Governor Kim Reynolds

Henderson:

The 2022 Iowa legislative session is six weeks old. Bills covering everything from tax cuts to education policy have begun winding their way toward the governor's desk. We sit down with Governor Kim Reynolds on this edition of Iowa Press.

Voiceover:

Funding for Iowa Press was provided by Friends, the Iowa PBS Foundation. The Associated General Contractors of Iowa, the public's partner in building Iowa's highway, bridge, and municipal utility infrastructure. Fuel Iowa is a voice and a resource for Iowa's fuel industry. Our members offer a diverse range of products, including fuel, grocery, and convenience items. They help keep Iowans on the move in rural and urban communities. Together, we fuel Iowa. Small businesses are the backbone of Iowa's communities, and they are backed by Iowa banks. With advice, loans and financial services, banks across Iowa are committed to showing small businesses the way to a stronger tomorrow. Learn more at iowabankers.com. For decades. Iowa Press has brought you political leaders and newsmakers from across Iowa and beyond. Celebrating 50 years of broadcast excellence on statewide Iowa PBS...this is the Friday, February 18th edition of Iowa Press. Here is Kay Henderson.

Henderson:

On January 11th, Governor Kim Reynolds unveiled her legislative agenda in a speech to the Iowa legislature. This past week, she signed the legislature's first bill into law. It's a school funding measure that gives 2.5% increase to 347 public schools in Iowa on the allocation that's made on a per pupil basis. Our guest today, Governor Kim Reynolds, to talk about lawmaking in the capitol. Welcome back to Iowa Press.

Reynolds:

Thanks. It's great to be here. I appreciate the opportunity.

Henderson:

Also joining us are...Katarina Sostaric of Iowa Public Radio and James Q. Lynch of The Gazette in Cedar Rapids.

Lynch:

Governor Republicans have a shared priority this year of tax relief, and we have three plans moving through the legislature. The House passed its version earlier this week. Can you live with that plan to cut personal income tax and exempt retirement income, but it doesn't include the corporate income tax relief that you asked for?

Reynolds:

Yeah. Well, first of all, I'm excited that all three chambers had a tax plan. So I'm pretty confident that we're gonna get something done. We're over collecting, and this will give us an opportunity to return that over collection back to hardworking Iowans and see those dollars turn over in our communities and in our businesses and in our restaurants. So it's passed the house. It has three-fourths of what I asked for. Of course, the corporation piece isn't included in that. We're working with the House and the Senate and the governor's office to see if we can find some compromise. But I think really what I wanna stress is I believe we're gonna get something done that honors our priorities, which makes sure that we can still fund education, public safety, mental health, workforce, but allows Iowans to keep more of what they earn. And it truly makes us more competitive. We are out of line with other states and we need to address that.

Lynch:

If you cut the corporate income tax as you and the Senate have proposed, do you then eliminate the $44 million the state awarded in research activities tax credits to corporations?

Reynolds:

Well, I think there's a, you know, we're, we're gonna take maybe take the first step with my bill. It said anything, any corporate tax revenue over 700 million would then be used to buy down the rates with the goal of ultimately getting to a 5.5% flat tax for corporations. So again, it does in a responsible manner and lets the, you know, industry know that we're, we're gonna take a look at this. We're 9.8 today. We're third highest in the country. It's not where we need to be. But then we'll continue to take a look at maybe all tax credits over the interim, see, run the metrics, see what's working, what's not, and how we address that going forward. That has R and D has a place in the equation. We have a pretty rich R and C, research and development tax credit. And so maybe there's some adjustments that we can make, but, but I don't know that right now. What we wanna do is take an overall look at the tax credits that we have in the books and see, you know, where we go from here.

Sostaric:

A couple of years ago, you proposed funding the natural resources and outdoor recreation trust fund. Do you have any interest in trying that again with that now being part of the Senate GOP tax bill?

Reynolds:

Yeah. Well, as we're working on a compromise, I said earlier that, you know, everything was on the table. That's what the Senate has included in their bill. One of the components of the invest in Iowa that I led on that I was passionate about was really taking mental health funding off of property tax and moving it to moving it to the state. We were actually able to accomplish that last year, removing it from the levee from property taxes and funding it through the state, making sure that we had sustainable funding. And there's a mechanism included in that, that as revenue increases, it will also increase the funding that we put towards mental health. So I think, too, with the, you know, with inflation at a 40 year high, we have to be really careful about raising taxes right now. I'm interested in lowering taxes, even though potentially it would be an overall tax reduction. We just need to take all of that into consideration as we sit down and start to work through that compromise. But we're having those conversations. And I, you know, I wanna make sure that we're are giving everybody an opportunity to present their piece of the, of the tax reduction. And then we'll continue to work to find compromise to get that done.

