Gov. Kim Reynolds today called for increased spending on workforce housing tax credits, STEM and broadband services in rural areas, among a handful of business topics she addressed.

Here’s a rundown, topic by topic. You can see the Condition of the State speech to lawmakers here.

Tax reform: Reynolds mentioned briefly the need to build on the changes in the state tax code, but didn’t go into details. This is one of business groups’ top priorities.

Future Ready Iowa: “Today, I’m calling on the Legislature to take the next step, to appropriate $20 million to fund the plan we put in place last session.”

Broadband: “To ensure that every part of Iowa has the same opportunity, I am requesting $20 million, split over two years, for broadband infrastructure. This funding will accelerate expansion and leverage an additional $120 million in private investment for high-speed internet.”

Workforce housing tax credits: “I am requesting that we double the amount of workforce housing tax credits that are set aside for rural communities, putting the total at $10 million. I’m also asking that these tax credits be competitive, meaning that they will go to those projects that are well-planned, not just first in line.”

STEM: The governor called for an additional $1 million for programs that promote education in science, technology, engineering and mathematics (STEM). 

Education: “The budget I’m submitting today proposes over $93 million in additional funding for preschool through high school education, which includes a 2.3 percent increase in per pupil funding. I’m also requesting $11.2 million to help districts with disproportionate transportation costs. In total, that will bring our pre-kindergarten-12th grade investment to almost $3.4 billion this year. That’s an investment we can be proud of. But Iowans also know that a quality education can’t be reduced to a dollar figure or a percentage increase. It’s about one thing and one thing only: How well we prepare our children to succeed.”

Water quality: The governor mentioned last year’s legislation to shift money to water quality projects, but did not indicate further requests. Reynolds has said in interviews that it is an issue that should be addressed over years. She has said she would consider a sales tax increase to fund the state’s outdoor recreation and conservation fund, if it were offset by other tax cuts.

Rural development: “When it comes to building strong communities, the talent is there. The drive is there. And often, the programs are there, but the coordination isn’t. That’s why I’m announcing the establishment of a Center for Rural Revitalization within the Iowa Economic Development Authority. This center will focus on making rural Iowa an even greater priority and give our Main Streets a road map for success. …

“Our communities and Main Streets tell a story to the outside world. My question for each of you is this: How do we want our story to read? That we’ve given up, or that we have hope for the
future? That we’re tired, or full of energy? That we’ve lost our vision, or are innovative and creative? That we’re fading or growing?”

Employing ex-felons: “Too often, employers overlook these skilled workers because of the fear of lawsuits. Let’s take that off the table. Our correctional system and parole board are the judge of whether an inmate is ready to be released. Let’s not punish employers for offering an offender a second chance.” Reynolds supports establishing the Other Side Academy in Des Moines as a two-year residential rehabilitation program that is an alternative to prison. And she requested legislation that protects employers who hire people with criminal records, and called for a constitutional amendment to restore the right to vote for felons who have served their sentences. 

House Minority leader Todd Prichard of Charles City told Iowa Public Television’s David Yepsen that Democrats look forward to working with Reynolds, a Republican, on issues including health care and education.

“It will be a relief if we don’t have to go backwards with de-appropriations,” Prichard said. “We are here to work together but we want to move the state forward.”

Prichard said the state’s privatized Medicaid system, and its mental health services, will be particularly important. “Iowa has a mental health crisis,” he said. “We have a health care crisis generally. The Medicaid system is not working.”