Next year’s budget could be set by end of this week

DES MOINES - Negotiators for the Iowa House, Senate and governor are continuing efforts to narrow their differences on an overall budget number that could pave the way for adjournment later this week.

“We're narrowing the field of differences,” House Appropriations Committee Chairman Scott Raecker, R-Urbandale, said Monday before heading to the Senate for more discussion with his counterpart, Senate Appropriations Committee Chairman Bob Dvorsky, D-Coralville.

He held out hope for an agreement that would set the stage for House-Senate conference committees to work out differences over spending in various budget categories beginning as soon as today - the scheduled adjournment date.

House Republicans and Senate Democrats have been trying to narrow a $200 million to $300 million difference on a budget of more than $6 billion in state general funds for government agencies and programs for fiscal 2013, which begins July 1.

House Republicans have proposed spending $6.06 billion, Gov. Terry Branstad's budget is $6.24 billion and Senate Democrats suggest spending $6.3 billion.

Among the major differences have been higher education spending, where Senate Democrats want to spend about $61 million more than the House GOP; $55 million the House budgeted to fully fund property tax credits; and an even larger difference over commercial property tax relief.

House Speaker Kraig Paulsen, R-Hiawatha, expressed optimism that an agreement will be reached, but he said House Republicans will insist on balancing expenditures with revenues and not using one-time money for ongoing expenditures.

A spokesman for GOP Gov. Terry Branstad indicated the governor is pleased with the progress being made.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, said the House is still cutting the governor's budget “and we think there are things in the governor's budget that were shortchanged.”

“I think the fact that (the House) came up significantly is certainly a positive” Gronstal said.

An agreement on an overall budget number would be a big step toward ending the 2012 session.

“We've got a shot at getting out of here Saturday,” Paulsen said. “I don't see the logistics of how we get out Friday.”