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Sound fiscal policy must begin with spending restraint. Gov. Kim Reynolds and the Republican-led Legislature continued to follow pro-growth fiscal conservatism during the most recently concluded session. The Iowa Legislature passed an $8.1 billion FY 2022 state budget, which provided an estimated $1 billion in tax relief to taxpayers instead of growing government. This brings the budget well under the average taxpayer’s ability to pay for it as measured by the Tax Education Foundation’s Conservative Iowa Budget, which sets a maximum threshold based on population growth plus inflation. John Hendrickson Vance Ginn Submitted This budget is $290.7 million more than the FY 2021 budget. The $8.1 billion budget is over $4 million more than what Gov. Reynolds initially proposed. Nevertheless, Iowa’s fiscal house is in good standing.

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