Stories

Moderate- and low-income Iowans pay a greater share of their income in state and local taxes than the rich do, according to a new report from two non-partisan research organizations.

Federal stimulus for Medicaid has boosted jobs and incomes in Iowa while meeting the immediate health needs of vulnerable Iowans enduring a recession, researchers with the Iowa Fiscal Partnership reported today.
“Increased Medicaid spending has an economic benefit for the state of Iowa far greater than the federal government’s initial investment,” explained David Swenson, an economist [...]

In light of historic budget cuts recently implemented by Gov. Chet Culver due to a downturn in revenue projections, the state should increase its investment in postsecondary education for low-income adults. The investment would improve economic prospects for Iowa families, and in the process boost the state budget, according to the nonpartisan group Iowa Policy [...]

The American Recovery and Reinvestment Act has sent an additional $80 million in weatherization funding to Iowa, and while the influx of cash has raised worries about waste and abuse, the state argues the money is being put to good use and will help an additional 10,000 households.

“We’ve got such a long waiting list, we know the money will easily be spent,” said William Brand, administrator of Iowa’s Division of Community Action Agencies.

Roughly 300,000 Iowans lack health insurance, and of those 35 percent worked full time for all of 2008, according to a study by Iowa City-based Iowa Policy Project.

As Democrats in the U.S. House race toward a Friday floor vote on the controversial cap-and-trade bill, some interests are distorting information on how the legislation affects consumers, according to the Iowa Policy Project (IPP).

“The pace of job losses slowed in April, suggesting that the Iowa economy may be in the early stages of a turn,” said Elisabeth Buck, director of Iowa Workforce Development.

Supporters of a Democratic tax reform bill in the state Legislature have begun efforts to push back against the bill’s detractors.

The boisterous crowd, a large majority of which opposed the proposed changes to Iowa’s tax code, gave each of the speakers who voiced support for the proposal the same treatment – boos and hisses. Those who opposed it, such as Iowans for Tax Relief President Ed Failor Jr., received energetic applause.

Today’s Revenue Estimating Conference lowered estimates of state revenues by $129.7 million this fiscal year and $269.9 million next fiscal year.

But federal stimulus money, along with reforms to the state’s tax code, could help avoid painful budget cuts, said Beth Pearson, a research associate with Iowa Policy Project, a nonpartisan organization that focuses on tax and budget issues.