Gov. Reynolds explains basis of ‘Invest in Iowa’

                  Governor Kim Reynolds made a stop in Monticello during the morning of Feb. 28 to tout her “Invest in Iowa” initiative. Reynolds spoke to a room of about 50 people at the Monticello Golf Club.

                  Invest in Iowa encompasses three main components:

                  • Reduces Iowa’s uncompetitive income tax rates and builds on the historic tax cuts passed in 2018

                  • Fully funds the mental health system. It reduces the burden on property taxes.

                  • Funds the natural resource and outdoor recreation trust fund, IWILL (Iowa’s Water and Land Legacy).

                  “Your legislators are voting on a tax cut. Let’s be clear on this,” Reynolds said right from the start. “I have no interest in raising taxes.

                  “If we were to move forward with the Invest in Iowa Act, it had to be an overall tax cut. That was really important to me,” she continued.

                  Reynolds said that while we’re moving into a new decade, Iowa has to look beyond 2020; look into the future.

                  “The Invest in Iowa Act takes that first bold step,” said Reynolds. “I think it is an investment in our future and those who are our future.”

                  As part of Invest in Iowa, Reynolds is asking the legislature to pass a one-cent sales tax increase to help fund the various services the state provides.

                  “That is more than offset by expanded tax relief,” she said.

                  In year one, it will cut an individual’s income tax rate by 10 percent across the board. For a majority of lower income Iowans, it’s a 24 percent income tax rate cut.

                  In terms of income tax rates, if Reynolds’ plan were enacted today, it would take Iowa from 40^th to 20^th in rank.

                  “It’s significant progress in the right direction,” she said. “It makes us more competitive as a state. It increases opportunities to recruit new business, workers, and residents to this state.”

                  Invest in Iowa also adds to the state’s 100-plus list of tax exemptions.

                  “We exempt a lot of things that a lot of other states don’t,” shared Reynolds. “We wanted to be conscientious of working families and the impact this may have.”

                  Future Ready Iowa and Empower Rural Iowa are both initiatives that will help with Iowa’s workforce.

                  In relation to the workforce is adequate childcare. Invest in Iowa expands the eligibility for childcare and dependent tax credits.

                  “Right now the eligibility is set at $45,000. It would increase that to $90,000,” explained Reynolds. “That will go a long way in helping some of our families with affordability for childcare.”

                  In 2010, Iowa voters approved IWILL, a trust fund to help fund conservation, recreation, and natural resource projects across the state. That fund has yet to be funded itself.

                  Reynolds said Invest in Iowa provides $172 million in funding overall. $93 million of that total is new money. $100 million goes to water quality annually. $55 million goes to conservation and outdoor recreation annually. $15 million goes to local water quality and conservation and recreation projects. It also extends REAP for another 30 years and invests $17 million toward REAP.

                  In terms of mental health, Reynolds is passionate about taking the burden off property taxpayers. Her plan calls for funding mental health through the state’s General Fund.

                  “Iowa is one of the few states that is still funding their mental health services through property tax levies,” Reynolds said. “Most states do it through a state appropriation.”

                  She also took several questions from those in the room. Bob Shimanek with Ducks Unlimited said they are very much in support of funding for IWILL.

                  “It really is a great tool to highlight the amazing things we have going on in our state,” praised Reynolds. “It’s all about quality of life. There’s so much to do in the great State of Iowa. We need to highlight the great amenities we have here in Iowa.”

                  Monticello City Administrator Doug Herman asked about sewer plant funding, especially for rural communities; trails; and quality of life to attract young people to small communities like Monticello.

                  “We’re addressing some of those while working collaboratively from a public-private partnership with state and local government to try and build out some of these key issues when we’re trying to grow these communities and attract and retain people to your area,” offered Reynolds.