Iowa’s fiscal health remains strong, with billions in reserves, projected surpluses, and a fully funded Taxpayer Relief Fund, even amid tax reform transitions. Government spending—especially in education and Medicaid—is the key risk to long-term stability, not reduced tax revenues. Conservative budgeting must remain the priority; surpluses and reserve funds are tools for stability, not invitations...
Truth-in-Taxation policies aim to increase transparency and accountability in local government budgeting, especially around property taxes. Utah’s model, enacted in 1985, is considered the national gold standard because it controls property tax growth by focusing on limiting revenue, not rates. Iowa’s current system lacks key components, relying instead on partial transparency measures that do not...
President Calvin Coolidge and Governor Theodore Christianson both warned against the long-term dangers of federal subsidies, arguing they undermine state responsibility, expand bureaucracy, and erode taxpayer accountability. Both leaders viewed federalism as a constitutional principle—not just a policy preference—critical to preserving liberty, state sovereignty, and the ability for states to gov...
The “One Big, Beautiful Bill” and proposed DOGE spending cuts have sparked widespread concern among state and local leaders who fear the loss of federal funds, particularly for programs like Medicaid and SNAP. This reaction exposes the extent to which state and local governments have become reliant on federal dollars—despite the Constitution’s original design for a limited national government and ...
Property tax collections from Iowa schools, cities (1,000+ population), and counties grew by $239.8 million—or 3.9%—from FY 2025 to FY 2026. Schools led the increase with a 4.4% rise, followed by cities at 4.2% and counties at 2.7%. Over the past two years, total property tax growth across these local governments has exceeded 10%, raising concerns about long-term taxpayer impact and spending disci...
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How the American Revolution’s fight over taxation without representation still echoes in today’s battle against rising property taxes in Iowa. As we gather each July 4th for fireworks, pool parties, cookouts, and time with family, it’s easy to forget what the holiday actually commemorates: a revolution sparked, in large part, by a tax fight. While Independence Day celebrates the birth of a new n...
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Local government is not the heart of a community—it’s the tool that protects the space for community to thrive. Municipal finance expert Mark Moses argued that local governments face ongoing budget stress because their missions are too vague and expansive, leading to unchecked growth in programs and spending. Cities and counties should return to a limited, clearly defined role focused on core fu...
Ohio has enacted a major income tax reform, reducing its top rate to 3.125% in 2025 and transitioning to a 2.75% flat tax in 2026—the second lowest flat tax rate in the nation. The move aligns Ohio with other states like Mississippi and Oklahoma, which are also pursuing bold, growth-oriented tax reforms tied to revenue triggers and long-term elimination goals. As flat tax policies and even complet...
At the recent Iowans for Tax Relief Foundation Local Government Symposium, a message resonated with everyone in the room: local leadership matters—and the taxpayers are watching. ITR Foundation hosted local elected officials from across the state for a full day of conversations about public service, stewardship, and sound decision-making. From Iowans serving on school boards, county boards, and c...
Medicaid now consumes nearly 19% of Iowa’s General Fund, with a $2 billion annual cost that will likely increase in coming years due to growing enrollment and reduced federal support. Iowa lawmakers have advanced a work requirement for able-bodied Medicaid recipients, but federal approval is needed to implement this reform. With over $13 billion in federal funding flowing into the state, policym...
Iowa’s reliance on federal funds flowing through our state—which cumulatively exceed the $9.4 billion state General Fund—reveals a growing imbalance that puts Iowa at risk. With Congress considering ways to rein in federal deficits by cutting spending on programs like Medicaid or food assistance (SNAP), Iowa’s General Fund might be forced to make up the difference. This would give Iowa taxpayers s...
Iowa’s FY 2026 budget increases spending by $506 million (5.6%) to $9.4 billion, with 85% of the funds directed toward education and Medicaid—two areas where costs continue to rise on autopilot. While the expansion of Education Savings Accounts and Medicaid contributed to the growth, lawmakers also used one-time gambling revenue to fund ongoing expenses—an unsustainable budget practice that could ...
Local government officials are always trying to grow their communities. As property tax restrictions continue to be debated at the state level, many local governments are looking for new revenue sources. One question that comes up frequently was sent to our organization for feedback. Given the timeliness and frequency of this type of question, we felt it was beneficial for all to see the answer.
Governor Reynolds has led the most significant government reform in 40 years, cutting bureaucracy, consolidating agencies, and saving taxpayers over $217 million. Sustainable tax relief requires disciplined spending, and Iowa’s conservative budgeting has produced surpluses, full reserves, and a $3.6 billion Taxpayer Relief Fund. As Iowa turns to property tax reform in 2026, Reynolds emphasizes t...
Income tax cuts are not the problem; uncontrolled spending is. It's hardest to control spending when accounts are full, which is exactly when restraint and conservative budgeting matter most. The legislature has passed a $9.4 billion Fiscal Year 2026 budget, which is 5.7 percent over the previous budget. This continues a two-year increase in state spending above recent baseline trends that should ...
Iowa’s high property taxes stem from unchecked local government spending—not just assessments or valuations. Governor Reynolds’ DOGE initiative is targeting inefficiencies in both state and local government to help deliver meaningful property tax reform. Without serious efforts to limit spending, including potential local government consolidation, Iowans will continue to face rising tax burdens.
Iowans want meaningful, structural reform—and lawmakers should come back next session ready to deliver. Heading into the 2025 legislative session, leaders from both chambers declared that property tax relief would be a top priority. Lawmakers from both parties even agreed: high property taxes are the number one concern they hear from their constituents. But despite the broad consensus on the probl...
Be careful if anyone ever offers you something for free. And that includes “free money” doled out by the federal government. As the feds have become ever more intrusive into our daily lives, the amount that states receive in federal funding has skyrocketed. A century ago, with a much smaller federal government, the average state relied on federal funding to cover just 10 cents out of every dollar ...
Based on the past decade of population data, Iowa’s growth story is one of urban, suburban, and regional consolidation, where cities are growing but counties as a whole are often shrinking—especially in rural parts of the state. ITR Foundation’s review of city-level population changes from 2014 to 2023 found that a majority of Iowa cities with more than 1,000 residents are growing. In fact, nearl...
These enrollment trends—both overall and open enrollment—highlight the need for schools to remain responsive to the needs of families. As communities grow and shift, school districts must adapt to maintain the trust and confidence of the families they serve. Ultimately, the movement of students across district lines underscores a simple truth: when parents are given options, they will actively see...
Central Iowa and the Corridor region are where much of the Hawkeye State’s population growth is occurring. ITR Foundation analyzed 10 years of population data (2014–2023) and found that 14 of Iowa’s 20 fastest-growing cities are in the Des Moines Metro, with another five located around Iowa City and Cedar Rapids. The map below highlights the Iowa cities with the most rapid growth (in blue) and tho...
The 2025 legislative session ended with a mixed bag for Iowa taxpayers. While there was one clear victory, several other important taxpayer priorities were left unfinished. Governor Kim Reynolds’ unemployment tax reform passed, delivering nearly $1 billion in savings to Iowa businesses over the next five years. The state’s unemployment trust fund had ballooned to nearly $2 billion, leading to over...
Iowa, once a leader in income tax reform, must not become complacent; maintaining spending restraint and adopting clear, effective revenue triggers can keep Iowa competitive and move toward eventual income tax elimination. Oklahoma has joined Mississippi in passing tax reform that lowers income tax rates and sets up a path to full elimination using revenue triggers tied to state revenue growth. Ot...