A bill for an act relating to governmental subdivision loans for disaster aid.(See HF 280.)
Impact
The legislation impacts state law significantly by providing a mechanism for governmental subdivisions to secure loans necessary for disaster recovery and management. By raising the loan cap, it allows local governments to access more funds when faced with large-scale emergencies. The relief in the form of interest-free loans also alleviates the financial burden on these entities, enabling them to focus resources on recovery rather than repayment during critical times.
Summary
House File 87 aims to enhance the capacity of governmental subdivisions to respond to disasters by amending the Iowa Code related to loans for disaster aid. Specifically, the bill proposes to increase the maximum allowable loan amount for governmental subdivisions from $1 million to $5 million. This adjustment is intended to provide greater financial assistance to local governments that may face substantial expenditures due to actual or potential disasters, thus ensuring they can effectively manage and respond to such crises.
Contention
While the intent of House File 87 is to empower local governments during disaster scenarios, there may be contention regarding the financial management and repayment obligations imposed on these subdivisions. Critics may voice concerns about the long-term implications on public budgets, as the sustainability of increased borrowing could impact future fiscal policies. Furthermore, discussions may arise regarding the discretion granted to the executive council to forgive loan repayments, which could lead to differing opinions on how the criteria for such forgiveness should be established and enforced.
A bill for an act relating to disaster aid including the disaster aid individual assistance grant fund and program and the disaster case advocacy grant fund and program.(See HF 2167.)
A bill for an act relating to disaster aid including the disaster aid individual assistance grant fund and program and the disaster case advocacy grant fund and program.(See SF 2193.)
A bill for an act relating to disaster aid including the disaster aid individual assistance grant fund and program and the disaster case advocacy grant fund and program.(Formerly SSB 3061.)
A bill for an act relating to economic development and energy shortages under the purview of the economic development authority and governor, and providing penalties.(See HF 2450.)
A bill for an act relating to disaster aid including the disaster aid individual assistance grant fund and program and the disaster case advocacy grant fund and program. (Formerly HSB 549.) Effective date: 07/01/2024.