Iowa lawmakers working to finish 2025-26 budget
House, Senate still working to reach a compromise
After four months, the 2025 Iowa legislative session is now coming down to one issue — the budget.
State Sen. Tim Kraayenbrink and state Rep. Ann Meyer, who are both Republicans from Fort Dodge, told an Eggs and Issues forum audience Saturday that finishing the spending plan for the fiscal year that begins July 1 is the final significant task to be done by lawmakers.
“The last big item on the agenda is the budget,” Meyer said.
In January, Gov. Kim Reynolds proposed a $9.43 billion budget. The Senate and House of Representatives are now working on their versions of the budget. The senators, representatives and the governor have to reach a compromise that Reynolds will sign into law.
Meyer said the House and Senate budget proposals are about $65 million apart.
But Kraayenbrink said the Senate has revised its plan and the two chambers are now about $26 million apart.
“We’re coming together,” he said.
There are some extra expenses for 2025-2026.
Meyer said the House, Senate and governor have agreed to spend an additional $4.9 million on education in the next fiscal year.
She also said that the state will have to spend an additional $37 million on Medicaid, the federal and state health insurance program for the poor and disabled. She described that extra spending as “really not negotiable.”
According to Meyer, 23 percent of Iowa’s population depends on Medicaid for health care.
Kraayenbrink said about 82 percent of the state’s budget is dedicated to education, health and human services.
Although the next fiscal year doesn’t start until July 1, lawmakers are working against a deadline of their own to get the budget done.
The 2025 legislative session is scheduled to end Friday.
Kraayenbrink said he expects lawmakers will be in session three or four extra days.
Other issues
The lawmakers were asked about the prospects for a bill limiting the use of eminent domain for private projects, such as the construction of the Summit Carbon Solutions carbon dioxide pipeline.
Kraayenbrink said he would support such a bill. But he said he is not sure if one will be brought to the Senate floor for a vote.
He said senators were advised that the state could face lawsuits from Summit Carbon Solutions if the House version of the eminent domain bill is approved.
Meyer said the governor of South Dakota has stopped the pipeline project in that state, and added that the company’s approvals to build in Iowa are good only if it has approval from every other state on the route of the pipeline.
Eminent domain allows an entity to acquire private property from unwilling sellers. A company granted the power of eminent domain would have to get an appraisal of a piece of property, then pay the landowner that appraised price to take ownership of the property.
The legislators were also asked about their feelings on banning diversity, equity and inclusion programs in state government.
Meyer said she supports that.
“I feel like our hiring should be merit based,” she said.”We should not be teaching our children that they are better or worse because of their race.”
State Rep. Mike Sexton, R-Rockwell City, who regularly participates in Eggs and Issues forums, was absent due to a back injury.
Eggs and Issues is sponsored by the Greater Fort Dodge Growth Alliance and Iowa Central Community College.