February 18, 2025

Budgeting and taxes

By Rep. Jon Dunwell

It’s budget time not only for the Iowa Legislature but as well for cities, counties and schools. And beyond what’s happening in our local communities, DOGE, waste and Government spending have become a national discussion. As local conversations progress, you will probably hear a lot about…

  • The need for more money. 
  • Frustration with limits on the ability to raise taxes.  
  • Inflation has made everything more expensive. 
  • Essential services are at risk (police & fire)  

Though we might disagree on what is true, false or distorted, I do believe there are some things we NEED to agree upon.

  1. Inflation has had a devastating impact upon Iowans.  Government overspending the last number of years has led to an enduring “inflation tax.”  Today’s price of groceries reveals the true cost of all that Federal overspending and that “free money” of yesterday.  Bottom line, every budget discussion needs to be placed into the context of its impact on Iowan’s feeling overburdened with inflation.  
  2. As government entities, we must always remember we are spending YOUR money and not ours.  The acceptance of that great responsibility and authority comes with an equal amount of accountability. As your empowered stewards, EVERY expenditure must be made as a diligently researched investment with the goal of achieving the highest return.  As we work on our budgets, every line-item needs to be agonizingly scrutinized.   
  3. We need to continually wrestle with what is a government responsibility and what is not. I worry that we believe that government is the answer for everything. And commensurately, we answer it with an allocation of dollars.  The more we believe government is the answer, the higher our taxes will go and the greater regulation we will impose…and the less freedom we will have. What incentives did Texas need to give Tesla to move from California?  Nothing.  Texas’ taxing and regulatory environment was enough.  
  4. Budgeting should ALWAYS be a grueling and tough process.  We should always feel constrained and forced to make tough priority decisions. When it becomes easy and we feel like we have enough money to do everything we want, taxpayers should probably be worried.   

Full disclosure, I will always have a soft spot for our schools. It’s not that I’m comfortable with how expensive they are. Rather, it’s the complicated funding system we’ve created for them, the categorical budget constraints we’ve placed upon them, and the incredible societal burdens they carry.

Let’s keep the discussion going.