DES MOINES -- Iowa Gov. Kim Reynolds used her seventh Condition of the State speech Tuesday to call for accelerated income tax cuts and to express grief over last week's deadly school shooting in Perry -- and her gratitude for law enforcement and school officials who responded to it.
The Republican governor, in her annual address to a joint session of the Iowa House and Senate, also outlined plans to increase teacher pay, reform the state's Area Education Agencies that serve children with disabilities and create a network of nonprofits to connect Iowans in need with assistance.
Reynolds began her address by acknowledging the shooting Thursday at Perry High School that killed 11-year-old Ahmir Jolliff, a sixth-grader, and injured seven students and school staff. The 17-year-old shooter, a student there, killed himself.
"Our hearts are still heavy and our prayers continue for the victims and their families, and for the entire Perry community," Reynolds said, according to a copy of her prepared remarks. " ... The senselessness of it shakes us to our very core. Yet even in the darkest hour, light and hope break through. That was certainly the case on that day."
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Principal Dan Marburger tried to calm down the shooter and distract him so students could flee, according to his daughter and law enforcement. He was critically injured, sustaining multiple gunshot wounds at close range.
"His unflinching bravery saved lives that morning. Dan is a hero, and we pray that he's soon back where he belongs, with the students who are so lucky to have him," Reynolds said.
She also acknowledged "the courageous actions of the local law enforcement officers, first responders, and state and federal agents" who responded to the shooting.
"Whether in person or in spirit, Iowans showed up that day in Perry, and we'll be there every day through their recovery," the governor said.
Reynolds and lawmakers took a moment of silence to honor those affected by the Perry school shooting, and also an Algona police officer and Ionia firefighter who died in the line of duty last year.
Reynolds did not propose any new firearm restrictions in reaction to the shooting. Speaking after the address, Democratic House and Senate leaders said she and Republicans should address firearm access and storage and broader gun violence issues in the wake of the shooting.
"One of the best ways to honor the community of Perry, who just endured this shooting, is to come up with policies that will make it so there's not another school shooting," said Iowa House Minority Leader Jennifer Konfrst, D-Windsor Heights.
Republican House Speaker Pat Grassley, R-New Hartford, noted several of the governor's proposals received bipartisan applause, including proposals to raise teacher pay, expand workplace learning opportunities and extend postpartum Medicaid coverage.
"I think we've seen from this governor that she has a willingness to take on difficult issues and have bold agendas and lay those out," Grassley said. "And I think she did that again tonight. ... And, quite frankly, on several of the issues seeing all legislators rise, I think shows that the governor really laid out an agenda, that there's going to be interest from both parties to want to have those conversations."
Taxes
Reynolds' priorities and policy proposals for the year includes accelerating income tax cuts passed in 2022 that started to take effect this year. The law would gradually reduce personal income taxes to a flat 3.9% in 2026.
Reynolds' proposal would expedite that transition. Most working Iowans would pay a 3.65% state income tax on their 2024 wages, and then a 3.5% in 2025. The proposal would reduce Iowans' state income taxes, and thus limit future state revenue growth, by $3.8 billion over the first five years.
Republicans say the state can afford more tax reductions, with a $2.1 billion general fund budget surplus projected to grow to $3.1 billion in the next fiscal year, full emergency accounts and $3.7 billion in the Taxpayer Relief Fund.
"Let me be absolutely clear: the surplus does not mean that we aren't spending enough; it means we're still taking too much of Iowans' hard-earned money," Reynolds said, according to prepared remarks.
The governor also called for lowering taxes businesses pay to fund benefits for unemployed workers. Under her proposal, Iowa employers would pay a maximum rate of 5.4% on wages up to $18,000 per employee, as opposed to the current 7% on wages up to $36,000 per employee. Reynolds' office estimates that will save Iowa employers more than $800 million over five years.
