An analyst with the Iowa Department of Agriculture believes the bump up in gas prices right around Christmas was a temporary thing. Harold Hommes monitors prices, and says it appears retailers were looking to up their margin a bit during the holiday season. “I think it’s really kind of just a temporary bubble that’s gonna happen as we’ve draw down some supplies at the retail level, and that sends movement through pipelines. I think they’re (retailers) are just capturing some opportunities that exist because of some seasonal increases in driving,” Hommes explained. He says retailers have had trouble keeping their margins up recently as demand had dropped and supplies were up, and are taking advantage of an increase in use to make a little more on gas. But, he doesn’t expect what had been a jump up of 10 cents or more a gallon to continue as the new year progresses.

“I don’t think we should interpret that as a turnaround, where things are going to go back up,” Hommes says. Gas prices had dropped below three-dollars a gallon the week before Christmas in many areas. It was the first time since December 2011, according to Hommes, that the price had dropped below three-dollars a gallon in the state.  “I would say at least a quarter to a half of the state saw prices under the three-dollar mark, but when you look at our weekly average, we never quite got that far as a state average,” Hommes says. “So certainly the majority of Iowans did not quite see the dip below three dollars.”

The Des Moines metro dropped below three-dollars a gallon before other areas, and Hommes says that’s just a matter of being closer to the source of the gasoline supply. “The further that any market is –whether it is a small town or a large town — the further that any consumer is from a pipeline terminal, there’s a good chance that they’re going to see elevated retail gasoline and diesel prices,” Hommes says. The average price of a gallon of gas last week in Iowa was three-dollars-13-cents. The national average was three-dollars-26 cents.

Iowa lawmakers have been quibbling over the proper way to reduce commercial property taxes for years and the issue is again at the top of the 2013 Iowa legislature’s agenda. Republican Governor Terry Branstad considers it his number one priority.  “Significant property tax reduction and replacement,” Branstad says. It’s that last word — replacement — that has Senate Democratic Leader Mike Gronstal of Council Bluffs suggesting a corner may be turned, as Branstad is making it clear he supports sending state tax dollars to cities and counties — to replace reduced commercial property tax revenue.

“The key for us was that there be reimbursement of local governments because it there isn’t reimbursement, there is a tax shift,” Gronstal says, “and residential picks up the tab.” House Speaker Kraig Paulsen of Hiawatha, the top-ranking Republican in the legislature, says he’s been careful about what he’s saying in public about the negotiations. “To see if we can find some opportunities here,” Paulsen says. “I mean I never professed that the House Republican plan was the perfect plan. We obviously like it…but we have a willingness to be flexible, as long as our overall goals are met.” Gronstal says the details are still being debated in private. “There’s no deal at this point,” Gronstal says. “There’s a lot of discussion points going on.”

Senate Republican Leader Bill Dix of Shell Rock is pessimistic about prospects for agreement.  “If you’re going to solve problems, you have to listen to people,” Dix says. “I don’t necessarily believe that it’s not possible, but it seems to me in listening to the Senate Democrats, they appear to be more dug in than ever on insisting that the solution lies in a new tax credit.” Last year Senate Democrats proposed a new property tax credit for small business owners. House Republicans, meanwhile, proposed rolling back property tax rates for all commercial property owners.

House Democratic Leader Kevin McCarthy of Des Moines says everyone has to be prepared to compromise.  “I have suggested that we should do something that is modest but meaningful, to get our foot in the door and then maybe have a longer phase-in period over time so that communities can absorb this change,” McCarthy says. According to McCarthy, the odds are better than 50-50 that the legislature will, finally, take some step toward property tax reform in 2013.  “People have to be willing to take something that is not all they want, but that is politically do-able,” McCarthy says.

The Iowa legislature convenes Monday, January 14th.

(Radio Iowa)

Groups that rescue donkeys in Iowa and Nebraska are working together to find homes for several animals. Stephanie Shehan is one of the directors at Lusco Farms Donkey Rescue in Malvern, Iowa. That organization recently teamed up with Epona Rescue near Crete, Nebraska, to save the creatures.  Shehan says a Nebraska woman called after her father died and she didn’t know what to do with a donkey. Lusco Farms rescued two donkeys, while coordinating with Epona to find homes for a mule, a pony and her colt. Shehan says the animals were in good health and had received great care, in fact, they’d been spoiled a bit too much.

“Only one has hoof issues and other than that, they’re just a little, well not a little overweight, they’re quite overweight,” she says. “The gentleman was feeding them Twinkies.” They’re on diets now, thanks to a vet’s advice. She says it’s fortunate for the animals the groups were able to work together, if nothing more than to save money on feed. Hay prices due to drought have skyrocketed. Shehan says more people are contacting Lusco Farms Rescue and to surrender their donkeys, mules and horses because they can no longer afford to feed them.

“The hay issue has become a very wide problem,” she says. “We’ve had numerous people email. We’re mainly trying to find foster places for these animals.” Learn more at: www.luscofarmsrescue.org

(Radio Iowa)

The Lenox Police Department says no injuries were reported following a single vehicle accident early Tuesday morning.

Photo courtesy the Lenox Police Dept.

The crash took place just before 7-a.m. at the intersection of Brooks and Ohio Streets, when Tuesday a 1997 Chrysler owned by Debra Morehouse of Prescott and driven by 20-year old Jesse Harrison, of Prescott, crashed into a utility pole.  The accident happened as Harrison was northbound on Brooks when he fell asleep and lost control of the vehicle, which hit a utility pole and a sign pole. The damage amounted to $10,000.Harrison was cited for failure to maintain control.