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State Government News

Branstad says Property Taxes, K-12 Funding and Medicaid Won't See Budget Reductions

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JIMMY CENTERS / OFFICE OF GOVERNOR TERRY BRANSTAD
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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.