Iowa is known for its first-in-the-nation caucuses during election season, but it has not been recognized for its policies. However, after Republicans gained control of Iowa’s house, senate, and governor’s mansion in 2016, the state has been passing strong conservative reforms. Other states should take notice of Iowa’s limited-government-policy victories.
Iowa has passed headline-grabbing legislation in the economic area, 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 timely given the recent inflationary pressure on real estate.
What sets Iowa apart from other states is its avoidance of the tax-swap trap. While most property-tax reforms shift the revenue burden of property taxes onto the state budget and the income or sales tax, Iowa lawmakers have found fiscally responsible policies that don’t pass the local burden on to state taxpayers. The intricate details of the reform package make Iowa’s property-tax system more transparent and efficient, such as consolidating the assortment of levies local governments can impose and requiring direct notification to registered voters about impending tax increases.
One subtle reform that Iowa has implemented is moving all municipal bond elections to November-only dates. This adjustment may not grab as many headlines as tax reform and universal ESA legislation, but it benefits Iowans profoundly. It also may be a unique feature among the 50 states, most of which allow local bond referenda to be held outside of the familiar November timeframe. By scheduling elections in the spring or summer, local governments increase their chances of passing potentially unpopular measures. Iowa’s November requirement works in combination with another unique mandate that each bonding jurisdiction send direct notification to registered voters, making citizens aware of elections, their details, and their effects on taxpayers’ bank accounts.
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.
