Collins Connection

EDITOR’S NOTE: this is an abridged copy of Rep. Taylor Collins’ weekly newsletter, sent. Jan. 12, 2024.

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The first week of the legislative session is oftentimes a mix of initial committee and subcommittee meetings, but mostly pomp and circumstance. The first day is filled with speeches from legislative leaders of both the majority and minority parties, the second day is the Governor's Condition of the State Address, the third day is the Chief Justice's Condition of the Judiciary Address, and the fourth and final day before we head home to our districts is the Iowa National Guards' Adjutant General's Condition of the Guard Address.

It's Time to Cut Taxes

Republicans in the Legislature approved sweeping income tax cuts during the 2022 legislative session. That plan is scheduled to lower Iowans’ income tax to a flat 3.9% on Jan. 1, 2026. Smart budgeting practices have put the state budget in position to support adjustments to that plan.

Tuesday night, the Governor proposed accelerating the current tax cut to Jan. 1, 2024, and reducing the flat rate to 3.65%. Then on Jan. 1, 2025 another round of income tax cuts would take effect lowering the flat rate to 3.5%.

She also has a plan to simplify and lower the unemployment tax employers pay. The Unemployment Trust Fund is at an all-time high of $1.8 billion. That amount is more than enough to meet short-term needs of Iowans out of work. As a result, the Governor's plan would reduce the unemployment tax by about 40% allowing businesses to keep and invest more money.

Finally, the Governor has a plan to reduce property taxes for Child Care providers. She creates a subcategory of commercial property for child care centers allowing them to be taxed at lower rates.

The plan will be a major area of discussion in the Ways & Means Committee in 2024.

AEAs Need Reform

Governor's Education Priorities Include Higher Teacher Pay, Better Reading Instruction, and AEA Reform. This last proposal is bound to get the most attention, so I will give you my initial thoughts below:

In my opinion, 50 years after the AEAs were created to support students with disabilities, they’ve become too big, too expensive, too distracted, and I do not believe more money is the answer.

Iowa is the only state that requires all school districts, except Des Moines Public Schools, to pay into the AEAs and then use that same agency for education services. Oversight is also lacking — AEAs are both providing special education services and overseeing special education services. Our students with disabilities deserve the best — we can’t keep doing the same thing and expect better results for them.

The current structure simply isn't working. While the Governor's proposal may not be the only solution to this issue, I look forward to reviewing her proposal.

Work Based Learning Remains Front & Center

In 2018, Gov. Reynolds signed the Future Ready Iowa Act, launching a workforce policy initiative to ensure 70% of Iowans attained training or education beyond high school by 2025.

Thanks to the state’s strategic investments in scholarship programs for certificates or degrees leading to high-demand jobs, registered apprenticeship programs, child care, and more, Iowa has achieved its goal two years ahead of schedule.

Now the Governor is shifting focus to recruiting the next generation of Iowa’s workforce — and that starts while still in school.

Work-based learning (WBL) experiences introduce young Iowans to the possibilities that await them in a dynamic economy and the various paths they can take to get there. Her plan this year includes $30 million in already-existing funds to create the new Workforce Opportunity Fund for sustaining critical WBL programs; Allowing students to earn core credit for competency based WBL programs and define “WBL” in code to ensure consistent training; and refocusing the Last Dollar Scholar program to reward WBL experience and high demand career paths, among other policies.

Beginning Farmer Tax Credit Applications Open for 2024

The Beginning Farmer Tax Credit Program application information is now available on Iowa Finance Authority’s website. The program provides an Iowa tax credit for agricultural asset owners to lease their land, equipment, and / or buildings to beginning farmers. Applicants to the program must be a resident of Iowa 18 years of age and have a net worth of no more than $833,000. Applicants must have sufficient education, training, or experience for the anticipated farm operations and have access to adequate working capital, equipment, and other items that are necessary to operate the farm.

In the program, a lease must be for a minimum of two years but no more than five years, and must include land. For cash rent leases, the tax credit equals 5% of the cash rent. The cash rent cannot be more than 30% above the average cash rent for the county according to the most recent ISU cropland survey. For crop share leases, the tax credit is 15%.

Applications for the program are processed on first-come / first-completed basis and will be accepted until Aug. 1, or until all the tax credit allocation has been awarded — whichever comes first. More information can be found at https://www.iowafinance.com/beginning-farming-programs/.

2024 Forum Schedule

As I mentioned in my newsletter earlier this month, I will continue to share the most updated list of our eight forums Sen. Lofgren and I plan to attend / host throughout the legislative session. I'd encourage you attend and ask any questions you might have!

Des Moines County:

• Greater Burlington Partnership Friday Forum: Friday, Jan. 19 from 8 — 9AM.

• Greater Burlington Partnership Friday Forum: Friday, March 8 from 8 — 9AM. (Was originally March 15th.)

(In person attendance for these forums are limited to chamber members only but a link to the live video of these forums and recordings of past Friday Forums can be found here. Questions can also be submitted through the chat live.)

Louisa County:

• Saturday, Feb. 3 from 11 a.m. — Noon at Wapello City Hall in the City Council Chambers.

• Saturday, March 2 from 11 a.m. — Noon at Wapello City Hall in the City Council Chambers.

Henry County:

• Mount Pleasant Area Chamber of Commerce Legislative Breakfast: Friday, Feb. 16 from 8 — 9AM — location is TBD.

• Mount Pleasant Area Chamber of Commerce Legislative Breakfast: Saturday, March 16 from 8 — 9AM — location is TBD.