Branstad prods lawmakers on budget action

DES MOINES - Gov. Terry Branstad on Monday urged the split-control Legislature to 'get serious” about resolving state budget disagreements, saying the problems are not insurmountable and should not threaten a government shutdown like the impasse in 2011.

Branstad hoped lawmakers could wrap up the 2015 session in May, and he has advised K-12 school leaders who are finalizing fiscal 2016 budgets this month to expect at least the 1.25 percent increase in state aid that he and House Republicans have offered but remains a key sticking point in the partisan impasse the governor described as 'this annual food fight.”

'We're at a critical point in this session when the House and the Senate need to diligently work on the budget,” the six-term GOP governor told reporters at his weekly news conference.

Branstad said state government has faced tougher economic situations and tougher budget issues before and policy makers always have managed to resolve them. He told reporters he did not see a need to go to the brink of a potential government shutdown this year similar to a 2011 budget fight that was not settled until June 30 - the last day of the state fiscal year.

'Unlike the federal government, unlike some other states, in Iowa we've always done it,” Branstad said. 'No, I don't see a government shutdown, and I see every reason to believe we're going to be able to get these things resolved. I just think it's time to get serious about it and get the job done.”

Branstad offered a budget plan in January that sought to spend $7.341 billion in fiscal 2016, which would be a 5 percent increase over current spending and would use $129 million of the state's carry-over surplus to balance the ledger while covering ongoing commitments to provide property tax relief and reform education.

Majority Senate Democrats issued a fiscal 2016 budget outline last week that calls for spending the same $7.341 billion proposed by Branstad, but parts ways with his priorities by seeking a higher investment for K-12 schools for the coming school year with a 2.625 percent hike. Republicans who control the House have not released their fiscal 2016 spending targets.

Branstad and House Republicans have agreed to boost state supplemental aid to K-12 schools by $55 million, or 1.25 percent, in fiscal 2016 and 2.45 percent in fiscal 2017 along with providing money needed to fund early childhood and teacher leadership/education reform initiatives. House Republicans say they will not spend more than $7.175 billion next fiscal year, leaving about a $166 million difference with the spending levels set by the governor and Senate Democrats.

'I understand that different people have different perspectives,” Branstad said regarding the disputed issue of whether surplus money should be included as revenue available to pay for ongoing commitments.

House and Senate leaders indicated last week they plan to embark on their separate budget paths with two weeks remaining until they reach the target date for adjournment.

House Speaker Kraig Paulsen, R-Hiawatha, said he expects the House will move ahead with budget work on transportation and infrastructure bills that are less controversial, while Senate Majority Leader Mike Gronstal, D-Council Bluffs, said he expected Senate budget subcommittee leaders to have their individual spending bills completed by week's end with hopes of starting floor debate next week.

May 1 marks the session's 110th day when lawmakers' daily expense money ends - a milestone that usually builds pressure to complete session work and adjourn.

'I hope it can get resolved in the next month,” Branstad told reporters. 'That's what I would like to see done, but even that is an ambitious schedule in light of the fact that they're just getting serious about this now. I would hope that it could be completed before the end of May.”