Governor Terry Branstad emphasized fiscal responsibility in his budget address Thursday to a joint session of the Iowa legislature, proposing a budget for the next two fiscal years that makes $360 million in total budget cuts, reduces the corporate income tax and commercial property taxes, and increases the tax on state casinos.
"The rebounding agricultural economy gives us a unique opportunity to bind up Iowa's budget wounds quickly," Branstad said. "We must not squander that opportunity. It will not be easy. It will require difficult and painful choices. But the pain we endure by fixing our budget today will lead to great opportunities for Iowa in the future."
Branstad's proposed budget would spend nearly $6.2 billion in Fiscal Year 2012 and nearly $6.3 billion in Fiscal Year 2013. It includes $194 million in reductions throughout the state budget in the general fund, would save $89 million by not providing extra money to pay for state-worker salary increases, and would save $75 million by not continuing some programs currently funded with one-time sources.