Kim Reynolds Pauses Invest in Iowa Act Program for the Second Time


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Nicole Welle | January 11, 2021

Gov. Kim Reynolds announced Thursday that she is once again pausing the Invest in Iowa Act, a proposal that would fund environmental and mental health programs, due to the effects of COVID-19 on the economy.

Reynolds originally shelved the proposal late last session after the COVID-19 pandemic first disrupted the economy. She said that the program’s one-cent sales tax increase would be ill-advised during a time of economic uncertainty, and she still holds that view. Reynolds has said that she would rather follow up on tax cuts made in 2018 so Iowans can “keep more of their hard-earned money” and cited concerns about the pandemic’s effect on employment and the economy, according to an Iowa Capital Dispatch article.

The Iowa Capital Dispatch previously reported that lawmakers from both parties have opposed the plan, so the Invest in Iowa Act is likely to stall without major revisions if Reynolds ever decides to act on it in the future. Some Republican lawmakers have discussed adjusting tax breaks to create funds for some of the work outlined in the act, but the Invest in Iowa act’s future is unclear.

Reynolds’ original Invest in Iowa proposal would have funded Iowa’s Natural Resources and Outdoor Recreation Trust Fund and improved the state’s mental health programs, and reductions in income and property taxes would have offset the one-cent sales tax increase. Iowa voters overwhelmingly approved the trust fund in 2010 and hoped that it would help to solve Iowa’s water quality issues caused by agricultural runoff and other pollution. However, it is in desperate need of funding as the sales tax increase required to fund it has never reached the debate floor.

The Invest in Iowa plan would have created $171 million a year for water quality, outdoor recreation, and conservation projects. It also would have allowed counties to shift mental health funding from local property taxes to the sales tax. However, Reynolds did not discuss alternative sources of funding for water quality or conservation projects when she announced that she would pause the program on Thursday, and she said that she is currently looking for alternative sustainable funding for mental health services.

Incentives Alone are Not Enough to Solve Iowa’s Dirty Water Problem


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Nicole Welle | October 29, 2020

Governor Kim Reynolds plans to revive her stalled Invest in Iowa plan during the legislative session next year, but experts warn that tax money going towards voluntary farm-based projects to improve Iowa’s water quality is not enough to make a difference.

Gov. Reynolds introduced the Invest in Iowa plan as a way to improve Iowa’s business climate and boost the state’s image. The plan would raise Iowa’s sales tax to fill the Natural Resources and Outdoor Recreation Trust Fund, lower income taxes, provide mental health funding and improve water quality, according to an article in The Gazette.

The funds for improving water quality would go towards incentive-based farm projects aimed at reducing fertilizer runoff into Iowa’s waterways. However, the plan does not include any accountability measures to ensure that funded projects are actually successful. University of Iowa professor Larry Weber, a co-founder of the Iowa Flood Center and former director of the IIHR Hydroscience and Engineering Institute, said in a panel that adding restrictions is crucial to the plan’s success. He also noted that Iowa’s nitrate load has doubled over the last 20 years even though the state has payed farmers $600 million over that time period for conservation projects.

On top of adding restrictions, many environmental experts also believe the state needs to reduce the rate of agricultural intensification, ensure farmers volunteering for these programs are educated and understand the problem, discourage the overuse of manure and commercial fertilizers and rethink the state’s system for siting livestock confinement operations. Livestock confinements are a big contributor to water pollution, but they are quickly increasing in number in Iowa’s watersheds.

Iowa’s water quality problem is a complex issue that requires multiple solutions. However, these additional solutions would require changes in law that would get a lot of pushback from powerful ag interests that sell seed, feed and fertilizer, so experts like Larry Weber fear that Iowa’s water quality will continue to decline under Gov. Reynolds’ plan.