Iowa local governments, brace for impact. Republicans want to cut property taxes

Cutting Iowans’ property taxes is like pulling Excalibur from the stone, untying the Gordian Knot or opening that stupid jar of pickles.

Just ask any state lawmakers and they’ll tell you how darn tough it is. It’s a real sticky wicket, a minefield, or like breaking up. OK you get the picture. It’s hard to do.

Gov. Kim Reynolds rolled out a property tax reduction plan during her Condition of the State speech. Republicans who control the Iowa Senate floated their plan as the legislative session opened. Republicans who run the House will have their own plan.

Can Republicans sort it all out and get a bill passed by the middle of April? Good luck.

But cutting local taxes can be downright easy peasy if you don’t mind forcing local governments to cut the hell out of their budgets and the services they provide.

Sure, some legislators might toss and turn a bit thinking about having to close granny’s senior center, police officers who won’t be patrolling the streets, or the needed equipment firefighters aren’t going to get.

But that will pass. Just think about the sweet, sweet politics of it.

It wasn’t long ago that legislators in both parties believed having a pile of money to cover lost local revenues was a necessary ingredient of any big property tax changes.

Not anymore. With state revenues declining, there is no money pile.

Republicans will claim they are cutting property taxes without cutting services. Your BS detector should hit 11.

Reynolds’ plan would save property taxpayers $3 billion over the next six years. Most of the savings come from limiting city and county tax revenue growth to 2% each year. New construction and debt service would be exempt from the revenue cap.

Senate Republicans would also constrain revenue growth. Odds are the House also will slap on a revenue cap.

“You remember when we were kids, our parents would tell us that money doesn’t grow on trees. Well, it’s time that government learned that, too,” Reynolds said in her speech.

Wow, injury and insult. Boy, am I going to miss it.

This whole thing is messed up, for multiple reasons.

For one, it’s richly ironic for Republicans to lecture local governments about budgeting. These are the folks who figured they could obliterate income taxes and still balance the budget using big surpluses they socked away. The Golden Dome of Wisdom used to frown on using finite resources to cover the cost of infinite tax cuts and spending. Now, it’s leaking red ink.

This is how they planned it all along. Sure. But the dam is starting to crack. The next governor may get an unwelcome budgetary surprise.

Another problem is, In most cities, public safety spending on police and fire departments is the largest general fund category paid for by property taxes.

In Cedar Rapids, public safety, police and fire, get a $77.2 million share of the city’s $168.6 million general fund budget. In Marion, public safety makes up 57% of its general fund budget. In Mount Vernon public safety gets nearly 50%.

So, defunding the police isn’t just for radical libs anymore.

Democrats seem to understand the problem.

“Our goal is to protect first responders on the local level, fund schools and make sure our local governments can actually do the work they need to do, but we also recognize that we need to lower property taxes,” House Minority Leader Brian Meyer said in the Democratic response to Reynolds’ speechifying.

Last year ,while traveling the state to hold closed door property tax discussions, Reynolds asked “Do we need a huge fire station in every single town?” Well, polls show 100% of people whose houses are on fire say yes.

But the governor is nothing if not charitable. She would create a $10 million grant program providing incentives to local governments that share services to lower costs. Sharing is a swell idea. But that is not much money to spread around.

Also, local governments already have been kicked around plenty by the Republican trifecta. Lawmakers have been bulldozing local control they once supported.

They’ve micromanaged cities, counties and school districts, including banning local minimum wage increases and “pornography” in school libraries, while dictating how some counties elect supervisors. No police citizen review boards are allowed, and no rules are permitted for making developers replace topsoil to cut runoff. And don’t you dare try to stop us from blowing off our fingers on the Fourth of July. The list goes on.

I’m not saying every dollar local governments spend is sacred. And lowering property taxes is a good goal. Both Reynolds and the Senate would provide tax relief to older Iowans, which makes sense.

Still, these plans will lead to painful local budget cuts. Iowans will feel them.

So local leaders, brace yourselves. Republican legislators from small rural towns will be telling you how Iowa’s largest cities should operate. Fight the urge to let loose a primal scream.

And have a pickle. The stupid jar just popped open.

(319) 398-8262; todd.dorman@thegazette.com