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State Capitol Report

March 18, 2024

Second Funnel Narrows Legislative Focus

Friday (March 15) was a big day in the 2024 Legislative Session with four deadlines converging on this single day. Those include:

 

  • Deadline #1 - The End of the Second Funnel: All policy bills needed to be approved by a committee in the chamber opposite from where it was introduced in order to stay alive.  Tax and spending bills are exempt from the deadline. As a result of the end of the second funnel, all committees except Appropriations, Ways & Means, and Government Oversight are done meeting for the year, unless it’s a Senate policy committee meeting to discuss the Governor’s appointees that require Senate confirmation.

 

  • Deadline #2 - Revenue Estimates: The Revenue Estimating Conference (REC) met Friday to revise their revenue expenditures for the current (FY 2024) and upcoming fiscal year (FY 2025).  The Legislature must assemble their budget using the lower of the two estimates from the December and March REC meetings.  You can view the latest REC spreadsheet here.

 

  • For current Fiscal Year (FY) 2024, the REC predicts revenues will be about $9.6265 billion, which is 2.2% lower than FY 2023.  This is about $120 million below December’s REC estimate and $218 million below FY 2023. 


  • For FY 2025 revenues (the budget the Legislature will soon begin to put together), the REC estimates revenues will be about $9.6978 billion, which is 0.7% higher than the FY 2024 estimate.


  • The REC also does a prediction for FY 2026, which is much harder to estimate.  The three members of the REC were pretty far apart on the FY 2026 estimate before agreeing to meet in the middle and predict a reduction of 1% in FY 2026 (to $9.6008 billion).  


  • Remember that the Governor and Legislature have predicted that revenues should tighten as previously enacted tax cuts are phased in. The REC also noted that the State has amassed roughly $5.46 billion in various savings accounts.  Those include $224 million in the Economic Emergency Fund, $671 million in the Cash Reserve Fund, $1.83 billion in revenues from the current fiscal year which are unallocated, and $2.74 billion in the Taxpayer Relief Fund.  

 

  • Legislators have also been spending less than the 99% limit for several years:
  • 2019 Session Budget (FY 2020): $7.819 billion
  • 2020 Session Budget (FY 2021): $7.823 billion
  • 2021 Session Budget (FY 2022): $8.124 billion
  • 2022 Session Budget (FY 2023): $8.209 billion
  • 2023 Session Budget (FY 2024): $8.517 billion
  • 2024 Governor's Request (FY 2025): $8.919 billion (91%)
  • Amount allowed to be budgeted in FY 2025: $9.576 billion (99%)


  • Deadline #3 - Candidate Filing: Congressional and legislative candidates had to file their paperwork for the June 4th primary election by Friday. Legislators will no doubt spend some time this week looking at whether or not they will have a primary election opponent in June and a general election opponent in November. You can view a current list of candidates here. You can view the maps of the legislative districts here: House & Senate.


  • We now know that 16 legislators are not running again:
  • Sen. Jeff Edler (R-Marshall)
  • Sen. Pam Jochum (D-Dubuque)
  • Sen. Todd Taylor (D-Linn) – running for Linn Co. Auditor
  • Rep. Ako Abdul-Samad (D-Polk)
  • Rep. Brian Best (R-Carroll)
  • Rep. Ken Carlson (R-Woodbury)
  • Rep. Dave Deyoe (R-Story)
  • Rep. John Forbes (D-Polk) – running for Polk Co. Supervisor
  • Rep. Joel Fry (R-Clarke)
  • Rep. Stan Gustafson (R-Warren)
  • Rep. Anne Osmundson (R-Clayton)
  • Rep. Brad Sherman (R-Iowa)
  • Rep. Art Staed (D-Linn) – he running for Sen. Todd Taylor’s seat
  • Rep. Sharon Steckman (D-Cerro Gordo)
  • Rep. Luana Stoltenberg (R-Scott)
  • Rep. Phil Thompson (R-Boone)


  • A few legislators will face a primary challenge in June:
  • Sen. Waylon Brown (R-Mitchell)
  • Sen. Claire Celsi (D-Polk)
  • Rep. Jane Bloomingdale (R-Worth)
  • Rep. Elinor Levin (D-Johnson)
  • Rep. Josh Meggers (R-Grundy)
  • Rep. Mike Sexton (R-Hardin)
  • Rep. David Young (R-Dallas)


