Budget Issues
Budget issues are always the last issues resolved in every legislative session and this year appears to be following that same contentious path. Allowable growth for K-12 was a contentious issue all of last session and even after the session adjourned when the Governor vetoed part of the funding package. This year the Governor called for an increase in funding for K-12 of 2.45%. The House passed a 2% increase on a party line vote. The Senate rejected the 2% funding on a party line vote with the Senate Democrats calling for a 4% increase in funding, which was their opening offer last session.
Adding to the budget debate is the Governor's proposal to privatize Iowa's Medicaid program. The Governor has estimated the proposal could save the state over $100 million annually in future years. However, these savings have been questioned by groups both inside and outside the legislature. The Senate Democrats released their budget targets this week and did not include any savings from the Medicaid privatization. It looks like it's going to awhile before this is all sorted out.
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