Home Local News BRANSTAD SIGNS BUDGET SHORTFALL BILL INTO LAW

BRANSTAD SIGNS BUDGET SHORTFALL BILL INTO LAW

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Governor Terry Branstad has signed into law the Iowa Legislature’s plan to eliminate a shortfall in the state’s current $7.2 billion budget.

Branstad signed a bill Wednesday that cuts about $117 million in spending from the budget that began last July.

Various Iowa agencies will collectively cut about $88 million.

An additional $25 million will be taken from other funds used for programs ranging from economic development to the arts.

About $4 million was saved from unused tax credits.

Some affected Iowa departments – including corrections, higher education and public safety – will determine where those cuts will be made.

Branstad says he is pleased the GOP-controlled Legislature exempted K-12 education, Medicaid and certain property taxes cuts from the reductions.

Democrats have said the cuts will hurt state government.