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Reynolds proposes two tax cuts, hike in teacher pay

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January 10th, 2024 by Ric Hanson

(Radio Iowa) – Governor Kim Reynolds is calling for another reduction in Iowa’s personal income tax and a 50 percent increase in the salary for first-time teachers. Reynolds delivered the annual “Condition of the State” address last (Tuesday) night and outlined her priorities for legislators. The governor proposes a 50-thousand dollar starting salary for Iowa’s rookie teachers.

“We want younger Iowans to see the teaching profession as something to aspire to. It’s one of the highest callings one can have,” Reynolds said. “so let’s make sure that teacher pay sends that message.” The governor says state law should require a minimum salary of 62-thousand dollars for teachers with at least a dozen years of experience. “These investments will put Iowa in the top five states for starting pay and help recruit more of the best and brightest to join the teaching profession,” she said. Reynolds is proposing two tax cuts. Businesses would pay half as much per employee into the state fund that finances unemployment benefits.

“Instead of paying money into the government these businesses can create more jobs, increase salaries or reinvest into their communities,” Reynolds said. And Reynolds proposes deeper cuts in the state’s personal income tax — a retroactive cut to January 1st of this year and lowering the rate to three-and-a-half percent in 2025.

View from the House balcony of Governor Reynolds delivering the 2024 Condition of the State Address. (RI photo)

“You know it wouldn’t be a Condition of the State address without me talking about your money or, as the government calls it, taxes,” Reynolds said near the end of her speech. “…Let’s not hestitate. Let’s stick to the approach we established in 2018 and allow Iowans to keep more of their money.” The governor is proposing a major overhaul of the nine Area Education Agencies.

“While some of our AEAs are doing great work, others are underperforming,” she said. Iowa spends more than the national average to educate students with disabilities, but their test scores are below average.  “No system, however long-standing, is above reform,” Reynolds said. She proposes ending training and other education services from the A-E-As and making special education their only focus. School districts would no longer have to forward special education funding to the A-E-As and could choose to hire their own staff, contract with a private firm or pay the A-E-A for special ed services.

“We’re not reducing special education funding by one dime,” Reynolds said. “We are simply giving control of the funding to those who work directly with your child on a daily basis and taking special education off autopilot.”

The governor covered a number of other topics in last (Tuesday) night’s speech. Reynolds is asking lawmakers to tighten rules that forbid foreign ownership of more than 320 acres of farmland, to force disclosure if foreign interests are part of companies that own farmland. She’s also renewed her request that lawmakers extend Medicaid coverage for new moms for a full year. The limit for post-pregnancy check-ups is currently 60 days for women who qualify for government-paid insurance.