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Iowa budget adds education division, raises for judges
Gov. Kim Reynolds signs $8.9B plan into law for fiscal 2025, which starts July 1
Caleb McCullough, Gazette-Lee Des Moines Bureau
May. 9, 2024 7:24 pm, Updated: May. 10, 2024 8:21 am
DES MOINES — Gov. Kim Reynolds on Thursday signed Iowa's state budget into law, finalizing the $8.9 billion spending plan for the fiscal year that starts July 1.
The budget consists of 10 bills passed by state lawmakers this year funding various areas of state government. It amounts to a 4.7 percent spending increase from the current budget year. Reynolds signed all the bills as written and did not use her line-item veto authority to strike any specific funding.
Here's a look as some of the spending in the budget:
Standings: $4.6 billion
The standings budget covers state funding for school districts, private school education savings accounts and other miscellaneous spending categories.
Iowa will spend more than $3.7 billion on public school education, the largest single line item in the budget.
The education savings account program — which allows students to use their full per-pupil state allocation to pay for private school tuition — will cost the state $179 million, about a $50 million increase from this year.
The budget cuts funding for area education agencies by $32.5 million, including $10 million that will be transferred to the Iowa Department of Education for a new Division of Special Education.
The budget includes a $2 million fund to the Department of Public Safety to investigate and address illegal immigration and human trafficking.
Higher and other education: $1.05 billion
This budget funds the state Board of Regents, the Department for the Blind and the Department of Education. It includes $1.02 billion from the general fund and another $34 million from other funds.
Here are some of the funding changes included:
- $12.3 million increase in funding to the Board of Regents, including a 2.5 percent increase to public university general operations.
- $10 million for a new Special Education Division in the Iowa Department of Education, which will oversee the state area education agencies. The money was taken from AEA funding.
- $172,000 to Iowa PBS to digitize archives
The bill also includes a number of policy items. It reinstates the deadline for open enrollment and bans universities from spending money on diversity, equity and inclusion offices for purposes not required by federal or state law or accreditation standards.
Health and Human Services: $2.68 billion
This budget funds the Department of Health and Human Services and the Department of Veterans Affairs. It includes $2.21 billion from the general fund and another $469 million from other funds.
New programs and spending in the budget include:
- $8 million to develop the Thrive Iowa program, which aims to connect people in need to non-government nonprofits and organizations that can assist them.
- $107.2 million increase in medical assistance and Hawki children’s health program, including increases in provider reimbursement rates
- Requires the Department of Inspections, Appeals and Licensing to provide joint training sessions to nursing home facilities and inspectors about the most common citations issued to nursing homes.
Judicial Branch: $220 million
This budget funds the state's court system. All $220 million in funding comes from the general fund.
The budget includes a 5 percent salary increase for all judges in Iowa, which will cost about $2.4 million. It also tweaks the required contribution for the judges' retirement system.
Justice System: $713 million
This budget funds the Iowa Attorney General's Office and the Department of Corrections. It includes $693 million from the general fund and $20 million from other funds. It includes the following new spending:
- $2.8 million increase to the Attorney General's Office, including six new full-time employees
- $11.9 million increase to the Department of Corrections
- $5.1 million increase to the Department of Public Safety for one new employee and increased operating costs
Agriculture: $143 million
This budget funds the Department of Agriculture and the Department of Natural Resources. It includes $46 million in general fund spending and another $97 million from other funds.
These spending increases and programs are included in the budget:
- $1 million for state park maintenance and repairs
- $296,000 for accessibility improvements at state parks
- $200,000 for project connecting schools and food banks for local foods
Economic development: $76 million
This budget funds the Iowa Economic Development Authority, Department of Workforce Development and other economic development agencies. It includes $42 million from the general fund and $34 million from other funds.
The budget includes $2 million for a Skilled Worker and Job Creation Fund.
Administration and regulation: $139 million
This budget funds the Department of Administrative Services, the governor's office, and other executive offices and agencies. It includes $72 million from the general fund and $67 million from other funds.
The budget includes a $117,000 increase to the Department of Administrative Services and a $54,000 increase to the governor's office.
Rebuild Iowa Infrastructure Fund: $212.4 million
This budget is separate from the general fund and pay for a variety of infrastructure and miscellaneous programs. It includes $6 million for state park infrastructure, including $1 million to improve park accessibility.
Transportation: $453 million
This budget is separate from the general fund and funds roads and transportation infrastructure.