Governor Kim Reynolds is proposing a property tax plan and new spending on cancer prevention, detection and treatment. Reynolds outlined these and other initiatives tonight in the annual “Condition of the State” message Iowa governors deliver to legislators.
Reynolds is calling for a 2% cap on property tax revenue growth for city and county budgets. “Spending is what drives taxes — always has, always will — and the most reliable way to protect taxpayers is to limit the growth of government itself,” Reynolds said. “…When we were kids, our parents would tell us that money doesn’t grow on trees. Well, it’s time that government learned that, too.”
The governor’s proposing a property tax freeze for Iowans above the age of 64 if their home’s value is less than $350,000, “because no one should be taxed out of their own front door,” Reynolds said.
And Reynolds is proposing tax-deductible accounts for Iowans saving for their first home, along with an expansion of Iowa’s beginning farmer tax credits. “Whatever their dream, let’s make sure it’s within their reach so more young Iowans will choose to build their future here,” Reynolds said.
The state just received federal funding for rural health care initiatives and Reynolds is promising to dedicate $50 million of it to expand cancer screening tests and treatment of cancer. “We’re making early detection the norm, not the exception,” Reynolds said, “replacing fear with hope and making sure if families hear the word ‘cancer’ they also hear: ‘We caught it early and we can treat it.'”
Reynolds began her speech by honoring Staff Sergeants Nate Howard of Marshalltown and Edgar Torres-Tovar of Des Moines, the two Iowa National Guard soldiers who were killed a month ago in Syria. “Our fallen soldiers served their state and their country with honor. As respected leaders they were models of courage, commitment and character,” Reynolds said. “We don’t speak their names only in grief, but in honor…Please join me in honoring Staff Sergeant Howard, Staff Sergeant Torres-Tovar and their families with the applause of a free and grateful people.”
Staff Sergeant Howard’s family was seated in the House gallery for the speech and they wiped tears from their eyes as the ovation lasted for well over a minute. The governor then revealed the two Iowa National Guard soldiers who were seriously wounded in that attack in Syria have been released from the hospital and are in outpatient treatment.
Reynolds cited a report indicating only 29% of the nearly 180,000 veterans who live in Iowa are receiving the federal benefits they’re owed. Only six other states have a lower grade. “An outdated system that provides little accountability is leaving too many veterans and well-meaning county officials without the tools, training and consistency they need,” Reynolds said.
She’s proposing that the Iowa Department of Veterans Affairs take over training of all 99 county Veterans Service Officers and that the state no longer provide $10,000 to each county to pay these employees. That money would be pooled into a competitive grant program to reward counties based on how many veterans, per capita, have secured the benefits they earned. The state would also set up a computerized claims system that would be used for all 99 counties.
Reynolds has forwarded her state spending recommendations to legislators for an overall budget that’s slightly less than 2% bigger than the current year. It includes a 2.5% per pupil spending increase for Iowa’s K-12 public and private schools, along with a recommendation that state spending for community colleges and the three public universities increase 1.5%.
Reynolds, who has been Iowa’s governor since mid-2017, is not seeking reelection.
“As I enter into my final legislative session as governor, I do so deeply grateful, fully committed and determined to finish strong,” Reynolds said. “There’ll be time to look back and time to say, ‘Thank you,’ but tonight our focus is on forward, on what still needs to be done and doing it together.”
LEGISLATIVE LEADERS REACT
Some elements of the the governor’s property tax proposal are similar to a plan released Monday by Senate Republicans. House Speaker Pat Grassley told reporters tonight that House Republicans will release their plan next week. “I think it gives us true momentum,” Grassley said, “and shows Iowans that we’re taking the issue of property taxes very seriously.”
The Senate GOP’s plan would completely end property taxes for older Iowans who own their homes, while Reynolds plan is a freeze. “It’s good to see that we’re aligned in the same direction,” Senate Majority Leader Mike Klimesh said. “…I think those conversations play out over time as we kind of take a look at the nuts and bolts of the proposal and measure where we were at.”
House Minority Leader Brian Meyer said the governor’s property tax plan “is interesting,” but lawmakers need to go over the details.”Our goal is to protect first responders on the local level, fund schools and make sure our local governments can actually do the work they need to do, but we also recognize that we need to lower property taxes,” Meyer said during the Democratic response to Reynolds’ address, which was broadcast live on Iowa PBS and many other Iowa news stations.
Senate Democratic Leader Janice Weiner said Republicans have been in charge at the statehouse for nearly a decade and she’s skeptical they’ll provide a meaningful reduction in property taxes for Iowans who really need it.
(This post was updated at 9:45 pm with additional information.)