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Under the leadership of fifty dedicated volunteers, Hillcrest’s Help for Today, Hope for Tomorrow Capital and Endowment Fundraising Campaign has been completed. Launched in the spring of 2002, the campaign was the largest ever undertaken in the 107 year history of the agency.

Those making lead gifts to the campaign included:

By meeting the terms of the fundraising challenge from the Kresge Foundation of Troy, Michigan, the agency secured a Kresge Challenge Grant in the amount of $150,000. In the first of three grant cycles in 2002, Hillcrest was one of only 158 grants made out of 565 national and international proposals received by the Foundation.

The main objectives of the capital and fundraising campaign were:

Gary Gansemer, Executive Director/CEO of Hillcrest noted that the campaign goal was surpassed by more than $100,000. He said, “The broad-based support we’ve received from throughout the entire state of Iowa has been fantastic. Throughout the campaign, we’ve benefited greatly from the tremendous leadership of the volunteers who helped raise the funds.”

“This building was the first addition to Hillcrest since its founding in 1896 by Dr. Nancy Hill,” said Gary Gansemer, Executive Director/CEO, at the ceremony. “Thanks to the leadership of Barbara Butler and her colleagues on the Board of Trustees, the building became a reality at a critical time in the agency’s history. It gives us great pride to rename the building in Barbara Butler’s honor, and to rededicate the cornerstone and entire facility in commemoration of the foresight and compassion that she and the other board members of the time had for children.”

Tim Conlon and Wes Heitzman, present and former members of the Hillcrest Board of Trustees, participated in the laying of the cornerstone. Thirteen members of the Butler Family were on hand for the ceremony.

Robert and Ruth Kehl Dining Center
The central kitchen and dining area at Hillcrest was originally built to serve 16 people, but had evolved into the central food preparation and eating area on campus, serving up to 125 children a day. A total renovation of the area, plus the addition of new equipment, was undertaken and completed during 2003.

I will miss the attention that was paid to this state by politicians and the media that used to confuse us with Idaho and Ohio. It seemed like Iowa was the focus of all the hope for the future. I got into the process by proudly displaying a yard sign. Not for any one candidate, but a nonpartisan one that said,“Running for President? Iowa Votes for Kids.” My friends asked me how many presidential candidates saw this sign. Based upon their turnout in Iowa, I think at least a few did.

Now I reflect and wonder if Iowa really does vote for kids. Kids were part of the focus of the campaign. There was talk of No Child Left Behind, but that was mostly in anger at President Bush. Kids were also gathered close to the candidates at almost every stop. But does this mean that Iowa really will vote for kids?

The best answer to this question will come from not the New Hampshire bound candidates or the President’s State of the Union address tonight. It will come from the actions of our real friends and neighbors — our Iowa state legislators. These are the people who are with us even when CNN has left the state. They are the ones who will decide the fate of Iowa’s children.

Last week, I spent two days in Des Moines at the start of the Iowa Legislature. All of the legislators were back in our capitol to deal with the economic problems of our state. By almost all accounts the state of Iowa will be in a deficit spending situation of $330 million for FY 2005, if all the present obligations are met and the revenues stay at the same level.

The Governor proposed in his State of the State address that we raise cigarette taxes, adopt first time sales taxes on certain services, and close loopholes that only the wealthy have. It was a bold move, but his vision was met with extreme skepticism. Legislators told me that 70% of Iowans are against a tax increase. Republicans said they would not approve tax increases, and Democrats realize that since they cannot overcome the Republican majority, they don’t want to upset the voters in an election year.

Upon returning to Dubuque, I found that Governor Vilsack was here to talk about his proposals. He proposed his increases in order to restore funding for education and public safety. That sounded great, but when I asked him about the state of children and families and persons with disabilities, he spoke of initiatives that were under study that would make child welfare more efficient (translate into less costly) and that would revamp mental health services in the future.

There was no mention that the state is spending $30 million dollars less on children and families than they did three years ago. Nothing was mentioned of the need to take care of the problem of over 221 children today, who are court ordered into group foster care and cannot receive those services because of lack of money. Nothing was mentioned of the fact that adolescent emergency shelters have over 200 more children than budgeted because of the lack of funding for more intensive intervention services. Nothing was mentioned of the families that are not receiving family centered services because of the budget. Nothing was said about Iowa voting for kids.

The Governor rightfully challenged me to help him not be a voice in the wilderness on revenue enhancement. It will take the voices of friends, families, donors and leaders of Hillcrest and all the providers of services to rise up and say that revenue increases should be approved and that they must be directed to children and families.

Family participation is often an important part of residential treatment for adolescents. Although children come to Hillcrest for individual treatment, family involvement is often a necessary adjunct to the successful completion of their program, and involves participation in family therapy sessions.

