Capitol Notebook: Gov. Kim Reynolds calls for tax cuts after $1.83B budget surplus

DES MOINES — Iowa will end fiscal year 2023 with a budget surplus of $1.83 billion, Gov. Kim Reynolds announced on Wednesday.

Reynolds said in a news release the surplus is an indication the state is collecting more than it needs in taxes, rather than a sign it is not spending enough, and vowed to pursue more tax cuts in the coming legislative session.

"We’ve seen what the powerful combination of growth-oriented policies and fiscal restraint can create, and now it’s time for Iowans to directly receive the benefits," Reynolds said. "I look forward to cutting taxes again next legislative session and returning this surplus back to where it belongs — the people of Iowa.”

In addition to the general fund surplus, Iowa holds $902 million in cash reserves and $2.74 billion in the taxpayer relief fund. Combined with a projected $233 million Economic Emergency Fund, Iowa's unspent funds total $5.7 billion.

The budget surplus is slightly below what it was in fiscal year 2022, when Iowa ended the year with $1.91 billion.

The state's revenues are expected to decline as tax cuts signed last year take effect, which will slowly reduce the individual income tax to 3.9 percent for all taxpayers in the coming years.

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Republican Iowa Senate Majority Leader Jack Whitver said the surplus indicates lawmakers should pursue "bigger and bolder" income tax cuts.

"As long as I am majority leader, the Senate will continue to reduce taxes on Iowans and in the 2024 legislative session we will again work with Gov. Reynolds and the House to achieve that goal," he said in a written statement.

Democrats criticized Reynolds' tax policies and said she has prioritized corporate interests while neglecting low-income families.

Iowa's top corporate tax rate fell last week to 7.1 percent because corporate tax revenue met thresholds placed in the 2022 tax law.

“Gov. Reynolds talks a big game about relief for Iowa families, but she’s always put rich corporations and special interests first — and she always will,” said Sen. Janet Petersen, a Democrat from Des Moines and ranking member of the Senate Appropriations Committee.

“While Gov. Reynolds is again slashing corporate taxes and promising more giveaways to come, middle-class families still aren’t getting ahead.”

Iowa City VA get $1.5 million for telehealth

The Iowa City VA Health Care System will receive $1.5 million in federal funding to expand telehealth services and health care access to veterans in rural Iowa.

The health care system was one of five rural hospitals in the Midwest to receive funding from the Office of Rural Health as part of a project to increase availability of specialty care and bridge the gap in health care access for veterans in rural areas.

Funding will be used to support technology to expand telemedicine capabilities, including real-time consultations among patients, VA clinicians and hospital specialists.

“The model emphasizes patient comfort and convenience, reducing the burden of travel and providing timely and effective interventions closer to home,” according to a VA news release.

The aim is to promotes cost-effective care delivery without compromising quality, by utilizing telemedicine and advanced practice providers — nurses, social workers and other ancillary services — with physician support.

“Furthermore, it increases rural health care capacity and reduces unnecessary transfers to tertiary care centers,” according to the Iowa City VA Health Care System.

The program also allows providers to receive training and mentorship at the VA hospital, helps with recruitment and retention and promotes collaborative care teams, which improve patient outcomes, the release states.

Pate urges Iowans to turn to trusted sources for election information

Republican Iowa Secretary of State Paul Pate and county election officials are urging Iowans to turn to trusted sources for information ahead of city-school elections this November.

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“There has been an alarming increase in the spread of false claims regarding elections across the country despite there being no evidence of intrusions into Iowa’s election systems,” according to a statement from the Iowa Secretary of State’s Office.

Pate and county auditors said Iowans can be assured elections in the state are some of the safest and securest in the country, and Iowa election officials take multiple steps to ensure election integrity.

Those steps include requiring Iowans vote on paper ballots; publicly testing voting equipment before each election; conducting post-election audits in all 99 counties; collaborating with agencies like the Iowa Office of the Chief Information Officer and the U.S. Department of Homeland Security on cybersecurity protections; and requiring voters to provide an ID at the polls and on absentee ballot requests.

“In addition to the many steps election officials take each year to ensure safe and secure elections in our state, we have 10,000 Iowans who step up each election to be poll workers,” Pate and the county auditors said in a joint statement.

“Poll workers are trusted faces in your community, they are your friends and neighbors. Iowans from both sides of the aisle play a key role in protecting the integrity of our vote, and we have the highest respect for their service.”

Pate’s office has created a website and a five-minute video debunking election myths and detailing security measures Iowa has put in place to protect elections, including how ballots and election equipment are maintained.