  • Forty-nine (49) legislators do not yet have an opponent.  If no one voluntarily runs for a seat from a political party, the political party can nominate someone later this summer.   So there is still time for the Republican Party and Democratic Party to recruit people to run in these uncontested seats.
  • Sen. Adrian Dickey (R-Jefferson)
  • Sen. Mike Klimesh (R-Winnishiek)
  • Sen. Tim Kraayenbrink (R-Webster)
  • Sen. Charlie McClintock (R-Linn)
  • Sen. Janet Petersen (D-Polk)
  • Sen. Jeff Taylor (R-Sioux)
  • Sen. Dan Zumbach (R-Delaware)
  • Rep. Jerome Amos (D-Black Hawk)
  • Rep. Austin Baeth (D-Polk)
  • Rep. Mike Bergan (R-Winneshiek)
  • Rep. Jacob Bossman (R-Woodbury)
  • Rep. Timi Brown-Powers (D-Black Hawk)
  • Rep. Sue Cahill (D-Marshall)
  • Rep. Jeff Cooling (D-Linn)
  • Rep. Zachary Dieken (R-Sioux)
  • Rep. Tracy Ehlert (D-Linn)
  • Rep. Ruth Ann Gaines (D-Polk)
  • Rep. Eric Gjerde (D-Linn)
  • Rep. Martin Graber (R-Lee)
  • Rep. Austin Harris (R-Appanoose)
  • Rep. Helena Hayes (R-Mahaska)
  • Rep. Chad Ingels (R-Fayette)
  • Rep. Dave Jacoby (D-Johnson)
  • Rep. Lindsay James (D-Dubuque)
  • Rep. Craig Johnson (R-Buchanan)
  • Rep. Megan Jones (R-Cherokee)
  • Rep. Bobby Kaufmann (R-Cedar)
  • Rep. Barb Kniff McCulla (R-Marion)
  • Rep. Jennnifer Konfrst (D-Polk)
  • Rep. Bob Kressig (D-Black Hawk)
  • Rep. Monica Kurth (D-Scott)
  • Rep. Shannon Latham (R-Franklin)
  • Rep. Mary Madison (D-Polk)
  • Rep. Ann Meyer (R-Webster)
  • Rep. Brian Meyer (D-Polk)
  • Rep. Thomas Moore (R-Cass)
  • Rep. Amy Nielsen (D-Johnson)
  • Rep. Carter Nordman (R-Guthrie)
  • Rep. Rick Olson (D-Polk)
  • Rep. Sami Scheetz (D-Linn)
  • Rep. Jeff Shipley (R-Van Buren)
  • Rep. Megan Srinivas (D-Polk)
  • Rep. Beth Wessel-Kroeschell (D-Story)
  • Rep. Skyler Wheeler (R-Sioux)
  • Rep. Ross Wilburn (D-Story)
  • Rep. Elizabeth Wilson (D-Linn)
  • Rep. John Wills (R-Dickinson)
  • Rep. Devon Wood (R-Taylor)
  • Rep. Adam Zabner (D-Johnson)


  • Three former legislators are running again - Garrett Gobble, Andy McKean, and Craig Williams. Hiawatha's first transgender city council member Aime Wichtendahl is running for retiring Rep. Art Staed's seat. There are several county supervisors stepping up to run along with the head of the University of Iowa's "School of the Wild" and a former Florida legislative candidate who calls himself "He-Man."


  • It is important to note that two key health policy legislators are retiring - Rep. Joel Fry (Chair of House HHS Budget Subcommittee) and Sen. Jeff Edler (Chair of Senate HHS Committee).


  • Deadline #4 - School Tax Levy: A fourth deadline worth mentioning is the March 15 deadline for school districts in Iowa to set their tax rate for the upcoming school year.  This is usually not an issue, but the Legislature has yet to set the percentage increase in state supplemental aid (SSA) to schools. School districts will need to assemble their budgets (and tax rates) without knowing yet what level of state support to expect.  Typically, SSA is one of the first bills completed every year, but it was delayed this year by the ongoing discussions on teacher pay and reform of the Area Education Agencies (AEAs). 

What to Expect in Final Month of Session


The Iowa Legislature is in its final month of session.  The final paid day of the 100-day legislative session is April 16.  Legislators often go longer but they lose their clerk and per diems. Legislators will now spend most of time in debate or in private strategy meetings (called a “caucus”).  You can watch debate online:

Funnel Survivors, Bills that Failed the Cut

Legislators will have fewer bills to work on when they return to work this week.  Bills that failed to make it out of committee last week are no longer eligible for debate.  As noted above, Ways & Means (tax) and Appropriations (budget) committees are exempt from these deadlines. At this point, the Senate has passed 51 bills out of the chamber, while the House has passed 150 bills.


