DES MOINES – Gov. Reynolds released the following statement in response to her Government Realignment bill passing the Iowa Senate State Government Committee:
“State government exists to serve Iowans, but an increasingly growing bureaucracy is making it too complicated. This bill gets to the heart of the problem, making government efficient, effective, and small. While shrinking government from 37 cabinet departments to just 16, we will also save Iowa taxpayers an estimated $215 million over four years. For Iowans and our state to thrive, government must be responsive to their needs.”
Governor Reynolds proposes:
- Strategically aligning executive branch structure, operations, and personnel to elevate service, improve efficiency, and reduce the total number of cabinet-level departments from 37 to 16.
- Reducing state government’s office space footprint to align with industry standards and generate cost savings.
- Consolidating common technology systems and services.
- Recovering additional Medicaid drug rebates and capturing Department of Corrections medical, pharmaceutical, and behavioral health costs for inmates from the federal government.
- Aligning regionally operated Community Based Corrections programs within the Department of Corrections to strengthen the corrections system statewide, drive evidence-based outcomes, and improve recidivism and public safety.
- Selling state-owned farmland to generate revenue for state operations.
Key Alignment Proposals
- Reduce the number of cabinet-level departments by aligning agencies with similar business operations to leverage shared services, improve efficiency, and decrease cost.
- Centralize similar programs that currently exist across several agencies into a single department with the resources, experience, and subject matter expertise to achieve the best outcomes for Iowans.
- The Department of Inspections and Appeals will expand its Administrative Hearings Division and create a new Professional Licensing Division to include health and occupational licenses.
- Community Based Corrections is proposed to merge with the Department of Corrections, creating operational consistency statewide that improves public safety and equal justice.
- The Board of Educational Examiners, College Student Aid Commission, STEM Advisory Council, and other education-related services are proposed to align with the Department of Education to better support students across Iowa’s education continuum.
- The Department on Aging, Department of Human Rights, Early Childhood Iowa, and other human services-focused organizations are proposed to align with the Department of Health and Human Services, strengthening program coordination and improving quality of life for all Iowans.
- A proposal to align Iowa Lottery and the Alcoholic Beverages Division with Iowa Department of Revenue, will bring Iowa’s primary revenue generating enterprises together to create a more convenient, full-service customer experience.
- A proposal to create a new Iowa Department of Insurance and Financial Services, comprised of the Iowa Insurance Division, Iowa Division of Banking, and Iowa Division of Credit Unions, will elevate Iowa’s profile as a national insurance industry leader and promote financial services in the state.
