Legislative Newsletter - July 2021
July 1, 2021
Fiscal Year 2021 (FY21)
July 1 marked the beginning of Fiscal Year 2022 (FY22). Despite COVID-19’s impact on Iowa's economy, the subsequent effects on working Iowans and the derecho Iowa proved resilient and well prepared to recover. June 2021 gross General Fund receipts showed an increase of 24.3% over June 2020 with current fiscal year-to-date, gross General Fund receipts showing a 16.3% increase. The current estimate for FY21 is a growth rate of 9.7%. In addition to overall growth, all three major components of the General Fund experienced double-digit growth in June.
Additionally, the Iowa Business Council release its second-quarter Economic Outlook Survey this month. The survey marked the fourth consecutive positive quarter with an overall economic outlook index of 67.08. Iowa was ranked the best state in the nation for economic and labor market recovery and second-best overall for quickest recovery following the COVID-19 pandemic by WalletHub.
In response to Iowa's positive recovery and response to the pandemic, the Secretary of State saw an increase in new business filings in the past year. Compared to 2020, Iowa saw a 36% increase in new business filings and 41% compared to 2018. In January, the record number of new business filings in a month was broken with 2,940 filings, only to be broken once again in March with 3,579 filings.
|June 2021 General Fund Receipts
|Person Income Tax
|Corporate Income Tax
Former Iowa Congresswoman Abby Finkenauer became the first prominent Democrat to announced a run for U.S. Senate in the 2022 election. The seat is currently held by 7-term incumbent Senator Chuck Grassley, who has not yet announced if he plans to run for an eighth term. State Senator Jim Carlin (R- Sioux City) announced his candidacy with the intent to challenge Grassley in a primary if necessary earlier this spring as well as Democrat Dave Muhlbauer, a former county supervisor and Iowa farmer.
Member Spotlight: Cedar Rapids Metro Economic Alliance
Linn County is home to Prospect Meadows, a first-class sports complex located on 128 acres just north of Marion. The facility brings players and their families from all over the country to the Cedar Rapids/Marion metro area each year. This year an estimated 20 states will be represented at Prospect Meadows throughout the season. The official grand opening of Prospect Meadows was held May of 2019. However, this is the first full year of operations due to construction delays in 2019 and the Covid 19 outbreak in 2020.
Prospect Meadows is the perfect example of a successful public-private partnership. Millions of dollars of financial support for the project came from Linn County, the cities of Marion and Cedar Rapids, the State of Iowa, the business community and private citizens.
Linn County is expected to host 40,000 visitors this year thanks to tournaments at Prospect Meadows. These visitors inject an estimated $10 million dollars of direct spending into the Linn County economy as well as over 10,000 hotel rooms. This has resulted in business development with the construction of new hotels and restaurants. Discussions are currently underway for the start of phase II planning at Prospect Meadows, which will include additional fields.
To learn more about Prospect Meadows, click here.
Member News and Upcoming Events
August 17: Greater Des Moines Partnership - Public Policy Forum on Affordable Housing