Public Policy Update: Governor’s Priorities Revealed
January 23, 2024 | Public Policy
State Public Policy
Governor Reveals Policy Priorities
Governor Reynolds gave the Condition of the State address Tuesday evening during a joint legislative session. On the previous opening day of the session, Republican leaders in the House and Senate focused their remarks on more education reform, tax reform and addressing crime. Meanwhile, Democrat leaders focused their remarks on mental health, childcare, housing and protection of reproductive freedoms.
In the speech Tuesday night, the Governor discussed her priorities and proposals for the 2024 legislative session. Highlights from her speech that connect with our 2024 policy priorities include:
Tax Reform:
- Calls for about $3.8 billion in tax cuts over the next five years.
- Lowers the state’s personal income tax to a flat 3.65% to go into effect in 2024.
- Effect 2025, the rate will drop to 3.5%
- Decreases by half the amount businesses pay into the state’s unemployment insurance system per employee, reducing the payments by employers by $800 million over five years.
Education:
- $96 million to increase starting pay for teachers in Iowa to $50,000 annually and a minimum of $62,000 per year for teachers with at least 12 years of experience.
- An additional $10 million to a merit-based grant program to reward teachers who have gone above and beyond to help students succeed.
- Reforms to the state’s nine Area Education Agencies (AEA) to focus more on special education.
- Gives school districts the option to use AEA services or contract out to private providers.
The Governor’s tax bill can be found here, and her education bill can be found here.
Workforce and economic growth are top priorities identified by Economic Alliance members and we’ll continue to push for proposals that support employer needs. We recognize there’s no easy fix for solving these challenges. It will take multi-pronged, multi-year strategies that complement each other, and we encourage Governor Reynolds and legislators to work together with urgency on the common ground issues and innovative solutions important to the business community and all Iowans.
Our advocacy strategies can change from year to year, but the most important part of the strategy remains the same – our members. Please join us by participating in our advocacy work.
Join The Economic Alliance’s Advocacy Efforts in 2024!
Policy on the Rocks
Network with us at Policy on the Rocks! One of our most popular events, this casual event gives lawmakers and members the opportunity to network and discuss important issues in a relaxed environment. Join us and register now!
February 9, 2024 | 4:30 – 5:30 PM
La Cantina Bar & Grill
5400 Edgewood Rd NE, Cedar Rapids
Register Now!
March 22, 2024 | 4:30 – 5:30 PM
The Edison Pub and Eatery
475 Northland Ave NE, Cedar Rapids
Register Now!
ICR Legislative Night
March 5, 2024 | 5:00 – 7:00 PM
Big Grove Brewery & Taproom
555 17th Street, Des Moines
Register Now!
Together with Greater Iowa City, Inc. and in partnership with economic development groups and Chambers throughout the ICR region, this twist on our traditional “Day at the Capitol” brings together leaders from our region to the Capitol for meetings with elected officials and an evening reception of networking with elected officials from across the state. Join us as we show policy makers what makes our region special! Thank you to our presenting sponsor, ITC Midwest.
Federal Policy Update
New Federal Reporting Requirements for Many Businesses
Beginning January 1, 2024, many registered U.S. businesses may need to comply with new federal reporting requirements as part of the Corporate Transparency Act (CTA). The CTA went into effect on January 1, 2024 and aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.
The Treasury Department’s FinCEN created Compliance Guide to help small businesses understand the reporting requirements and determine if they are required to report their beneficial ownership information.
You can read more information on the CTA provided by the U.S. Chamber of Commerce. Watch this previously recorded webinar hosted by the Iowa Secretary of State’s Office.
Iowa Caucus 2024
If you are registered as a Democrat or Republican to vote in Iowa, be sure to participate in Monday’s Party events. Watch this video for more information on how Caucuses work. Click here for information to participate in the Republican Caucus and here for information to participate in the Democrat’s process.
The Economic Alliance is a non-partisan entity and does not endorse or donate to political candidates, but we do encourage our members to participate in the democratic process and support business and community-friendly candidates.
The Cedar Rapids Metro Economic Alliance is a non-partisan organization that works to promote pro-growth policies at all levels of government.