Des Moines, IA- The more than $8.5 billion state budget Governor Reynolds has approved represents a 3.7% increase in spending.
Radio Iowa reports that lawmakers expect to spend nearly $107.5 million on the new state-funded accounts for low-income parents who enroll their kids in private schools. Public K-through-12 schools will get a three percent increase in state funding.
Attorneys who represent indigent clients will get $35 an hour for travel for the first time along with a five-dollar-per-hour increase in attorneys’ fees, an effort to get more attorneys to represent low-income clients declared indigent by the courts.
Lawmakers have the authority to spend up to 99% of expected state tax revenue. The budget Reynolds gave final approval to this week spends 88%. All taxes above that paid during the next state fiscal year will be deposited in reserves and the Taxpayer Relief Fund.
By this time next year, the state is projected to have $3.5 billion in the Taxpayer Relief Fund along with a $2 billion surplus.
Democrats say Republicans are hoarding money that would could be spent on priorities like public education. Republicans say it’s a responsible budget plan, with extra cash to cushion the state if there’s a recession or if tax cuts depress state revenue below expectations.
