by CBI Lobbyist Jeff Boeyink - Partner, LS2 Group
Overview / Major Events
We are one week and counting down to the first funnel deadline of 2018. Next Thursday (2/15) is the functional close of the first funnel and policy bills that failed to clear a committee in at least one chamber are no longer eligible for the remainder of the 2018 Session.
Next week will be another marathon of subcommittees and extended committee meetings as major issues such as energy policy modernization, telecommunications policy modernization, death penalty, and workforce development (Future Ready Iowa) have yet to clear this first major legislative hurdle.
January Revenue Numbers Big for Iowa’s General Fund
The Iowa Department of Management released the January revenue figures late last week and state general fund revenue is now running 10% higher than one year ago, on a year-to-date basis. The biggest jump in revenue came from personal income tax receipts, with many Iowans accelerating their payments to take advantage of federal tax reform changes. This means January receipts are artificially higher than anticipated and there will likely be a corresponding correction in next month’s revenue report. That said, sales and use tax collections also saw a major bump in January and year-to-date sales/use taxes have grown by 7.6%, well beyond the 3.8% currently estimated by the Revenue Estimating Conference.
February numbers will be critical, as the Revenue Estimating Conference meets again in March and will issue a new set of estimates that could impact the current budgeting process at the State Capitol (in fact, the new estimates could negate the need to actually do any additional deappropriations for the current fiscal year – FY18).
House Deappropriations $18 million lower than Senate
Lining up closely with recommendations made by Governor Reynolds, House Republicans this week announced their intentions to pursue legislation to deappropriate $34 million from the current FY18 budget to ensure a balanced budget when the books close later this year. Senate Republicans had proposed $52 million in spending cuts earlier this year and now negotiations can begin in earnest to determine a final number.
Efforts on Behalf of Community Bankers of Iowa: