State Rep. Joshua Meggers (R-Grundy Center).

Hello Friends. As we wrap up our fourth week of session, I wanted to brief you on what is happening here at the Capitol.

Audits of the State Auditor’s Office Are Behind Schedule

At the close of each fiscal year, the Department of Administrative Services (DAS) releases the Annual Comprehensive Financial Report (ACFR), detailing the financial status of the state for the prior budget year. As part of this process, the State Auditor’s Office conducts audits of all state departments and agencies.

In addition to the ACFR, the State Auditor issues annual fiscal statements–often called Reports of Recommendations–for individual departments and agencies. These reports are designed to flag issues related to internal controls, compliance with statutory requirements, and other matters uncovered during audits that warrant attention.

In many cases, these reports find no issues at all. For example, the most recent Report of Recommendations for the legislative branch reviewed the General Assembly’s finances for Fiscal Year 2024. Released on September 17, 2025, it identified no concerns. In other instances, however, audits have uncovered serious problems.

Because of that, timeliness matters. Prompt audits allow problems to be addressed before they grow into larger financial failures or scandals.

Surprisingly, one agency has fallen significantly behind on this basic standard of transparency: the State Auditor’s Office itself.

The State Auditor’s Office does not audit its own books. Instead, it hires an outside accounting firm–RSM US LLP, an international audit, tax, and accounting firm based in Des Moines–to conduct its audits. RSM has performed this work since at least Fiscal Year 2009.

Prior to 2019, these audits were completed and released without issue. Today, however, audits of the State Auditor’s Office are running more than three years behind.

While no one expects audits to be completed immediately after the fiscal year ends–the state’s accounting period does not officially close until late September–the growing delays raise serious questions. When other agencies have fallen behind, the State Auditor has been quick to criticize. Auditor Rob Sand publicly faulted Iowa State University over delays caused by a new financial IT system and criticized DAS for late ACFR releases.

This is not the first time concerns have been raised about delayed or incomplete reporting from the Auditor’s Office. In fall 2024, the office released its reviews of the Judicial Branch’s finances for Fiscal Years 2020, 2021, and 2022 on the same day. Those reports failed to mention that the courts had misallocated more than $26 million between 2020 and 2024–shortchanging critical programs like Victims’ Services.

When House Speaker Pat Grassley and House Republicans called out the omission, the State Auditor responded with personal attacks rather than accountability.

If there are legitimate reasons for the extended delay in auditing the State Auditor’s own office, Iowans deserve transparency. To date, that explanation has not been provided.

House Republicans Advance Efforts to Improve Farm Profitability

House Republicans are moving forward this session with legislation aimed at improving farm profitability across Iowa. A key component of that effort is the Iowa Farm Act, which includes three financial provisions designed to deliver immediate relief in farm country.

First, the bill eliminates property taxation on above-ground storage tanks with a capacity of 91,000 gallons or less, ensuring these tanks are not classified as real property.

Second, the legislation repeals a long-standing tax of one-fortieth of a cent per bushel of grain. Eliminating this tax will put more money directly into farmers’ pockets while reducing administrative burdens for first purchasers of grain.

Finally, the bill expands retirement tax relief for farmers. Under current law, retired farmers can receive rental income tax-free only under limited circumstances. The Iowa Farm Act expands eligibility beyond sole proprietors to include farm partnerships, S corporations, trusts, and estates. For many farmers, land is their primary retirement asset, and this change brings farm retirements in line with other business and employee retirement plans.

Iowa House Republicans Introduce the Iowa Skilled Workforce Act

Iowa House Republicans have introduced the Iowa Skilled Workforce Act, legislation aimed at closing the gap between available jobs and the skilled workers needed to fill them. The bill creates a strategic partnership between the state, educational institutions, and the trades to prepare Iowans for high-demand careers.

The legislation will be led in the House by Higher Education Committee Chairman Taylor Collins (R-Mediapolis).

“From plumbers and HVAC technicians to electricians and builders, the trades are what keep Iowa running,” Collins said. “We continue to hear that the system is too complex, regulations are too burdensome, and funding doesn’t always reach the right places. This bill is designed to tear down those barriers.”

The bill focuses on two major areas:

-State Funding – Investing in Growth

*Increases funding for the 84E Apprenticeship Act from $3 million to $4.5 million annually.

*Creates the Career Training Physical Expansion Program to support construction of new training facilities at community colleges and within private-sector programs.

-Local Flexibility – Empowering Experts

*Reduces red tape by allowing experienced tradespeople with 3,000 hours of experience to teach.

*Gives community colleges greater control over the Last-Dollar Scholar program.

*Encourages pre-apprenticeship programs in K-12 schools.

*Codifies a 3:1 supervision ratio for plumbing and HVAC trades to align with electrical standards.

Speaker Pat Grassley (R-New Hartford) praised the proposal, saying it sends a clear message that Iowa is committed to high-demand careers that fuel the state’s future.

House GOP Property Tax Reform Bill Clears Subcommittee

House Republicans have introduced a comprehensive property tax reform package, House Study Bill 596, chaired by Ways and Means Chairman Carter Nordman. The bill passed subcommittee on a 3-2 vote and is now eligible for a full committee hearing.

The Bill Includes Five Divisions:

-Division I – Property Tax Revenue Limits

Limits local government revenue growth to 102 percent annually, excluding new construction, school levies, and debt levies.

-Division II – Residential Property Tax Exemption

Creates a $25,000 across-the-board residential exemption, applying retroactively to assessment year 2026.

-Division III – Property Tax Transparency

Redesigns property tax mailers to provide clearer and more organized information, beginning in budget year 2027.

-Division IV – Councils of Governments

Requires councils of governments to assist with consolidation of local services to reduce costs.

-Division V – Bonding Requirements

Requires a 60 percent voter approval for bonds payable with property taxes starting July 1, 2026.

“By creating this exemption for every residential property, we are delivering immediate tax relief to every homeowner in Iowa,” Nordman said.

If you ever have any questions, feel free to email me at joshua.meggers@legis.iowa.gov or visit my Facebook page at Joshua Meggers for Iowa House. Feel free to come visit me within the Capitol at any time!

Joshua Meggers (R-Grundy Center) represents Iowa House District 54 which includes all of Grundy and Hardin counties and several rural townships on the far western edge of Black Hawk County.