Legislators Set to Reconvene – Revenue Estimating Conference Meets

State lawmakers are set to reconvene on June 3, 2020 after a two-month plus suspension of the 2020 Iowa Legislative Session due to the Covid-19 pandemic. When the State Legislature reconvenes on Wednesday, FUELIowa expects the state budget to be at the forefront of discussions. Select policy and tax related bills are likely to be debated as well. FUELIowa staff and legislative team members have been in regular contact with lawmakers during their hiatus. Lawmakers are aware of the essential role that FUELIowa member companies are playing by fueling Iowa’s economy during these uncertain times. For FUELIowa, infrastructure investment opportunities and the preservation of Iowa’s rural fuel distribution network remain our top priority as lawmakers travel back to the statehouse on June 3.

On Friday, May 29, Iowa’s Revenue Estimating Conference (REC) held a virtual meeting to discuss the impact of the Covid-19 pandemic on state revenues.  Traditionally, the REC meets in March, October, and December. However, with the unknown impact of the Covid-19 pandemic on state revenues, lawmakers requested a special meeting of the REC prior to reconvening on June 3 for the purpose of setting a sound budget. The REC estimates a $150 million shortfall in state revenue for the 2020 fiscal year ending June 30. For fiscal year 2021, REC members were cautious to warn that there was no blueprint to follow when projecting future revenue estimates in the midst of a global pandemic. Ultimately, REC members agreed to revise their fiscal year 2021 revenue estimates from their March meeting by $360 million while being cautious to reserve their right to adjust that projection in October if necessary.

Fortunately for Iowans, lawmakers will return to the statehouse on Wednesday with a budget surplus in hand. Additionally, Iowa Governor Kim Reynolds announced on Friday her plans to use the nearly $1.25 billion in federal CARES Act funding available to Iowa. Reynolds plan includes the release of nearly $700 million of CARES Act funding while reserving the remaining $525 million for future use as needed. In her plan Governor Reynolds announced targeted allocations of $215 million to assist Iowa businesses and families in dealing with the impacts of Covid-19. Governor Reynolds also announced that an additional $100 million would be targeted toward the agriculture community and specifically called out the struggles faced by Iowa’s ethanol industry. FUELIowa will provide more details of the Governor’s plan as they are made available.

The FUELIowa team expects a fast-moving end to the 2020 Iowa Legislative Session. As always, our team is here to assist you with any questions that you have. We are looking forward to the re-opening of Iowa and continuing to work with you as we navigate these uncertain times.