Sostaric:

So we have these three different tax plans. How soon do you want a deal to be done?

Reynolds:

Well, I'm hoping soon. So I think we start, we're starting from a really strong position. We agree on probably two thirds of it. So there's just a few pieces that we need to work through. And there's a willingness to do that. We've been working with both chambers in, in having good conversations. And so we'll see where that ends up. But, you know, I'm hoping we can get it done sooner rather than later. Things are moving pretty fast. This year. I've got a biofuels bill that came out of the House with a really strong bipartisan vote, 82 to 10. That's a priority of mine. And just, you know, providing parents choice in the, in their children's education is also a, a priority of mine. And then of course, workforce is, is, continues to be one of our number one priorities.

Henderson:

How does a 4% flat tax solve the problem of finding qualified workers for job openings and you know, filling having childcare options for people?

Reynolds:

Well, we've done both. So it isn't one or the other. I mean, first of all, it's about being competitive. It's about bringing people to the state. It's about business and industry, not only expanding and growing in the state of Iowa, but locating in the state of Iowa. We wanna bring people from the east and the west coast whose children haven't been in a classroom in over two years, who are seeing skyrocketing taxes and just a, a, a, an environment that's not conducive to what we believe is a quality of life. And so by allowing Iowans to keep more of their harder money, like I said, that's turning over in communities all across the state. Another component of it that I'm really excited about is not taxing pension retirement income. Kay, I'm so tired of sending Iowans to Florida and Arizona and Texas. That's discretionary funding that can turn over in our businesses in our communities. And they are awesome volunteers who may work part-time or may help out in schools and in healthcare. And so we need to keep those people here and really utilize the valuable resource that they are. So I'm really excited about that component of it as well.

Henderson:

You mentioned your students first scholarships for parent who send their kids to a private school. For the second consecutive year, it's stalled in the House.

Reynolds:

Yeah.

Henderson:

If I'm a rural legislator where I have few, if any, private school options, why would I vote for that?

Reynolds:

Yeah, well, it's not a zero sum game. I believe by giving parents option, it raises the bar for all schools across the state. We've tried to also address they don't have out of options, and sometimes they don't have options sometimes in rural Iowa. And so 30% of the per pupil funding we've said can go back to schools. Rural schools. Schools with schools population of under 500. But one of the other things that we're looking at as we talk about the bill is maybe looking at occupational sharing and that would be cover even a broader group of rural school districts. So we're still working on some of the pieces of the legislation. But I think, you know, bottom line, again, it's a fairness issue. Right now, public education's the foundation of our educational system. You know, there's great schools all across this state that are providing most parents what they expect in in an educational setting. But there are some parents that really believe that, you know, for their child to get the education that they deserve or that where they'll thrive the best they want an educational option. And right now they don't have that option if you don't have the means to pay for it. So it's only available to Iowans who have the financial means to pay for it. And I don't think that that's fair for low income and middle income families, they should have that same option that Iowas, that have significant resources to, to choose where they want their child to be educated.

Henderson:

So you've proposed 10,000 of these accounts in your legislation.

Reynolds:

Yep.

Henderson:

What's your ultimate goal? Everybody gets one?

Reynolds:

Well, we'll start and see where that goes. Right now. I think that's a fair a fair place to start. I don't think that's, that's 10,000 out of 550,000 children that go to school. So, you know, it's a really small amount. Most parents, as I indicated, I think are happy with the education that their children are being provided. But if you don't agree with some of the things that are, are being done, or you have, you believe that your child needs a different environment to thrive, that option should just not be available for those that can afford it. And I'm surprised that you know, that my, the Democratic colleagues don't support that. They often talk about doing more to support middle and low income families, but yet when it comes to education, the great equalizer, they are saying, sorry, you know, you don't make enough money. You don't get an opportunity to decide what's the best option for your child. And I just, I don't think that that's right.

Lynch:

Governor this week you ended the public health emergency related to COVID. And you've said that the state should treat COVID much like it treats flu. Nearly 9,000 Iowans have died of COVID since last fall, 13 Iowans have died from the flu. Are these the same? Should they be treated the same?

Reynolds:

Well, we've been dealing with COVID for over two years now, and we can't continue to treat it like a public health crisis. We need to,

Lynch:

Isn't it a crisis?

