Iowa lawmakers reach compromise on budget

Iowa lawmakers have reached a compromise on the first budget of the legislative session.

A joint committee of lawmakers from both parties and chambers settled on spending $41 million for economic development.

It funds the Department of Cultural Affairs, Iowa Workforce Development, the Iowa Economic Development Authority, the Iowa Finance Authority and the Public Employment Relations Board.

The budget is $31 million under what Republican Gov. Terry Branstad proposed. That's because leadership has decided to move some budget items into a different fund paid by gaming revenue.

Those items include a jobs program which provides tax incentives for businesses, and economic development programs for the regent universities.

Senate Majority Leader Mike Gronstal of Council Bluffs says leadership saw gaming revenue as a stable funding source for these programs.