Via the Cedar Rapids Gazette on Wednesday, I learned about the Iowa Fiscal Partnership and its analysis of potential policy responses to this summer’s flooding in Iowa.

The Iowa Fiscal Partnership is a joint budget and tax policy analysis initiative of two nonpartisan, nonprofit  organizations, the Iowa Policy Project in Mount Vernon/Iowa City and the Child & Family Policy Center in Des  Moines.

The partnership issued reports this week that are worth reading, which are available here. One argues that “Tax policy is likely to fail as an efficient or effective response to Iowa’s flooding disaster and moves to rebuild.”

“As this report shows, property tax cuts may seem to be an easy choice, but their help to individual  property owners will be marginal in many cases, and they will be poorly targeted and waste resources  that can be better used in other ways,” Elias said.

  Elias said property-tax changes are not timely because they don?t get resources quickly into the hands  of flood victims most in need of help, and not targeted well, noting renters in particular probably would  receive no help.

 “Tax policy should not be the first choice for policy responses, and there are serious questions of whether it  should wind up as part of the mix at all,” Osterberg added.

A press release summarizing the findings of that report is after the jump.

Other research of the Iowa Fiscal Partnership goes over the principles that should guide our response to the flooding:

 David Osterberg, executive director of the IPP, said the Cedar Rapids data point to the need for  state policy makers to chart flood responses based on principles similar to those accepted for economic  stimulus. One of the two reports sets out those principles as guidelines for flood response.

  “Policies must be timely, targeted and transitional,” Osterberg said. “They have to be implemented  when they can effectively help, they have to be able to reach those most directly affected and in need of  assistance, and they need to be temporary with time-specific goals.

  “Everyone involved in the ongoing and coming policy discussion needs to recognize the validity of a  principles-based response, developed on the experiences of other states that have coped with disasters. This  approach not only will best serve Iowa residents, but help us to provide a good example for the future.”

I hope the legislature will consider these recommendations when lawmakers address flood relief and reconstruction in the next session. I predict that the Republican Party will push tax cuts as the centerpiece of flood relief.

FOR IMMEDIATE RELEASE WEDNESDAY, AUGUST 13, 2008 CONTACT: MIKE OWEN (319) 338-0773 or ipp@Lcom.net In Floods? Wake: Making Sense of Tax Ideas Property Tax Changes Not Likely Efficient or Effective Response

   IOWA CITY, Iowa (Aug. 13, 2008) – Tax policy is likely to fail as an efficient or effective response  to Iowa?s flooding disaster and moves to rebuild.

  An Iowa Fiscal Partnership (IFP) report released Wednesday noted the importance of assuring  emergency services can be provided to flood victims and general services maintained adequately.

  “Clearly, many families and businesses in Iowa have been devastated by flooding,” said David  Osterberg, executive director of the nonpartisan Iowa Policy Project, part of the IFP. “The question is not  whether people need help – but how best to get it to them. Tax cuts aren?t the best option.

  “When some lawmakers and others are raising ideas about cutting property taxes, they?re avoiding  critical issues of how best to target assistance to those most in need, and how we can pay for the services  needed.”

  The three-page IFP report noted that local governments have set budgets depending on property-tax  revenues, and the state will be expected to provide matching funds for many millions of dollars in federal aid.

  IFP?s report also pointed out that property is periodically reassessed to reflect actual value of  property, so property dramatically losing value by flooding will have that value adjusted for future taxes.  In addition, the report notes that property tax changes would have problems distinguishing who really  needs assistance to cope and rebuild.

  Victor Elias of the Child & Family Policy Center, the other IFP partner organization, noted IFP?s  principles for disaster relief – timely, targeted and transitional responses – and that property-tax  responses don?t meet those principles well, if at all.

    “As this report shows, property tax cuts may seem to be an easy choice, but their help to individual  property owners will be marginal in many cases, and they will be poorly targeted and waste resources  that can be better used in other ways,” Elias said.

  Elias said property-tax changes are not timely because they don?t get resources quickly into the hands  of flood victims most in need of help, and not targeted well, noting renters in particular probably would  receive no help.

 “Tax policy should not be the first choice for policy responses, and there are serious questions of whether it  should wind up as part of the mix at all,” Osterberg added.

   “This is not a time for business-as-usual in our policy options. Iowa too often has turned to tax cuts as  a silver bullet for economic issues, and the only sure thing about that approach is that it winds up limiting  options.”

  The Iowa Fiscal Partnership is a joint budget and tax policy analysis initiative of two nonpartisan, nonprofit  organizations, the Iowa Policy Project in Mount Vernon/Iowa City and the Child & Family Policy Center in Des  Moines. #    #    #    #    #