Shrinking the Size of Government in Iowa

During the Condition of the State address in early January, Governor Reynolds boldly outlined her goal to reorganize and streamline the state government system. The last time the state looked at shrinking state government was in 1986. The goal is to make state government more efficient and responsive to Iowans. This sweeping proposal came in the form of a 1500-page bill that did not call for any layoffs of state workers. Instead, state positions that are currently vacant will be eliminated through attrition.

“State government exists to simply serve Iowans and this action is long overdue and this plan aligns with that important priority,” said Governor Reynolds.

Under the bill, the number of state agencies with directors who report directly to the governor would be reduced from 37 to 16. Myriad departments would be merged: for example, the Department of Cultural Affairs would merge with the Department of Administrative Services, the Iowa Finance Authority would merge with the Iowa Economic Development Authority, and the Department of Human Rights would merge with the Department of Health and Human Services.

Among many other provisions, the proposal also would create more agency leaders who are appointed by the governor and subject to Iowa Senate confirmation, rather than being elected by state boards or commissions; and brings community-based corrections programs into the state’s Department of Corrections.

The proposal also would give the governor more leeway to pay directors higher salaries, which Reynolds has said is needed to recruit and retain top talent and streamline higher salaries by eliminating the need for bonuses; would explicitly state that the state attorney general has the authority to prosecute cases without first consulting with the county attorney; and would give the state attorney general’s office exclusive jurisdiction over elections-related cases.

Democrats have argued the proposal streamlines state government to the point where it gives the governor too much authority, and reiterated myriad concerns raised by state workers and advocates that believe some of the proposed changes will adversely impact some agencies and their services.

One of the most important aspects of the reorganization is the estimation by the Iowa Department of Management with the implantation of this plan a savings of $214 million over four years.

The legislation passed out of the Iowa Senate on March 6th with a 34 -14 party-line vote. The next step is getting this passed in the Iowa House which is expected to happen sometime in mid-March.