ISSUE: April 6, 2024

 House Passes Iowa Rural Development Tax Credit Program

House File 2674 passed the floor unanimously this week and would create the Iowa Rural Development Tax Credit Program. Tax credits would be awarded by the Iowa Economic Development Athority (IEDA) for specific capital contributions made to certified rural business growth funds for investment in qualified businesses.

The program provides that a qualified business is any business within this state that has fewer than 250 employees and is not located in whole or in part in one or more of the 12 most populous counties in the state.

Through these tax credits, this bill will incentivize investment into new or expanding businesses in Iowa’s 88 smallest counties.

----It allows up to $27 million in tax credits for investors in projects that will reap at least $45 million in economic activity. 

----By incentivizing investors to put their money into projects in rural Iowa, we can create more jobs, lift up local economies, and build back vibrant communities.

----Under the bill, IEDA begins accepting Iowa rural development tax credit program applications January 7, 2025.

The students of Robert Blue Middle School, Eagle Grove (my alma mater) had a full day of tours while in the Capitol. I had a brief opportunity to speak with them before they departed.

Did you know...

ROBERT DONALD BLUE, Iowa’s thirtieth governor, was born in Eagle Grove, Iowa on September 24, 1898. Blue entered politics in 1934, serving as a member of the Iowa House of Representatives for nine year. Blue won the 1944 Republican gubernatorial nomination and was sworn into the governor’s office on January 11, 1945. Blue left office on January 13, 1949 and retired from public service.

I was fortunate to meet up with my cousin Jane's granddaughter Amelia while she visited the Capitol with her class.

Early Literacy Bill

 House File 2618

---- Reading is the foundation of learning. Students in Iowa are holding steady in reading scores, but we can do better. Currently, 35% of Iowa’s third graders aren’t reading proficiently.

 ----We are the only state in the country that doesn’t require competency in early literacy instruction for teacher licensure. This bill would require students in teacher prep programs to have to take the Foundation of Reading assessment.

----It also states that the schools must report to parents if their student is not reading proficiently in grades 1-6. Parents will then have the option to retain their student in the current grade level if they choose.  It also states that schools must provide students in K-6 with a reading plan until the student is reading proficiently. 

We await senate action.

House Advances Maternal Health Legislation

This week, the Iowa House passed two bills to improve access to maternal health care.

----Senate File 2251 extends Medicaid postpartum coverage eligibility to one year after birth. Iowa currently provides free health insurance to pregnant women up to 375% of the federal poverty level ($117,000/year for a family of 4) through pregnancy and 2 months postpartum. This bill lowers the eligibility for pregnant women to 215% ($67,080/year for a family of 4) and provides health insurance for an entire year after birth. This coverage level places Iowa at the 13^th highest in the nation for eligibility for pregnant women, and targets state support to those with the most need.

----The House also passed Senate File 2252. This bill makes updates to the More Options for Maternal Support (MOMS) program. This bill helps get funding directly to entities that are helping pregnant women who want to keep their children. Helping with prenatal nutrition, improving family economic self-sufficiency, housing, child care, purchasing cribs, car seats, formula, and many more. These entities provide necessary safety nets to women in need who want to bring their child in to this world.

House Releases Budget Proposal for Fiscal Year 2025

----House Republicans released their spending plan for the Fiscal Year 2025 state budget. The House is moving forward with a state budget of $8.9549 billion for the next fiscal year beginning July 1, 2024. The budget outlines an increase of $402.8 million over the current year spending level of $8.5520 billion. 

----As is the case most years, the largest increase in funding in the proposed budget will go to Iowa’s local school districts. Schools will get a 2.5 percent increase in the school funding formula and funds to increase minimum teacher pay, veteran teacher pay, and additional funds for school support staff. The budget plan also includes funding for school safety improvements which the House has also passed this session. 

----Other increases are provided to the various budget subcommittees to address several critical issues facing Iowa. The budget will include new funds that will be used to fund Iowa’s Medicaid program and increase reimbursement rates for health care provider groups. Other areas expected to receive additional funding would include Iowa’s community college system, payments and support to foster parents, support for agriculture. It is expected these bills will begin their trek through the legislative process next week.

DNR Unveils Law Enforcement Alignment

On Tuesday, April 2 the Iowa Department of Natural Resources made public its law enforcement alignment effort. In its fact sheet of the action DNR state that its goals are that the:

   Alignment will merge state park rangers and conservation officers into a single force to increase law enforcement coverage in state parks and other public lands under the DNR’s jurisdiction. Staff with similar functions will be working together in one bureau.

·      Goals include ensuring an increased and consistent law enforcement presence on all public lands and waters, improving communication between internal law enforcement personnel, and distributing the workload more efficiently.

·      All DNR's sworn peace officers will be classified as conservation officers. They will be responsible for enforcing outdoor recreational laws in all public areas.

·      State Park Managers and Natural Resource Technicians will exclusively handle state park operations, such as facilities, camping, and natural resources management, allowing DNR’s sworn peace officers to focus solely on law enforcement tasks.

·      Implementation will be in phases to minimize staff impacts and any savings being reinvested to improve park management and public services.