Iowa House approves budget that includes tax cuts

DES MOINES  - The Iowa House has approved a measure calling for deep property tax cuts in a $5.9 billion state budget supported by Gov. Terry Branstad and Republican lawmakers.

Republicans, who hold a majority in the House, say their plan approved Wednesday calls for increasing school spending by 2 percent in the second year of their budget and including $35 million to continue preschools programs. They say those proposals are proof they have compromised with Democrats.

The plan also includes reductions in commercial property taxes and an increase in the state's obligation for school spending, a move that would lead to reduced local property taxes, When fully implemented, those tax changes would cost $347 million annually.

The House approved the measure on a 54-38 vote. It now goes to the Senate.