ITR Foundation

A new Fiscal Resilience Index ranked Iowa 8th nationally, reflecting the state’s strong fiscal position and ability to withstand potential disruptions in federal funding.

The study warns that states have become increasingly dependent on federal dollars, leaving them vulnerable to Washington’s budget instability, policy changes, and growing national debt.

Iowa’s combination of spending restraint, strong reserves, low liabilities, and sound fiscal management demonstrates how conservative fiscal policies can strengthen both state finances and state independence.

Which States Have Greatest Fiscal Resilience? - ITR Foundation A new Fiscal Resilience Index ranked Iowa 8th nationally, reflecting the state's strong fiscal position and ability to withstand potential disruptions in federal funding. The study warns that states have become increasingly dependent on federal dollars, leaving them vulnerable to Washington's budget...

Colorado’s Initiative 195 would replace the state’s 4.4% flat income tax with a graduated income tax and significantly increase the amount of revenue the state can retain and spend.

The proposal represents one of the most significant challenges to Colorado’s Taxpayer Bill of Rights (TABOR), a constitutional limit on taxes and spending that has returned more than $12 billion to taxpayers since 1992.

The debate highlights a broader national divide over fiscal policy, pitting advocates of higher taxes and government spending against supporters of taxpayer protections, spending limits, and voter control over tax increases.

How States Are Reshaping Income Tax Policy in 2026- Part 3 - ITR Foundation Colorado's Initiative 195 would replace the state's 4.4% flat income tax with a graduated income tax and significantly increase the amount of revenue the state can retain and spend. The proposal represents one of the most significant challenges to Colorado's Taxpayer Bill of Rights (TABOR), a consti...

States are increasingly divided between two fiscal philosophies: one focused on higher spending supported by higher taxes, and another centered on spending restraint, tax competitiveness, and economic growth.

High-tax states such as Illinois and Minnesota continue to face budget pressures and are pursuing new taxes and revenue sources, while states like Iowa and Arkansas are using spending discipline to support ongoing income tax reductions.

The debate over taxes is ultimately a debate over the role of government, with states increasingly choosing between higher spending and lower taxes.

How States Are Reshaping Income Tax Policy in 2026- Part 2 - ITR Foundation States are increasingly divided between two fiscal philosophies: one focused on higher spending supported by higher taxes, and another centered on spending restraint, tax competitiveness, and economic growth. High-tax states such as Illinois and Minnesota continue to face budget pressures and are pu...

States are moving in opposite directions on income taxes. Some states, including Washington, Hawaii, Maine, California, and potentially Colorado, are pursuing wealth taxes or higher rates on top earners, while others are reducing or eliminating income taxes.

Tax-cutting states are emphasizing competitiveness and growth. South Carolina, Arkansas, West Virginia, Georgia, Indiana, Kentucky, and Utah all enacted income tax reductions in 2026, with several adopting revenue triggers that automatically lower rates when state finances allow.

Some states are seeking constitutional taxpayer protections. Iowa, Missouri, and North Carolina are advancing constitutional amendments designed to make future tax increases more difficult and provide longer-term safeguards against higher income taxes.

How States Are Reshaping Income Tax Policy in 2026- Part 1 - ITR Foundation States are moving in opposite directions on income taxes. Some states, including Washington, Hawaii, Maine, California, and potentially Colorado, are pursuing wealth taxes or higher rates on top earners, while others are reducing or eliminating income taxes. Tax-cutting states are emphasizing compet...

Iowa’s tax sale system allows private investors to acquire property when taxes go unpaid, raising questions about whether homeowners can lose equity that exceeds the amount of taxes owed.

Both the Iowa and U.S. Constitutions protect property rights, and the Fifth Amendment’s Takings Clause prohibits the government from taking private property without just compensation.

A unanimous 2023 U.S. Supreme Court ruling held that government cannot keep proceeds beyond a taxpayer’s debt, a precedent that may have significant implications for Iowa’s tax sale laws.

Is Iowa Law in Violation of the Takings Clause? - ITR Foundation Iowa's tax sale system allows private investors to acquire property when taxes go unpaid, raising questions about whether homeowners can lose equity that exceeds the amount of taxes owed. Both the Iowa and U.S. Constitutions protect property rights, and the Fifth Amendment's Takings Clause prohibits...

Iowa has no constitutional or statutory limit on session length. The 100- and 110-day deadlines are informal benchmarks tied to per diem payments and staffing, not mandatory adjournment dates.

The 2026 session lasted 112 days. Lawmakers worked beyond the traditional endpoint, finishing on May 3 after a marathon final push.

Annual sessions have not always been the norm. Iowa moved from biennial to annual legislative sessions through a 1968 constitutional amendment, while still allowing lawmakers flexibility to extend their work when needed.

The History Behind Iowa's Legislative Calendar - ITR Foundation Iowa has no constitutional or statutory limit on session length. The 100- and 110-day deadlines are informal benchmarks tied to per diem payments and staffing, not mandatory adjournment dates. The 2026 session lasted 112 days. Lawmakers worked beyond the traditional endpoint, finishing on May 3 afte...

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.

Believe it or not, Washington Once Had Fiscal Restraint - ITR Foundation 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...

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.

Iowa Moved to Reduce Barriers to Rural Health Care - ITR Foundation 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...

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.

Freedom to Flourish Competes for Growth - ITR Foundation 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...

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.

School Results Depend on More Than Just Money 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...