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Gov. Reynolds praised by some for fiscal year surplus; State Auditor Sand disagrees

With a $305-million surplus in the bank, activists urge governor to trim taxes in next fiscal budget while State Auditor Rob Sand says the money should be used now.

DES MOINES, Iowa — Gov. Kim Reynolds heard the requests and praise of more than 30 Iowa groups interested in how the state government's next budget shakes out in a Zoom conference call held Thursday.

Most of the attendees praised Reynolds for fiscal responsibility especially during the ongoing pandemic.

The state closed the fiscal year that ended June 30 with a $305 million-dollar surplus.

Chris Hagenow of Iowans for tax relief said frugal spending should result in lower taxes for Iowans.

“Economic growth coupled with ongoing spending discipline has kept Iowa in an enviable position compared with other states around the country," he said. "With a healthy budget surplus heading into the next fiscal year, it’s time to consider additional tax cuts."

Democratic State Auditor Rob Sand also held a press conference on the state's budget Thursday and says the amount of money the government is sitting on is unacceptable and should be used to help Iowans. 

"There is still a lot of room to protect lives and livelihoods, through increasing testing, providing small business relief grants and income assistance, while still being fiscally responsible," said Sand. 

Dave Duncan of the Iowa communications alliance asked the governor to push more state money toward broadband internet access in rural Iowa.

“Based on your request for $15 million in that program last year, I'd suggest that you allocate multiple times that amount," he said, "if we're going to really be able to reach those remaining unconnected islands, who truly are the hardest to reach and the most expensive to serve, and to make sure that we're doing so with future proof networks that these consumers need.”

The State Legislature begins its new session Jan. 11.

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