Iowa's new tax cap faces pressure as cities cut police and fire
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The Iowa State Capitol. Photo: Joe Raedle/Getty Images
Iowa's new tax law is forcing cities to weigh cuts to police and fire — and whether to ask lawmakers to carve out public safety from the 2% property tax growth cap.
Why it matters: Staffing shortages can mean slower police and fire response times, leaving residents waiting longer for emergency help.
Driving the news: The Des Moines City Council this week approved $11.5 million in cuts, including reductions affecting police and fire.
- The vote previews another roughly $5 million in cuts expected to be considered in January, cuts that council members warned will be much tougher.
Catch up quick: Iowa lawmakers approved the cap in May as part of a broader property tax package.
- It passed with bipartisan support and takes effect in July 2027.
Zoom in: Both departments say they are already short-staffed.
- Police cuts of about $566,000 — roughly 0.6% of the department's $92.2 million operating budget — will reassign three neighborhood officers and trim three positions from its next academy.
- Fire reductions of about $425,000, or roughly 0.7% of its $58.7 million budget, include eliminating two vacant positions and changing how recruits are hired.
By the numbers: Police and fire account for about 58% of Des Moines' nearly $256 million general fund, making public safety difficult to insulate as the city adjusts to tighter property tax revenue limits.
Flashback: The Iowa League of Cities warned lawmakers that essential-service costs were rising faster than the proposed cap.
- Its statewide survey found that police officer costs increased by roughly 4% annually between 2020 and 2026, while firefighter costs rose by about 6%.
The big picture: Several Iowa communities have lost police departments in recent years amid recruitment, financial or local government challenges, transferring law enforcement duties to county sheriffs, including in Mitchellville and Onawa.
Threat level: During Monday's meeting, Councilmember Josh Mandelbaum urged the city to lobby lawmakers to consider a separate public safety levy that could grow faster than the 2% cap.
- "We're talking next-steps amputation," Mandelbaum warned, calling for other solutions rather than cuts.
Context: Iowa's law already treats certain government services differently: County hospital revenue can increase by 4% compared with the 2% general city and county cap.
The other side: Sen. Dan Dawson (R-Council Bluffs), the Senate Ways and Means chair who managed the property tax bill this year, tells Axios he opposes creating a separate public safety levy.
- Moving major expenses outside the 2% cap would "absolutely gut the intent of the law," Dawson said, noting cities can seek voter approval to raise additional revenue.
What we're watching: Whether public safety becomes a more prominent November issue after Democratic gubernatorial candidate Rob Sand called on Tuesday to prioritize it as property-tax growth slows.
- Iowa's 2027 legislative session begins Jan. 11, when cities could seek changes to the law.