Nine key issues for the new Iowa Legislature: From tax cuts to abortion to gun rights

Iowa Republicans are promising more "pro-business," conservative legislation when lawmakers convene in January for the 2019 session.

After delivering on what the Iowa GOP describes as a free-market, economic-growth agenda the past two years, voters rewarded Republicans in Tuesday's elections with retention of their majorities in the Iowa House and Senate and a full, four-year term for Gov. Kim Reynolds.

Many of the races were close.

Reynolds won with the tightest margin in an Iowa governor's race in 62 years, besting better-funded Democrat Fred Hubbell and succeeding in her quest to become the first woman elected Iowa governor. Senate Republicans won 50.2 percent of the overall vote; Democrats won 49.1 percent, a difference of fewer than 7,000 votes. House Republicans actually earned fewer votes statewide than House Democrats, because two dozen Democrats were uncontested in the election.

But the closeness of the races ultimately may not matter — the Republican victories in the governor's, House and Senate races allow the GOP to retain its trifecta of power at the Iowa Capitol.

"We are excited and thrilled," said Iowa Senate President Charles Schneider, R-West Des Moines. "I think it's a real validation of the hard work that we have been putting in to try and make Iowa a better place to raise a family and add jobs and increase incomes."

Look for debate on additional state tax cuts and further efforts to provide employers with more skilled workers. There will be a hodgepodge of other issues that surface, ranging from pension funds to gun rights to addressing problems with privatized Medicaid to increasing staffing levels in state prisons with violent inmates. 

Democrats plan to fight the Republicans on many fronts.

“We will work with the governor and Republican legislators on issues where we can find common ground," said Senate Democratic Leader Janet Petersen of Des Moines. "But, if we continue to see Republicans push an agenda that hurts the health care, education, and financial security of working Iowans, we will be loud and fierce in our opposition."

Here is a look at nine key issues that could be debated in the 2019 session, which convenes Jan. 14 and is expected to adjourn in early May. Many of these issues —education, Medicaid, mental health, gun rights, taxes — were featured in campaign mailers in the days and weeks leading up to the election.

1. Tax cuts

This year, Republicans approved what they described as the largest state tax relief package in Iowa history. It will provide Iowa individuals and small business owners $402 million in state income tax cuts in calendar year 2019. If fully implemented as soon as 2023, the plan will reduce the number of individual income brackets to four, with a top rate of 6.5 percent. The top corporate rate will be lowered to 9.8 percent.

Both Reynolds and Schneider told the Des Moines Register they expect lawmakers will work during the upcoming session to review state tax credits to businesses, which Democrats and some Republicans criticize as corporate tax giveaways.

"I see us doing that, and trying to find a way to continue to reduce income taxes," both for corporations and individuals, Schneider said.

Many Republicans welcome a debate on more tax reductions. Democrats say they fear more tax cuts would erode revenue to provide needed services.

"I think there is a big opportunity here," remarked Drew Klein, state director of Americans for Prosperity, a conservative/libertarian advocacy group funded by billionaire industrialist Charles Koch.

Iowa voters are split on the basic question of whether they are willing to pay more taxes for more government services, according to a recent Des Moines Register/Mediacom Iowa Poll. Forty-five percent said they were willing to pay higher taxes and have state government provide more services. Forty-two percent said they would rather pay lower taxes and have state government provide fewer services.

2. Workforce training

 Reynolds has made her workforce development plan, known as "Future Ready Iowa," a cornerstone of her policy agenda. The goal is to have 70 percent of Iowa workers obtain education or training beyond high school by the year 2025. About 58 percent of Iowans age 25 years and older currently have such education or training.

Lawmakers approved legislation to implement Reynolds' initiative last session, and many Iowa businesses are eager to support state funding to develop a skilled labor pipeline, said Michael Ralston, president of the Iowa Association of Business and Industry.

This is an area where Republicans may find bipartisan support. Democrats also have voiced support for workforce education and training.

3. Education

Iowa voters say that education is one of their top priorities for elected officials.

Republicans have said it is their priority as well. But debates over funding levels for K-12 and state universities will likely continue to roil the state.

The Iowa Association of School Boards and other education advocacy organizations want lawmakers and the governor to extend a 1-cent statewide sales tax for school infrastructure projects.

The tax isn't scheduled to be repealed until 2029. But school administrators say it's important to extend the tax now to 2050 to allow use of long-term bonding. The extension has been debated in previous sessions but has lacked support from some anti-tax Republicans.

Basic state aid to school districts to educate K-12 students will also be a key issue. "Schools are stretched," said Emily Piper, an Association of School Boards lobbyist.

Margaret Buckton, lobbyist for the Urban Education Network and Rural School Advocates of Iowa, said she also expects heightened attention on ways to address teacher shortages.

Funding for Iowa's three state universities is also likely to remain a major topic of debate. Iowa Board of Regents institutions have faced repeated budget cuts, and board members have warned that Iowa’s universities are losing talented faculty and researchers to states with more competitive salaries.