Reynolds:

No. We are continue to see our numbers drop. Iowans know what they need to do. We now have vaccines readily available. We have therapeutics. We have natural immunity. We found that even with vaccines, even though you've had been fully vaccinated and had a booster, many of people that did that still got Omicron, still spreading Omicron. So we know much more to, we know much more than we did two years ago when we started. Iowans, know what they need to do. We're seeing hospitalizations are plummeting. They're over 60% lower than where they were at our high with Omicron. And we need to move on. We know what we need to do. Public health will continue to monitor it like they do other infectious illnesses. And if we need to adjust or change our mitigation efforts, we'll do that. But we need to move on. And we can do it in a safe and responsible manner. James, we've done that from the beginning. We were one of the first states that really, that said our kids need to be in the classroom. We need to give parents the choice to decide whether they wanna put a mask on their child or not. And because of that, because of the decisions we've made, because we had kept our economy open, because we did it in a safe and responsible manner, we're in a better place than they were. You know, one life lost is one too many. Every state in this country experience significant loss. If you look at the states that locked down, that have had their kids out of school for over two years, that continue to have them mask up while they go to restaurants or go to a super bowl and, and don't wear a mask and, and entertain themselves with their friends. But yet they, they still have children in schools, mask up, look at their death rates compared to other states, too. So it is unfortunate that it is an, you know, an out that's that's part of COVID. And, and and unfortunately. But it's time that we move on and continue to address it in a safe and responsible manner.

Lynch:

You've consistently said you trust Iowans to make the decisions about COVID,. But then why shut down the state COVID dashboard that had all that information, all that data in one convenient place for Iowans.

Reynolds:

95% of the people weren't even using it. We'd seen a decrease in people that were going to it by like 95, 98%. And all of that information is still available. It's available through the CDC. It's available through public health. But people weren't using it. And so it takes resources to man that when it's already being manned at the CDC level. That information is fed to them, fed back to us, and we were displaying it. So we haven't taken it away from Iowans. But the fact of the matter is you can say, I've moved on, I've moved on. But the fact of the matter is Iowans and Americans have moved on. And they're tired of the lockdowns. They're tired of their freedoms being threatened. And they are tired, tired of the hypocrisy that they see. You know, it's just, it's, it's, it's unexcusable and it's time to move on. And it's really horrible what we've seen done to these children in some of these states that have had 'em out of the classroom and in, or in the classroom sometimes, and in a mask. And I think the damage that we're gonna see that that's done in the years to come is gonna just it's, it's gonna be heart it's heartbreaking.

Sostaric:

A bill that would outright ban employer vaccine mandates, business mandates, and, and mask mandates, as well, at schools and other entities, too, has been advancing in the House. You joined legal challenges against federal vaccine mandates, but do you support this bill as a state of Iowa policy on the matter?

Reynolds:

Yeah. Well, you're not gonna be surprised by my answer, but we'll continue to see it work through the legislative process. And when it gets in a, you know, if it gets in a final form and at my desk, then we'll take a look at it, do the review and weigh in. I am opposed to federal mandates. Especially right now, we talk about a workforce shortage. You talk about supply chain disruptions. Our healthcare workers have been on the front line since day one when we didn't know anything about COVID and it was changing on a daily basis, a weekly basis. We didn't have a vaccine at that point, but yet they showed up every single day when hospitalizations in Iowa were at over 1500, when we hit our peak, they showed up, they took care of Iowas. They kept the system going. And for the administration to step in now and say, you know, Hey, Hey, thanks for your help. Thanks for being there when we didn't know anything. But right now, when we're on the tail end of Omicron, and when the vaccines aren't really stopping the spread now. I got a vaccine. I support 'em. I think that's the, the best thing that we can do to counter it. But that is an individual choice. And I believe that a healthcare worker, law enforcement, trucker shouldn't have to make a decision between their livelihood and health freedom.

Henderson:

There are county boards of supervisors in northwest and north central Iowa who've sent letters to the Iowa Utilities Board saying don't use eminent domain for these proposed carbon pipelines. There was legislation proposed to do just that. It didn't advance in the Senate. Do you think there needs to be more protections for property owners as these pipelines seem to be proliferating?

