(Radio Iowa) – The Iowa legislature may conclude its 2024 session late today (Friday) or on Saturday. A plan to cut Iowa income taxes by a billion dollars next year is on the debate agenda, along with bills that outline a state spending plan for the budget year that begins July 1st. Republican Representative Gary Mohr is chairman of the House Appropriations Committee. “Inch by inch,” Mohr says. “We’re very close.”

Total state spending in the next fiscal year will top eight-point-nine billion dollars. “We feel very good about the agreed upon numbers, what we’re going to do with those dollars to provide government, but also give some of it back to the people of Iowa,” Mohr says.

Republican lawmakers intend to spend 92 percent of expected tax revenue. The remaining eight percent is being funneled to the plan to have a flat state income tax of three-point-eight percent next year. Senator Dan Dawson, a Republican from Council Bluffs, is chairman of the Ways and Means Committee in the Iowa Senate. “Our first mission here is always give money back to the taxpayers,” Dawson says.

Representative Dave Jacoby, a Democrat from Coralville, says a flat tax benefits the richest Iowans and a better approach would be targeted cuts for low and middle income Iowans. “We’re not giving them more money back as we should,” Jacoby said.

Lawmakers debated late last (Thurday) night, approving several parts of the state budget. Community colleges will get a three percent increase in general state funding, The state’s three universities in Ames, Cedar Falls and Iowa City are each getting a two-and-a-half percent increase in state funding. Senator Jeff Taylor, a Republican from Sioux Center, says the Iowa Tuition Grant program — for students at private colleges and universities — is getting a two-and-a-half percent funding increase as well.

“It’s not a perfect bill, but it’s a good bill,” Taylor says. “With these budget bills, especially on something as complex and important as education, you would expect that the final result is going to be something of a compromise between the House and the Senate. That’s the nature of how things work around here.”

Senator Cindy Winckler, a Democrat from Davenport, says state funding for Iowa’s community colleges and three public universities hasn’t kept up with inflation for more than a decade.  “It shifts the financial burden to our students and our families,” Winckler says.

The board that governs the University of Iowa, Iowa State University and the University of Northern Iowa has not yet set tuition rates for the fall semester.