Governor approves entire budget, Medicaid oversight

DES MOINES - The veto pen got a lighter workout this year.

Iowa Gov. Terry Branstad gave widespread approval Friday to the state budget passed last month by state lawmakers, and also approved new oversight measures for the private management of the state's $5 billion Medicaid program.

Branstad did not veto a single dollar of spending approved by the split-control Iowa Legislature. The final result is a $7.35 billion state budget for the fiscal year that starts July 1.

He also gave full approval to new measures designed to provide additional oversight of the three private health-care companies that last month took over management of the state's Medicaid program.

'By signing into law every Medicaid modernization oversight item, Iowa's Medicaid program will be one of the most transparent, outcome-focused, and accountable programs in the country,” Branstad wrote in his transmission letter to the Secretary of State's office.

Branstad did exercise a few line-item vetoes, but only on minor policy issues. For example, he struck down a measure that would have required hair-braiders to take an annual course and be subject to state government oversight, and rejected a study into state park user fees.

But one year after he vetoed a number of spending provisions - including a one-time infusion of $56 million for public education, which drew the ire of Democrats and education advocates - Branstad approved the fiscal year 2017 state budget as approved by legislators.

The governor's approval did not come without a few warnings.

Although he signed off on it, Branstad expressed concern with the use of a one-time infusion of $15 million to fund the Department of Human Services.

'The budget I proposed in January 2016 funded ongoing expenses with ongoing revenue. It is my hope to work with the Legislature next year to provide much-needed budget predictability and stability for Iowa taxpayers who make these programs possible,” Branstad said in his transmission letter.

Branstad also sounded warnings in spots where he believes the Legislature underfunded state agencies. He wrote that he believes the Legislature failed to dedicate sufficient funding for the state's utility bills, and expressed hope that despite a status-quo budget, the judicial system will find a way to maintain drug courts.

Branstad also approved:

- a one-year extension of the mental health property tax levy, plus a one-time infusion of $2.5 million for the mental health care delivery system in Polk County and $500,000 for Scott County.

- a provision that says tenants cannot be evicted for calling 911.

- a tax incentive for a baseball and softball tournament facility in Cedar Rapids.