Iowa lawmakers are confident of finishing work on a new state budget by a Thursday night deadline, but agreement on a commercial property tax reform package still looks elusive.
The Senate and House each made progress Monday in passing budget bills, but some key spending measures must yet be addressed, including education and health and human services.
Lawmakers have already agreed that the overall budget won't exceed $5.99 billion for the coming 12 months. Senate Majority Leader Michael Gronstal, D-Council Bluffs, and House Speaker Kraig Paulsen, R-Hiawatha, said they expect legislators to wrap up details of a state budget prior to Friday, when the new fiscal year begins. That would avert a government shutdown before the Fourth of July weekend.
"I am hopeful and optimistic that we will get things done," said Rep. Scott Raecker, R-Urbandale, chairman of the House Appropriations Committee.
As part of a budget deal, Gov. Terry Branstad said he was exploring a possible stopgap funding bill to keep the government operating in the coming weeks. That would give him time to study the final budget bill, possibly making some line-item vetoes. A final bill would most likely be retroactive to July 1.
Gronstal and Branstad met Monday to try to broker a deal on property tax reform, but apparently they remain far apart. That's led to speculation that the Legislature will return later to finish work on a property tax package.
House Republicans have offered to reduce the portion of a commercial property's assessed value that is taxed to 75 percent, which would be a 25 percent cut, in an effort to stimulate Iowa's economy. Branstad originally wanted to reduce the figure to 60 percent of assessed value.
Democrats have proposed state-funded property tax credits aimed at small businesses that would begin at $50 million annually and gradually be increased to $200 million annually.
"I think both sides feel pretty strongly about the version they have," Gronstal said.
Asked if it's possible that both sides could come back after this week to work out a property tax reform package, Gronstal remarked, "You know, that is possible. I don't think that is ideal. I think what is ideal is for people of good faith to sit down and find some way to compromise with each other and get it done this week."
Branstad said he, too, wants a property tax agreement sooner rather than later, warning that agricultural and residential property taxes will soar unless tax reform is approved. "We'll see, but I am hopeful we can do something" this week, he said.
The Senate and House each made progress Monday in passing budget bills, but some key spending measures must yet be addressed, including education and health and human services.
Lawmakers have already agreed that the overall budget won't exceed $5.99 billion for the coming 12 months. Senate Majority Leader Michael Gronstal, D-Council Bluffs, and House Speaker Kraig Paulsen, R-Hiawatha, said they expect legislators to wrap up details of a state budget prior to Friday, when the new fiscal year begins. That would avert a government shutdown before the Fourth of July weekend.
"I am hopeful and optimistic that we will get things done," said Rep. Scott Raecker, R-Urbandale, chairman of the House Appropriations Committee.
As part of a budget deal, Gov. Terry Branstad said he was exploring a possible stopgap funding bill to keep the government operating in the coming weeks. That would give him time to study the final budget bill, possibly making some line-item vetoes. A final bill would most likely be retroactive to July 1.
House Republicans have offered to reduce the portion of a commercial property's assessed value that is taxed to 75 percent, which would be a 25 percent cut, in an effort to stimulate Iowa's economy. Branstad originally wanted to reduce the figure to 60 percent of assessed value.
Democrats have proposed state-funded property tax credits aimed at small businesses that would begin at $50 million annually and gradually be increased to $200 million annually.
"I think both sides feel pretty strongly about the version they have," Gronstal said.
Asked if it's possible that both sides could come back after this week to work out a property tax reform package, Gronstal remarked, "You know, that is possible. I don't think that is ideal. I think what is ideal is for people of good faith to sit down and find some way to compromise with each other and get it done this week."
Branstad said he, too, wants a property tax agreement sooner rather than later, warning that agricultural and residential property taxes will soar unless tax reform is approved. "We'll see, but I am hopeful we can do something" this week, he said.
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