Federal deficit spending has reached unsustainable levels, with the national debt surpassing $39 trillion, driven by decades of expanding government involvement in the economy. Even small, well-intentioned programs, like federal grants to support young commercial fishermen, contribute to a broader pattern where nearly every challenge is met with new spending. When government spending replaces the ...
Legislators have taken the first step. Last week, the Iowa Senate approved an amended property tax reform bill on a vote of 41–4. The House Republicans’ version was passed by the House Ways and Means Committee on March 18 and is expected to move forward in the next few weeks. These proposals share common goals but take different approaches, including caps on local government revenue growth, change...
House Study Bill 764 would require greater legislative oversight of federal funds so Iowa fully understands the costs, conditions, and long-term obligations before accepting them. Concerns about the effort being “time consuming” highlight the core problem—too often, key details aren’t known when funding decisions are made. Lawmakers are open to refining the bill to make it workable, but its centr...
Spending drives property taxes: While factors like TIF, rollback, and exemptions matter, the primary driver of rising property taxes is local government spending—making spending restraint central to meaningful reform. National trend toward caps: States across the country—both red and blue—are adopting property tax caps (like Kansas’s protest petition system and Montana’s proposed 2% cap) to slow t...
More than 200 attendees filled ITR Foundation’s eighth annual Tax Day Luncheon, highlighting its role as a signature gathering for advancing taxpayer-focused policy and celebrating Iowa’s recent fiscal reforms under Governor Reynolds’ leadership. Governor Reynolds emphasized Iowa’s progress—from a 3.8% flat income tax to regulatory and government reforms—and underscored that the next major priorit...
The Iowa House is considering a proposal that would require legislative approval before state agencies pursue or accept major federal grants, ensuring that elected lawmakers, not just administrators, have a say in decisions that can commit taxpayers to long-term obligations. The bill mirrors key components of ITR Foundation’s Fiscal Independence Act by combining legislative oversight with greater ...
Voters in Austin, Texas overwhelmingly rejected a property tax increase, signaling frustration with rising costs and prompting the city to pursue an independent efficiency audit to improve accountability and control spending. Efficiency audits can identify waste, streamline operations, and generate meaningful savings—often improving services while reducing costs. Local governments in Iowa should u...
Local governments in Iowa do not have unlimited authority over property taxes, they can only levy taxes as authorized by the state and must operate within state law. Home Rule provides flexibility in managing local affairs, but the legislature retains ultimate control, especially over taxation. The current debate over property tax reform is ultimately about priorities: ensuring essential services ...
A crowd of engaged residents gathered in Rockwell City last week for a conversation on one of Iowa’s most pressing issues: property taxes. Hosted by local community members, the event featured ITR Foundation Research Director Sarah Curry, who provided a clear, practical walkthrough of how Iowa’s property tax system works and how taxpayers can better understand what’s happening in their own communi...
Property taxes are rising faster than incomes: In both Iowa and Texas, collections have surged well beyond inflation and population growth, putting increasing pressure on homeowners and businesses. The core driver is spending growth: As local government budgets expand, property tax bills follow—making spending restraint central to any long-term solution. Lasting relief requires structural reform: ...
What rollback does: Iowa’s rollback limits how much of a property’s value is taxed, ensuring taxable values grow more slowly than market values, helping prevent sudden spikes in property tax bills. How it works: The rollback is recalculated each year for residential and agricultural property to cap statewide taxable value growth, adjusting automatically as valuations rise or fall. Why it matters: ...
The proposed 2% caps on property tax growth are described as rigid limits, but that ignores important details. Each reform proposal includes allowances such as new construction, inflation adjustments, or debt service exemptions, meaning property tax revenue would still grow, just at a slower and more sustainable pace. Property taxes are only one part of local government funding. Cities and countie...
ITR Foundation Policy Director John Hendrickson spoke to a full room of taxpayers and local officials in Bettendorf, continuing the organization’s effort to engage communities across Iowa on fiscal policy and tax reform. Hendrickson highlighted how Iowa’s tax competitiveness improved through disciplined budgeting, citing the state’s transition to a 3.8% flat income tax, elimination of the inherita...
