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Iowa Legislature Update: Week Ending April 29, 2021

4/30/2021

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Census results show Iowa keeping all four congressional seats
Iowa will retain all four of its seats in the U.S. House after preliminary data from the 2020 Census show Iowa with modest population growth of 3.6 %.

As more detailed Census data is released, Iowa lawmakers will be required to vote on new congressional and legislative districts that become effective for the 2022 election. Iowa has an often-praised, nonpartisan process for drawing new political maps. Most of the work is left to computers, which will draw new district lines to create 50 Iowa Senate and 100 Iowa House seats, along with four districts for U.S. Congress.

The Des Moines and Iowa City metro areas had the fastest growth in population and are expected to gain new legislative seats, while most rural parts of the state continue to lose residents.

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Iowa Legislature Update: Week Ending April 22, 2021

4/23/2021

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Budget and tax issues loom as lawmakers look to adjourn
Iowa lawmakers are negotiating tax policy and next year’s budget in an effort to shut down the 2021 session in the coming weeks. The Legislature’s scheduled end is Friday, April 30, but it appears unlikely lawmakers will complete their work by then, pushing the 2021 session into overtime.

In a sure sign adjournment is getting closer, committees on both sides are advancing appropriations bills. Agreement between House and Senate GOP leaders on overall spending has so far been elusive, but key lawmakers are working behind the scenes to find agreement in particular budget areas.

Tax issues also remain unresolved. Senate Republicans are advancing legislation that would fully implement income tax cuts passed in 2018, but it is unclear at this point what a final tax package will include.

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Rural Mainstreet on Strong Growth Path: Farmland Prices Expanding Rapidly

4/19/2021

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April Survey Results at a Glance:

Overall index dipped but remained in strong growth territory from March’s record high.
The farmland price index advanced its highest level since November 2012.
The farm equipment-sales index rose to its highest reading since February 2013.
Housing index soars to record level with bids above listing prices.
Lack of available workers is restraining job growth.
Approximately 9.1% of farmland sales over past six months have gone to nonfarmer investors.
Fully 100% of bank CEOs indicated that export markets were important, or very important, to their local economy.

OMAHA, Neb. (April 15, 2021) – For the fifth straight month, the Creighton University Rural Mainstreet Index (RMI) climbed above growth neutral. According to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The overall index for April slipped to a still healthy 69.0 from a record high 71.9 in March. The index ranges between 0 and 100 with a reading of 50.0 representing growth neutral. Approximately, 37.9% of bank CEOs reported that their local economy expanded between March and April.

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Iowa Legislature Update: Week Ending April 15, 2021

4/16/2021

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Banking Act Modernization Bill Passes Iowa Senate
The rewrite of much of the Division of Banking’s code section was passed by the Senate this week by a 45-0 vote. Senate File 566 now goes to the House where it will be eligible for passage there until the end of the session. CBI had input throughout the IDOB’s process to develop this update of the banking code, and we support its passage this year.

State Pauses Administration of Johnson & Johnson’s COVID Vaccine
Iowa public health officials announced Tuesday they would advise medical providers to stop using one of the main COVID vaccines after reports it caused severe but rare blood clots in some female patients. Gov. Kim Reynolds called the development a “surprising setback” in Iowa’s effort to vaccinate its population, but said it would still be manageable. She noted the shipments of the Johnson & Johnson vaccine at issue were already decreasing and supplies of the other vaccines would replace it.

The announcement sent state officials scrambling to create contingency plans for vaccine clinics that had already been planned for this week. Reynolds asked for Iowans’ patience as officials worked to allocate additional vaccines where they are needed. The federal Centers for Disease Control raised red flags that the vaccine produced by pharmaceutical giant Johnson & Johnson needed further study and urged providers to stop administering it immediately. The CDC and FDA reported six cases of severe and rare blood clots, none of them in Iowa. Those agencies are reviewing the vaccine’s safety before vaccinations with J&J can resume.

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Iowa Legislature Update: Week Ending April 8, 2021

4/9/2021

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Iowa House, Senate tax debate heats up
With just weeks to go in the legislative session, the Iowa House and Senate are advancing competing tax relief proposals, a difference that could complicate plans for adjournment this year.

SF576, which passed the Senate 46-0, phases in the elimination of the inheritance tax. The state’s nonpartisan Legislative Services Agency predicts the repeal would reduce revenue by nearly $18 million in FY2022. The legislation would apply to deaths occurring on or after Jan. 1, 2021.

The bill also would remove “triggers” put in place in order for broad state income tax cuts passed in 2018 to go into effect. Those triggers ensure the state’s tax collections rise enough to offset tax cuts.

If the triggers are removed, the LSA predicts the tax cuts would reduce income tax liability by roughly $297 million in FY2023.

The House also has a bill eliminating the inheritance tax, HF841. It’s unclear at this point what a final tax package will look like before lawmakers adjourn for the year in the coming weeks. House Speaker Pat Grassley has made public statements that the House will take a cautious approach to removing the triggers.

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Iowa Legislature Update: Week Ending April 29, 2021

Iowa Legislature Update: Week Ending April 22, 2021

Rural Mainstreet on Strong Growth Path: Farmland Prices Expanding Rapidly

Iowa Legislature Update: Week Ending April 15, 2021

Iowa Legislature Update: Week Ending April 8, 2021

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