Making State Government Leaner: Consolidating Services and Sunsetting Corporate Tax Credits

State Senator Staci Appel of Ackworth talks with State Senator Steve Warnstadt of Sioux City. The two were talking before the final meeting of the State Government Reorganization Committee.

As part of the first major review of state government operations in nearly 25 years, the State Government Reorganization Commission today approved recommendations that are designed to provide better services to Iowans, cut government bureaucracy, and save taxpayers’ dollars.

The leading proposals involve e-government innovations, purchasing consolidation, and sunsetting corporate tax credits. Legislative leaders say they are determined to accomplish their goals.

“The recession is causing deep budget cuts but we will not have real state government reorganization without a long-term plan,” said Sen. Staci Appel of Ackworth, commission co-chair. “That’s the process this commission has launched. Today’s recommendations will bring change to how things are done in Des Moines. I expect the status quo will fight back but I also expect the citizens’ demands for smarter, leaner government will prevail.”

“We are recommending that Iowa law mandate a similar review every five years,” said Rep. Mary Mascher of Iowa City, commission co-chair. “The drop in revenue caused by the national recession makes these reforms especially timely, but we should never put off rethinking how we do things and increasing state government efficiency.”

“E-government innovations will bring both savings and improved services, but it won’t be easy,” Appel said. “We don’t expect state agencies to embrace these reforms. The good news is that I’m more interested in serving taxpayers, not bureaucrats.”

“Consolidated purchasing means state workers must learn to do things differently in order to get a much better deal for taxpayers,” said Mascher. “This is all about reducing costs and providing taxpayers with more bang for the buck.

Both co-chairs also strongly supported the recommendation to “sunset” corporate tax credits.

“Once approved, corporate tax credits are on autopilot forever, despite a price tag of hundreds of millions of tax dollars each year,” Appel said. “Sunsets would ensure that tax credits get as much scrutiny as other job-creation efforts.”

The State Government Reorganization Commission’s recommendations will now be drafted into a bill and sent to legislative committees. Most will go to the Senate and House State Government Committees, which are chaired by Appel and Mascher, respectively. Once the bill is drafted, a non-partisan fiscal agency will estimate the cost savings of the committee’s recommendations.

“After Governor Culver made his recommendations earlier this week, we look forward to continuing our work with him in the months ahead to save the state money, balance the budget, and delivering services more efficiently to Iowans,” said Mascher.

Link: Complete list of proposed recommendations