Iowa gov. proposes $5.9B state budget

Iowa gov. proposes $5.9B state budget

	Published : Tue, 30 Jan 2007 18:38 By : Agencies Print this Story

DES MOINES, Iowa (AFX) - Gov. Chet Culver on Tuesday presented his proposed $5.93 billion budget to a joint session of the Legislature.

Included in his plan is an extra $70 million to raise teacher pay and $25 million for the renewable fuels industry.

Culver is also asking for a big investment in preschool and higher education, and is pushing for a significant expansion of the state's health care system financed by a $1-per-pack increase to the state's cigarette tax.

The proposed budget is a 5.9 percent increase from $5.6 billion this year.

Despite the call for more spending, Culver sounded a conservative tenor in his speech, saying his spending plan will have a $200 million surplus.

Culver said he's getting a boost from an economy that's improving and speeding the flow of tax dollars into the state's coffers.

'We also enjoy a growing bioeconomy that holds promise and makes us a real player in the new global marketplace,' he said.

Culver said he wanted to focus on filling state reserves and address energy, education and health care -- issues he outlined during his campaign for governor.

He called on lawmakers to create a $100 million 'Iowa Power Fund' to boost the renewable fuel industry with a payment of $25 million this year.

The fund is designed to invest in a broad range of energy efforts.

In his budget, Culver calls for an additional $190 million in spending on a variety of education programs, including $70 million for higher teacher pay.

Culver is also calling for an extra $20 million for preschool programs.

Culver also called for $25 million for faculty salaries at the state's three public universities, and $12.5 million for community colleges.

He asked for $5 million for a new scholarship program that would give up to $5,000 for qualified students attending the state's public universities.

Culver pledged to use the $140 million that would be generated from a new cigarette tax to bolster health care.

He also lectured lawmakers who have suggested that a $1-a-pack increase might be too steep.

'The fact is we have hundreds of millions of dollars in health-care related needs,' said Culver. 'I am not willing to ignore any of the important priorities.'

Health care proposals Culver would finance include:

--Expand coverage for children, including the 50,000 Iowa youngster without coverage.

--Covering 6,000 Iowa parents who are at or near the poverty level and don't have health coverage.

--Double the size of the nursing home ombudsman's office, which advocates for senior health care programs.

--Funding a proposal that would move the state toward universal health coverage, and carrying a price tag of up to $90 million.

His proposal also pushes lawmakers to lift restrictions on stem cell research, and he wants to spend $12.5 million for a center for regenerative medicine at the University of Iowa.

Culver also is calling for $20 million for water quality initiatives, and would spend $25 million to lower commercial property taxes that all sides concede are too high. He also wants $17.5 million to ease staffing problems at the state's prisons.