The independent newspaper of the University of Iowa community since 1868

The Daily Iowan

The independent newspaper of the University of Iowa community since 1868

The Daily Iowan

The independent newspaper of the University of Iowa community since 1868

The Daily Iowan

Gov. Kim Reynolds reports $1.83 billion budget surplus, drop in corporate tax rate

The general budget dipped slightly from fiscal 2022, with larger surpluses in reserve funds and the Taxpayer Relief Fund.
The+Iowa+State+Capitol+building+is+seen+in+Des+Moines+on+April+9%2C+2019.+
Katie Goodale
The Iowa State Capitol building is seen in Des Moines on April 9, 2019.

Iowa Republican Gov. Kim Reynolds announced a $1.83 billion surplus for the State of Iowa’s fiscal 2023 budget, a slight dip from the $1.91 billion surplus in fiscal 2022. 

In addition to the general fund’s surplus, Reynolds also announced a $902 million surplus in reserve funds, a $73 million increase from fiscal 2022, a $2.74 billion surplus in the Taxpayer Relief Fund, and a $1.68 billion increase from fiscal 2022. 

“Some see a surplus as government not spending enough, but I view it as an over collection from the hard-working men and women of Iowa,” Reynolds said in the news release.

Kraig Paulsen, director of the state Department of Management, said in a news release that Iowa is now in an “extremely strong financial position” to meet Iowans’ needs. 

Iowa state Sen. Janet Petersen, D-Des Moines, said in a statement Wednesday that Reynolds always put rich corporations and special interests first. 

RELATED: State panel recommends eliminating half of state boards, commissions

Petersen serves as the ranking member of the Senate Appropriations Committee, which leads the budget-writing process in the Senate. 

In the past, Petersen has criticized Reynolds for taking away state funding for special education services and putting more money towards the state voucher program and advocated for a balanced budget. 

Drop in corporate tax rate

Reynolds signed House File 2317 in March 2022, reducing corporate income tax rates once their receipts exceed $700 million. With more than $838 million in net corporate income tax receipts in fiscal 2023, the top corporate tax rate dropped 15.5 percent — a 1.3 percentage point increase from its 14.2 percent drop in 2022.

As a result, Iowa’s corporate tax rate will drop to 7.1 percent for tax year 2024. The 1.3 percent drop was not projected to happen until after Tax Year 2027, according to the release. 

“From cutting taxes and red tape to expanding economic freedom and opportunity, Iowa is growing and providing businesses and our people the freedom to flourish,” Reynolds said. 

Petersen also criticized the corporate tax rates, calling it a “tax scheme” that isn’t working for Iowans. 

“While Gov. Reynolds is again slashing corporate taxes and promising more giveaways to come, middle-class families still aren’t getting ahead,” she stated. 

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About the Contributors
Grace Katzer, Politics Reporter
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Grace Katzer is a second-year student at the University of Iowa majoring in Journalism and Mass Communications, Political Science, and a writing certificate. Previous to her position as a politics reporter, she has been a higher education news reporter at The Daily Iowan and interned with the Spencer Daily Reporter as a news reporter and Iowa Starting Line as a news media reporter.
Katie Goodale, Visuals Editor

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Email: [email protected] Katie Goodale is the Projects Assistant Visuals Editor at The Daily Iowan. She is a senior at the University of Iowa majoring in journalism and creative writing. For the past three years, she has worked as a photojournalist/videographer and as the photo editor for the DI.