June 2023 Legislative Update

June 14, 2023

2023 Session Legislation

On June 1^st, Governor Reynolds signed the remaining legislation passed during the first session of the 90^th General Assembly into law. Governor Reynolds signed 166 bills into law following adjournment, including several key priorities.

2023 Priority Legislation Enacted:

Educational Savings Accounts
Government Realignment
Medical Malpractice Tort Reform
Commercial Vehicles Tort Reform
Property Tax Reform
Youth Employment Reform

A full summary of the of the 2023 legislation can be found in our end of session newsletter here.

Senate File 388, a bill for an act relating to conflicts between federal funding and the office of the chief information officer, was vetoed by Governor Reynolds. You can view her veto message here.

Fiscal Year 2024 Approved Budget

During the final weeks of session, the legislature approved an overall FY24 budget of $8.516 billion. The budget was set following the March Revenue Estimating Conference meeting in which the REC projected the state would collect $9.6503 billion in revenue in FY24. The projected revenue collections reflect a decrease of 1% from Fiscal Year 2023, which is projected to see $9.75 billion. The Iowa Department of Revenue and republican leaders in the House and Senate shared that the slight decreases are due to the tax policy implemented in 2022 to phase down individual and corporate income taxes, and the federal stimulus money received during the pandemic.

The FY24 budget is broken down in the following categories:

