Anyone interested in property taxes? I know I am. And I know many of you are, too. I have received information from a constituent that they received two back-to-back increases of 7% and then 4%, outpacing their ability to keep up with their tax unless they took a third job. This could almost be a story for me, personally as well. If you are wondering if the increase was based on actual dollar amounts that increased or an assessed value increasing, it was cold, hard dollars out of the checkbook.
Concerns surrounding the continual increases of local and county government budgets are growing. Property owners are rightly frustrated and this concern has by far been the most frequent I’ve been contacted about. I have received emails from local elected officials expressing their concern about the three plans for property tax reform the Iowa Legislature is considering. So far, not one of the proposed plans meets their approval to bring stability, assurances, and reductions for property taxpayers. That is very telling and I want you to be aware of this.
For sure, budgets are tough animals for governing bodies to consider. They weigh what expenses (services, equipment, building maintenance and interest expense on outstanding bonds) they have in their budget with the revenues (property taxes) they receive. To keep the revenue (property tax) either flat or at an affordable level for taxpayers is what Iowa legislature must address in one of the three bills being considered.
Our local officials will need to address the needs versus wants and begin to address the services to be reduced or eliminated. I am cheering for them! Decisive action is what will be needed and won’t happen if it is not initiated by legislative action. Citizens, prepare to see some services be reduced or eliminated.
As this happens, you could address your concerns locally and then lobby your local elected officials to reinstate the service. This won’t happen immediately and may take time. Whatever the outcome, expect either your taxes to increase or a decision may also be made to reduce or eliminate another service in order to bring back a service you desire. “All or nothing” in local government spending should not be an option but citizens need to also realize and accept what they are willing to pay for and what they want their communities to look like. It is Economics 101. Income vs expense and the willingness pay for a good or service for a real and or a perceived need.
By separating a real need from a want and then you can start a legitimate and honest budget discussion. If you have $10 in your wallet for lunch, you cannot expect to pay for a $12.00 lunch. This is just basic common sense, and we need to get back to it.
Iowa Medicaid funding is also a concern Iowa Legislators are faced with as it will be an expense for Iowans in terms of a onetime financial commitment. This onetime commitment concerns me but is a decision I support as there is no other option currently. The expense will be ongoing and must addressed in future General Assemblies. The House Ways and Means Committee debated and passed HSB 762, https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HSB762 , which will then move to Appropriations Committee to be debated before it has a hearing by the entire Iowa House Chamber.
Chairman of the House Ways and Means Committee, Rep. Carter Nordman spoke of the consequences of not confronting this onetime expense this year versus a loss of services for Iowans who need services provided through Medicare. Rep. Shannon Lundgren, the bill manager, made it apparent we are between a rock and a hard place.
This is the directive presented to us by the Federal Government which was recently rolled out to all the States to be addressed in their budgets. This is a direct result of what is now seen as a “failed and unaffordable” Affordable Healthcare system (also known as Obamacare).
In the future, it will be necessary for States as well as the Federal Government to consider Medicaid services that might need to be eliminated or curtailed for those in need to continue receiving basic Medicaid services. In truth, the original services offered were not sustainable from the beginning and should not have been offered so broadly to so many citizens who may not have actually been in need. This includes recent actions that lead to non-citizens receiving the benefits of Medicaid. The Affordable Care Act was strained and improperly funded from the beginning with no plans for corrective action. Now the States are faced with addressing the correction. This is a State-level discussion about what services can be offered and who can receive them. It means resetting the guidelines and adjusting the funding mechanism for Medicaid, in order for people who truly need it to be able to receive it.
Earlier in this newsletter I explained how local governments should prepare to tighten their budgets and I am also recognizing my responsibility to address the cost of Medicaid services provided by the State and how and what we can afford. I don’t ask anyone else to do any more than what I also need to do.
I love serving the State of Iowa and our citizens on concerns important to preserving our Union and the Constitutional Republic that we protect and defend.
