The 2023 Session of the 90th General Assembly of the Iowa Legislature officially completed its business on Thursday, May 4th. Adjournment came near the end of Week 17 on Session Day 116, a short six days into overtime.
The Governor now has 30 days after the end of session to take final action on all the legislation sent her direction. The last two weeks of the session were very eventful, with the Legislature coalescing around a major property tax reform proposal (HF 718). The tax bill was passed by both chambers, 49-0 and 94-1, on Tuesday, May 2nd, and signed into law by Governor Reynolds on Thursday, May 4th.
The final tax reform package represents a combination of some of the House and Senate tax bills that had been presented earlier in the session. The biggest component to the bill consolidates county and city levies and limits revenues from one year to the next. The bill contains a number of other provisions, referencing bond thresholds and dates, reporting requirements for information to taxpayers, and changes to exemptions and fees. A summary of the bill can be found HERE.
With the state’s reorganization of many departments, tracking the budgeting process was complex, as programs shifted from one department to another. Here are where a few economic development priorities landed:
Economic Development: Empower Rural Iowa, Community Cultural Grants, Main Street Iowa, Tourism Marketing and Future Ready Apprenticeships remain the same.
Education:
- No change to the last dollar scholar program, future ready skilled workforce grant program, skilled workforce shortage tuition grants, workforce training and economic development funds, community college capital projects, PACE program, and STEM Best.
- Creates a new Iowa Workforce Grant & Incentive Fund ($6.5 million), which provides grants for up to four semesters to students pursuing high-need, high-wage degrees. Requires the Board of Regents to create a list (updated biennially) of these high-wage and high-demand jobs with corresponding academic majors for use by the program, (defined as entry level salary >$40,000, requires BA or teaching license, and have at least 250 job openings in the next five years (or annual growth in job vacancies < 1%).
- Adds new $2.8 million appropriation to ISU for preparing Iowa's future ready workforce and fostering innovation (growing the number of degree and certificate programs in AI, cybersecurity, computer engineering, data science, and other high-demand technology fields).
Rebuild Iowa’s Infrastructure Fund (RIIF) Budget
The total estimated revenues that legislators had to work with on the RIIF budget this year fell from an estimated $344 million in FT 2023 to an estimated $274 million in FY 2024. This reduction is predicted to continue as gaming establishments in Nebraska eat into Iowa’s gambling revenues.
No Change:
- Community Attractions & Tourism (CAT) grants ($10 million)
- Lake restoration ($9.6 million)
- State park infrastructure ($5 million)
- Recreational trails ($2.5 million)
Increases/New:
- Establishes a new Destination Iowa Fund ($6.5 million) in the Iowa Economic Development Authority to provide vertical infrastructure project grants to projects that are economically significant and increase tourism opportunities, develop and enhance outdoor recreational opportunities, and contribute to quality of life in rural communities.
CLICK HERE TO REVIEW THE ENDING STATUS for other bills supported by PDI.