Governor Kim Reynolds

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[KAY HENDERSON] She finished her final legislative session and signed her last batch of bills. But that doesn't mean the work is done. We'll sit down with Governor Kim Reynolds on this edition of Iowa Press.

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[ANNOUNCER] For decades, Iowa Press has brought you political leaders and newsmakers from across Iowa and beyond. Celebrating more than 50 years on statewide Iowa PBS, this is the Friday, June 19th edition of Iowa Press. Here is Kay Henderson.

[HENDERSON] On this edition of Iowa Press, we have a guest who was Clark County Treasurer for 14 years. Then she was a state senator, then she was lieutenant governor. And since May 24th of 2017, she has been governor of Iowa. Republican Kim Reynolds. Welcome back to Iowa Press.

[GOVERNOR KIM REYNOLDS] Thank you. It's great to be with you.

[HENDERSON] Joining our conversation is Erin Murphy of the Gazette in Cedar Rapids.

[ERIN MURPHY] Governor Reynolds, wanted to start with your office recently decided to outsource state IT services to a couple of private companies. We've seen the contracts knowing that it's going to cost the state initially $420 million, spread out over ten years. Your office has also estimated that it will save the state $530 million over that ten year span. Those are big chunks of money. You’re within state law to do this, but should the legislature have been involved in this discussion?

[GOVERNOR REYNOLDS] Well, you know, first of all, it started with alignment back in 2023. And we made significant changes to the way that government is ran. It hadn't been analyzed in over 40 years. And if you're a business in this country, they just laugh at you when you say you're not continuously looking at processes and how you're delivering services, especially as we've seen, technology and innovation just, you know, exponentially change the dynamics of how we serve our constituents. And at that time, we had it spread across 20 different agencies. It was fractured. There were so much duplication. We really, we were a salesforce dream. And so we took those IT that was spread across 20 different agencies and put it into one. And that really allowed us the opportunity to take a deeper dive, look at the infrastructure we have in place, look at the call centers, look at the servers. We didn't even know where the servers are at, look at the hardware. What's the cost of the laptops and managing it? And what about cyber security and safety of our data in an antiquated system? And we spent a lot of time researching that. And to be quite honest, and this is how I think we need to really approach government as a whole, what are our core functions? And it is not one of government's core functions. It really is, we're not very good at it because we can't keep up with this rapidly changing environment. And that's something that the private sector should be doing. And so I'm really excited about what we were able to do. We did put the groundwork in and the time, and I'll give you, I don't usually bring a notes, but I was assuming you would ask this question and I wanted to just talk about some of the transition. So we had 36 data centers that will now go to one in the cloud. We had 53 call centers that now will be handled by one entity, will be able to understand what the problem is, get it to the agency so they can get that question answered more concisely and quickly. We had 5500 servers, and on top of that, we had 137 servers that were in closets that we didn't even know about. And so with this transition, we'll have just world class cybersecurity, we’ll be in the cloud. They will have industry leading data storage and management. And, and in the interim, we're going to save Iowans millions and millions of dollars. And, and we're better and it's safer and it's more secure. And so it definitely was the right thing to do.

[MURPHY] And that's perfect. I wanted to ask you about that. How are Iowans to be sure that the data will be secure now that two private companies.

[GOVERNOR REYNOLDS] Yeah. Well, it absolutely is secure. They don't have access to any of our information when we were, you know, there's all kinds of contracts and, and MOU and things that you have to sign. And even when it came to like the HIPAA data, we've got a form that you have to sign that you can't release any of the information. they have absolutely no access to any of that data. And so there wasn't even any need for them to sign it because they can't even access the information that we have. But this is where industry is going. This is where government is going. I just, you've got to get back to the fact that it's not a core function of government. And let me just give you an example. You know, we talk a lot about the vision project and the case management system that we're putting in place, and that happens to be working with Google. Well, you know, they were working on a green screen, a green screen. It's 2026. And those poor case workers that are in it to help families and kids and to make a difference in the lives of those families, they are spending more time typing what they saw, what they had witnessed, and on a computer, instead of being able to dictate it, instead of being able to have it manage their their stops, I mean that. And they were involved in the implementation of the project. And it's a game changer. They are so excited about what they'll be able to do because of the technology that they're able to use, and we're not even close to that. A green screen, you have to use function keys to move. You can't even toggle. I mean, that's crazy. We had some platforms that are still using COBOL. I mean, it's just not reality. It's not smart. It's not safe. And and I'm very excited. It's the right thing to do. You will see state after state follow.

