Lawmakers Say Budget Surplus Still Means Headaches

DES MOINES, Iowa (AP) — After years of cutting the budget, the legislative session that beings Monday will offer lawmaker a new challenge — what to do with a $1 billion surplus?

Dave Roederer, the top budget aide to Gov. Terry Branstad, credits the surplus to spending cuts and conservative budgeting, as well as healthy tax revenues.

Branstad will release his budget plans Tuesday and is expected to announce plans to invest in education and cut commercial property taxes.

Some Republicans lawmakers also argue reductions to the income tax should be part of any tax package

Senate Majority Leader Mike Gronstal, of Council Bluffs, says Democrats would support some tax cuts, but they also want to see more spending on programs such as adult education and job training. Some Democrats also want to expand Medicaid.
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