Iowa Capitol Focus

By: The Associated Press Email
By: The Associated Press Email

After years of cutting the budget, the Iowa legislative session that begins Monday will offer lawmaker a new challenge, what to do with a $1 billion surplus?

Dave Roederer, the top budget aide to Gov. Terry Branstad, credits the surplus to spending cuts and conservative budgeting, as well as healthy tax revenues.

Branstad will release his budget plans Tuesday and is expected to announce plans to invest in education and cut commercial property taxes.

Some Republican lawmakers also argue reductions to the income tax should be part of any tax package.

Senate Majority Leader Mike Gronstal of Council Bluffs says Democrats would support some tax cuts, but they also want to see more spending on programs such as adult education and job training. Some Democrats also want to expand Medicaid.

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