A new report by the Center on Budget and Policy Priorities shows that Iowa and many other states fail to incorporate enough long-term fiscal planning in the budget process. Click here to read the executive summary of the thoroughly researched piece by Elizabeth McNichol, Vincent Palacios, and Nicholas Johnson. Click here to download the full report (pdf).
After the jump I’ve posted the two-page fact sheet on Iowa, which scored only 4.5 out of a possible 10 and ranked 37th among the states. I’ve also enclosed a sidebar explaining the ten criteria they used to evaluate state fiscal planning. Table 1 toward the bottom of this page shows that Iowa received full marks under three categories: consensus revenue estimates, legislative fiscal offices, and budget status reports. Iowa received half-credit in three more categories: multi-year fiscal notes, pension oversight, and well-designed rainy-day funds. Iowa received zero marks in four categories: multi-year forecasting, a projection of future costs to deliver the “quantity and quality of services to residents that it is delivering in the current budget period,” pension funding and debt level reviews, and oversight of tax expenditures.
For years, the Iowa Policy Project and the Iowa Fiscal Partnership have been sounding the alarm on how Iowa needs to start calculating the costs of various tax breaks and tax credits.
While you’re at it, read the Iowa Fiscal Partnership’s recent background piece on why “Iowa lawmakers must recognize the long-term impact of tax cuts on spending choices. Past choices will force future legislatures to lower investments on critical services on which economic growth depends.”
Continue Reading...