Latest news with #HouseStudyBill310
Yahoo
20-03-2025
- Business
- Yahoo
House bill would bar Iowa's 4 largest counties from receiving economic development funds
Iowa would be barred from awarding economic development grants to the state's four largest counties for three years under a bill advancing in the House. The legislation would ban Iowa Economic Development Authority funding, including tax credits and direct funding, from going to Polk, Linn, Scott or Johnson counties from July 1, 2025, through June 30, 2028. Rep. Derek Wulf, R-Hudson, who is a farmer, said "something has to happen" to revitalize rural Iowa. "I think it's important to realize that everything we've been talking about and everything we've been doing in this building to revitalize rural Iowa has not worked," he said. "It has not worked, folks. And what we need to do is have transformational change." A three-member House subcommittee voted 2-1 on Wednesday to advance the bill, House Study Bill 310, to the full House Ways and Means Committee for consideration. Wulf and Rep. John Wills, R-Spirit Lake, were in favor, and Rep. Elizabeth Wilson, D-Marion, was opposed. More: Iowa GOP unveils sprawling property tax 'reboot' with $426M cut, $25K homestead exemptions A range of business groups and local governments oppose the bill, including the Iowa Chamber Alliance, Iowa Travel Industry Partners, Cedar Rapids Metro Economic Alliance, Marshalltown Area Chamber of Commerce, Professional Developers of Iowa and the Linn County Board of Supervisors and cities of Des Moines and Cedar Rapids. There are no groups registered in favor of the bill. Dustin Miller, executive director of the Iowa Chamber Alliance, told lawmakers at Wednesday's subcommittee that chambers of commerce are taking a regional approach to attracting economic development projects, which he said benefits rural areas. "I think it's important to understand that a lot of times those counties can be the drivers that ultimately benefits the surrounding counties," he said. He pointed to last year's announcement that Daisy Brand will locate a $700 million sour cream and cottage cheese plant in Boone that is projected to create 255 jobs. Miller cited data showing that the state's four largest counties contribute 42% of Iowa's GDP — $85 billion of $200 billion total. The four counties also make up $1.5 billion of Iowa's $4.3 billion of personal income tax and $1.2 billion of the state's total $2.8 billion in sales tax revenue, he said. Doug Struyk, a lobbyist for the city of Des Moines, which opposes the bill, called it "short-sighted" and not in the state's best economic interests. "We believe removing the largest four counties from the ability to receive these incentive funds removes the ability for many projects to even consider Iowa," he said. According to data provided by House Republicans, the four most populous counties received about $41 million from the Iowa Economic Development Authority in both direct funding and tax credits in fiscal year 2024, amounting to just under 22% of the total funds awarded that year. Polk County: $17.3 million; 9.1% Linn County: $17.9 million; 9.4% Scott County: $792,000; 0.4% Johnson County: $5.3 million; 2.8% Boone County, where the Daisy facility will be located, was the county that received the most IEDA funding in fiscal year 2024 — $20.9 million, or 11% that year's total. Wills said he believes the state's four most populous counties already have growth and economic development, which he said won't stop if the state takes away incentives. "They have everything that they need to continue to grow," he said. "What needs to happen for our rural areas to grow and advance is for economic incentives to be concentrated in those areas." Wilson said she was "baffled" by the intent of the bill and would not sign off on advancing it. Rep. Bobby Kaufmann, R-Wilton, who chairs the House Ways and Means Committee, said he expects the bill to come up for a committee vote. "Rural Iowa, through farming and agriculture and manufacturing, provides a robust amount of tax dollars," he said. "Rural Iowa doesn't always feel like our small towns and our rural counties get their fair share. … This bill was our initial exploration on that." Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@ or by phone at 515-284-8169. Follow him on X at @sgrubermiller. This article originally appeared on Des Moines Register: Bill halts economic development grants to Iowa's four largest counties
Yahoo
20-03-2025
- Business
- Yahoo
Proposed bill would shut Scott County out of economic development money for 3 years
The four most populous counties in Iowa – including Scot County – would not be able to access state economic development programs and their funds for three years under a bill advanced Wednesday and Iowa House subcommittee, according to the Iowa Capital Dispatch. House Study Bill 310 would impose a three-year moratorium, from July 1-2025 – June 30, 2028, on all programs administered by the Iowa Economic Development Authority and funding available through these programs for four Iowa counties with the highest population: Johnson County, with a population of 157,00 Linn County, with a population of nearly 229,000 Polk County, population of more than 505,000 and Scott County, with population of 174,000. The population data is from the U. S. Census date from 2023. Read the bill in its entirety here. The measure is necessary because Iowa Legislature efforts to revitalize rural Iowa have not worked, said Rep. Derek Wulf, R-Hudson. At the subcommittee meeting, advocates for business groups and local governments were largely against the measure, according to the Iowa Capital Dispatch. Dustin Miller, with the Iowa Chamber Alliance, said he understood the intent of the bill was to aid rural communities but the measure would harm areas of the state that are 'drivers' in the state's economy that will benefit surrounding counties. The four counties have a gross domestic product of $85 billion, representing 42% of the state's total real CDP of $200 billion. Those counties make up a large proportion of the state's collected taxes – 36% of the general fund revenue raised of personal income tax in 2022 and 43% of the sales tax. The bill next goes to the House Ways and Means Committee for consideration. Read the Iowa Capital Dispatch story here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
