After heated debate, Iowa Senate OKs $118 million budget reduction bill
After heated partisan debate, the Iowa Senate approved a bill Thursday to address a shortfall of nearly $118 million in the state's budget for the fiscal year ending June 30.
Senate File 130 was approved on a 28-19 vote with Republicans in favor and Democrats against. The bill now goes to the House, where House Speaker Linda Upmeyer said it is expected to be approved Monday before being sent to Gov. Terry Branstad for his signature.
The bill avoids any cuts for K-12 education and Medicaid health care. It provides a combination of $88.2 million in budget reductions for state agencies, plus $25 million in transfers from a variety of state funds. That includes $12 million shifted from the Grow Iowa Values Fund, which is a source of money for projects focused on job creation or retention, value-added agriculture and entrepreneurial efforts. There is also a $4.5 million adjustment to property tax credits, which are still fully funded.
The shortfall developed because of a decline in a forecast of state revenues, but Sen. Charles Schneider, R-West Des Moines, placed the blame on too much state spending in recent years. He noted that state government had a budget surplus of $927 milllion in fiscal year 2013, which has since declined to zero, even though the state's economy is growing and Iowa's unemployment rate is low. In the past, Senate Republicans have repeated voted against state budget bills, including those endorsed by House Republicans and Branstad.
Read more: http://www.desmoinesregister.com/story/news/politics/2017/01/26/after-heated-debate-iowa-senate-oks-118-million-budget-reduction-bill/97079396/