(Des Moines, IA) -- The State of Iowa will end the current fiscal year with a surplus of $1.83 (B) billion dollars in the General Fund. There's also 902-(M) million in reserves and $2.74 (B) billion in the Taxpayer Relief Fund.
Last week, it was announced the corporate tax rate will drop to 7.1 percent from 8.4 percent for Tax Year 2024.
“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,” said Gov. Kim Reynolds. “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.”
"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," said Kraig Paulsen, Director of the Department of Management.
Statement from Representative Timi Brown-Powers, Ranking Member of the House Appropriations Committee, D-Waterloo
“Kim Reynolds isn’t being honest with Iowans about her budget priorities, she’s playing politics again. Too many Iowa families and small businesses got nothing from her tax cut scheme while $300 million of our tax dollars went to the biggest corporations. Whether it’s shifting money from public schools to private schools, giving the wealthiest Iowans new tax breaks, or stripping away freedom from Iowans, Reynolds always puts the special interests and politics first. Iowa Democrats believe it’s time to put people over politics.”