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State Rep. Prichard Assesses Pros, Cons of Legislature Tax Bill

State Representative Todd Prichard (D) of Charles City has mixed feelings about the wide-ranging tax bill the Iowa Legislature is sending to Governor Kim Reynolds.

The bill was approved Tuesday with a provision that shifts funding of mental health services from counties to the state. Prichard says he has some misgivings about the change.

The backfill payments started in 2013 and total $152 million each year. The bill would phase out those payments by 2030, but includes a funding boost to offset the impact to schools. However, cities would lose a total of $52 million per year, and counties would lose nearly $30 million per year.

Prichard says bill positives include expanded tax credits related to child care and housing, as well as tax relief. Senate Republicans say the bill will reduce income, property and small business taxes by a total of $1 billion over the next eight years.

Passage of the tax bill is expected to pave the way for lawmakers to put the finishing touches on the state budget, which Prichard says could be finalized today (05.19) and would bring the 2021 legislative session to a close almost three weeks after it’s scheduled end date of April 30th.

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Mark Pitz

News Director
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