Iowa lawmakers discuss economic development, tax reform

The State of Iowa is moving forward on property tax relief and economic development improvement efforts. Also, Scott County will not be barred by the legislature from getting state economic development funding for the next three years. Those were some of the topics covered Friday morning, March 28, as eight area state lawmakers gathered at […]

The State of Iowa is moving forward on property tax relief and economic development improvement efforts. Also, Scott County will not be barred by the legislature from getting state economic development funding for the next three years. Those were some of the topics covered Friday morning, March 28, as eight area state lawmakers gathered at the Iowa Mid-Session Legislative Forum at the Roglaski Center at St. Ambrose University, Davenport. (The forum provided an update of the legislative kickoff forum held in January.)

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That forum featured these state lawmakers: Rep. Ken Croken, D-Davenport;  Rep. Dan Gosa, D-Davenport; Rep. Gary Mohr, R-Bettendorf; Sen. Kerry Gruenhagen, R-Walcott; Sen. Scott Webster, R-Bettendorf; Sen. Cindy Winckler, D-Davenport; Rep. Monica Kurth, D-Davenport; and Sen. Mike Zimmer, D-DeWitt.  One of the hot topics tackled by the lawmakers is a recent bill that calls for imposing  a three-year moratorium, from July 1, 2025, through June 30, 2028, on all programs administered by the Iowa Economic Development Authority (IEDA) and funding available through these programs for the four Iowa counties with the most population. The bill would have impacted Polk, Linn, Johnson and Scott counties. (The IEDA oversees programs focused on economic and community development. Some programs work with businesses directly, while others work with local governments on community projects.) Recent IEDA data showed that in fiscal year 2024, 21.7% of award funding went to Polk, Linn, Johnson and Scott counties. Polk received an award totaling $17,323,827; Linn, $17,937,281; Scott, $792,193, and Johnson $5,312,133. Linn and Polk counties were among the top 10 counties receiving IEDA assistance in FY2024, with only Boone County at $20,930,981 above them. During a recent interview, State Rep. Derek Wulf, R-Hudson, said he supports the measure because efforts by the Iowa Legislature to revitalize rural Iowa have not worked. He said “transformational change” is needed to help the state’s rural areas. He added that funding from the IEDA could be better utilized in smaller communities. Since it was introduced, the bill has met widespread opposition from economic development groups in Iowa. Some say the measure would harm areas of the state that are often drivers of the state’s economy, which also can benefit surrounding counties. That opposition continued during the local legislative forum Friday. Several lawmakers told the crowd of about 80 at the breakfast meeting that once news about the bill got out, they received angry comments from local residents and officials. The lawmakers added that they made efforts to get Scott County off the list of counties that would be excluded from getting funding if the bill ever becomes law. “When I saw this bill, I said to myself ‘What the hell is this?’” said Mr. Mohr, adding that “Scott County is off this list.” Mr. Zimmer said that he hopes the bill “will die a quick death.” Other lawmakers added that they know more efforts are needed to help rural Iowa, but this bill will not help the state. “I’ve never seen urban Iowa (pitted) against rural Iowa like it has been this year. …. We’ve got to get over this notion. We’ve got to look for solutions that benefit the entire state,” said Mr. Croken. The forums are part of the 2025 Legislative Event Series presented by the Quad Cities Chamber of Commerce. Sponsors included: AM General, The Associated General Contractors of the Quad Cities, Arconic, Constellation, Eastern Iowa Community Colleges and St. Ambrose University. Held as a question-and-answer session, the chamber event also featured a discussion on overhauling the state’s property tax system including through tax relief and simplifying the tax system. Some lawmakers, such as Ms. Kurth, said there are many “moving parts” in the tax bills, so lawmakers need to take their time to study the various impacts of tax reforms. Ms. Winckler said lawmakers also need to consider the impact of lowering taxes would have on services the state provides. “That needs to be part of the conversation as well,” she added. Mr. Zimmer added that while it’s important to create a fair property tax system, those taxes fund many services that Iowans want. “That money has to come from somewhere,” he said, suggesting that other state taxes might go up to offset funding lost through property tax relief. Other lawmakers stressed that there should be a sense of urgency in getting property tax relief to Iowans. Mr. Croken told the crowd about a recent call he had with a woman in his district. After getting her property tax bill, he said she was crying and told him she might have to sell her home because of the high taxes. “She said she’s not sure if she can manage this any more. … I think it’s time for action,” he said. In addition to state issues, the lawmakers also discussed how potential federal cuts will impact Iowa – especially nonprofits in the state that often rely on federal grants. Participants asked lawmakers if the state government could step in and give more money to the nonprofits that may not get their needed funding from the federal government. Mr. Mohr answered that question with “No.” “The State of Iowa can’t afford to backfill the federal government,” he added. Ms. Winckler said those federal funding cuts might cause big problems for the state. Among them is that funding cuts will likely put some people out of work. That means more people relying on the state’s unemployment services. However, Mr. Gruenhagen said the cuts currently being made at the federal level could be a case of short-term pain followed by long-term gains. He said that nonprofits and other groups in the state may eventually get the needed federal funding, adding a more efficient and improved grant system could replace the current system. Many people attending the forum said they appreciated getting the information from the lawmakers. “This was very educational. … I don’t normally do things like this, so I appreciate what they said today,” Miranda Harrell, of Enterprise Rent-A-Car, said after the update. The next legislative forum will be the Illinois Legislative Mid-Session Forum from 8-9 a.m. on Friday, April 25, at Bally’s Quad Cities Casino and Hotel in Rock Island.