98% Limitation Bill Could Cause Further Cuts to Schools and Increase Property Taxes

Des Moines, IA – Representative Ro Foege said today that legislation passed in the Iowa House of Representatives could prove disastrous to schools and property taxpayers. 

“Although passing a law to force legislators to spend only 98% of the revenue brought in sounds like a fiscally responsible approach to budgeting, the unintended consequences could mean higher property taxes for homeowners, businesses, farmers and the elderly,” Foege noted. 

“In the past few years, those in control of the legislature have balanced the state budget by cutting aid to schools and local governments, and by under-funding property tax credits that help property owners,” Foege said. “Increasing the amount of money we put aside just increases the likelihood of more cuts in important services and property tax relief.”

“Iowa already has a 99% spending limitation law, and nothing prevents legislators from voluntarily deciding to save more. This is a step that should be taken when times are good. However, when we are facing already serious revenue shortages, it makes no sense to cut our resources even deeper.”

Foege said it is like a family budget. “Families should always try to save as much money as possible. When the family income is cut, however, that is not the time to increase what is put in the bank. Instead, a family makes sure that all the necessities of life – food, rent, heat – are paid for, even if it means using that savings account.”

“In the state’s case, the necessities include good schools, health care for the elderly and property tax relief. The measure passed today jeopardizes all three of these,” Foege concluded.

Representative Ro Foege
State Capitol
Des Moines, IA 50309
ro.foege@legis.state.ia.us
www.rofoege.com
515/281-7328 Legislative Desk
319/895-6043 Home 

-30-