"(W)e turned our unemployment system into a re-employment system. And it's having the intended effect," Reynolds said. "Our unemployment rate remains low, we have the sixth highest labor force participation rate in the country, and Iowans are now spending on average less than 10 weeks on unemployment. ... Because so many Iowans are drawing a paycheck instead of a government check, our unemployment trust fund is full -- to the point where we can reduce the unemployment insurance payments that employers make by half."
After Reynolds' address, House and Senate Democratic leaders said they were concerned that further income tax cuts would disproportionately benefit the wealthy while leaving hundreds of thousands of Iowans who pay no income taxes with no benefits.
"The people who have been the biggest beneficiaries of this tax cut that's currently in place are those who are earning more than a million dollars a year," Iowa Senate Minority Leader Pam Jochum, a Democrat from Dubuque, said.
Education
Reynolds also is asking the Iowa Legislature to invest $96 million in new money to increase starting teacher pay by 50%, to $50,000, and to set a minimum salary of $62,000 for teachers with at least 12 years of experience.
In addition, her proposed budget includes $10 million for a merit-based grant program to reward teachers "who have gone above and beyond to help their students succeed."
Reynolds also called for reforming the state's nine regional Area Education Agencies, created in the '70s to provide special-education support for school districts -- arguing they operate without meaningful oversight.
"Over the last year, in dozens of conversations with parents, teachers, school administrators and AEA staff, it's become clear that while some of our AEAs are doing great work, others are underperforming," Reynolds said.
"We have superintendents who won't use their services but are still required to pay for them. And AEAs have grown well beyond their core mission of helping students with disabilities, creating top-heavy organizations with high administrative expenses," she said.
Instead of funding funneling through the school districts to their AEA, the districts would be given the option under her proposal to keep that funding and allocate it for special education services as they choose: at an AEA or at a private company.
Under her proposal, AEAs would focus solely on students with disabilities, and independent oversight would move to the state Department of Education.
It would eliminate property taxes that are collected to support AEA functions that are not related to special education. The governor's staff has projected that would be an impact of $68 million in fiscal 2025.
"In short, each school will decide how best to meet the needs of their students," Reynolds said, saying her proposal would not reduce special-education funding "by one dime."
"We are simply giving control of the funding to those who work directly with your child on a daily basis, and we're taking special education off Autopilot, where it has been stuck for far too long," she said.
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In the last five years, Iowa students with disabilities have ranked 30th or worse on nine of 12 national assessments, while Iowa spends over $5,300 more per-pupil on special education than the national average.
Reynolds also said she would work to increase reading outcomes for elementary students and train teachers in a "Science of Reading" program, an evidence-based literacy program.
Her proposal would also require the state to create personalized reading programs for every child who is not proficient in reading in first through third grade. Parents would have the option to retain children in third grade if they are not reaching literacy standards.
Mike Beranek, president of the Iowa State Education Association, the union representing Iowa's public school teachers, called Reynolds' proposal to raise teacher pay "long overdue."
"We are optimistic that this promise will turn into action for all of the employees in our public schools, some of whom work with the most vulnerable students - and are still only making just $9 per hour," Beranek said in a statement. "We hope this is not an empty campaign promise but will genuinely mean that she values recruiting and retaining public educators, community college instructors, and the professionals serving in our Area Education Agencies."
Beranek also called on lawmakers to "discuss real solutions" to addressing gun violence in the wake of last week's school shooting. He said school districts are in need of additional public school resources and access to counselors, psychologists and social workers, as well as resources to protect against cyberbullying and harassment.
ISEA also called for continued support of Area Education Agencies, which, along with school staff and law enforcement, "jumped into action to help with grief and counseling services."
"Our public schools need more resources to help foster positive and inclusive school climates - they don't need weapons and fewer education professionals in the buildings," Beranek said.
Democrats said they were skeptical of Reynolds' proposal to overhaul the AEAs and that they want to see more details of the plan. Jochum, who said her late daughter received services from an AEA for a disability, said she was concerned it could disproportionately affect rural areas.
"I know a lot of families with special needs children are so dependent on those services," she said. "...It sounds like we're beginning to privatize even the Area Education Agencies."
