Members,

 

Last Week

Both the House and Senate held floor debate every day last week following  the February 20^th funnel deadline. The second funnel deadline is March 20^th, when bills must pass out of a policy committee in the opposite chamber. Ways & Means and Appropriations committee bills are exempt from this deadline. Over the next few weeks, both chambers will see an increase in floor debate as they work to get bills to the opposite chamber with enough time to hold subcommittee and committee meetings before the deadline.

On Thursday, Governor Reynolds signed Senate File 2201 into law, setting a 2% increase for supplemental state aid – the k-12 school funding increase that sets the tone for the remainder of the session in terms of budget planning.

“Education is the best investment in Iowa’s future, and one our most important responsibilities. As Governor, I’ve increased the state’s public school funding every year, ensuring the strength of Iowa’s PK-12 schools so all students have access to a quality education. I’m proud to sign into law a 2% increase in state per pupil funding for State Fiscal Year 2027, resulting in more than $4 billion for Iowa’s public schools. Together with state, local, and federal funds, Iowa schools are estimated to benefit from more than $9.1 billion in total education funding next school year.”

“Additionally, the state has invested in our education workforce, increasing minimum salaries for starting and experienced teachers, dedicating additional funds for paraeducators, establishing a merit pay program for teachers, and creating a talent pipeline for teachers and paraeducators through an innovative registered apprenticeship program available in our public school districts. We’ve prioritized evidence-based instruction, training teachers in phonics, equipping students with learning resources, and awarding schools literacy grants to advance reading proficiency. And we’ve increased STEM and work-based learning opportunities to connect students in classrooms to the careers of their future.”

“These investments and more demonstrate Iowa’s commitment to empowering educators, elevating academic standards, and driving accountability to ensure every Iowa student succeeds at school, work and life.”

 

Property Tax

On Wednesday, the Senate Ways & Means Committee held a subcommittee meeting on Governor Reynolds’ proposed property tax bill. The subcommittee advanced the bill, recommending an amendment. Senator Dawson, chair of the Senate Ways & Means Committee, said he would hold another subcommittee meeting on the Senate’s property tax proposal and continue working with stakeholders, the Governor, and the House toward a final bill to reform the property tax system.

The Governor’s bill would:

• Limit the amount of general fund reserves to 10% of budgeted expenditures.
• Cap all local government revenue growth at 2%, but excluding new valuation connected to new construction, debt service, and school funding.
• Prohibit bonding for general operations.
• Create a new $10 million grant fund to assist and incentivize local governments to consolidate and share services.
• Move assessments from every 2 years to 3 years and shift the burden of proof from the taxpayer to the assessor when assessment increases are above 15%.
• Make significant changes to TIF districts, largely reducing allowable uses and limiting projects to public purposes for 20 years.
• Create a property tax freeze for Iowans ages 65 and older with homes valued at $350,000 or less.
• Establish a FirstHome Iowa Accounts Program.
• Allows counties to move from some county officer to appointment versus election.

 

Citizenship Verification

On Wednesday, the Senate debated several bills surrounding citizenship verification requirements, including:

• Senate File 2187: Requires the Department of Transportation to use the federal E-Verify system to verify citizenship and immigration status for individuals applying or renewing a driver’s license or non-operator’s identification card. Passed 42-5.
• Senate File 2203: Requires the state registrar of voters to use the federal E-Verify system to verify the citizenship of all registered voters. Passed 34-12.
• Senate File 2218: Requires the Board of Educational Examiners to require all initial applicants for licensure and all applicants for renewal provide evidence of legal authorization to work as a condition for approval. Passed 47-0.
• Senate File 2412: Requires state agencies, the Iowa Legislature, cities, counties, and school boards to use SAVE and the federal E-Verify program to confirm applicants’ work eligibility. Passed 47-0.

 

Other Bills of Interest

House Study Bill 734: Allows cities to authorize self-supported tourism improvement districts, with the approval of lodging businesses in the district, to assist in acquiring, constructing, installing, or maintaining improvements and providing activities that benefit lodging businesses and attract tourism. The bill received unanimous subcommittee approval on Wednesday.

House File 2242: Establishes a tuition freeze at the Iowa Regent Universities beginning in FY7 through FY2031. The bill passed the House 86-5 on Tuesday.

Senate File 2456: Establishes a standardized rounding amount for cash transactions following the suspension of the penny's production. If the total amount of a transaction, plus tax, ends in one, two, six, or seven, the amount shall be rounded down to the nearest amount divisible by five. If the total amount ends in three, four, eight, or nine, the amount shall be rounded up to the nearest amount divisible by five. The bill passed the Senate 44-0 on Thursday.

 

This Week

Both chambers will continue holding floor debate on eligible policy bills. A subcommittee on the Senate’s property tax reform bill is scheduled for Tuesday.

House Schedule

Senate Schedule

 

Take Care,

Chris LaFerla

President & CEO
Council Bluffs Chamber