@article{Edelman:18279,
      recid = {18279},
      author = {Edelman, Mark A.},
      title = {A PRELIMINARY ANALYSIS OF THE PROPOSED 1998 TAXPAYERS'  RIGHTS AMENDMENTS TO THE IOWA CONSTITUTION AND FISCAL  CONSEQUENCES ASSUMING IMPLEMENTATION FROM FY1984 TO  PRESENT},
      address = {1998},
      number = {1042-2016-85260},
      series = {Staff Paper 297},
      pages = {12},
      year = {1998},
      abstract = {This staff paper reviews the Senate (SSB2072) and House  (HSB688) versions of a proposed 1998 Amendment to the Iowa  Constitution and provides a preliminary analysis of the  fiscal impacts on the state general fund receipts, general  fund appropriations, and local property taxes assuming each  proposal was implemented in FY 1984. While the year-to-year  reductions in spending are relatively small, the cumulative  fiscal impact of the SSB2072 would likely have resulted in  (1) a FY1997 state general fund limit that allows 32  percent less spending than actual FY1997, (2) a $710  million reduction in the growth of state aid to local  government, and (3) a 29.7 percent increase in property  taxes, if property taxes were used to fully replace the  reduction in growth of state aid to local  governments.
HSB688 excludes some measure of state aid  applied to property tax relief from the TRA limit. However,  the proposed Constitutional language for this exclusion  appears to potentially contain ambiguous wording. One  interpretation of HSB688 excludes only new state aid for  property tax credits that "ensure" reduction in property  taxes. Applying this definition to TRA implementation in  FY1984 resulted in a FY1997 state general fund limit that  allows 30.7 percent less spending than actual FY1997 and a  $639 million reduction in the growth of state aid to local  governments. In turn this would have required a 26.7  percent increase in property taxes to hold local government  spending harmless from the reduction in growth of state aid  to local governments.

Alternatively, a second  interpretation of HSB688 may provide a broader exclusion of  state aid to local governments. If all new state aid to  local government  is excluded, the TRA would have resulted  in a FY1997 state general fund limit that allows 15.7  percent less spending than actual FY1997.  No reduction in  the growth of state aid to local governments means no  increase in local property taxes.  However, the  Constitutional tax and spending limitation effectively only  covers  half of the state general fund revenues.},
      url = {http://ageconsearch.umn.edu/record/18279},
      doi = {https://doi.org/10.22004/ag.econ.18279},
}