Reynolds:

Well, so, so two, I think bills were filed in both the House and the Senate, and they didn't, I don't believe, move through the funnel. So, you know, I think they're raising awareness. We need to continue to monitor it. We have a process on the books to really protect against, you know, being very careful in how we exercise eminent domain. And I believe, you know, we're gonna continue to monitor that. And if we need to take further action, I think, you know, the legislature and I would be willing to take a look at that. But it looks like, Kay, from it not advancing, that it's kind of maybe a warning sign that we're following this. We're gonna continue to watch it. There's a process in place. We want to be limited in how we exercise eminent domain. And that's really, I think was the piece of the legislation to have it hit a certain percent before they would actually even be able to exercise eminent domain. So we'll just continue to see, you know, if that comes up anywhere else or monitor the process and see if there's more that we need, we need to do.

Lynch:

Perhaps one of the lesser impacts of the pandemic has been that Iowans have found it harder to redeem their cans and bottles, find places where they can return them. What needs to be done to the bottle bill to modernize it? Should it be expanded to cover more containers? Should the deposit be increased?

Reynolds:

That's exactly what's playing out in the legislature once again, this year. I can remember when I ran for the state Senate. I think that was in 2008. And I went before a forum. That was one of the first questions that I got asked, you know, are you gonna support the bottle bill? And, and I was representing rural Iowa. And at that point we didn't have a lot of options you know, for recycling in, in rural Iowa. So it's just, this is something they've been talking about for years. I think there are three different proposals, I believe, if not more. I know there's at least a couple that legislators have filed. And so we, you know, that's what the legislative process is supposed to do. It's supposed to put the legislation out there, hear from the various stakeholders, figure out find consensus and, and move forward.

Henderson:

And you don't have a preferred option?

Reynolds:

No, I, I haven't, I've so been focused on the things that I've been working on. So, you know, I know there's more than one version. I've been, you know, I've talked, had the various stakeholders visit with me. But you know, I've always said the legislative process is where you need to work this out. That's what it's designed for. And so maybe this will be the year when they get that done.

Lynch:

I think we've heard that before.

Reynolds:

I know, but it's just, there's a reality, you know. I don't get to, you know, I don't get to say it and make it happen. So,

Lynch:

One of the sticking points seems to be the unredeemed, the money from the unredeemed can that the distributors hold onto. Should that be part of the mix here in somehow spreading that money?

Reynolds:

I think it's part of the conversation. I think that is included in one of the bills, if I'm not mistaken. So that's one of the things that's being discussed with those that have that's impacted by it.

Sostaric:

Your bill to ban racial profiling by law enforcement is dead for the second year in a row. Last year, you talked about it in your Condition of the State address as one of your priorities. Is it just not a priority for other Statehouse Republicans?

Reynolds:

No, I don't think that that's the case. I mean, again, not everything that I put forward, you know, I can't make it happen. You know, I work, we try, we talk to 'em, we educate 'em. I continue to put the bill forward just like we did this year. I told individuals that I would go forward with that again. And we did and continue to work on it. And so we'll continue to work on it and continue to do what we can to make progress.

Henderson:

Earlier in this century, when I was covering the legislature, there was a farmer from northwest Iowa who was the Senate president, who proposed an ethanol mandate. And the Republicans in the Senate said, no, no, no, no, no, we can't do a mandate.

Reynolds:

Mmmhmm.

Henderson:

Why can we do it now?

Reynolds:

Well, it's not a mandate. So I would challenge that. And I have with a lot of legislators, as I talk to. I talked to a lot of House members about that very issue, walked through what we did. We even took one more step to make sure that it wasn't a mandate with the amendment that was filed to the House bill that, that passed 82 to 10 that said that if you don't have compatible infrastructure, you don't break concrete, then you don't have to move forward. And you will receive a waiver. And I think it was "may" qualify for a waiver. They said they changed it to "shall." So just to make it very clear that this wasn't a mandate. But it is important. This is an industry that is so important to the, to Iowa's economy. Ag is the backbone of our economy. This is a a value add that we can produce right in the state. 55% of Iowa's corn goes to ethanol. We lead the country, not only in biofuels, but the, the commodities that make it. And it has been an ongoing battle with Washington DC, with both parties, the uncertainty that, that continues to put on this important industry. We said, we just have to control our own destiny and move forward if we wanna continue to maintain and grow, again, an industry that adds value to the crops that we produce right here in Iowa. And I think it makes a lot of sense, especially when you have the Biden administration that all of the money and all, everything that they're focused on is on electric vehicles, which only further increases our reliance on China. They make the minerals for the batteries. We have a cleaner burdening fuel that's cheaper, that's grown here in Iowa, that has the capacity to expand today. So we're gonna keep fighting for an industry that's really important to our state.