Senate Majority Leader Jack Whitver, R-Grimes, said the proposal would allow schools more flexibility to provide special education services in ways that work best for them.
"As far as looking at things like the AEA, that have never really been reviewed, and taking a look at it from a state government perspective, is something that we want to do," Whitver said.
Health care initiatives
Reynolds called for increasing the coverage of postpartum care for new moms under Medicaid from two months to 12 months. Iowa is one of only a handful of states that has not implemented the extension, which was made available to states in the American Rescue Plan Act.
To accomplish this, Reynolds' office said she would propose decreasing the eligibility for Medicaid coverage of birth and postpartum care to 215% of the federal poverty line from 375% under current law. While the benefits would be extended, the changes would make it harder to qualify for them -- keeping Medicaid costs for pregnancy and postpartum care neutral.
Under the new proposal, a single pregnant woman making less than $42,000 a year would have her pregnancy and 12 months of postpartum care covered under Medicaid.
Reynolds tied the initiative to Republicans' passage of a strict abortion ban last year, now blocked in court, that banned abortion when a fetal heartbeat can be detected, as early as six weeks. She called that decision an "act of courage and conviction" that would save lives.
"To continue building a robust culture of life, we must also do everything in our power to ensure new moms and their families -- especially those who are struggling -- have what they need to make ends meet," she said.
Reynolds said government assistance is "critical for families working to get back on their feet" but should be a temporary aid on the road to self-sufficiency.
To further that goal, she proposed a program to connect Iowans in need with faith-based organizations and the private sector and steer them away from government assistance. The program is modeled after Hope Florida, a program spearheaded by Florida first lady Casey DeSantis, the wife of Gov. Ron DeSantis. Reynolds has endorsed the Florida governor in his campaign for president.
"Whatever the challenge, Thrive Iowa will be there with dedicated navigators to help Iowans find their way to lasting independence," Reynolds said. "And countless lives will surely change for the better."
Reynolds will reintroduce proposals to allow birth control to be dispensed by a pharmacist without a prescription and expand paid family leave for state employees, her office said.
Reynolds' office also said she would introduce legislation to require age verification for online pornography websites, similar to laws in Utah and Texas.
Proposals to extend postpartum Medicaid and provide behind-the-county birth control have previously stalled in the House.
Grassley said House Republicans will continue to discuss those issues and Reynolds proposals this session.
"So my expectation would be that we need to have those continued conversations within the House," Grassley said. "And I think that won't be the only proposal. You know, there's some leftover from last year that we have to continue conversations. So my expectation is yes, our caucus needs to engage with this."
Reorganizing boards and commissions
Reynolds will propose a bill to cut and consolidate 111 of Iowa's boards and commissions, a continuation of her move last year to reorganize and reduce the size of state government.
The proposal comes after a state panel, created in last year's realignment law, met to recommend changes to the state panels. Reynolds' proposal is in line with the committee's recommendations, she said during the address.
Reynolds also proposed strengthening the state's laws regarding foreign ownership of farm land. Her proposal would strengthen mandatory landowner reporting requirements and grant the Iowa Attorney General subpoena power to provide more transparency on what farm land is under foreign ownership.
Her proposed would also increase financial penalties for failure to report to the Iowa Secretary of State or false reporting.
"In an uneasy nation, Iowa stands out as a fixed point of prosperity and stability," Reynolds said in closing. "As a reminder that remarkable people can always be trusted to build remarkable things. It's because of them -- because of Iowans -- that the condition of our state is truly strong, and our future is truly bright."
Erin Murphy of The Gazette Des Moines Bureau contributed to this report.
Photos: Gov. Reynolds tours site of The Davenport collapse 060523-qct-nws-collapse-14.jpg 060523-qct-nws-collapse-16.jpg 060523-qct-nws-collapse-10.jpg 060523-qct-nws-collapse-11.jpg 060523-qct-nws-collapse-13.jpg 060523-qct-nws-collapse-06.jpg 060523-qct-nws-collapse-03.jpg 0 Comments Love 0 Funny 0 Wow 0 Sad 0 Angry 0
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