Marion Economic Development maintains a strong public policy voice through partnerships with Professional Developers of Iowa and the Cedar Rapids Economic Alliance. Throughout the session, we’ll share timely information on public policy topics the align with our core areas of work. These updates are primarily provided by PDI Lobbyist Craig Patterson. If you have any questions on proposed legislation or other policy topics important to your business, please contact MEDCO President Nick Glew.
Tax Reform Positioned to Headline Legislative Session
By PDI Lobbyist Craig Patterson.
The Iowa Legislative session got underway last week. The first days of session are largely ceremonial with the leaders in each chamber giving speeches outlining their priorities for the session.
House leadership speeches can be viewed at this link.
Senate leadership speeches can be viewed at this link.
The Governor presented her budget and priorities to the Legislature on Tuesday in a primetime address. (You can read her speech HERE.) The main topics were instituting a flat 4% state individual income tax, eliminating taxes on retirement income, allowing school choice, changing Iowa’s unemployment system, creating teacher and health care apprenticeship programs, capping some noneconomic damages in lawsuits, supporting ethanol and biodiesel, continuing to improve Iowa’s childcare system, and proposing retention bonuses for teachers and public safety and corrections officers.
As is the custom, the Governor also released her Fiscal Year (FY) 2023 budget Her budget serves as the first shot across the bow in the budget process. Legislators will keep her proposal in mind as well as the December and upcoming March revenue numbers as they craft their budget bills later in session You can view one of the Governor’s comprehensive budget proposal documents HERE.
The Governor’s budget proposes to spend $8.2017 billion out of the projected $9.2106 billion in revenues, or 89% of incoming revenue. The Governor’s overall expenditures would increase by only $83.2 million over FY2022, but the budget does include an increase for K-12 school funding of 2.5 percent (or $154.1 million).
Throughout the session, use PDI’s Bill Tracker to follow legislation being tracked by our team.