DES MOINES, Iowa — Gov. Kim Reynolds has signed the government realignment bill into law, an idea she fist mentioned in her Condition of the State Address in January 2023.
The bill is a hefty one: It's 1,500 pages long and designed to streamline the state's government by combining state agencies, cutting funding and eliminating positions in more than seven state departments.
The bill has many moving parts, but Local 5 dove into the fiscal impact first.
Reynolds said it had been 40 years since Iowa last did a comprehensive review of government structure and operations.
She claimed the lack of updates was holding Iowans back and hindering the efficiency of Iowa's state divisions.
"Services were spread unpredictably across state government, really causing just unnecessary friction for Iowans. And what we also saw was fractured organizational structure that was preventing thousands of capable, hardworking public servants from reaching their full potential," Reynolds said.
Although Reynolds claimed this bill would save Iowans $12.5 million each year, Iowa Sen. Claire Celsi, D-Polk County, said she fears the bill will take away cabinet positions, ultimately giving more authority to Reynolds.
"The governor's reorganization bill purports to save Iowans time and money. However, what it actually does is just create more bureaucracy and more power for the governor and the attorney general," Celsi told Local 5.
Here's a summary of the fiscal impacts, provided by the nonpartisan Legislative Services Agency.
There are more than eight divisions expected to make staffing cuts, with three losing the most total employees.
Iowa Workforce Development will cut 67 members from staff, condensing spending by $4.2 million each year.
The Iowa Department of Health and Human Services will see a reduction of 20 positions alongside a predicted $162,000 saved each year.
Meanwhile, the Iowa Economic Development Authority will lose seven staff members, saving $300,000 yearly.
Although this bill is signed to law today, it will not go into effect until July. Reynolds said that's when they hope to successfully phase each division, but they need extra time in order for that transition to be fluid.