Bill Number: HF871
Title: Economic Development Budget

Appropriates $48 million to economic development, workforce, and cultural programs (increase of $6.4 million) and an additional $29.8 million from other funds ($1.8 million increase) for the fiscal year beginning July 1, 2021 (FY 2022)..  CULTURAL AFFAIRS: No change in funding for community cultural grants, historic sites, arts programs, Iowa Great Places, and cultural trust grants.   ECONOMIC DEVELOPMENT (IEDA):  No change in funding for the Iowa Economic Development Authority ($13,318,553). Reduces the Future Ready Iowa Apprenticeship Development Program by $240,000 ($760,000 total).  Adds new funding for Butchery Innovation Program authorized in HF 857 ($750,000) and community college jobs training program ($1.75 million).  Transfers new $1 million appropriation for tourism marketing from the Liquor Control Trust Fund (RFP will be issued to single entity for a statewide effort to leverage public and private partnerships to market and promote Iowa as a travel destination). No change in funding for Councils of Governments ($275,000) and Regional Sports Authorities ($500,000 - previously funded with RIIF funds). Changes funding from the Skilled Worker & Jobs Creation Fund by eliminating $1 million Future Ready Iowa funds going to the College Student Aid Commission, reducing STEM internship $250,000 (total $750,000 remaining), and expanding appropriations for Stem Best ($700,000) and Empower Rural Iowa for continuation of housing needs assessment and innovation grants ($700,000, an increase of $300,000).  No change to Future Ready Iowa volunteer mentoring program ($400,000) and High Quality Jobs Program ($11.7 million, including up to $1 million for Main Street Iowa). WORKFORCE DEVELOPMENT:  Maintains current funding for Iowa Workforce Development (including field offices, offender re-entry, and $150,000 for State Library Brainfuse subscription for vocational/job skills testing). Adds $3 million to the Future Ready Iowa Employer Innovation Fund ($4.2 million total appropriation). No change in funding for AMOS training program ($100,000) and Future Ready Iowa coordinator ($150,000). UNIVERSITY ECONOMIC DEVELOPMENT: Adds funding for biosciences innovation at Iowa State University by $1,810,195 ($2,623,481 total) and the University of Iowa by $603,399 ($874,494). No change in funding for additive manufacturing at University of Northern Iowa ($394,321). All other Regents economic development level funded. OTHER: Continues cap on standing (automatic) appropriations for county endowment fund ($448,403) and World Food Prize ($375,000), and on regional tourism marketing ($900,000).  No change in Iowa Finance Authority rent subsidies ($658,000).  LANGUAGE: Allows IWD to transfer funds from employer innovation fund to childcare challenge fund to incentivize employers to provide childcare to employees.  Requires the state’s Chief Information Officer coordinate with other stakeholders (public utilities, DOT, IEDA, county supervisors, farm-to-market review board, county conservation boards, state parks and commissions, city councils) in implementing the Fiberoptic Network Conduit Installation Program (which was authorized in 2015 but has yet to be implemented). Creates Broadband Forward Certification and Telecommuter Forward Certification Programs in IEDA to encourage development of broadband infrastructure, improve access to broadband, and promote availability of telecommuting.  IEDA is required to coordinate with stakeholders (realtors, communications service providers, economic development professionals, employers, employees). Allows a member of a local Board of Review (which reviews protests by property owners) to be removed by the Director of the Department of Revenue if the member has violated any law or administrative rule or failed to comply with an court or governmental order. You can read the final nonpartisan fiscal staff analysis of this bill at: Takes effect 7/1/21.

Status: Signed
Recent Action: 5/6 - Passed House (54-36) 518 - Passed Senate with amendment (44-0) 5/18 - Passed House as amended (54-36) 6/8 - Signed by Governor


Last Modified: 06/14/2021