Lynch:

One of the issues being talked about at the Statehouse right now is banning transgender athletes from competing on girls sports teams. The House version would apply to K-12 schools. The Senate has a bill that expands that to include state colleges and universities and community colleges. Do you, which version do you support? And what sort of problems would that raise if it applies to college athletics?

Reynolds:

I think the majority of the states that have moved in that direction have included colleges and universities. First of all, I just believe it's a fairness issue. I think Ainsley's story is one that really reflects how important it is. She competes in girls high school track. She was the state champion in the 800 meter dash. She got to compete at the national level. She actually won the national championship for the 800 meter dash. But yet, if you look at the boys' state track meet, 85 high school boys significantly ran that race at a, at a lower time. And so it's important that we give that you know, girls have the opportunity to compete and have opportunity to get scholarships and to maybe one day compete in the Olympics. So,

Lynch:

Critics say that, that there is no problem in Iowa. This isn't a problem. And, and this is, you know, to borrow a cliche, it's a, a solution in search of a problem.

Reynolds:

No, I don't bel... You know, it's the right thing to do. And we just need to make sure that we're taking steps to make sure that girls have the same rights as the boys. And if you look at the times. You know, we have a granddaughter that competes in track. She's an eighth grader. We have girls and boys track meet. If you sit there as a parent and you look at the scoreboard and you look at the times, same race, come across, put up on the scoreboard. The boys are significantly, their time is significantly lower than girls. It's biology, you know. They have just a stronger bones and muscle and it's, it's a fairness issue.

Henderson:

Governor, rumor has it that you're seeking reelection. I'm wondering if you are a Tom Vilsack governor or a Terry Branstad governor, when you look at the idea of term limits. Governor Vilsack, if people don't recall, said he would only serve two terms.

Reynolds:

Yeah. I think that's what elections are about. So I think the people will decide if you should be reelected or not. So that's always been the position that I take.

Henderson:

I guess it was earlier in the fall when President Trump came to Des Moines and had a rally and endorsed publicly Senator Chuck Grassley in his reelection bid. Do you expect President Trump to do the same for you?

Reynolds:

Yeah. If and when I make that announcement I wouldn't be surprised if he would endorse me.

Henderson:

So if you were to reflect on what's happening at the Canadian border, you mentioned truckers earlier. Do you think that that is right to blockade the border between the US and Canada?

Reynolds:

You know, I just think, Kay, people are so frustrated. They have just had it. And they feel their freedoms and liberties are being infringed upon. And we're seeing that here in the United States, and you're seeing it honestly, in the president's poll numbers. They are tanking. And you're seeing, I think, Democratic governors in other states realize what's happening and where Americans are today. So I don't think that justifies the means, but it's just the, it's the fact that they've had it. And you have a, a, a, a president or a prime minister that is not listening to the people. And I think he's probably gonna see the same thing that president Biden and the Democrats are experiencing right now. And we've had just in the last couple days, seven Democratic governors that have removed the mask mandates, not only in the public, but in the schools. And it's not because the science has changed. It's because the polling is tanking. People have had it. Enough is enough. And they're standing up and they're speaking out because I think they feel that if they don't, what is next? You know, this is a country that was founded on liberty and freedom and limited government. And it's gotten way outta hand over the last year. And I think that's gonna be reflected in this next election. We'll see.

Henderson:

That kind of blockade would be illegal in Iowa, though, right?

Reynolds:

Yeah. Well, I'm just saying, I said, I don't think that just the means don't justify the end. But I'm telling you, it is a reflection of where people are at today. It is a reflection of that.

Henderson:

We are at the end of our time together right now. Thanks for joining us on this edition of Iowa Press, Governor Reynolds.

Reynolds:

Thank you.

Henderson:

You can watch or listen or hear Iowa Press episodes anytime iowapbs.Org. For everyone here at Iowa PBS, thanks for watching.

Voiceover:

Funding for Iowa Press was provided by Friends, the Iowa PBS Foundation. The Associated General Contractors of Iowa, the public's partner in building Iowa's highway, bridge, and municipal utility infrastructure. Fuel Iowa is a voice and a resource for Iowa's fuel industry. Our members offer a diverse range of products, including fuel, grocery, and convenience items. They help keep Iowans on the move in rural and urban communities. Together, we fuel Iowa. Small businesses are the backbone of Iowa's communities, and they are backed by Iowa banks. With advice, loans and financial services, banks across Iowa are committed to showing small businesses the way to a stronger tomorrow. Learn more at iowabankers.com.