DES MOINES, Iowa – On Wednesday, Gov. Kim Reynolds announced the State of Iowa will end Fiscal Year 2023 with a balance of $1.83 billion in the General Fund, $902 million in reserve funds and $2.74 billion in the Taxpayer Relief Fund.
“Some see a surplus as government not spending enough, but I view it as an over collection from the hard-working men and women of Iowa,” Reynolds said. “We’ve seen what the powerful combination of growth-oriented policies and fiscal restraint can create, and now it’s time for Iowans to directly receive the benefits. I look forward to cutting taxes again next legislative session and returning this surplus back to where it belongs – the people of Iowa.”
Kraig Paulsen, Director of the Iowa Department of Management, credited the governor’s budget management.
“As a result of the Governor’s great budget management, we are in an extremely strong financial position, making it possible to meet the needs of Iowans while leaving more money in the pockets of Iowa taxpayers,” he said.
Last week, Reynolds announced that Iowa’s corporate tax rate will drop to 7.1 percent from 8.4 percent for Tax Year 2024 due to corporate tax receipts exceeding $700 million, the second year in a row it has dropped and is three years ahead of schedule.
In response to Wednesday’s announcement, Iowa Senate Majority Leader Jack Whitver, R-Grimes, called for more tax cuts.
“Iowa is in the strongest financial position in state history. Iowans deserve to keep more of the money they earn and today’s news shows it is time for bigger and bolder income tax cuts. As long as I am Majority Leader, the Senate will continue to reduce taxes on Iowans and in the 2024 Legislative Session we will again work with Governor Reynolds and the House to achieve that goal.”
State Senator Janet Petersen, D-Des Moines, the ranking member on the Iowa Senate Appropriations Committee, said Reynolds’ “tax schemes are not working for everyday Iowans.”
“Gov. Reynolds talks a big game about relief for Iowa families, but she’s always put rich corporations and special interests first – and she always will,” she said in a released statement. “While Gov. Reynolds is again slashing corporate taxes and promising more giveaways to come, middle-class families still aren’t getting ahead.”