Proposed Budget Highlights
The governor said her vison for Iowa is focused on the following areas: cutting taxes for all Iowans; making Iowa an employment destination; improving access to childcare; building Iowa’s health care workforce; preparing students for high-demand careers; providing educational choice and transparency for Iowa families; and growing the fuels of the future. Specific proposals include:
Cutting Taxes for All Iowans
- Establishing a flat 4 percent individual income tax rate.
- Eliminating retirement income tax.
- Exempting net capital gains on sales of employee-awarded capital stock.
- Reforming Iowa’s corporate tax rate.
Making Iowa an Employment Destination
- Reforming the state’s unemployment system to re-employ out-of-work Iowans sooner.
- Retaining Iowa’s law enforcement officers and recruiting others to the state.
- Recruiting military veterans to civilian careers in Iowa.
- Easing licensure requirements that delay employment.
- Limiting non-economic damages in tort litigation.
- Standardizing building codes to promote construction of attainable housing and childcare facilities.
Improving Access to Childcare
- Finding childcare solutions for businesses.
- Increasing support for childcare providers.
- Providing quality childcare for families.
- Investing in the childcare workforce.
Building Iowa’s Health Care Workforce
- Strengthening existing programs that recruit new health care providers to rural communities.
- Investing in residency programs that increase mental health specialists.
- Developing high school Registered Apprenticeship Programs that create health care career pathways for Iowa’s youth.
Preparing Students for High-Demand Careers
- Further expanding and integrating work-based learning into Iowa schools.
- Growing and retaining Iowa’s education workforce.
Providing Educational Choice and Transparency for Iowa Families
- Allowing a portion of Iowa’s per pupil educational funds to follow eligible students to private schools or other educational programs.
- Requiring all public schools to publish course syllabuses, materials, and available library books online.
- Requiring all high school students to pass the Civics portion of the U.S. Naturalization Service Test to graduate from high school.
- Eliminating the need for Area Education Agencies (AEA) approval to place students receiving special education services in competent private instruction.
- Eliminating the requirement for PreK-12 school librarians to have a master’s degree.
Growing the Fuels of the Future
- All retailers with compatible infrastructure must offer E-15 by January 1, 2026.
- Any newly installed or upgraded fuel infrastructure must be E-85 or B-20 compatible.
- Invest $10 million in state funding each year for five years in the Renewable Fuels Infrastructure Program, on top of the nearly $50 million in state and federal funds already invested.
- Optimize and extend fuel retailer tax credits to incentivize higher blends of ethanol and biodiesel.
- Codify the Governor’s 2019 Executive Order which requires state vehicles with diesel engines to be B-20 biodiesel compatible.
- Require the Iowa Department of Administrative Services to report annually on biodiesel usage by the state’s vehicle fleet.
- The bill will remain revenue neutral, while increasing savings to the Road Use Tax Fund and imposing no additional cost for Iowans.