Many of these families have to travel long distances, and don’t have the necessary funds to travel to Dubuque and then stay at a motel while they are here. That’s where Reflections House will come in. Once finished, it will provide a home-like environment for them in which to live while here for involvement in their child’s treatment and participation in family therapy sessions. The building will include five bedrooms and a fully functioning kitchen. At times, it will also be used to help adolescents acquire independent living skills which may be utilized once they leave residential treatment. When not being used for these purposes, the facility will provide additional space for Hillcrest therapists and counselors.

Former Executive Director, Don Lewis, first envisioned a home of this nature on the Hillcrest campus. The idea has also been warmly embraced by Sharon Faley, the chair of the lights event, who says she is “... thrilled that funds from Reflections in the Park are being used to make this dream a reality.”

Volunteer bowlers form teams to bowl, and members of the teams solicit contributions from individuals and organizations to sponsor them in the event. Participants enjoy an exciting, fun-filled time of free bowling, lots of food and a fantastic array of prizes.

For more information, or to learn how you may participate as a sponsor, donor or bowler, contact one of the following staff at 563-583-7357, toll free at 877-437-6333 or via e-mail at address indicated:

$10,000 from the Ronald McDonald House Charities of Iowa and Southern Minnesota - with the support of the Freihage Organization and McDonalds Restaurants of Dubuque - to help pay for the central kitchen renovation for at-risk children.

$2,000 from Target Stores - to Big Brothers Big Sisters of Dubuque County, a program of Hillcrest Family Services, to assist the program in attracting enough qualified male adult mentors to accomodate all of the male youth waiting to be matched, and to build a “waiting list” of male adults.

$1,250 from Very Special Arts-Dubuque for the Play Therapy program.

How do you handle an IRA or Qualified Pension Plan when it comes to planning for the distribution of your estate?

While IRA accounts and Pension Plans provide for attractive tax benefits during your working years, they are subject to significant (if not colossal) tax consequences when dealt with at the time of death.

Funds which reside in these plans at death are first reduced by the applicable death taxes — both federal and state. Then, since contributions to a qualified plan during life represent untaxed ordinary income, they are subject to federal and state income tax . . . even when transferred to children.

The result of these three tiers of taxation can mean that the ultimate benefit of an IRA or Pension Plan that is realized by your family may end up being much less than anticipated . . . even minimal!

Statistics indicate that the majority of individuals who establish and contribute to a qualified retirement plan take only minimum withdrawals for a number of years after age 70 1/2. As a result, many retirement fund balances do not diminish until retirees are well into their eighties. The result of the growth that takes place in these funds is that IRAs often end up representing sizable estate assets at death.

For example, a one million dollar IRA could be subject to federal estate tax, state inheritance tax, and federal and state income tax. The net result of this taxation can easily approach 70% . . . leaving only 30% for the children . . . or $300,000 of the original one million dollar plan.

A second bequest option - one which makes it possible to bypass both income and estate tax - is to transfer all or a part of the IRA or Pension Plan to a qualified charitable organization. For individuals planning to make a charitable bequest, this option is attractive. Utilizing this strategy, ordinary income assets (like the IRA or Pension Plan) are transferred to charity without tax, and assets like stocks, bonds, and real estate are transferred to family.

Personal and family objectives should determine how you plan for the distribution of your retirement plan funds. Different options can help meet individual objectives; however, careful consideration of the tax implications, along with some expert advice from your planning professional, can help insure that the nest egg you’ve worked so hard to put together doesn’t fall prey to costs and taxes that can greatly diminish its value. Ask your professional advisors if this type of gift would work in your estate plan.

The charitable gifts must be made to a permanent endowment fund in a “qualified” community foundation for the benefit of one or more Iowa charitable causes. Individuals, corporations, or financial institutions can take advantage of this incentive.

The tax credit is 20% of the gift amount and is limited to $100,000 per taxpayer which is the maximum credit on a gift worth $500,000. The credits can be used against 2004 taxes, and any excess credit may be carried forward for up to five additional years.

Here’s an example of how this amazing new legislation can benefit you. Let’s say that you would like to benefit Hillcrest. You make a gift of $10,000 (or more) of securities to the Community Foundation of Greater Dubuque (a’“qualified community foundation”) in a permanent endowment fund. You would be eligible for a 20% Iowa tax credit on top of the existing federal and state income tax deductions for charitable gifts. You will receive a tax credit letter from the Iowa Department of Economic Development and you are eligible to use the credits against taxes for 2004 or longer. Each year thereafter, Hillcrest will receive up to five percent of the fund balance from your newly created fund