It’s pop quiz time. What does the Chicago Tribune have in common with Texas Governor Greg Abbott? If you’re first answer was “not much” you’d be correct. But even as the Tribune itself admits that, their recent editorial shared another thing they have in common: a desire for property tax relief.
While that newspaper doesn’t regularly advocate for conservative tax policy, they recently praised the Lone Star State’s governor when he called for a local government spending limit as a way to provide property tax relief. “You don’t have to like everything they do in Texas, and we sure don’t, but you can’t summarily dismiss this kind of thinking, which rarely even enters the discussion in Illinois,” the editorial argued.
The Tribune also lamented Illinois’s ongoing poor fiscal policy decisions—continual spending and tax increases that have undermined the state’s fiscal foundation. “Not only is tax relief not on the table, but tax hikes are a constant threat here.” Most importantly, the editorial recognizes a fundamental truth that applies to all tax reform, whether related to income or property taxes: “Tax cuts and spending cuts have to go hand in hand, otherwise the cycle starts all over again as deficit spending goes up and tax hikes come calling down the road to plug the hole.”
Spending Must Be at the Center of Reform
Any serious tax reform effort must begin with spending restraint. This is one reason past attempts at property tax reform in Iowa have failed to deliver meaningful relief. While the Iowa Legislature has passed needed structural reforms to the property tax system, those reforms have not directly tackled the real issue—local government spending.
At the state level, Texas already has a fiscal rule that limits spending growth to the rate of population and inflation, but that rule doesn’t apply to local governments. In 2019, Texas attempted to address local spending by requiring local governments to seek voter approval if they increased their budgets by more than 3.5%. This even applied to school districts, which must now get voter approval for increases over 2.5%.
However, loopholes remain. “Because of the many exemptions and exclusions in Texas’s rollback rate, local government officials across Texas have been able to grow their budgets and property tax burdens much faster than 3.5% annually despite the 2019 rollback rate change,” noted Patrick Gleason, in an article for Forbes magazine.
A Cautionary Tale for Iowa
This offers a warning for Iowa. During the last legislative session, the legislature considered a property tax reform measure that originally included a 2% property tax cap. But as the bill progressed, the cap was watered down with exemptions and adjustments for inflation. Any tax or spending cap filled with exemptions becomes less effective and ultimately benefits local governments over taxpayers.
“If Texas lawmakers were to use the special session to remove the exclusions that prevent the rollback rate from being the strong spending cap that it has the potential to be, they could prevent unsustainable increases in property tax burdens moving forward,” wrote Gleason.
One current proposal in Texas would apply a fiscal rule to local governments that limits spending growth to population plus inflation. More proposals are expected, but as the Tribune points out, Texas is bringing “a refreshingly different mindset to the debate over government and taxpayer dollars.”
Contrast that with Illinois, where, as the Tribune says, “the best we’ve managed to do is form working groups to study our state’s property tax problem—which is among the worst in the country—and then move on without real action.”
Iowa Must Stay Focused
Thankfully, Iowa lawmakers are attempting to reform the property tax system and deliver relief. But, as demonstrated last session, serious proposals like the 2% cap were weakened by local governments and other special interests. Unlike Illinois, Iowa’s reforms haven’t been stalled by working groups—but years of drawn-out “stakeholder conversations” have made meaningful reform harder to achieve.
The Chicago Tribune not only understands that spending is the problem—it also recognizes what’s at stake for families. High property taxes are more than just an economic drag—they’re a real burden. “The pattern [of high property taxes] reflects a broader political culture of denial, as if ordinary families aren’t struggling to cover mortgages and grocery bills,” the editorial stated.
This is a point Iowa and Illinois share: local governments often act as though they don’t have a spending problem—and even worse, behave as if they are entitled to ever-growing tax revenues. Taxpayers who ask for relief or speak up at local meetings are often met with contempt. The Tribune is right—many local governments have lost touch with the reality of how heavy the property tax burden has become. As Texas moves forward with its special legislative session, it has the opportunity to set an example for meaningful property tax reform by limiting local government spending. Iowa policymakers should take notice
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