Week 12 Legislative Update

March 22, 2024

This Week, the Senate conformed with the House amendment on Area Education Agency reform and sent the final version of House File 2612 to Governor Reynolds who signed the bill into law Wednesday.  Governor Reynolds released the following statement before signing HF 2612: 

“I’m proud to sign legislation that further strengthens Iowa's commitment to students, parents, teachers, and schools. This bill will improve special education for students with disabilities and raise salaries for new and experienced teachers - two foundational pillars of a world class education system which is exactly what we strive to provide for every student in our state. High quality teachers and instruction unlock the potential for student success, and this legislation delivers both.”

The legislation makes the following changes:

  • Districts will receive 10% of special education funding from the state and AEA’s will receive 90% of funding effective after the 2024-25 school year
  • In school year 2024-25, school districts will receive 60% of state funding for general education and media services while AEA’s will retain 40% of funding. School districts will have the option to contract with the AEA for services or use a private provider
  • Following the 2024-25 school year, school districts will receive 100% of state funding for general education and media services
  • Creates a task force to study and make recommendations on the AEA system
  • Creates a special education services division within the Department of Education and provides the department with additional oversight over AEA’s.
  • Increases Supplemental State Aid by 2.5%
  • Increases teacher minimum pay to $50,000

On Wednesday, each Senate committee met to consider Governor appointments to various boards and commissions. The Senate will likely begin considering appointments on the floor next week, where individuals must receive 2/3 majority approval to be appointed.

Budget Targets

On Thursday, the House released their budget targets following the Revenue Estimating Conference meeting on March 15th. House Republicans proposed a total budget of $8.955 billion for fiscal year 2025, an increase of $402.8 million compared to fiscal year 2024. The funding breakdown for the individual budgets can be found below.


Estimated FY24 Total

House FY25 Proposed

Administration and Regulation



Agriculture and Natural Resources



Economic Development






Health and Human Services



Justice Systems



Standing Appropriations



General Fund Total




Budget negotiations are expected to increase over the coming weeks as legislators work to approve the fiscal year 2025 budget to reach adjournment.

Eminent Domain

On Thursday, the House advanced legislation to address eminent domain concerns that have been a topic of discussion over the last two years while multiple carbon sequestration pipelines have been proposed in Iowa. House File 2664 would allow landowners and companies involved in eminent domain proceedings at the Iowa Utilities Board to go to court to seek a constitutional review of the process. The legislation passed with an 86-7 vote.

In Iowa approval for use of eminent domain is tied together with the permitting approval process at the Iowa Utilities Board. In recent years, lawmakers and landowners have expressed concerns that the process lacks due process for landowners. The Senate will have to advance the bill out of the Senate Ways and Means subcommittee and committee before considering the bill on the floor.

Other Bills of Interest: 

Film Tax Credit (HF 2662): Establishes the Iowa Film Production Incentive Fund to provide rebates to qualified production facilities for qualified expenditures as determined by the IEDA. The bill passed the House with an 87-8 vote and was referred to the Senate Ways and Means Committee.

Major Events and Tourism (SF 2419): Establishes the Iowa Major Events and Tourism Program to provide financial assistance through grants to support events in Iowa that generates large attendance, significant publicity, and measurable economic impacts to the state. The Senate Appropriations Committee advanced the bill last week.

Constitutional Amendment (HJR 2006): Requires a 2/3 majority approval to pass a bill that increases individual tax rates within the Iowa Constitution. The resolution passed the House with a 61-35 vote. Constitutional amendments must pass the legislature in two consecutive sessions and be approved by the majority of voters before being adopted.

Private Wine Sales (HF 2669): Allows an individual to conduct private wine sales from a private collection to either a class “A” wine permittee for purposes of resale or to a wine auction permittee for resale at a wine auction. The bill passed the House with unanimous bipartisan support and was referred to the Senate Ways and Means Committee.

Public Notice (SF 2331): Makes changes to public notice requirements by requiring all notices be published online if the newspaper operates a website, creates a statewide public notice website to be administered by the statewide association, provides that in the case where no official newspaper is published in a county, public notice requirements are met by posting on the governmental body website and the statewide website, requires notices be published in a timely manner, and specifies a newspaper cannot charge a fee for proof of publication.

Next week, budget and tax discussions will continue as the 100th day of session approaches on April 16th when per diem expense reimbursements end for legislators.  Remaining priorities include the Governor’s work-based learning proposal, proposals to consolidate Iowa’s boards and commissions, and tax reform as well as individual member priorities that survived the first and second funnel deadlines.