Governor endorses plan targeting Iowans on public assistance

A longstanding effort by Iowa Senate Republicans to reduce the number of Iowans receiving various forms of public assistance got a quiet boost last week from Governor Kim Reynolds.

For the first time, the governor’s draft human services budget included provisions that would create asset tests for federal food assistance and require the Iowa Department of Human Services to establish a new “eligibility verification system” for Medicaid and several other public assistance programs.

State Senator Jason Schultz has pushed similar legislation for several years running. Each session, Senate Republicans have approved the bills, which died in the House Human Resources Committee (see here and here).

Continue Reading...

In unprecedented move, Iowa Senate GOP bypasses budget subcommittees

Passing a budget for the fiscal year that begins on July 1 is the most important unfinished business for the Iowa legislature’s regular 2021 session. But House and Senate Republican leaders haven’t found consensus on spending targets for several large pieces of the roughly $8 billion state budget.

In a move without precedent in decades, Senate Republicans declined this this year to participate in the joint appropriations subcommittees where lawmakers review and discuss agency spending requests. Senate Majority Leader Jack Whitver and Appropriations Committee chair Tim Kraayenbrink did not respond to Bleeding Heartland’s inquiries about who made the decision or why.

Continue Reading...

Governor joins suit challenging limits on state tax cuts

Governor Kim Reynolds signed Iowa on to a lawsuit challenging part of the federal government’s most recent COVID-19 relief package. Thirteen states filed suit in Alabama on March 31, charging that the American Rescue Plan “impermissibly seizes tax authority from the States.” Reynolds announced the lawsuit during a March 31 appearance on WHO Radio’s program hosted by Simon Conway. The Associated Press was first to report the news.

Continue Reading...

Why Iowa Senate Democrats backed a GOP tax bill

When the Republican-controlled Iowa House and Senate approved large tax cuts in 2018, not a single Democrat voted for the legislation. Critics pointed out that the bill hailed by Governor Kim Reynolds was skewed to provide most of the benefit to wealthy people, with little savings for middle class Iowans.

Much of that bill went into effect immediately, but lawmakers put some portions on hold until 2023, provided that state revenue hit certain targets. In her annual address to legislators in January, Reynolds called for eliminating “the unnecessary triggers that were put in place in 2018,” so all of the tax cuts would go into effect.

Republicans embraced that idea in Senate File 576, which would take out the triggers and phase out Iowa’s inheritance tax by 2024. Democrats didn’t support the bill when the Senate’s tax-writing committee voted on it this month. But a surprise to many observers, including the GOP floor manager Dan Dawson, every senator from both parties voted for Senate File 576 on March 17.

Why did Democrats come around to supporting a bill that is estimated to reduce state revenues by more than $100 million annually, beginning in fiscal year 2023?

Continue Reading...

Exclusive: Iowa spent CARES Act funds on governor's office software switch

UPDATE: Weeks after publication, state officials said this payment had been “inaccurately coded to the federal CARES program,” which was “anticipated” to cover this expense but did not. They said the database would be corrected to reflect the coding error. More details are at the end of this post. Original text follows.

Iowa’s Office of Chief Information Officer spent $39,512 in federal COVID-19 relief funds on a project to migrate computers in Governor Kim Reynolds’ office from Google suite to Microsoft Office 365.

Public databases showing expenditures from Iowa’s Coronavirus Relief Fund do not indicate the governor’s office was the beneficiary of that November payment from OCIO to the vendor Insight Public Sector for unspecified “IT Outside Services.” Documents obtained through public records requests show the money covered the cost of the Google to Office 365 migration.

The governor’s office reimbursed OCIO for that expense in mid-December, days after the Reynolds administration was forced to backpedal on other COVID-19 funds spent on computer technology. Earlier the same month, Bleeding Heartland had sought records related to goods and services OCIO purchased on behalf of the governor’s office using money from the Coronavirus Relief Fund. 

The governor’s spokesperson Pat Garrett has not replied to inquiries about who authorized the initial spending on switching from Google to Office 365 or what funding source eventually covered the cost.

Continue Reading...

Iowa governor objects to "biased" federal COVID-19 funding formula

Governor Kim Reynolds and 21 of her Republican counterparts complained on February 27 that the latest Democratic COVID-19 relief package “punishes” their states.

It’s a strange take on a bill that would provide $350 billion to state and local governments across the country, including more than $2.5 billion to Iowa. In contrast, a smaller coronavirus response proposal from Republican members of Congress would allocate zero new dollars to state and local governments.

Continue Reading...
View More...