Budget	Funding Summary
Admin. & Reg. (SF 557)	General Fund FY 2024: Appropriates a total of $70.5 million from the General Fund and authorizes 1,485.0 full-time equivalent (FTE) positions for FY 2024. This is an increase in funding of $20.4 million and an increase of 325.0 FTE positions compared to estimated FY 2023. Other Funds FY 2024: Appropriates a total of $64.7 million from other funds. This is an increase of $4.0 million compared to estimated FY 2023.
Ag. & Natural Resources (SF 558)	General Fund FY 2024: Appropriates a total of $43.5 million from the General Fund and 1,594.0 full-time equivalent (FTE) positions for FY 2024. This is an increase of $1.6 million and an increase of 193.5 FTE positions compared to estimated FY 2023. Other Funds FY 2024: Appropriates a total of $95.1 million from Other Funds. This is an increase of $120,000 compared to estimated FY 2023. The Bill appropriates $48.4 million from the Fish and Wildlife Trust Fund, $42.0 million from the Environment First Fund (EFF), $3.5 million from the Groundwater Protection Fund (GWPF), and $1.2 million from various other funds.
Economic Development (SF 559)	General Fund FY 2024: Appropriates a total of $41.8 million from the General Fund and 643.5 full-time Development Authority (IEDA), the Iowa Finance equivalent (FTE) positions to the Iowa Economic Authority (IFA), the Public Employment Relations Board (PERB), the Iowa Department of Workforce Development (IWD) and the Iowa Board of Regents (BOR) for FY 2024. This is a decrease of $3.5 million and an increase of 132.8 FTE positions compared to estimated FY 2023. Other Funds FY 2024: This Bill also appropriates a total of $34.4 million from other funds for FY 2024. This is an increase of $6.3 million compared to estimated FY 2023.
Education (SF 560)	General Fund FY 2024: Appropriates a total of $982.9 million from the General Fund and 11,498.4 full-time equivalent (FTE) positions for FY 2024 to the Department for the Blind, the Department of Education, and the Board of Regents. This is a decrease of $10.0 million and a decrease of 284.8 FTE positions compared to estimated FY 2023. Other Funds FY 2024: Appropriates a total of $34.0 million from the Skilled Worker and Job Creation Fund (SWJCF) for FY 2024. This is a decrease of $6.3 million compared to estimated FY 2023.
Health & Human Services (SF 561)	General Fund FY 2024: Appropriates a total of $2,123.8 million from the General Fund and 4,523.0 full-time equivalent (FTE) positions to the Department of Health and Human Services (HHS), containing the Department of Veterans Affairs (IVA). This is an increase of $55.3 million and an increase of 109.5 FTE positions compared to estimated FY 2023. Other Funds FY 2024: Appropriates a total of $476.1 million from other funds. This is an increase of $52.1 million compared to estimated FY 2023.
Infrastructure (SF 577)	General Fund — FY 2024: This Bill suspends a $17.5 million standing appropriation from the General Fund to the TRF for FY 2024 and appropriates $18.4 million to the TRF from the RIIF. This action funds the TRF for FY 2024 and makes funding available for $17.3 million in new TRF appropriations enacted in this Bill and $1.6 million in FY 2024 appropriations that were previously enacted. This Bill also suspends a $5.0 million appropriation from the General Fund to the Renewable Fuels Infrastructure Fund (RFIF) for FY 2024 and appropriates $15.0 million to the RFIF from the RIIF. Other Funds – FY 2024: This Act appropriates a net total of $181.2 million for FY24 from the following sources: - Rebuild Iowa Infrastructure Fund (RIIF): $182.3 million in FY24 - Technology Reinvestment Fund (TRF): $17.3 million FY24
Judicial Branch (SF 563)	General Fund FY 2024: Appropriates a total of $212.5 million from the General Fund to the Judicial Branch for FY 2024. This is an increase of $18.8 million compared to FY 2023. The appropriations include the following: $193.4 million to the Judicial Branch for operations. $3.6 million to the Jury and Witness Fee Revolving Fund. $3.3 million for court ordered services. $12.3 million for graduated sanctions. The Judicial Branch has 1,851.0 full-time equivalent (FTE) positions that are not appropriated in this Bill. This is a decrease of 2.0 FTE positions compared to estimated FY 2023. Governor Reynolds exercised her line item veto power on budget bills on Section 8 of the Judicial budget, you can view her message here.
Justice Systems (SF 562)	General Fund FY 2024: Appropriates a total of $669.2 million from the General Fund and 5,619.3 full-time equivalent (FTE) positions to the departments of Justice; Corrections; Inspections, Appeals, and Licensing; Public Defense; Public Safety; and Homeland Security and Emergency Management, the Iowa Law Enforcement Academy, and the Board of Parole for FY 2024. This is an increase of $36.3 million and 80.6 FTE positions compared to estimated FY 2023. Other Funds FY 2024: Appropriates a total of $18.8 million from other funds for FY 2024. This is no change compared to estimated FY 2023.
Transportation (SF 576)	Other Funds FY 2024: Appropriates a total of $446.5 million and 2,657.0 full-time equivalent (FTE) positions for FY 2024 to the Department of Transportation (DOT). This includes $58.5 million from the Road Use Tax Fund (RUTF) and $388.0 million from the Primary Road Fund (PRF). These appropriations include a standing appropriation of $225,000 and a previously enacted appropriation of $3.4 million from the RUTF and $217,000 from the PRF in FY 2024 for an electronic records management system. These appropriations represent an increase of $26.9 million and a decrease of 100.0 FTE positions compared to estimated FY 2023.

*Funding summaries provided by Iowa Legislative Services Agency

Leadership Update

On June 7^th, Iowa Senate Democrats held a leadership election caucus and voted unanimously to elect Senator Pam Jochum to serve as the next Minority Leader in the Iowa Senate.

“I am honored to receive the unanimous support of my fellow Democratic Senators during this critical moment for our caucus and the state of Iowa,” Senate Democratic Leader Pam Jochum said.

“As a united team, Senate Democrats will continue to fight for the principles we believe in on behalf of the people of Iowa. We’re fighting for strong working families and the rights and freedoms of all people. We’re fighting for high-quality public education and affordable, accessible healthcare in every community.”

“I want to thank Sen. Wahls for his vision and leadership in guiding our caucus over the last three legislative sessions.”

Senator Zach Wahls served as the Senate Minority Leader during the three previous legislative sessions. Senator Jochum is serving her fourth term in the Iowa Senate and represents District 36, which encompasses the city of Dubuque and part of Dubuque County. She previously served as Senate President and most recently as an Assistant Democratic Leader.