Last fall, House Republicans issued the first of many warnings that spending decisions made by Gov. Culver and legislative Democrats would result in property tax increases. Today the LSA confirmed those fears in a draft school aid analysis.
In the analysis, LSA highlights that schools maintain the authority to recoup cuts to state aid through property tax increases. According to LSA, school district general fund levies increased $133.3 million or 8.8 percent. School district cash reserve levies increased 54 percent or $104.2 million. LSA concludes, “cash reserve levies likely increased significantly due to State aid reductions in FY 2009 and FY2010 and anticipation of a State aid shortfall for FY 2011.”
Iowans will see an increase in their taxes as early as this fall.
“Democrats spent too much, saved too little and increased property taxes. Now is not the time to be raising property taxes,” said House Republican Leader Kraig Paulsen. “This is another example of Gov. Culver and legislative Democrats making it harder to be an employer in Iowa and for a family to meet expenses. Balancing the budget on the back of the property taxpayer is not good enough and it’s lazy fiscal management.”
According to LSA, the finalized report will be available later this week.
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