Iowa Unites to Tackle Budget Woes

By Andi Anderson

Many Iowa city and county governments are facing mounting financial pressure as revenues tighten and expenses rise. Essential services like road maintenance, emergency response, and public health are becoming harder to sustain, according to a 2024 Iowa League of Cities report.

Shrinking populations, stagnant property values, and new funding limits have made it difficult for local governments to balance their budgets.

To help address these issues, Iowa State University Extension and Outreach’s Community and Economic Development (CED) unit is offering cities and counties practical strategies, tools, and training opportunities to strengthen financial management and maintain vital public services.

Exploring new revenue options

CED specialists encourage local leaders to look beyond property taxes for revenue. Communities can introduce user fees for specific services, pursue state and federal grants, or use local option sales and service taxes to fund projects like road maintenance—with voter approval. Public-private partnerships can also support infrastructure, though officials are urged to weigh long-term risks carefully.

Tourism and agritourism are additional opportunities for growth. Programs such as First Impressions Tourism and Community Assessment and Agritourism Entrepreneurship Tours can help towns boost local economies.

Collaborating to share costs

Many Iowa communities are already finding success by partnering with others to deliver services efficiently. Chapter 28E agreements allow shared staffing, equipment, and programs, from regional 911 centers to joint public health efforts. Experts recommend starting small to build trust and refine systems before expanding collaboration.

Engaging the public in financial decisions

CED emphasizes public involvement in budgeting. Tools such as public meetings, digital engagement, and clear financial reporting can help residents understand spending priorities and build community trust.

Planning for long-term resilience

For lasting stability, CED’s Iowa Government Finance Initiative reports and new Dollar Bill Planning Tools help local leaders visualize financial data and prepare for future challenges.

“Sustaining services during difficult budget times takes creativity, teamwork, and transparency,” said Biswa Das, associate professor of urban planning and extension specialist. “Prioritize what matters most, involve the public, and work with neighboring communities.”

Through collaboration, innovation, and open communication, Iowa communities are proving they can remain strong—even in challenging financial times.

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