Legislature passes bill to limit the budgeting power of local governments

The Iowa Legislature adjourned its 104th session around 2:15 p.m. Saturday, bringing to a close its consideration of legislation for this session.

One of the last measures to pass was a Senate Bill which imposes a cap of 2 percent on the amount of increase in spending local governments can impose.  Any increase higher than 2 percent would have to be approved by a two-thirds majority of the local government's governing body.

The Decorah City Council earlier went on record as opposing the original wording of the legislation, with city council member Steve Luse saying the bill would have "significant impact" on the city's budget and with Decorah City Administrator Chad Bird saying such a measure would have "real impact" on the way the city operates.

State Representative Michael Bergan, who voted for the legislation on Saturday, says, "The bill passed out of committee was amended to address local government concerns, removing provisions on reverse referendums previsions and limitations on ending fund balances.  The final bill provides that property tax increases greater than two percent will need approval by two-thirds of the members of a city council or board of supervisors.  Additional time has been added to the budget process to provide notice to the public with reasons property tax increases."