Most county budgets get spent in full because of the mentality to “spend it or lose it.” The system should be changed so that it begins working more efficiently. As an attorney with a financial background and entrepreneurial experience, I became concerned about the direction my county was heading. I ran for and was elected County Attorney of Muscatine County, a position I held for 10 years. At th...
Spending discipline will be critical as lawmakers build the FY2027 budget. New revenue estimates show modest slowing in revenue growth for the current year, reinforcing the need for careful budgeting as policymakers navigate economic uncertainty. Iowa faces new fiscal pressures despite economic positives. Slower revenue growth, federal policy changes, agricultural softness, and national economic u...
Iowa has made major progress on tax reform, moving from 43rd to 17th in the Tax Foundation’s Tax Competitiveness Index after cutting income and corporate tax rates—but high property taxes remain a major weakness in the state’s tax structure. Property taxes have grown rapidly, increasing more than 107% over the past two decades and reaching over $6 billion annually, largely driven by local governme...
Iowa is the first state approved for a federal “Returning Education to the States” waiver, allowing it to consolidate several federal programs into a $9.5 million block grant and giving the state greater flexibility in how education funds are used. The move reflects a broader shift away from federal micromanagement toward state-led education policy, aligning with long-standing conservative argumen...
Some states are funding rising spending with wealth taxes and targeted levies instead of restraining government growth. This marks a shift away from broad, neutral tax policy. A growing divide is emerging between states expanding government and those prioritizing tax competitiveness. Policy choices today will shape migration, investment, and job growth tomorrow. Targeted taxes, including those on ...
Award-winning revitalization faces legal challenge. Even as Jefferson earns praise for downtown redevelopment, it is defending a lawsuit alleging it improperly moved about $800,000 from its water utility fund to economic development accounts. The dispute centers on process and safeguards. Plaintiffs argue the city failed to prove a lawful surplus, skipped required budget steps, and did not establi...
ITR Foundation continues to engage directly with Iowans across the state, participating in a Central Iowa President’s Day event where Policy Director John Hendrickson reflected on the life and principles of native Iowan President Herbert Hoover. Hoover’s Iowa roots shaped his lifelong belief in self-reliance and limited government, from his humanitarian leadership during World War I to his emphasi...
Iowa currently lacks a formal budget-continuation policy, meaning that if lawmakers fail to pass a General Fund budget by July 1, funding for many programs could technically lapse — creating uncertainty and potential separation-of-powers concerns. Senate File 2388, a proposed “no-shutdown rule,” would allow existing appropriations to automatically continue (excluding one-time spending) if a new bu...
Stronger Legislative Oversight: Major regulations would require public transparency, detailed economic analysis, and approval by the Legislature before taking effect — ensuring elected lawmakers have final authority over costly rules. Independent Judicial Review: Courts would apply de novo review to major rules, meaning judges interpret the law independently rather than deferring to agency interpr...
George Washington was the indispensable leader of the American founding, held the new Republic together—from commanding the Continental Army, to presiding over the Constitutional Convention, to serving as the nation’s first President and peacefully relinquishing power. His moral authority was essential to the Constitution’s adoption and early stability, as he quelled internal unrest, navigated fie...
Medicaid has become Iowa’s largest welfare program, enrolling nearly one in five residents and consuming about one-quarter of the state budget, with rapid growth since the 2014 expansion. Rising welfare costs are straining taxpayers and crowding out core priorities, while contributing to workforce challenges and long-term dependency. Federal reforms create an opportunity for Iowa to lead, by enfor...
Key takeaways: Download a PDF of the full report. Iowa’s welfare system is at a crossroads. What were once temporary safety-net programs designed to protect the truly vulnerable have steadily expanded into sprawling systems that now touch nearly every corner of state government—and consume an ever-growing share of taxpayer resources. Nowhere is this more evident than in Medicaid and food […...