Des Moines, Iowa — Governor Kim Reynolds has not announced whether she intends to seek reelection in 2026, but she is giving a few hints about her 2025 policy agenda.
Reynolds held a campaign fundraiser last month and talked about her record so far.
Two years ago, at a Republican Governors Association forum, Reynolds said her goal was to eliminate the state income tax by the end of her current term, which ends in early 2027. However, Reynolds has indicated her focus in 2025 will be on a reducing tax that’s collected by LOCAL governments, like cities, counties and school districts.
The latest report on STATE tax revenue indicates the state will take in a billion dollars less in income taxes over a 24 month period due to the tax cuts Reynolds has signed.
Reynolds signed a law in 2023 that has consolidated state agencies and she suggests there’s more to come.
Democrats in the legislature say the tax cuts Reynolds has already signed will lead to cuts in state services and warn a reduction in state support of public schools is ahead when the next round of income tax cuts take effect. During her remarks at the Westside Conservative Club in late October, Reynolds addressed the criticism of her tax cuts.
Reynolds says the state has enough money as a cushion in case there is a downturn in the economy — and a more dramatic decline in state tax collections. There’s a BILLION dollars in the state’s cash reserve plus a two-and-a-half BILLION dollar budget surplus. There’s also three-point-75 BILLION dollars in the state’s Taxpayer Trust Fund.
