Iowa needs to address spending because education and Medicaid costs are spiraling, local budgets need streamlining, and without spending reform, tax relief won’t last.
Governor Kim Reynolds recently joined several Republican governors in sending a letter to congressional leaders expressing their support for President Donald Trump’s Department of Government Efficiency (DOGE). President Trump appointed entrepreneurs Elon Musk and Vivek Ramaswamy (who has since departed the project) to lead DOGE, which is tasked with reducing bureaucracy, waste, and regulation within the federal government.
“As chief executives of our states, we know a thing or two about streamlining government, removing unnecessary bureaucracy, and bringing efficient, results-driven solutions to state government,” the Republican governors wrote.
The governors further emphasized that achieving these results requires time and effort: “Our states are successful because we live within our means. We balance our budgets, lower taxes, leverage surpluses, pay down debt, improve the efficiency of state governments, and create an environment where our constituents can build a prosperous future for themselves, their families, and their communities.”
This statement certainly applies to Iowa. Since 2018, Governor Reynolds has implemented a conservative fiscal policy agenda. Key accomplishments include:
“We reduced taxes—saving Iowans more than $24 billion over 10 years. No more tax on retirement income. No inheritance tax. And starting this month, Iowans get to keep even more of the money they earn, with a 3.8% flat tax—a far cry from the 8.98% rate of six years ago,” Governor Reynolds said.
She also highlighted improvements in government efficiency: “We’ve transformed the way our state interacts with citizens, businesses, and entrepreneurs—shrinking and aligning government so that our tax cuts are sustainable. We consolidated agencies, eliminated 1,200 burdensome regulations, remade legacy systems, centralized programs, and leveraged technology.”
“In just eighteen months, our alignment and efficiency efforts have saved taxpayers $217 million, already surpassing our initial projection for the first four years,” Reynolds added.
Reynolds noted Iowa’s proactive approach: “I like to say that we were doing DOGE before DOGE was a thing. And to build on our success, I’m launching our own State DOGE to find even greater savings and efficiencies in both state and local government. Because to pass meaningful property tax reform, we also need to be lean at the local level.”
To support DOGE’s federal mission, Reynolds will issue an executive order establishing an Iowa DOGE task force. This group, led by Emily Schmitt, general counsel of Sukup Manufacturing, will identify further opportunities to reduce government costs at all levels. Additional members will be appointed later.
As the Iowa task force kicks off its work at the state and local levels, there will be several dynamics in play. At the state level, the task force will build on ongoing government reforms, including a detailed review of the budget to uncover potential cost-saving measures. Medicaid and public education comprise the majority of the General Fund budget. To address Medicaid costs, Reynolds has proposed applying for a federal waiver to implement work requirements for able-bodied recipients. Such a policy could reduce enrollment, helping to alleviate budgetary pressure while supporting a pathway out of poverty.
Public education, however, presents a more complex challenge. Funding debates often center on how much to increase spending. While some reforms to higher education and Regent Universities could yield savings, K-12 schools remain the primary cost driver of Iowa’s budget. The task force may need to explore adjustments to the school funding formula or programs like SAVE (Secure an Advanced Vision for Education).
At the local level, the challenges grow more complex due to the diverse budgets of cities, counties, and school districts. The task force could recommend measures such as consolidating services, adopting better budgeting and oversight practices, and privatizing certain functions.
Governor Reynolds has demonstrated that government reforms can improve efficiency and save taxpayer dollars. However, spending remains the core challenge. Increasing demands on government require more taxes, while various interest groups lobby for additional funding for their “vital” programs or services. This is why fiscal rules and spending limits are essential tools to protect taxpayers. The DOGE task force should not only focus on finding savings and efficiencies but also pursue lasting reforms to control spending and safeguard taxpayers’ interests.
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