Senate sets $8.85 billion spending target for next year

The Iowa Senate and Gov. Kim Reynolds have set a budget target of $8.486 billion, which will begin the budget process over the next several weeks. The target represents a sustainable increase in spending for education and public safety, while also ensuring tax relief for hardworking Iowans. Iowa’s income tax rates have decreased from 8.98 to 6 percent this year, in addition to the elimination of the tax on retirement income. By 2026 the income tax rate will be a flat 3.9 percent. This tax relief has been made possible because of budgets just like the one proposed this year.