We Have Budget Targets!
Governor Kim Reynolds and the Iowa Senate have agreed to a budget target for next year. The House followed suit this afternoon and released its own target, which was slightly higher ($36 million more). In the famous words of former US Senator Tom Harkin, this less than 1% difference is “pencil dust.” While that difference is not much, it may mean the difference between a Medicaid rate increase, providing more funding for courts, or cutting property taxes for home owners.
The Senate has already released some of its budgets (which are linked below) 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. Most likely session will wrap up next week.
| Current Budget (FY 2025) | $8.948 billion |
| Governor’s Original Rec. (FY 2026) | $9.434 billion |
| Senate/Governor Budget Target (FY 2026) | $9.417 billion |
| House Budget Target (FY 2026) | $9.453 billion |
| Current (FY 2025) | Gov/Senate (FY 2026) | House (FY 2026) | |
| Administration/ Regulation | $72,941,377 | $73,461,809 | $74,525,590 |
| Agriculture/Natural Resources | $45,9234,745 | $45,574,050 | $47,305,670 |
| Economic Development | $40,787,127 | $40,187,127 | $40,637,127 |
| Education | $1,019,009,691 | $1,026,386,031 | $1,042,264,716 |
| Health/Human Services | $2,215,601,301 | $2,468,992,645 | $2,468,514,264 |
| Judicial Branch/Justice Systems | $915,462,616 | $925,925,531 | $928,933,800 |
| Standings & School Aid | $4,637,632,218 | $4,836,758,719 | $4,851,312,672 |
| TOTAL | $8,947,358,075 | $9,417,285,912 | $9,453,493,839 |
The Transportation budget is not included since it does not spend state general fund dollars (it uses Road Use Tax Fund to pay for its operations). The Federal Block Grant Bill is also 100% federal funds, so 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. Check back here and we’ll update this list as new ones are introduced:
- 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
Watch for alerts here as this week progresses! Also remember to check the LWVIA Bill Tracker for up to the minute updates on policy bills as session winds down.