ITR Foundation

05/26/2026

A century ago, Presidents Warren G. Harding and Calvin Coolidge made balancing budgets, reducing debt, and limiting government growth national priorities.

Their administrations did not just slow spending growth — they actually cut federal spending, reduced the national debt, lowered tax rates, and produced budget surpluses.

Fiscal restraint was politically difficult then, just as it is today, but the Harding and Coolidge years demonstrate that disciplined budgeting and strong economic growth can coexist.

A century ago, Presidents Warren G. Harding and Calvin Coolidge made balancing budgets, reducing debt, and limiting government growth national priorities. Their administrations did not just slow spending growth — they actually cut federal spending, reduced the national debt, lowered tax rates, and...

05/20/2026

Research comparing states with and without Certificate of Need (CON) laws suggests CON requirements can limit competition and reduce access to rural health care services.

During the 2026 legislative session, Iowa passed significant CON reforms that reduce regulatory barriers and narrow the number of projects requiring state approval.

The reforms should make it easier for providers to expand services, encourage investment in underserved areas, and improve health care access for Iowa patients and communities.

Research comparing states with and without Certificate of Need (CON) laws suggests CON requirements can limit competition and reduce access to rural health care services. During the 2026 legislative session, Iowa passed significant CON reforms that reduce regulatory barriers and narrow the number of...

05/18/2026

Iowa has pursued a fiscally conservative, growth-oriented strategy centered on lower taxes, restrained spending, and economic competitiveness under Governor Reynolds’ “Freedom to Flourish” philosophy.

Recent reforms have strengthened the state’s fiscal position and improved its ability to compete for residents and investment.

For Midwestern states like Iowa, long-term success will depend less on geography and more on affordability, fiscal stability, economic opportunity, and disciplined governance.

Iowa has pursued a fiscally conservative, growth-oriented strategy centered on lower taxes, restrained spending, and economic competitiveness under Governor Reynolds’ “Freedom to Flourish” philosophy. Recent reforms have strengthened the state’s fiscal position and improved its ability to co...

05/15/2026

Iowa’s urban and suburban school districts demonstrate a wide range of per-pupil spending and are evenly split on both sides of the statewide average.

The data suggests there is not a strong relationship between higher per-pupil spending and stronger student outcomes, as some of the best-performing districts rank well below the statewide average for per-pupil spending.

The findings reinforce the idea that student success depends less on how much money districts spend and more on how effectively local leaders find a way to deliver education to their unique communities.

30-Second Summary: ITR Report Card recently explored graduation rates across the state and highlighted trends for every school district over three different time periods. While Iowans understand that every district is unique, they also recognize that some districts lend themselves to comparisons mor...

05/14/2026

Governor Kim Reynolds and the legislature limited Fiscal Year 2027 spending growth to 1.4% in response to slower revenue growth, economic uncertainty, and the continued phase-in of income tax cuts that allow Iowans to keep more of their own money.

Public education and Medicaid continue to dominate Iowa’s budget and are growing faster than overall revenue, raising concerns that those programs could crowd out other priorities without long-term reforms.

Iowa’s strong reserves and Taxpayer Relief Fund were made possible through conservative budgeting, and continued spending restraint will be necessary to protect those reserves and preserve the ability to deliver future income tax relief.

Governor Kim Reynolds and the legislature limited Fiscal Year 2027 spending growth to 1.4% in response to slower revenue growth, economic uncertainty, and the continued phase-in of income tax cuts that allow Iowans to keep more of their own money. Public education and Medicaid continue to dominate I...

05/08/2026

The 2026 legislative session began with a clear promise from Iowa lawmakers: taxpayers would come first. By the time the session concluded, that promise had produced major reforms in property taxes, conservative budgeting, constitutional taxpayer protection, and increased oversight of federal funds.

Iowa lawmakers advanced major taxpayer-focused reforms during the 2026 session, including a 2% cap on many local property tax levies, school funding reforms, a larger Homestead Exemption, and other changes projected to save taxpayers more than $4 billion over six years. The legislature also prioriti...

05/07/2026

Iowa lawmakers approved a proposed constitutional amendment that would require a two-thirds vote of both legislative chambers to raise income taxes, giving voters the final say this November.

The amendment is designed to place a higher barrier between taxpayers and tax increases by ensuring higher taxes cannot become the automatic response to budget pressures.

Iowa lawmakers approved a proposed constitutional amendment that would require a two-thirds vote of both legislative chambers to raise income taxes, giving voters the final say this November. The amendment is designed to place a higher barrier between taxpayers and tax increases by ensuring higher t...

05/06/2026

Federal funds aren’t “free”—they come with strings attached, can drive higher state spending, and are increasingly unstable given Washington’s fiscal position and growing national debt.

Earlier in the session, HSB 764 proposed a stronger approach with upfront reporting, full transparency, and legislative approval of major federal funds, ensuring lawmakers could evaluate commitments before they were made.

Lawmakers ultimately passed HF 2800, which improves transparency by requiring notification of large or state-matched federal funds—an important step forward, but one that stops short of full oversight and approval.

Federal funds aren’t “free”—they come with strings attached, can drive higher state spending, and are increasingly unstable given Washington’s fiscal position and growing national debt. Earlier in the session, HSB 764 proposed a stronger approach with upfront reporting, full transparency, ...

04/29/2026

The Interstate 35 Community School District recently showed that local governments don’t have to hide behind rising valuations or pass along automatic tax increases. Instead of proclaiming “rates stayed the same” while taxpayers paid more, or shifting blame to the assessor, they lowered their levy rates in their new budget to keep total property tax collections essentially flat

For many years, we have pointed out that it’s the dollars government takes from you that matter most.

The kind of budgeting doesn’t happen by accident; it requires deliberate effort and a clear focus on taxpayers. It’s a practical example other local governments can follow: when valuations rise, officials still have a choice, and they should choose restraint.

https://itrfoundation.org/case-study-dollars-matter-not-rates/

04/29/2026

The Iowa Legislature is advancing a constitutional amendment to protect income and savings from easy tax hikes: A supermajority requirement would make it significantly harder for politicians to raise income taxes, ensuring families keep more of what they earn and save.

The Iowa House is now advancing a proposed constitutional amendment, which would create a requirement that income tax increases receive a two-thirds vote in both chambers of the legislature. The proposed amendment has already passed the Senate and if it passes the full House this spring, it will app...

04/28/2026

Without property tax limitations, homeowners, renters, and businesses will continue to get squeezed until there’s no more juice.

Property tax reform is a national issue: while Tennessee’s effort failed due to local government opposition, Iowa still has a strong chance to pass meaningful limits this session. Double-digit property tax increases in both states are being driven by spending choices, not a lack of resources, with...