[MURPHY] And the roughly 200 workers that will be impacted. They're being offered positions by the companies.

[GOVERNOR REYNOLDS] By Cognizant, yeah.

[MURPHY] Yeah. And forgive me the exact wording, but as I understand, the offers are supposed to be similar to what they're making now or even improved. Is that in the contract? Or how can you be sure?

[GOVERNOR REYNOLDS] Yeah, it is in the contract So and that was, you know, this isn't easy. Nobody likes to make decisions like that. It's hard. We are so fortunate to have just the workforce that we have at the state. And honestly, they are providing the services every single day. But I also have a responsibility to the taxpayers of Iowa and Iowa. And we can't keep doing things the way we did 40 years ago. We can't keep working with COBOL. We can't be working with green screens. We need to be able to serve our customers. We need to do it more efficiently, more effectively and safely. And we need to make sure that we're, And in the interim, we're saving millions and millions of dollars. So there is a lot of cost savings that are involved in this. And they will have a job which that was nice that we were able to do that. You know, when we did realignment in 2023, at that point, we said there will be no layoffs. We're not losing any personnel. We were able to eliminate 800 jobs or 800 positions that were on the books. That was kind of a way to offset some of the increase in health care and and salaries, but we said, no, we're going to eliminate those. And then if you need the additional resources, you'll have to make the case to the legislature. And so we did that. But as we've continued to work through the process, these are decisions that are going to have to be made because ultimately will be better, safer, and it saves taxpayer dollars. And we can focus on those dollars where they need to.

[HENDERSON] Heading into the 2026 legislative session, you and republican legislative leaders made clear that property taxes would be your number one issue. You signed a property tax bill in May, I believe, but on June 2nd, when you were taking action on that final batch of bills, you had a news conference and talked with reporters and said maybe it wasn't perfect. And we've seen some school districts raise concerns about paying back bonds. Are there adjustments that you think the legislature in 2027 needs to make to that bill?

[GOVERNOR REYNOLDS] Well, most of the bonds anymore are GO bonds, general obligation. They're not revenue bonds. So we're seeing a dramatic shift from that because a lot of our rural communities don't have the revenue from a sales tax. And so you're seeing that shift. We spent a lot of time talking to the bond agency. We spent a lot of time working with the Department of Education and John, who does all of the school funding formula. And, you know, what we found out is that there was probably six that were already refinancing. So they were already in the process to do that. They have the opportunity to refinance the bonds, if that is in question. We extended it for 20 years. So that gives them even a longer runway to be able to refinance. So, you know, we we looked at all of that, Kay, when we moved forward. And it's like any other bill that we pass anything that's that significant. I mean, that has not we've not been able to get that done for years. It was the last tax reform that was left. And so so there probably will be some nuances or some things that you need to look at. What I would say is we need to be careful about doing that. You know, the kind of the bouncing back and forth. You have to give some time for those changes to work. I think it was the Common Sense Institute that said this was the most this was the largest property tax reform that they have seen in this state since the 70s. I was around in the 70s, so I can talk about that. But so, you know, it was significant. It will make a difference. And you have to give local governments time to adjust to the changes that were made. And they will I have complete confidence in them. We did it at the state level. It's a reversal in how they budget. You know, we get our revenue estimate and that's what we build our budget from. They do it just the opposite. They they build their budget and then they tax to pay for what the budget is. And so they're going to, we're going to reverse that. They're starting at an elevated level already. Iowans had seen property taxes increase 10% over two years. And it's not sustainable. And so they're starting at an elevated place. They have a cap, but they also get to take into account new growth. So that's not included in the cap. And the thing that we did that probably heard the most from local governments that sometimes they don't have the control over is insurance and pension. And so we removed some of those areas from the cap to give them some flexibility as we're working through this transition to deal with some of the uncertainties that they didn't have any control over. And I'm proud of the team, the legislature, for addressing that and making that part of the bill.

