Budget Cycle
Governor Submits Budget
February 1 

Fiscal Year Begins
July 1
Governor Signs Budget 

Budget Links

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

Iowa Governor Kim Reynolds released her fiscal 2025 budget proposal on January 9, which calls for $9.5 billion in total general fund appropriations, an increase of 4.2 percent from fiscal 2024’s estimated spending level of $9.1 billion. The largest program areas include education (57 percent), health and human services (26 percent), and justice/judicial branch (9 percent). Fiscal 2025 total tax receipts are estimated at $11.0 billion, flat growth from fiscal 2024’s estimated level. The budget assumes an ending balance cash reserve fund of $1.0 billion; total reserve funds are also estimated at $1.0 billion.

Proposed Budget Highlights 

The governor said that over the past six years the state has been working together to set it on a course that promotes prosperity for all. The governor added her strategic plan is to get back to the basics. Additionally, her vision for Iowa includes: elevating education for every student; preparing the next-gen workforce; cutting taxes; supporting health and well-being; holding government accountable; and protecting Iowa’s farmland. Specific proposals include:

Elevating Education for Every Student
  • Giving teachers a much-deserved raise by increasing the existing statutory minimum salary, establishing a statutory minimum for experienced teachers, and creating the Merit Teacher Incentive Fund.
  • Implementing a standard, evidence-based literacy training program for teachers statewide to support reading proficiency by third grade.
  • Supporting public charter schools in Iowa to provide more educational options for students and families.
  • Reforming Iowa’s Area Education Agencies (AEAs) to focus on improving the delivery of high-quality special education services and supports for children and students with disabilities.
Preparing Iowa’s Next-Gen Workforce
  • Reinvesting $30 million in existing funds to create the Workforce Opportunity Fund for sustaining critical work-based learning (WBL) programs.
  • Allowing students to earn core credit for competency-based WBL programs and defining “WBL” in code to ensure consistent training.
  • Refocusing the Last Dollar Scholar program to reward WBL experience and high demand career paths.
  • Updating student teaching requirements to allow on-the-job experience.
Cutting Taxes for Iowans
  • Accelerating and further reducing the flat tax transition from the current top rate of 5.7 percent to a 3.65 percent flat rate in tax year 2024, and then to 3.5 percent in 2025.
  • Simplifying the unemployment insurance system to make Iowa’s business climate
  • more competitive.
  • Creating property tax parity between commercial childcare centers and in-home
  • providers.
Supporting the Health and Well-being of Iowans
  • Establishing Thrive Iowa to immediately connect Iowans in need to resources, followed by ongoing support while they work to achieve self-sustainability and long-term independence.
  • Aligning Iowa’s mental health and disability services regions to improve services and outcomes.
  • Investing Iowa’s opioid settlement funds in drug prevention, treatment, and recovery.
  • Extending postpartum Medicaid coverage to 12 months.
  • Providing paid paternal leave for state employees.
  • Improving access to hormonal contraceptives.
  • Protecting minors from online pornography.
Holding Government Accountable to Iowans
  • Implementing the recommendations of the Boards and Commissions Review Committee.
  • Updating Iowa code to include a regular review process for administrative rules and regulations.
Protecting Iowa’s Farmland 
  • Strengthening Iowa’s laws regarding foreign ownership of land.