On one side are investors who want to deliver CO2 from Iowa ethanol plants to sequestration sites in other states. In an unusual pairing, they’ve been joined by some labor unions. On the other side, are “unusual bedfellows” — environmentalists, farmers, landowners and property rights advocates as well as opponents of large-scale farming and ethanol — calling for the Iowa Utilities Board to reject eminent domain for pipeline construction.
There appears to be some significant ground to cover before the Republican-led Iowa House and Senate reach an agreement on those issues.
Instead of granting the Board of Regents’ ask for an additional $15 million in general education appropriations for the 2023 budget year – bringing the state’s total regents higher-ed allocation to $501 million – the House has suggested keeping gen-ed funding flat while putting $12 million into a new “Iowa Workforce Grant and Incentive Program.”
With just 23 calendar days — which means closer to 18 actual legislative work days, since lawmakers rarely work on Fridays — remaining until lawmakers’ expense reimbursements run out, the push to adjournment begins in earnest next week.
Concerns about the possible use of eminent domain have increased over the past year as three companies have proposed building underground pipelines across Iowa. At informational meetings around the state since November, many landowners have raised concerns about eminent domain, safety of the pipelines and whether the companies should get tax credits for projects that may make money for the owners but not help Iowans or the environment.
In Iowa, the average gas price Thursday was $3.924, but topped $4 in many rural areas according to AAA. However, Iowa lawmakers say they’ve heard little talk of suspending state motor fuel taxes -- 30 cents a gallon state tax on gas and ethanol, and 32.5 on diesel fuel.
Iowa’s state budget is even healthier than experts previously estimated, but over the next two budget years, once newly approved state income tax cuts go into effect, Iowa’s state revenues are projected to decline.
The investigation could be seen as politicians trying to “push their own agenda and inappropriately interfere with a separate but equal branch of government,” House Democrats said in a letter to the speaker and Judiciary Committee chairman.
Iowa workers will see a gradual reduction in the state tax on their paychecks over the next five years, thanks to legislation signed into law Tuesday by Iowa Gov. Kim Reynolds. The tax cuts will be phased in over five years, at which point they will provide tax relief — and thus also reduce state revenue — by $1.9 billion.
A proposal that would shift sales taxes in Iowa and, in the process, finally finance the state fund for conservation and water quality projects appears to be on life support at the Iowa Capitol.
Proposed income tax cuts are on the move, and work on the next state budget has started earlier than normal.
The bill, one of three GOP tax relief plans under consideration, would phase in a four-year gradual reduction in Iowa’s personal income tax rate from the current top rate of 8.53 percent for the highest wage earners to 4 percent for all taxpayers.
K-12 school funding will grow to $3.6 billion, about 44 percent of the state’s general fund budget, under a package approved by the Iowa House.
Requiring fuel retailers to sell ethanol-blended products will not only spur demand for Iowa corn-based ethanol and produce savings for motorists, but promote its use beyond the state’s borders, backers said during debate in the Iowa House.
Republican leaders in both the Senate and House have said they expect to move quickly on the legislative process for their respective plans, likely starting each next week.
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