King of Kiron says the FCS needs to refocus on helping farmers and agribusinesses stay afloat. “They write their own mission statement,” King says. “I asked the chair of the board that before an Ag Committee hearing some time back and, you know, my message to that was: ‘We may have to help you write that mission statement.'” Kim Weaver, a social worker from Sheldon, is the Democrat who’s challenging King. Weaver says she’s troubled by the FCSs loan to Cracker Barrel. “Even though it has a rather rustic appeal, it isn’t exactly a farm-related business,” Weaver says. “I would look at actually having a little bit more monitoring of that because I really don’t think it’s fair.”
The Governor recently signed legislation that makes a few changes to the trust code, the probate code, and the power of attorney statutes. House File 2335 was sent to Governor Branstad on April 12 after passing though both chambers. HF 2335 deals with amendments and additions to Civil Law Provisions.
The bill had three Divisions: Division 1 provided an additional exception to the general rule regarding notice on transfer of real property of an estate. Section 633.389 of the probate code allowed notice to be waived by all interested parties where real property of an estate was to be transferred. This bill will allow another exception to the notice requirement: where all interested persons are also personal representatives and have signed the petition then notice need not be served. Division 2 of the bill adds a new section to the Trust Code. Section 633A.1109 will be added to the “Definitions and General Provisions” of the Trust Code and provides for the “methods of Notice and Document Delivery – Waiver.” The new provision directs trustees or other individuals who might be required to give notice to a beneficiary or other interested party that notice shall be accomplished in a manner that is reasonably suitable under the circumstances. This can include first-class mail, personal delivery to a last-known address, or by correct email address. Additionally, where the notice or document is sent through the US postal service, service is complete when the mail is given proper postage, addressed to the last known post office address, and deposited in a mailbox provided by the US postal service. Where there is a judicial proceeding against an unknown person with unknown whereabouts, the court can allow for notification by publication. A person can waive his or her right to be notified. This new section will apply to all notices and documents sent on or after July 1, 2016.
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