Today, Senate Republicans released their Fiscal Year 2022 budget targets. The total spending for FY 2022 is $7.999 billion, an increase of $195 million from Fiscal Year 2021, and represents spending 94% of available revenue. The targets budget for the elimination of the triggers in the 2018 tax bill, effective January 1, 2023, the phasing out of the inheritance tax, and significant property tax relief.
“For four years Republicans have been managing the state budget in the same way Iowans manage the family budget,” said Senate Appropriations Committee Chair Tim Kraayenbrink, R-Ft. Dodge, “This budget provides reliable, sustainable increases in K-12 education, funds significant increases to public safety, including a $4 million increase for correctional officers, and a $60 million increase in mental health funding.”
“As I say frequently, as long as I am leader and Republicans are in the majority in the Senate, we will work toward tax relief for working families,” said Senate Majority Leader Jack Whitver, R-Ankeny. “This budget keeps the promise our members made to Iowans to reduce taxes on Iowa families, small businesses, and farmers by accounting for the removal of the triggers, phasing out the inheritance tax, and over $100 million in property tax relief. Iowans can remain confident the promises made by Senate Republicans are kept.”
Overview of tax relief provisions included in Senate Republican budget targets:
- Elimination of the revenue triggers in the 2018 tax cut.
- Elimination of the mental health levy on property taxes.
- Elimination of the inheritance tax.
Overview of FY 2022 increases in Senate Republican budget targets:
- Education funding increases over $80 million including:
- An increase of $55.3 million for K-12 education.
- An increase of $25 million for higher education including additional dollars for Last Dollar Scholarships.
- Healthcare funding increases of $98.1 million including:
- An increase of $15 million for provider increases for nursing homes and home and community-based service providers.
- An increase of $60 million for mental health services. Over the next 2 years the state will provide over $125 million for mental health services.
- Public safety funding increases of $13 million including:
- An increase of almost $5 million for the Department of Public Safety.
- An increase of just over $4.0 million for the Department of Corrections.
- One time expenditures for broadband are not included in these targets.