Iowa Senate Bill SF2133

Iowa 2023-2024 Regular Session

• Introduced: 1/29/24
• Refer: 2/19/24
• Refer: 1/29/24

Caption

A bill for an act creating a jobs and infrastructure revolving fund and program administered by the Iowa finance authority, and making appropriations.(See SF 2413.)

Impact

The enactment of SF2133 is expected to enhance vertical infrastructure in Iowa through targeted financial support for local government projects. By requiring that eligible subdivisions demonstrate at least 50% funding from private sources, the bill encourages local governments to leverage additional financial support while ensuring that projects contribute to job creation or retention. This focus on job outcomes is likely to resonate with both proponents of economic development and constituents concerned with employment opportunities within their communities.

Summary

Senate File 2133 aims to create a Jobs and Infrastructure Revolving Fund and a corresponding program administered by the Iowa Finance Authority. The bill is structured to provide financial assistance to governmental subdivisions for vertical infrastructure projects, which include significant construction, renovations, and utility developments while excluding routine maintenance costs. The funding mechanism is set to divert 75% of interest accumulated from the general fund over a period from July 1, 2023, through the fiscal year beginning July 1, 2030, to support this initiative.

Contention

Despite the potential benefits, there are points of contention regarding the distribution and oversight of the funds. Critics may question whether the requirement for private funding might disadvantage smaller subdivisions that lack the capacity to attract substantial private investment. Conversely, supporters argue that these measures ensure prudent fiscal management and maximize the impact of state funding. Additionally, discussions around the administrative costs associated with managing the fund may raise concerns about efficiency and resource allocation.