NEWS
We Have Budget Targets!
Governor Kim Reynolds and the Iowa Senate have agreed to a budget target for next year. The House has also released its budget target. They are only $36 million apart. That is less than 1% difference. While that difference is not much, it may mean the difference between a Medicaid rate increase, making scholarships for comprehensive transition programs available to young adults with disabilities, or cutting property taxes for homeowners.
The Senate has already released some of its budgets and will move all budget bills out of subcommittee and committee this week. That gets them into position for fast action once the House, Senate and Governor agree to their final spending plan.
Current Budget (FY 2025)
$8.948 billion
Governor’s Original Recommendation (FY 2026)
$9.434 billion
Senate/Governor Budget Target (FY 2026)
$9.417 billion
House Budget Target (FY 2026)
$9.453 billion
The Transportation budget is not included since it does not spend state general fund dollars. It uses funds earmarked for transportation (gas taxes, vehicle registrations, etc). The Federal Block Grant Bill is 100% federal funds, so it is not included in the state targets. Both of these bills are well on their way to being finalized.
“A budget agreement with Governor Reynolds moves this legislative session one step closer to adjourning for the year,” Senate Majority Leader Jack Whitver said. “As we continue to work on important issues in the legislature and find agreement among legislators, this agreement marks an important step forward. We look forward to more conversations with the House of Representatives on how we can pass a sustainable budget for the upcoming fiscal year.”
Speaker Pat Grassley (R-New Hartford) expressed support for his caucus’ approach. "Our caucus is committed to delivering a budget that follows responsible budget practices, while funding the priorities Iowans care most about," Grassley said. "Iowans expect to see their tax dollars used wisely to fund important services like nursing homes, paraprofessional pay, support for human trafficking victims, and more of that sort, and that's what this House Republican caucus is fighting to deliver."
Budget subcommittees will continue their work to finalize their individual budgets. We already have a few budgets to list:
- Administration/Regulation: SSB 1235
- Agriculture/Natural Resources: SSB 1230
- Education Budget: SSB 1231
- Judicial Branch Budget: SSB 1233
- Justice Systems Budget: SSB 1232
- Federal Block Grants: HSB 327 | SF 626
- Transportation Budget: SF 628
- Opioid Settlement: HSB 331 | SF 624
The Senate Education Budget (SSB 1231) does not include funding for comprehensive transition program scholarships as proposed in HF 271/SF 283. Advocates can ask their legislators to add these bills into the Education Budget (including funding for them).
Another issue many advocates have worked on this year is adding autism treatment (behavioral health analysis) to the children's health insurance program (Hawki). Advocates who want to see this happen can ask their legislators to put HF 509 into the HHS Budget.
Watch for alerts on Facebook and our website as decisions are made this week.
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