Iowa lawmakers pass 1,500-page plan to reshape state government. Who wins, who loses:

Iowa lawmakers have approved a massive plan to reshape and consolidate state government in an effort to change the way services are offered to Iowans.

Senate File 514 shrinks the number of cabinet-level government agencies from 37 to 16 and gives Gov. Kim Reynolds more power over the appointment, firing and salary of top-level state employees.

"This is a bill that is necessary. It’s time," said Rep. Jane Bloomingdale, R-Northwood, the bill's floor manager. "We’re going to streamline state government. We’re going to save taxpayer dollars. We’re going to create efficiencies. And with all of that, we are going to better serve all of Iowans."

The Iowa House voted 58-39 Wednesday to pass the 1,512-page bill after about 3½ hours of debate, sending it to Reynolds for her signature. The Senate passed the legislation last week.

More:Senate passes Kim Reynolds' bill to overhaul Iowa agencies. Which will lose positions?

Gov. Kim Reynolds has called for realigning state government

Reynolds, a Republican, has made the legislation a priority this year. Last August, she used $994,000 in federal American Rescue Plan Act funds to hire a consultant, Guidehouse LLP, to write a report recommending how to reorganize the government.

She then used part of her high-profile Condition of the State address in January to call for the changes before introducing the text of the legislation last month.

Reynolds praised the House for passing the bill, saying in a statement that it puts Iowa in the best position to thrive.

"For decades, Iowans have seen state government grow beyond its means," Reynolds said in the statement. "Today, the Iowa House joined me and the Iowa Senate to declare an end to bloated bureaucracy. We are making government smaller, more efficient and more effective."

More:Does Kim Reynolds' plan to reshape Iowa government give her too much power? We break it down

Democrats say consolidation bill gives the governor too much power

Democrats were united in their opposition to the legislation, saying the bill reshuffles state government to give Reynolds too much power and removes legislative checks on the executive branch. Five Republican representatives also joined them in voting no.

"We will have a Democratic governor sooner than some folks in this room think," said House Minority Leader Jennifer Konfrst, D-Windsor Heights, adding that she didn't think Republicans would like many of the changes if a Democrat was in charge.

Democrats also said the way some state departments are reorganized would make it more difficult to deliver services to Iowans. They unsuccessfully offered 17 amendments Wednesday intended to preserve the structure or independence of certain state agencies, protect the benefits earned by state employees and provide more legislative oversight.

More:Kim Reynolds' 1,500-page bill would overhaul Iowa state government. Here's how it would work

"We are here to provide oversight," said Rep. Amy Nielsen, D-North Liberty. "We are one part of a three-branch government, and it’s really disappointing to see the capitulation of all of our power to the governor’s office."

Republicans ultimately passed the bill largely as Reynolds originally proposed it, with few changes.

One amendment that Republicans did pass in committee changed the bill to require legislative approval for any move to close the Iowa School for the Deaf and protected the public retirement benefits of employees of the state's community-based corrections programs.

Services for Iowans with disabilities will be affected

Democrats said moving vocational rehabilitation services for Iowans with disabilities from the Department of Education to Iowa Workforce Development would have negative effects.

Rep. Josh Turek, D-Council Bluffs, said the move could affect federal funding since at the national level the program is structured under the U.S. Department of Education. Vocational rehabilitation services work with people with disabilities in school settings, beginning in ninth grade, to prepare them for college and the workforce.

"This bill will critically reduce funding, reduce resources, reduce staff and inhibit the agency’s ability to provide services to disabled individuals," said Turek, who uses a wheelchair.

Bloomingdale said by moving the program to Iowa Workforce Development, "we make it a one-stop shop for all workforce programs."

"And that’s our goal right now is to reduce the duplication of efforts," she said. "I do believe that our Department of Education and Workforce Department will work together."

Democrats also read emails and letters from visually impaired Iowans asking the Legislature to maintain the current structure of the Iowa Department of the Blind.

The bill would allow the governor to appoint the department's director, who would serve at the pleasure of the governor. Currently, the director is appointed by the three-member Commission for the Blind, who in turn are appointed by the governor.

"I cannot fathom why we are not listening to Iowans on this particular issue," Nielsen said. "They have the expertise here, not us. And they want us to leave the Department of the Blind as is."

Director Emily Wharton, who is blind, told lawmakers at a subcommittee meeting that she believes she's unlikely to keep her job if the bill passes, but Bloomingdale said there would not be any changes at the department.

"The governor’s staff has committed to me that she will rehire or hire Director Wharton as soon as this bill becomes effective," Bloomingdale said. "So there will be no change."

Iowa attorney general will gain new powers under consolidation bill

The bill changes the code to say explicitly that the Iowa attorney general may prosecute cases around the state without receiving a request to do so from a county attorney.

It will also give the attorney general’s office exclusive jurisdiction to prosecute election-related cases.

And it will move Iowa's Office of the Consumer Advocate, which represents Iowans in disputes over utility rate increases, under the attorney general's department.

Democrats argued the changes are a way to give more power to Republican Attorney General Brenna Bird, who was elected in November.

"Allowing the state attorney general to override the discretion of locally elected county attorneys makes state government bigger," said Rep. Adam Zabner, D-Iowa City. "This is Des Moines telling your county what to do."

Bird's office and other Republicans have said Iowa law already allows the attorney general to prosecute any offense in which the state has an interest.

"I do believe that this is simply clarifying language that is currently written in code," Bloomingdale said.

How many state positions could be eliminated?

Reynolds and Republicans have said the mergers will happen without laying off any state employees.

Reynolds' office estimates the bill would eliminate 513 state government positions that are currently vacant, resulting in $18 million less being spent on personnel this year. Of that reduction, $3 million would be from the state's general fund.

Reynolds' office estimates the bill will result in a total spending reduction of $214 million over four years.

Democrats said they were concerned some of the savings could come by privatizing state services. One of their amendments Wednesday would have required two-thirds legislative approval before privatizing a state agency. The amendment was ruled not germane to the bill.

The state's nonpartisan Legislative Services Agency estimates 214 full-time equivalent positions will be eliminated by the bill. The agency's analysis said some state departments have not indicated whether the positions to be eliminated are filled or unfilled.

The agency estimates eliminating those positions would result in $12.4 million less in spending, of which $6.4 million would be from the state's general fund, while $5.8 million would come from federal funds and $196,000 from other funds.

More:This Iowa agency is the blueprint for Kim Reynolds' consolidation plan. How has it worked?

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: Iowa House passes Kim Reynolds' massive bill to overhaul government