4. Medicaid privatization

One of the hottest issues during the 2018 campaign was a decision three years ago by former Republican Gov. Terry Branstad to shift Iowa's Medicaid system from a state-run system to a privately managed one. Reynolds, who became governor last year when Branstad was named U.S. ambassador to China, has embraced Medicaid privatization, saying the former system wasn't financially sustainable.

But the $5 billion program, which provides health care for 685,000 Iowans, has repeatedly been criticized by patients and medical providers, and even Republicans acknowledge there have been problems.

"I know there is a lot of passion to fix Medicaid, and that will be a high priority," said Sen. Brad Zaun, R-Urbandale. "That is one we need to come together on."

5. Mental health system improvements

Reynolds signed sweeping legislation last session aimed at improving Iowa's mental health services, and she will likely continue that push next year.

House Speaker Linda Upmeyer, R-Clear Lake, said Tuesday night she knows the governor will make mental health care, especially for children, a top priority.

In October, Reynolds was asked if she would support letting counties increase property tax levies for mental health services, or if she would support raising the sales tax for such purposes.

“Those are two ideas we’re willing to look at,” Reynolds responded.

She also predicted there will be support at the Statehouse to find more money to fund mental health services, because last session's bill expanding services passed unanimously.

6. Prison and court staffing

Repeated state budget cuts have led to tight staffing in Iowa's prisons, mental health facilities, court services, human services programs and other state agencies. That's prompted many complaints, including ones that prison correctional officers are in too much danger.

"There are concerns, and the Legislature and this administration have not done anything to decrease them," said Danny Homan, president of Council 61 of the American Federation of State, County and Municipal Employees.

In particular, a series of violent assaults on Iowa prison workers has union officials worried.

During the last legislative session, Iowa Courts Administrator Todd Nuccio warned that courts in 30 county courthouses across Iowa would be forced to close if proposed spending reductions became a reality. GOP lawmakers ultimately pared back the proposed cuts, and no courts were shut down.

7. Abortion and contraception

Anti-abortion groups want to press for further restrictions. Lawmakers approved a "fetal heartbeat" bill earlier this year that would ban most abortions after about six weeks of pregnancy. Reynolds signed it into law, but it’s on hold because of a lawsuit.

In an Iowa Poll before the election, a majority of Iowa adults thought that the restriction went too far and that abortion should be legal in most or all cases. But voters elected anti-abortion majorities, which plan to use that power.

Maggie DeWitte, a spokeswoman for the Coalition of Pro-Life Leaders, said the coalition will meet in a few weeks to develop their legislative priorities. The proposals could include a complete ban on abortion in Iowa, which would face a certain legal challenge.

“Our goal is to eliminate abortion, period,” DeWitte said.

Erin Davison-Rippey, state executive director for Planned Parenthood of the Heartland, said lawmakers should focus instead on expanding reproductive health care.

Data show a 2017 law removing funding for Planned Parenthood and other abortion providers — even though no state funding was paying for abortions — has led to fewer contraception services being available for Iowans.

Separately, Reynolds will be expected to follow up on a campaign promise that she would support over-the-counter birth control. Democrats have pointed out that Reynolds didn’t publicly speak in support of a similar bill backed by Democrats in 2016. Reynolds was lieutenant governor at the time.

8. IPERS

Iowa's largest public employees' pension system has close to $7 billion in unfunded long-term liabilities. That's led some Republicans in recent years to talk about establishing a task force to study the future of the Iowa Public Employees' Retirement System and to introduce legislation to shift newly hired public employees into an alternative retirement plan that's less risky for taxpayers. 

Democrats repeatedly warned on the campaign trail this fall that the monthly pension checks offered by IPERS could be in jeopardy. Top Republicans responded by saying they have no intentions of making any changes. Worries remain, however, among IPERS' 360,000 members. That group includes current, former and retired employees of state government, cities, counties and school districts.

AFSCME's Homan said one of his union's top priorities for the 2019 session is protecting the retirement security of IPERS' members. 

"We intend to hold them to those campaign promises," Homan said.

9. 'Right to bear arms'

The Iowa House and Senate approved a resolution last year to add the "right to bear arms" to the Iowa Constitution. Both chambers must approve the resolution a second time, either in 2019 or 2020, before Iowans can vote on a constitutional amendment. 

The resolution says: "The right of the people to keep and bear arms shall not be infringed. The sovereign state of Iowa affirms and recognizes this right to be a fundamental individual right. Any and all restrictions of this right shall be subject to strict scrutiny." 

Richard Rogers, lobbyist for the Iowa Firearms Coalition, said passage of the "Freedom Amendment" resolution a second time will be a top priority during the 2019 session, and he believes the votes are there to approve it. If his organization succeeds, Iowans would likely vote on the constitutional amendment in November 2020 elections.

Some Democrats contend the wording would add a higher standard in the courts that could prevent lawmakers from enacting reasonable firearm restrictions. Republicans say the language would provide guidance to the courts, to dissuade activist judges from interjecting their personal views when interpreting laws.

Reporters Barbara Rodriguez, Brianne Pfannenstiel and Tim Webber contributed to this story.