Utilities, child care and the DOT

By Jon Dunwell

The legislature passed House File 617 during the 2023 session which requires an independent review of current ratemaking procedures for all utilities — electric, gas, and water. The state has not done a review since 2004 and much has changed in the energy sector in that time.

The Iowa Utilities Board recently announced that London Economics International was selected through the RFP process to conduct this review. According to IUB, “LEI has in-depth expertise in many economic and financial issues related to the power, gas, and water sectors, such as asset valuation, procurement, regulatory economics, and market design and analysis.” LEI will be holding three public meetings for interested parties throughout the summer and fall, and will be submitting a report to the legislature by Jan. 1 for consideration next session on potential code changes related to utility ratemaking.

This month the Iowa Department of Health and Human services began a one-year pilot program allowing Iowans in the child care workforce to apply for the Child Care Assistance (CCA) program for their own children with no family income limit. Traditional CCA has an income limit of 160 percent of the federal poverty level, but in this pilot, the criteria for CCA is to work at least 32 hours per week in a direct care position at a child care location, and their child may not be cared for directly by the parent. If a child care worker is approved for CCA under this pilot program, the family is assessed a co-pay amount based on the family income.

Throughout this year-long pilot, DHHS will be collecting the number of children in the pilot, the number of families, the total cost, and the average income of families. Over the last three years, the legislature has prioritized expanding access to child care by increasing CCA rates, offering tax incentives, removing administrative barriers, and assisting families afford child care.

Fiscal Year 2023 saw record spending on roads and bridges in Iowa, according to the Iowa Department of Transportation. DOT announced that spending on transportation projects for the year amounted to $1.47 billion, which is a combination of state and federal transportation funding provided to the department. This amount funded 839 projects throughout the state during the fiscal year. The spending was broken down by DOT to include:

$274.5 million on the farm-to-market road system;

$358 million on the state’s interstate system;

$26.8 million in the secondary road system; and

$136.8 million in urban roads and bridges.

This year’s spending continued the department’s efforts to address the condition of Iowa’s bridges. Since 2006, DOT had made a concerted effort to repair or replace state-owned bridges that were found to be in poor condition. Over the last 17 years, this number has fallen from 256 to just 23 currently. There are still a number of poor-condition bridges that are part of the county road system, and counties are working to reduce those numbers as well.