Some spending reductions are to be expected in the upcoming budget, according to Gov. Terry Branstad. Due to lower revenue estimates, Iowa will likely have to cut about $100 million.
Despite this challenge, Branstad says he won’t consider an across-the-board cut.
"Instead I’m going to work with the legislature and make recommendations," says Branstad at his weekly news conference today. "I want to protect K-12 school aid from reductions, and property tax credits, I don’t want to see those reduced."
Branstad also says that a reduction to Medicaid funding is off limits. The three for-profit companies that took over the program in April have yet to make any money, and recently the state increased the amount it was paying the companies by $33 million.