Capitol Report -- July 2022
July 26, 2022
By: Casey Nickel, Dustin J. Miller, Brad C. Epperly
Fiscal Year 2022 Ends
Fiscal Year 2022 ended on July 1. According to the June memo from the Legislative Services Agency, the state took in $9.6704 billion in net receipts in FY22. This is an increase of $716.8 million from FY21, nearly 8%. During the March Revenue Estimating Conference meeting, the REC projected a growth of 4.3% for FY22 over FY21.
According to the June memo, personal income tax, sales and use tax, and corporate income tax revenues all exceeded projections for FY22. The total amount of refunds paid out for FY22 decreased by 9.7%, totaling $1.043 billion paid by the state through June 30.
The state’s books officially close at the end of August. The final revenues for FY22 will be adjusted over the next month to account for revenue and refunds that should be included in FY22 before the final FY22 revenues are determined. The June memo indicates that the state exceeded the expected growth for FY22.
Iowa Caucus Update
In April, the Democratic National Committee announced that the Rules and Bylaws Committee would open applications to potentially rearrange the presidential nominating calendar for the 2024 Presidential Election. Iowa was among 15 other states to apply to be considered for the early nominating calendar. Iowa has previously held the first-in-the-nation caucuses since 1972; during the 2020 election, the Democrat caucuses faced several challenges resulting in IDP Chair Troy Price resigning on February 12, 2020.
In June, Iowa presented to the Rules and Bylaws Committee why Iowa should remain first and the changes being implemented to streamline and improve the caucus process. New Hampshire, Nevada, and South Caroline were also invited to make in-person presentations along with 12 other states and Puerto Rico. The committee sent additional questionnaires to the states who presented and is expected to meet again in August to announce the nomination calendar.
The Republican National Committee announced in May that they would not change their nominating calendar, regardless of what the DNC decides to do. This could mean that Iowa could potentially be first in the nation for the Republican caucus, with the Democratic caucus occurring later.
Safer Communities Act of 2022
On July 11, President Biden signed the Safer Communities Act of 2022. The bill is a bipartisan agreement reached by Democrats and Republicans in Congress to address recent mass shootings nationwide. The legislation expands provisions to keep firearms out of the hands of individuals deemed to be a danger to themselves or others by expanding background checks to include information related to juvenile crimes, incentivizes states to enact red flag legislation, and closes the boyfriend loophole in regards to domestic abusers being able to obtain firearms.
988 Number Launches for Mental Health Crisis Calls
Beginning on July 16, Iowans can dial 988 to receive emergency mental health support. The suicide and crisis lifeline was enacted in 2020, requiring states to implement it by July 16, 2022. The legislation was introduced and ultimately passed by Congress in response to concerns that the previous hotline number was too long.