DES MOINES, Iowa (Iowa Capital Dispatch) – Iowa House Republicans said Tuesday they are considering spending $1.4 million to create a publicly accessible tool to analyze the spending and revenue of Iowa counties and some school districts through a “priority focused” artificial intelligence model.
The House Government Oversight Committee hosted Tyler Technologies Senior Account Executive Mark Welch, who gave a presentation Tuesday to the House lawmakers on what a potential analysis could look like. Welch said Tyler Technologies, a software company focused on public sector entities, would be able to provide analysis by running the publicly available data on Iowa local entities’ budgets in an AI model which includes the company’s data set on other government entities.
The AI model would be able to provide an overview of where these public entities are spending their money, and areas for potential savings. Welch said the analysis would include recommendations for areas where governments could find between 10% and 28% in savings by finding areas where services are duplicated, where a government is paying more than similarly situated peers for a service, or identifying funding for services that do not align with a community’s priorities.
“Let’s think about streets maintenance or mulching in a park,” Welch said. “… We have common services across Iowa, for example — across the country — and we can now go out and say, ‘how do we compare to each other,’ right? Which ones have high efficiency? Which ones are, you know, not within the mean of their peers?”
Welch said the AI tool is able to take into consideration other factors that could impact the costs of certain services — for example, being able to account for a rural school district having higher transportation costs because they are busing children from a wider area. Rep. Angel Ramirez, D-Cedar Rapids, said she saw the potential costs savings that could be found using the tool, but said she was “hesitant” in moving forward with the analysis project because it does not involve collecting qualitative data — an important tool when considering spending in areas like social services.
“Those preventative measures can be difficult, because it’s — how do you measure someone didn’t enter the carceral system because of a service that they received five years prior?” Ramirez said.
Some lawmakers on the committee brought up concerns about the accuracy of the information and analysis of the data when the company is using AI. Rep. Steve Holt, R-Denison, brought up an anecdote of seeing a search engine’s AI overview that incorrectly stated he had been working on an issue for “decades” that he had only been discussing for two years.
Welch said the Tyler Technologies AI model is not a large language model like ChatGPT, OpenAI or Claude — the analysis on local government budgets would not involve “just going out, searching web, trying to come up with information,” but references Tyler Technologies’ budget and personnel data sets and set training. He said the model has been between 90% and 95% accurate when compiling publicly available data, and that the remaining 5% where inaccuracies occur are because the model does not account for the correct description of a service.
“It’s more in line with a traditional software offering than like an AI offering,” Welch said.
The initial, one-time cost for creating this tool for all 99 counties and two-thirds of the highest-spending school districts in the state would be between $1.4 million and $1.5 million, with an ongoing cost of $900,000 annually for a three-year term.
Speaking with reporters after the committee meeting, House Speaker Pat Grassley said House Republicans were considering pursuing funding for this tool through either the regular budgeting process — which would involve approval from the Senate and governor — or funding the tool through a House standing limited appropriation.
Gov. Kim Reynolds told reporters at a news conference Tuesday she understood the House GOP sentiment of wanting to work with an outside consultant to analyze areas for potential saving — pointing to her own use of a consultant when moving forward her agency restructuring plan. But she said it was important to ensure that the consultant would be able to deliver on their promises.
Grassley said House GOP leaders saw this tool as a benefit especially as lawmakers pursue ways to find local government efficiencies as part of ongoing discussions on property taxes.
Welch said one benefit of using the AI tool instead of traditional consulting services that offer this type of budget analysis was that the AI model could produce analysis within six weeks — potentially providing lawmakers more analysis on current local government spending discussions. While Grassley said legislators “would love to have as much information as possible” on local government budgets and the impact of potential property tax changes before voting on a bill, he said he did not look at the proposal as a reason to delay a resolution on property taxes.
“I think when it comes to settling the property tax bill itself, I look at this as more of what does (it mean for) the future and how the money is spent to find efficiencies,” Grassley said.
He also said making this data available does not mean lawmakers would require local governments make any changes based on the analysis.
“They would still have to make that decision at the local level,” Grassley said. “We feel this is a tool that we could use, but would be open to the public to be able to look at, to utilize.”
Copyright 2026 Iowa Capital Dispatch. All rights reserved.