Roads, bridges to get more funding.
What Iowa’s New Budget Means for Small Business
Iowa
legislators finally approved a state budget of $7.3 billion last month after a
contentious session of battling over tight finances.
The
budget—set to take effect on July 1—directs $1.8 billion for health and human
services, and includes a $4.85 million increase to help fund state
transportation—half of what the Iowa Department of Transportation asked for,
claiming it would have to let workers go otherwise, but still a boost to last
year’s funding.
“The
cuts in transportation weren’t really cuts at all. They are still getting more
than they got last year, which makes their argument that they would have to lay
off workers sort of moot,” said NFIB Iowa State Director Kristin Failor.
“The
status of our roads and bridges does have an impact on our small business, and
Iowa is always in a constant state of construction,” said Failor, but the
increase in gas taxes last year continues to direct additional resources to
roads and bridges in the state.
But
the budget does cause some concerns. “Overall I am skeptical of a general
increase in our budget without the revenue to back it up,” said Failor.
Still, the Section 179
exemption that couples Iowa with the federal tax law was a huge win for small
business in Iowa this year, a fact that leaves little room for criticism of the
budget as a whole. “We needed them to go out on a limb for us,” said Failor.
