Des Moines, IA (AP) — Iowa’s State Auditor says a property tax cut approved two years ago is a significant ongoing cost for the state budget.
Mary Mosiman on Tuesday provided a review of the state budget plan negotiated by the governor and Legislature for the fiscal year that began July 1. She says a complete analysis of all budget funds shows the state will spend about $8.4 billion this year.
According to Mosiman’s report, the property tax cut – approved in 2013 – will cost the state $253 million in the current fiscal year. Mosiman noted this commitment will continue over multiple years, a practice she says doesn’t follow sound budgeting principles.
Overall, Mosiman says the state has done a good job maintaining reserve funds and limiting use of one-time resources for ongoing expenditures.