Members,

Last Week

Both the House and Senate held floor debates last week, along with committee meetings for Appropriations and Ways and Means. Negotiations are ongoing between the Governor and House and Senate leadership as the scheduled final day of session approaches on April 21^st.

Budget Targets

On Monday, Senate Republicans unveiled their FY 2027 budget target of $9.623 billion. The proposed budget reflects a 1.2% increase over FY 2026. A budget of $9.623 billion would leave the state with a projected ending balance of $4.8 billion, along with the Taxpayer Relief Fund and the rainy day funds at the close of FY27.

“Senate Republicans are yet again coming in with a responsible, sustainable budget for the next fiscal year,” said Senator Tim Kraayenbrink, the chair of the Senate Appropriations Committee. “For years, Senate Republicans have shown our dedication to fiscally responsible budgets, sustainable spending, and ensuring taxpayer dollars are being spent effectively and efficiently. This budget target continues that commitment we have made to Iowans. Over the next few weeks, we are looking forward to having conversations with the House and Governor Reynolds on a budget that fulfills those goals."

“Now that we are getting closer to the end of the session, it is time we start focusing on the budget and how we can continue to conservatively fund the priorities of Iowans,” said Senate Majority Leader Mike Klimesh. “My focus is always on growth and ensuring we are passing policies to help our state grow and thrive. A competitive tax policy and ensuring Iowans get to keep more of their hard-earned money is a crucial part of that goal. The next fiscal year will be our second full year with our historic flat tax for Iowans at 3.8 percent. In the coming weeks we are looking forward to continuing conversations on passing a conservative budget to fund priorities like education and public safety, is fiscally responsible, and keeps money in the pockets of Iowans."

The Senate’s budget target is $47.8 million less than the Governor’s proposed budget released in January. House Republicans have not yet released their FY 2027 budget target yet.

Other Bills of Interest

Senate File 2394: Changes the composition of the Statewide Urban Design and Specifications Board to include both public and private entities. The bill also states that if a city approves a plan that does not meet SUDAS standards, it must cover any additional costs resulting from the differing plan. The bill has passed both the House and the Senate and is now sent to the Governor.

Senate File 378: Increases the default speed limit to 60 mph on county highways. The bill passed the House with a 76-16 vote.

Senate File 2470 requires obtaining a permit from the Department of Revenue to conduct trading of event-driven contracts on prediction markets in Iowa, with an initial fee of $10 million. The bill establishes an annual 20% tax on the adjusted revenues received from prediction markets. The bill passed the Senate 45-1.

 

Next Week

Next week, the House is expected to release its budget targets, and both chambers will hold limited debate as leadership continues negotiations on key issues like eminent domain, property tax, the Governor’s priorities, and the budget.

House Schedule

Senate Schedule

 

Take Care,

Chris LaFerla
President & CEO
Council Bluffs Chamber