[HENDERSON] During a news conference this spring before the deal was done there was discussion of a gas tax that was included in the Senate Republican plan. And during a news conference, you said, I have an opinion, but I won't tell you what it is. Would you like to tell us what your opinion is now?

[GOVERNOR REYNOLDS] I don’t even remember saying that. Gosh, look at your memory. You know, I just you know, I think we have to look at some inflationary factor. We have to be careful about that because of how you decide what it is, you know, and it's also, you know, can fluctuate quite a bit depending on, you know, are we looking at it monthly? Are we looking at it annually? Is there some stopgaps in there in case we see things really like, like we're seeing right now with Iran war and the impact that that's had on gas prices? But but I think that's probably the more realistic way to move forward because, you know, even when we did the $0.10 gas tax increase, you know, it wasn't very long. We're still, there's still a short, there's still a delta from what they need to what we're bringing in. And so adding something that's more flexible, I think is probably the way to go. We have to be careful.

[HENDERSON] But with a legislative veto in there, the legislature can say -- 

[GOVERNOR REYNOLDS] Yeah, they can say, they can stop it too. So, I mean, I thought it had a lot of I thought actually it was laid out pretty good. I thought they'd spent a lot of time in it, but, you know, it just that's, you know, that's the art of the deal. You know, it's a give and take when you've got two chambers and a governor's office that have a lot of similar ideas, but a lot of some, some different ideas on some different things too. So but I like where we ended up feel good about it, but it's probably something we'll have to continue to look at. It's not easy. Again, it's not an easy topic, but it's just something I'll have to look at. I said, we'll, I keep forgetting I'm not going to be a part of it. It's hard for me to think in those terms, so they'll have to take a look at it probably.

[MURPHY] After the 2025 session, you received a bill on pipelines and eminent domain that was very expansive, and some elements had gave you heartburn, and so you vetoed that one. This year, a bill didn't even make it to your desk. Is that pipeline coming through Iowa now a done deal?

[GOVERNOR REYNOLDS] No, I think it's going through the process. So, you know, we'll see. But I think, you know, it's it's moving along. It's going through the process. It's I think they're looking at setting another hearing. There's been a lot of different changes along the way. So, you know, we'll just have to see, you know, everybody believes in that. We have to do everything we can to protect the property rights of individuals. And if there are instances where it's not what should be rare, we have to make sure that they're compensated fairly. I think we could do a lot, still look at a lot of changes that need to be made to the process. You know, it just drives, I think some of those it drives maybe using eminent domain more than you would have to. So I think there's some changes that can be made to the process. And I'm sure they'll continue to take a look at that. But, you know, we just have to balance, again, property rights, making sure they're fairly compensated. We're using it just judiciously. Hardly, you know, as little as possible. And then we're balancing that with an industry that's really important to our state. And we want to make sure that we're able to keep the next generation of young farmers here in Iowa. And we want to make sure that they're successful. And so all of that has to be taken into account when you're moving forward. And they are.

[MURPHY] Would you like to see it happen?

[GOVERNOR REYNOLDS] No, I'm just going to you know, it's the process is playing out. So we'll see where it goes. But I do think it's important, you know, ethanol was a game changer for farmers when we were able to start biofuel, you know, implement biofuels. And so, you know, we need to look at what that next generation, you know, where do we bring value that allows them to stay on the farm too? So Nebraska is doing it. Several states are doing it. And we need to figure out a way to be a part of it. We need to figure out a way to be a part of it.

[HENDERSON] Cancer and water quality have been two issues that have sort of risen to the top of the political discussion board in Iowa, if you will. You signed a bill that dedicates $3 million to pediatric cancer research, after last year dedicating about $1 million to figure out why at least five different kinds of cancer are so prevalent in our state. If Iowa researchers do figure out why Iowa has such a high cancer rate, what are the next steps? Can the state go alone?

