Tyler Chalfant | February 18th, 2020
A decade after Iowans approved a constitutional amendment to create the Natural Resources and Outdoor Recreation Trust Fund (IWILL), Governor Kim Reynolds has proposed a sales tax increase to fund the program. The fund requires three-eighths of a cent from a sales tax increase to be set aside as a permanent and protected source of funding dedicated towards conserving and improving the state’s water quality, farmland, and natural wildlife habitats, and providing opportunities for recreation. Critics say that the governor’s plan provides much less funding than was promised.
Peter Fisher, Research Director of the nonpartisan Iowa Policy Project say that the new proposal would provide $82 million for environmental conservation and restoration programs, which should be $200 million based on what was passed in 2010. Another criticism is that the sales-tax increase has been paired with an income-tax decrease that favors the wealthy and results in a net loss in state tax revenue.
A report from the Iowa Fiscal Partnership found that the plan also excludes digital goods and services, resulting in a loss of $31 million for the fund. The new formula also transfers existing funds, rather than relying on new funding sources for new programs. It also gets rid of much of the outdoor recreation funding approved in 2010 amendment. You can read the full report here.