Iowa is well-known for its first-in-the-nation caucuses during election season, but when it comes to policy, the state has traditionally not received much attention. However, after the 2016 election gave Republicans unified control of Iowa’s house, senate, and governor’s mansion, the state has become a leader in strong conservative reforms. Other states should take notice of Iowa’s limited-government-policy victories.
Iowa has passed several headline-grabbing pieces of legislation, including collective-bargaining reform, multiple income tax cuts, and universal education-savings accounts (ESAs). Additionally, the state has enacted several key components of a property-tax-reform package, which is particularly important given the recent inflationary pressure on real estate. Several states, including Colorado, Idaho, Montana, Nebraska, West Virginia, and Iowa, have enacted property tax–related legislation, with Texas likely to follow. However, Iowa stands out as the lone exception in avoiding the tax-swap trap.
Iowa lawmakers have found fiscally responsible policies that don’t pass the local burden on to state taxpayers. The reform package has straightened out some of the idiosyncrasies of Iowa’s property-tax system, making it more transparent and efficient. For example, consolidating the assortment of levies local governments can impose and requiring direct notification to registered voters about impending tax increases ought to rein them in and ultimately lighten the burden on local taxpayers.
One subtle reform related to elections in particular should become a model for other states. Iowa has moved all municipal bond elections to November-only dates. This move is unique among the 50 states, most of which allow local bond referenda to be held outside of the familiar November timeframe. Local governments around the country may schedule elections in the spring or summer, when voter turnout is typically lower, increasing their chances of passing potentially unpopular measures. Iowa’s requirement that each bonding jurisdiction send direct notification to registered voters makes citizens aware of elections, their details, and their effects on taxpayers’ bank accounts.
When it comes to taxes, local bond issues are too often ignored, despite their cost and potential to strangle funding for basic government services. Advocates for smaller, more efficient government need to do a better job educating the public about the principles of prudent finance, but first they must ensure that people know when to vote. Iowa’s first-mover status recognizing this priority in 2023 should draw just as many eyes as our election season will in 2024.
