Will Iowa’s state revenue stay healthy?

I have grave concerns about what’s happening in the Iowa Legislature. In the March 11 Gazette, there was yet another article about what is going to potentially happen when recently approved income tax cuts take full effect (“Iowa state revenue healthy, but future declines loom”). We’ve now been talking about this for several weeks, and the more I read, the more skeptical I become.

I think my questions are common sense. Doesn’t it stand to reason a tax savings for residents is also a loss of revenue for the state of Iowa? The subheadline of the article is “panel projects reductions over next two fiscal years.” The state narrative is that if revenues hold at 3 percent or 4 percent, then no state department or agency will be forced to cut its budget in future years.

I think that would be great. 
However, currently my investments are NOT holding at 3 percent or 4 percent and — given the state of the United States with inflation and instability stemming from the conflict in Ukraine, which we could still be involved in — I’m not convinced. Should we pause out for a bit?

Who doesn’t want a reduction to taxes or on anything we are paying for? On the surface it could give us more income, but in the end, will we be taking from Peter to pay Paul?

I’ll give you an example: My income is based on several factors. Unfortunately, at some point I stand to have a good portion of my income eliminated for reasons beyond my control. Then I will have to see how to accommodate for this lost income. Because of that I am cutting back on some monthly expenses and saving like a madman. Lack of income means you pull it from somewhere else or make drastic changes.

With the knowledge of Iowa having water quality issues and ranking high on bridge replacements, how do we pay for that? The IPERS fund has been underfunded for a number of years. It started doing better, but would they borrow from this pension fund when times got tough?

The Statehouse already wants to give tax money to private schools, thereby reducing the per student income to public schools. Recently it also was brought out that the state wants to reduce the Area Education Agencies districts from nine to four (HSB727). Do you know what these agencies do? If not, look it up.

“Iowa’s AEAs are widely regarded as one of the foremost regional service systems in the country offering programs that can be provided most equitably, efficiently and economically on a regional or cooperative basis among school districts,” according to the Iowa Area Education Associations 
website.

As has happened with the privatizing of Medicaid, if you read what the AEAs actually do, residents will scramble for help for their families just like they are already doing with the mental health issue.

I’m not an economist, but I have many concerns about the management of the state of Iowa right now. Do some reading and vetting of these bills for yourself and see what your conclusion is. A lot of what is happening at the state level is meant to help Iowans but I think just the opposite is occurring.

Judy Atkins lives in Iowa City.