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Reynolds Deilvers Condition of the State Address a

Media Center:Reynolds Deilvers Condition of the State Address as Legislative Session Opens

Last Updated: 1/15/2021 2:22 PM

Reynolds Deilvers Condition of the State Address as Legislative Session Opens

Gov. Kim Reynolds delivered her annual Condition of the State address. She outlined several priorities of importance to Iowa banks that will impact Iowa’s economy. They include:

  • Competitive tax policy — The 2018 tax reform package required a 4% revenue increase that would trigger the top individual income tax rate to drop from 8.53% to 6.5% and consolidate individual tax brackets from nine brackets to four brackets. Reynolds is proposing to eliminate the trigger so the tax cuts will go into effect by 2023.
  • Broadband connectivity — Ensuring access to high-speed broadband to all Iowans by 2025 and requiring that all providers install at least 100 megabits per second download and upload speed for all projects that receive grant funding. The governor is requesting $150 million per year for three years to fund the project.
  • Child care — Providing $3 million to fund the Child Care Challenge Fund; $25 million in CARES Act funding to promote child care startups within child care deserts; $7 million for the WAGE$ program for salary stipends for the early child care workforce; $38 million in total for monthly stipends to facilities offering child care to low-income families; and increasing the Early Childhood Development and the Child and Development Care tax credit eligibility from $45,000 to $90,000.
  • Housing — Increasing the Workforce Housing Tax Credit from $25 million to $50 million; establishing the Iowa Housing Tax Credit program ($15 million in tax credits addressing the housing need for the lowest income Iowans); and increasing funding to the State Housing Trust Fund by removing the current cap on funding.
  • Future Ready Iowa — Increasing funding for the Last Dollar Scholarship program by $10 million; providing $1.2 million for the Employer Innovation Fund; and establishing specific goals for work-based learning within K-12 schools.

Watch the Condition of the State address.

The first day of the Iowa legislative session was highlighted by a robust but peaceful protest, and the procedures for how the Legislature plans to operate during the pandemic were outlined. Iowa Bankers Association lobbyist Sharon Presnall said the full session will look a lot like the one-week special session that was held in June. “It is difficult to vet bills in the current environment, so I think it will be an abbreviated session with a fairly narrow focus,” Presnall said. In addition to the state budget, the Legislature is also required under the constitution to approve a reapportionment plan based on the new census data. Typically, the maps are available early in the session but due to COVID, they won’t be available until late May, which will likely result in another special session in May or June.

The IBA will keep members apprised throughout the legislative session of bills that will impact banks and Iowa’s economy. The IBA also encourages members to reach out to their legislators throughout the session to discuss issues that will impact their banks. Legislators’ contact information can be found in the 2021-22 Legislative Directory or by using the IBA's Legislator Look-Up tool. To request a printed copy of the Legislative Directory, email gr@iowabankers.com.

 

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