DES MOINES, Iowa – On Tuesday, Iowa Senate Republicans released budget targets for Fiscal Year 2023. The total budget target is $8,201.7 million, the same amount Gov. Kim Reynolds released in her budget in January. The new spending highlights include:
- Net Increase in Spending – $76.8 million, a 0.9 percent increase
- Total New Spending – $283 million, a 3.5 percent increase
- New funds to K-12 schools – $159 million, 57 percent of all new spending
- Funds transportation equity and continues to address per pupil equity
- Provides an increase of $71.2 million for mental health funding, eliminates the county property tax levy, and provides property tax relief to Iowa families
“As the chair of the Senate Appropriations Committee, my goal is to put together a budget that funds the priorities of Iowans, and is sustainable and responsible,” State Senator Tim Kraayenbrink, R-Fort Dodge, said. “Years of conservative budgeting have put the state in a position to continue to provide reliable increases to public safety, education, and health care.”
Iowa Senate Majority Leader Jack Whitver, R-Ankeny, said the budgeting process the Iowa Senate Republican caucus follows will allow future tax cuts.
“This budget sets the stage for the implementation of generational tax relief,” he said. “The Senate’s tax bill establishes a 3.6% flat income tax rate in 2027, reforms corporate taxes to make them flatter and fairer, reduces Iowa’s income tax rate from the eighth highest to the fourth lowest, and ensures Iowans keep more of the money they earn to weather the runaway inflation caused by the reckless policies in Washington, DC.”
Iowa Senate Republicans say their budget targets prepare the state for tax relief by having the following surpluses, reserves, and spending rates:
- FY 23 Ending Balance – $914 million
- FY 23 Reserve Fund Balance – almost $900 million
- FY 23 Taxpayer Relief Fund Balance – almost $2 billion
- Spends 90 percent of total funds available
