Business Tax Association’s Committee on Accountable Government Completes Accountable Government Budget Report

Business Tax Association’s Committee on Accountable Government Completes Accountable Government Budget Report

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FOR IMMEDIATE RELEASE
Iowa Taxpayers Association (ITA)
Contact: Tom Sands, President/CEO 
tom@iowataxpayers.org 
Office: (515) 243-0300

Business Tax Association’s Committee on Accountable Government Completes Accountable Government Budget Report

DES MOINES, IOWA – August 2, 2017

The Committee on Accountable Government (“Committee”) of the Iowa Taxpayers Association (“ITA”) has completed a review of the Iowa FY 2018 budgeting process and final budget. The ITA Committee created what is known as the ITA Principles for Sound Budgeting (“Principles”) back in 2001. These Principles serve as a tool used by the governor and General Assembly to accomplish more accountability in state budgeting. The annual review analyzes how the Legislature conformed with ITA’s 8 Principles for Sound Budgeting: 

  • Avoid the use of onetime or time-limited sources for ongoing expenses. 
  • Avoid implementing new programs for a partial fiscal year. 
  • Avoid multiyear accelerating commitments. 
  • Avoid new automatic, or “standing,” appropriations. 
  • Accurately determine revenue and expenses. 
  • Align expenses and revenue in the same fiscal year. 
  • Avoid shifting program funding to property taxes or fees. 
  • Avoid diversion of funds statutorily authorized for a specific objective to other purposes. 

To keep the 2017 general fund budget balanced, $131.1 million was transferred from cash reserve fund. The committee believes the area of most concern for the 2018 budget, and future budgets, is accurately determining revenue and expenses. Iowa has a good process with the Revenue Estimating Committee to project a revenue number that is constantly changing. It is a projection made many months prior to becoming an actual revenue number. The committee also believes caution is required for the impacts of unfunded Medicaid expenses, which have been funded by supplemental appropriations in the past and could be affected by the uncertainty of federal health care legislation and more people going on Medicaid.

In summary of the report, Tom Sands, president and CEO of ITA, concluded, “Iowa Taxpayers Association commends the governor and Iowa Legislature for largely following sound budgeting principles in completing the 2018 budget.” To view the report visit www.iowataxpayers.org.   

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The Iowa Taxpayers Association is a business-sponsored tax policy organization founded in 1935. The ITA mission is to educate and inform Iowans about sound fiscal policy; provide state policymakers with objective, nonpartisan research about the impact of specific tax and spending policies; and advocate for the adoption of rational public fiscal policy as it relates to business and corporate taxes.

© 2017 Iowa Taxpayers Association. All Rights Reserved.