[GOVERNOR REYNOLDS] Well, yeah. Well, wecan we can take, we have a significant opportunity that we didn't have before with the Rural Health Transformation Act that was passed by the federal government. I am so grateful for that, especially when it comes to cancer. And that was a significant piece of our application when we applied to the federal government for Healthy Hometowns. And in fact, you know, a $50 million this year alone to really focus on cancer preventative. Taking a look at radon, doing the mitigation. Once we're able to do the tests. So we've got people, contractors that are being trained right now to be able to get out there and provide the test and then start to provide the mitigation that we need to, you know, get in front of that. But, you know, we want to make sure that it's based on science and that, you know, everybody, it makes sense. And once we find out what those are, then we need to move forward with helping address it. And I think I might be off just a little bit, but I think it's about $150 to $175 million that we've set aside for cancer over the five years. And so the state would never have had resources to do that. I mean, you know, we did $1 to $2 million with the partnership with the University of Iowa Department, College of Public Health, and then Iowa HHS, to start that research. Another million will go into that from the Healthy Hometowns, because we're taking a look at the second wave, which is environment. And then we'll see what those results provide and move forward. I mean, the initial study with the 370% is behavioral. So that's why MAHA was important this year. That's why we're talking about healthy habits and helping Iowans get healthy, get exercise, get our kids out and enjoy life. And so we will have access to more resources than we would have ever dreamed possible before. So I'm really happy about that. The health hubs, we've got a one of the features is really focused on cancer health hubs and then a hub and spoke to where we can help individuals get that treatment in the community that they live in. So they're not traveling and adding that to a really stressful time in their life. So I'm kind of bouncing all over the place, but there's a lot of different pieces of it that will really come together and really transform the way we deliver health care in rural Iowa. And that's the main focus of it.

[HENDERSON] Let me bounce back to before the pandemic. You introduced Invest in Iowa and proposed raising the sales tax, and a portion of that would go to water quality initiatives. In May or late April, you announced that you were sort of reorganizing some funding for water quality initiatives. How have you left this for the next governor and the next legislature?

[GOVERNOR REYNOLDS] Well, I'm proud of what we were able to do this year, and I think people kind of lose sight that we put probably, we spend over $500 million annually for water quality and conservation. Farmers all across the state and producers, you know, they live on the land. That's their asset. That's what they want to pass on to the next generation. And so they care about these issues as much as everybody does, and they want to do the right thing. And they are, they're putting a lot of money into conservation practices. We'll be able to match that, provide more resources for that. So not only have we spent a lot of time with a really helping provide water quality and conservation efforts, we also are helping on the back end, the back end down the front end. By the partnership that we are working with, Central Iowa Water Works, you know, they hadn't really done anything with capacity for years. And look at how the metro has grown. And so we'll be a partner in that and helping them provide some capacity for nitrate removal. So I'm really proud that we were able to be a part of that. And again, it provides additional funding on the back end to continue to drive those conservation efforts. You know, I mean, cover crops, grass, waterways and as technology changes, all of those components are going to change too. So I feel good about the investment that we've made and we've been recognized for our conservation efforts nationally. I mean, there's more work to do. I mean, we all know that. But that's why it's been a priority and that's why we've invested in heavily in in it as heavily as we have.

[HENDERSON] You are not at the end of your current term, but let's sort of think about the Kim Reynolds legacy for a little bit. When you think about Bob Ray, one of the things people often mention is welcoming the boat people to Iowa. When you think about Terry Branstad, it's about shepherding the state through the farm crisis. And then he's the nation's longest serving governor. 50 years from now, when we're not around, perhaps, how do you think people will look back and say the Kim Reynolds legacy is?

