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As Iowa legislative session passes 100th day, here's what's left on leaders' agendas
State budget, tax cuts proposals and election rules remain unresolved
Caleb McCullough, Gazette-Lee Des Moines Bureau
Apr. 16, 2024 7:57 pm
DES MOINES — Iowa’s majority Republican lawmakers are angling for a quick wrap-up to this year’s legislative session, as they look toward funding the state government and cutting taxes, along with the last remaining policy items on their agenda.
Tuesday marked the 100th day of the legislative session and the last day lawmakers will receive their per diem allowance, which is usually the goal for gaveling out for the year, though the session often goes over that deadline.
But lawmakers are optimistic they will hammer out final agreements between the Republican-controlled House and Senate, as well as the governor’s office, in the coming days.
“We’re going to continue to press as fast as possible to get through session,” House Speaker Pat Grassley said last week. “... I’m not going to make a prediction, but a lot of progress — while it may not feel like it, seeing it happen through legislation. Behind the scenes and working out agreements, that is happening.”
As the finish line looms until next year, here are the top priorities for Iowa lawmakers before they conclude the session.
Budget
Lawmakers are finalizing their plans to spend nearly $9 billion in state funds for the upcoming budget year. Both chambers, along with the governor, have set out budget targets for how much they seek to spend on each area of government, with about an $80 million difference between the two chambers.
Plans to fund the education department, agriculture and natural resources, judicial system and other areas of government have passed out of committees in both chambers, but budget leaders have said the top-line figures are likely to change before being sent to Gov. Kim Reynolds.
Rep. Gary Mohr, a Republican from Bettendorf who leads the House budget committee, said the House was “very close” to a deal with Senate Republicans on Tuesday afternoon, and the agreements could be finalized this week. Lawmakers may be able to finish the session this week, but they could also go into next week, Mohr said.
Reynolds proposed an $8.9 billion budget for the state’s general fund this year, while the Senate proposed spending slightly less and the House proposed spending more. Each proposal is well under the $9.7 billion in revenue Iowa is expected to bring in next year.
Reynolds’ proposed budget would be a 4.7 percent increase from last year’s $8.5 billion in general fund spending.
Mohr said the budget targets House Republicans set are in line with the party’s conservative goals and meet the needs of Iowans.
“We want to provide Iowans with enough government, what they expect, but not too much government,” he said. "Because it's their money, it's not ours."
Rep. Timi Brown-Powers, D-Waterloo, the ranking member on the budget committee in the House, said the budgeting process has moved more smoothly this year than in years past.
Throughout the budget process, Democrats have called for increasing spending in several areas including Medicaid reimbursement, correctional facilities and environmental protection.
Brown-Powers said the higher-spending House budget targets were likely the “best budgets that we’ll see,” and she said Democrats would propose amendments to boost spending in areas they think are needed to improve outcomes and meet Iowans’ needs.
“I think we’ll see really good, thoughtful conversations about what Iowans are telling us about that they want and need, and where, if we were in charge of the budget, we would have maybe done it a little bit different,” she said.
Tax cuts
Leading Republicans agree they want to cut income taxes before gaveling out this session, but the exact amount is not yet clear.
Reynolds proposed a bill to set a flat 3.65 percent income tax for 2024, which would decrease to 3.5 percent in 2025. The bill also included changes to unemployment insurance and property tax cuts for commercial child care centers, among other tax tweaks.
While that bill did not get much traction in the lawmaking process, Iowa Rep. Bobby Kaufmann, R-Wilton, said he was expecting to release an income tax deal between the two chambers this week.
Reynolds signed a law in 2022 that put Iowa on the path to a flat 3.9 percent income tax by 2026 and created a system to lower corporate income tax rates. Iowa’s top income tax bracket this year is 5.7 percent, and it would be 4.82 percent next year if it is not accelerated by a new law.
Iowa’s tax revenues have largely stayed robust as the tax cuts have taken effect, leading Iowa Republicans to call for deeper tax cuts, arguing that the state is collecting more money than it needs.
“Based on our income and what we expect to spend, there is room to speed up (tax) cuts, absolutely,” Mohr said. “I think there is opportunity for us to do that.”
Democrats have continued to argue that income tax cuts — especially a flat tax — disproportionately help the wealthy, who receive the largest windfall from the falling tax brackets. Democrats argue the breaks give no financial relief for the thousands of Iowans who pay no income taxes.
Boards and commissions, elections
Several policy goals set out by majority Republicans this session have already been passed by both chambers, but some bills still remain and may see action in the final days.
Reynolds proposed an overhaul of the state’s boards and commissions this year, following the recommendations of a committee that proposed cutting or consolidating dozens of the state’s administrative boards.
The Senate and House both passed versions of the bill in the last week, but House lawmakers amended the proposal and sent it back for Senate approval this week.
Senate Republicans also have not passed a bill that would alter the state’s election rules, including a ban on ballot drop boxes and a change in deadlines and return procedures for absentee ballots.
Kaufmann, who managed the bill in the House, said he expects the Senate to pass that bill and send it to Reynolds for a signature.
Tom Barton, of The Gazette, contributed to this article.