Funnel Survivors:

  • HF 626 – stopping insurers from switching people to cheaper medications
  • HF 2283 - appropriating $900,000 for an obesity awareness & treatment program
  • HF 2302 - enhancing penalties for health care worker assaults (and adds spitting)
  • HF 2397 – allowing Medicaid reimbursement for ambulance trips to Access Centers
  • HF 2427 - creating an opioid future fund & task force for settlement spending
  • HF 2488 – requiring prior authorization decisions within 48 hours (emergency) or 10 calendar days (non-emergency)
  • HF 2512 - enacting the social worker compact
  • HF 2515 - realigning mental health & social worker licensure requirements
  • HF 2565 - expanding Medicaid coverage to pre-release period in jail/prison
  • HF 2617 – requiring middle and high school students watch fetal development video
  • HF 2634 - removing cap on Housing Trust Fund (increases funding by $3 million)
  • HSB 689 - Governor's recommendations for opioid settlement spending
  • HSB 719 - reduces taxes on casinos by 1%/year for three years.
  • HSB 725 – allowing sale of heated tobacco but does not tax as cigarettes
  • HSB 741 - creating an "easy enrollment health care coverage program" using tax forms
  • SF 2096 - eliminating gender balance on state and local boards & commissions
  • SF 2159/HF 2492 – requiring insurers to cover biomarker testing
  • SF 2251 - expanding postpartum coverage for 12 months (reducing to 215% FPL)
  • SF 2340 - prohibiting state entry/re-entry of previously deported individuals
  • SF 2349 - changing criminal defense subpoena authority
  • SF 2380/HF 2610– adding more restrictions on voting by mail
  • SF 2390 - Senate opioid settlement spending (75% to HHS, 25% to Attorney General)

 

Funnel Fatalities:

  • HF 243 – ending insurance age limits and benefit caps for autism treatment
  • HF 2210 - prohibiting hospitals from denying privileges because of history of MH/SUD
  • HF 2268 – shortening the time for Medicaid to catch errors and recoup from providers
  • HF 2271 - requiring health providers give parents access to minor electronic health record
  • HF 2321 - adding volunteers, students to health care worker assault law
  • HF 2320 - charging "dreamers" out-of-state tuition at state universities
  • HF 2363 - requiring fathers to pay for birth and pregnancy expenses
  • HF 2389 - defining sex in strict binary terms (Governor's bill)
  • HF 2391 - capping nurse staffing agency wages at 150% average hourly rate
  • HF 2395 - defining respite service for medically challenging pregnancies
  • HF 2396 - prohibiting disciplining of students or staff for misuse of preferred pronouns
  • HF 2456 - requiring prescription accessibility for people who are blind or low-vision
  • HF 2461 - allowing loaded guns on ATVs and snowmobiles
  • HF 2486 – allowing licensed workers to carry forward continuing education credits
  • HF 2491 - requiring new construction include radon mitigation
  • HF 2508 - legalizing public expression of breast milk
  • HF 2523 - requiring parental consent for a minor to access social media platforms
  • HF 2546 - requiring schools teach about social media safety and ban access at school
  • HF 2557 - giving state employees paid parental leave (Governor's bill)
  • HF 2573 – requiring those prescribing medical CBD online to follow Iowa rules
  • HF 2584 - allowing pharmacist ordering of over the counter oral contraceptives
  • HF 2585 - giving state employees paid leave for birth or adoption of child (Governor's bill)
  • HF 2591 - requiring sharing or more information about Lyme's disease when testing
  • HF 2608 – requiring non-citizens prove they are eligible for public assistance
  • HF 2623 - requiring all health providers and insurers to use and pay into IHIN
  • SF 326 - allowing pharmacists to order and dispense epipens
  • SF 2064 - prohibiting minors from consenting to HPV and related vaccines
  • SF 2071 - allowing guns to be bingo prizes
  • SF 2214 – capping insurance copays and cost sharing for insulin at $75/month
  • SF 2263 - requiring trans inmates to be placed according to biological sex
  • SF 2286 – allowing health care providers and insurance to refuse to provide services if it is against their religious or moral views (right of conscience)
  • SF 2323 - giving people with untreatable conditions the "right to try"
  • SF 2360 – requiring all insurance types get patient approval before releasing genetic info.
  • SF 2363 - requiring insurance coverage for ovarian cancer testing and surveillance
  • SF 2369 - requiring blood banks to allow storage of blood for individual use
  • SF 2381 - patient's right to save act (similar to no surprises act)


It is important to note that dead bills could be dropped into a budget bill or amended in whole or part into a similar bill.  Where there is a will – there is always a way at the Iowa Capitol. There are three "big bills" that are stirring things up at the Capitol this year. All three made the funnel cutoff and are still live rounds.


  • We are still waiting on the amendment to the bills (SF 2354/HF 2509) that create behavioral health districts to manage funding for local mental health, addiction, and substance use services and move non-Medicaid disability services to a system that includes services to older Iowans.  That amendment, which has not yet been finalized, includes many suggested changes from stakeholders.


  • The House and Senate are still miles apart on changes to the delivery and funding of special education services (HF 2612/SF 2386).  The Governor and Senate are closely aligned with massive changes to the state's area education agencies (AEAs). The House takes a different approach using a stakeholder task force to make recommendations.


  • The House and Senate are also far apart on eliminating boards and commissions (HF 2574/SF 2385). The House bill gets rid of 49 boards while the Senate is looking at double that number (111).  It is unclear at this time whether either side is willing to compromise, so this issue may just be set aside for consideration in 2025.         

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