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Unions could have insisted that the negotiations include items like uniforms, class sizes or other conditions of employment. Under current law, public employers can insist that negotiations only cover salary or benefits.
Union officials said the bill would have been a minor change that has worked in the 27 other states where similar rules are in place. Public employers – such as school districts and city governments – said the bill would have been a major change that would lead to big increases in labor costs.
Republican leaders applauded the veto.
"Culver standing up to his own party illustrates how truly awful this legislation was and how out of touch the House Democrats were with Iowans," said House Minority Leader Christopher Rants, R-Sioux City.
Senate Minority Leader Ron Wieck, R-Sioux City, said the veto is good for just about everyone.
"The true winners today are the Iowa taxpayers," he said.
The bill surfaced in late March when House Democrats added the most controversial elements to an otherwise non-controversial bill.
Legislative Democrats hoped to pass the bill in the House in one day and pass it in the Senate the following day, but Republicans used stall tactics to draw the debate out for several more days.
On the salary legislation, Culver said he didn't want to give himself a pay raise at a time of economic uncertainty.
"I believe it's wrong to say to the people of Iowa that you have to tighten your belts, while elected officials don't," he said.
The governor's annual salary would have risen from $130,000 to $142,570. Four other top officials – the lieutenant governor, auditor of state, secretary of state and treasurer of state – would go from
$103,212 each to $127,530 each. The attorney general would go from $123,926 to $137,330.
Culver is using his line-item veto power to delete the salaries from a larger budget bill. He said he will approve several other items in the bill, including changes to rules for certain local option sales taxes.
Under the new rules, local governments will be able to change the purpose of the tax without needing voter approval. The bill says the change can only be done if the tax is being shifted for use on urban renewal projects.