Tax Increment Financing (TIF) is a tool that cities use to promote the development of economically challenged areas. The mechanism works by establishing an urban renewal area (URA) and diverting taxes on the increased value in the URA to a TIF fund. However, in recent years, TIF has become a topic of controversy. Some cities … Read more
The Iowa Fiscal Partnership recently released a statement that was critical of Governor Branstad’s decision to cut education funding and veto legislation that would have expanded eligibility for child care assistance. According to the statement, these decisions will harm low- and moderate-income Iowans and have negative consequences for the state’s public schools. Governor Branstad vetoed … Read more
The Iowa Legislature is currently considering new tax bills that aim to offer substantial new tax breaks for seniors, despite there being no evidence of need or recognition of existing preferences. While it is true that seniors in Iowa have the lowest poverty rate of any age group, it is also essential to note that … Read more
Despite Governor Kim Reynolds reopening businesses in Iowa, the state is currently facing a significant increase in COVID-19 cases, particularly in rural areas. While the total number of cases is important, the incidence rate among the population is what matters most to the residents of small towns and rural counties. In some counties, the incidence … Read more
Tax Increment Financing (TIF) is a financing mechanism designed to revitalize underdeveloped urban areas. The basic concept of TIF involves using future increases in property tax revenues generated by development in a designated TIF district to finance public investment within that same district. By capturing a portion of the incremental growth in property tax revenues … Read more
Tax cuts can have positive and negative effects. While they can provide relief to taxpayers and stimulate economic growth, they can also lead to revenue shortfalls, underfunding of essential services and programs, and an increasing wealth gap. In Iowa, the consequences of a significant commercial property tax cut two years ago have become a reality. … Read more
For years, Iowa has been known for having low business taxes. However, politicians often use this reputation to justify further tax cuts. In March 2014, a report by the Iowa Fiscal Partnership showed that the claim that Iowa’s business taxes are competitive is false. Several factors influence businesses’ decisions to locate or expand within a … Read more
According to a report from the US Department of Agriculture on family food insecurity, a larger proportion of Iowa households struggled to put food on the table on average in 2010-12 compared to the previous decade. The share of households with food insecurity rose from 9.1% to 12.6% from 2000-02 to 2010-12, making Iowa one … Read more
Iowa’s public K-12 schools are currently facing a number of funding challenges, with potential vouchers being a major concern that could divert funds to private schools. One of the key indicators of funding trends in the state is Supplemental State Aid (SSA), a metric that describes the percentage increase in the per-pupil cost limit in … Read more
As the COVID-19 pandemic continues to wreak havoc on the United States, different states have taken various measures to prevent a surge of cases that would overwhelm their healthcare systems. Most states have issued shelter-in-place orders or have implemented partial restrictions on travel, business operations, and social activities. These measures are based on epidemiological data … Read more