[GOVERNOR REYNOLDS] Well, we've had a lot of challenging times during my legacy that really took, you know, two, two and a half years. Covid took two and a half years out of my term where, you know, we spent a year really focusing on that, really almost two. And I, you know, I'm leaving after eight years. So that was a significant piece, I think, of my term as a governor. It, you know, we got through it together. It was so challenging. I came out a different governor. And I still I mean, just last night I was at an event and I had a lady come up to me and just thanked me for Covid. Still, in 2026, I rarely go anywhere where a business or an individual or a family doesn't say that. I got up every day and turned the TV on and watched the 11:00, sometimes 2:00, Sunday morning press conference and really listened to what the latest was and what we needed to be doing. And, Kay, and as you know, it was changing every day. So nobody knew really what was going on. And we learned a lot from that. I learned a lot from that. You had to just take the information that you were given at that time during that day and make with a phenomenal team working out of the state Emergency Operations Center for months because we brought everybody there so we could be coordinated, make the best decision that we could for the people of Iowa in the state. And, you know, I we've been recognized for the way that we handled it. We were one of the first states to come out of Covid in the shape that we did. And it's because we kept it open and we kept our kids in the classroom. So that and, you know, I don't know, I think they'll remember hopefully me as just somebody that just loved this state, loved Iowans and considered it just an incredible honor to be able to serve. But we've changed the dynamics of, of state government between tax and regulations to realignment, to education. I'm really proud of what we've done with education.

[HENDERSON] You've got a we've got a couple of minutes left. People from outside of the state looking at the June primary and hoping that you can give us some insider information here or perspective. They see President Trump endorsing Randy Feenstra right before the primary, and then they see Zach Lahn winning the primary. How would you interpret that result?

[GOVERNOR REYNOLDS] Well, I just think Iowans are Iowans and they're independent. They're going to do what they want to, you know, they're going to do the research. They're going to look at the candidates, and they're going to make a decision. So we've always been independent thinkers, and I think that that was reflected. What I can tell you is everybody is excited. I've had an opportunity to sit down with Zach. I left inspired, excited. I believe we're going to win. He's got an incredible story. He's authentic. He's got a ton of energy. The momentum is momentum is behind him and I am fired up and ready to work for him. I saw it at the state convention. I don't know if either one of you were there, but the energy every single candidate has pledged their support and alliance to Zach, and that's what I appreciate. We actually went through a primary. We didn't buy it. We didn't push everybody out like we sometimes see on the democratic side. We got out there and we talked about ideas and a vision and why we want to be the next, why they want to be the next governor. And I am so excited.

[MURPHY] Down to our last minute or so, following up on that, is there any lesson for Iowa candidates, do you think, to learn. Congressman Feenstra was kind of widely considered the favorite in that primary. And and Zach LaHN was relative unknown, Last one to come into the campaign in November. Why is there any lessons for Iowa candidates?

[GOVERNOR REYNOLDS] You know, everybody has to take a look at that and then run their best race. What I appreciate is we had a number of Iowans that stepped up, that wanted the opportunity to serve this state. And so we had a real option for Iowans to listen to the ideas and the vision and then to make a decision. And that's really how it's supposed to work. It makes the candidates better. I mean, Zach is ready to hit the ground running, and I would just encourage Iowans to get out there and get in front of him as soon as you can. The story is incredible. His vision is incredible. He's sincere and just authentic, and I so appreciate that.

[HENDERSON] So 30 seconds left. We have the nation's longest serving governor. Chuck Grassley has been in the Congress for a long time. Yet you and Senator Ernst decided to step away. Why?

[GOVERNOR REYNOLDS] Well, family is everything to me, and I miss my family. I love – it was a hard decision, first of all, really, really hard. I love what I'm doing. I'm not done. You see me still talking about things I want to do and things I think that we can work on. But you know, there comes a time I just, it was important for me to get back home and spend time with our 11 grandchildren, with Kevin, who is in remission and doing well. But you know, he's diagnosis was diagnosed with lung cancer. And it's not curable, but it's in remission. And so I'm going to go enjoy life and find another way to volunteer and be active and give back. But mostly I'm going to be a grandmother and a wife and a daughter. I've got elderly parents that I want to spend more time with too, so I'm looking forward to it.

[HENDERSON] Well, speaking of time, we're out of time for this conversation today. Thanks for being on Iowa Press. 

[GOVERNOR REYNOLDS] Thank you. 

[HENDERSON] You may watch other episodes of Iowa Press at iowapbs.org. For everyone here at Iowa PBS, thanks for watching today.

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