Cities, counties and school districts are now working on their budgets for the fiscal year that begins July 1, and they are doing so under the restrictions imposed by a state law governing property taxes.

Many local leaders say that law has made it harder to balance their budgets because it reduces property tax revenue.

During the Eggs and Issues forum Saturday, some local lawmakers talked about why that law was passed.

“We’re hearing from the constituents in this room,” said state Sen. Tim Kraayenbrink, R-Fort Dodge.

“When we go door to door we hear from people saying their property taxes are way too high,” he added. “If the local elected officials aren’t changing that and answering that, then it is up to us at the state level to change it.”

State Rep. Ann Meyer, R-Fort Dodge, said property taxes are especially burdensome on senior citizens.

“If you are elderly and you have no increase in your income, you can get priced out of your house very easily,” she said.

State Sen. Jesse Green, R-Boone, said property taxes are “by far the No. 1 issue on the minds of Iowans.”

“We definitely need to have a serious conversation,” he said.

He said one possible solution would be to reduce the $5.40 per $1,000 of taxable value levy imposed by school districts by $1 and have the state provide the money that would have been raised by that $1. He estimated that amount at $200 million.

He also suggested allowing local governments to have more flexibility in using the revenue from their local option sales taxes.

Kraayenbrink said he believes complaints about property taxes should be solved at the local level.

“If the local people don’t like the situation, put new local people in there,” he said. “Hold local people accountable.”