Today, Senate Republicans released budget targets for Fiscal Year 2023. The total budget target is $8,201.7 million, the same amount Governor Reynolds released in her budget last month. The new spending highlights include:
Net Increase in Spending – $76.8 million, a 0.9% increase
Total New Spending – $283 million, a 3.5% increase
New funds to K-12 schools – $159 million, 57% of all new spending
Funds transportation equity and continues to address per pupil equity
Provides an increase of $71.2 million for mental health funding, eliminates the county property tax levy, and provides property tax relief to Iowa families
“As the chair of the Senate Appropriations Committee, my goal is to put together a budget that funds the priorities of Iowans, and is sustainable and responsible,” said Senate Appropriations Chair Tim Kraayenbrink, R-Fort Dodge. “Years of conservative budgeting have put the state in a position to continue to provide reliable increases to public safety, education, and health care.”
“This budget sets the stage for the implementation of generational tax relief,” said Senate Majority Leader Jack Whitver, R- Ankeny. “The Senate’s tax bill establishes a 3.6% flat income tax rate in 2027, reforms corporate taxes to make them flatter and fairer, reduces Iowa’s income tax rate from the eighth highest to the fourth lowest, and ensures Iowans keep more of the money they earn to weather the runaway inflation caused by the reckless policies in Washington, DC.”
These budget targets prepare the state for tax relief by having the following surpluses, reserves, and spending rates:
FY 23 Ending Balance – $914 million
FY 23 Reserve Fund Balance – almost $900 million
FY 23 Taxpayer Relief Fund Balance – almost $2 billion
Spends 90% of total funds available
