DES MOINES, Iowa (AP) - Iowa Gov. Terry Branstad is proposing a budget that is nearly $200 million smaller than the current spending plan and that includes reductions in taxes charged to businesses.
Branstad presented his $6.1 billion budget to a joint session of the Legislature on Thursday.
He says his plan cuts $700 million in programs that were financed with federal stimulus money that won't be available next year.
Branstad's proposal freezes state assistance to schools at current levels for two years.
Branstad doesn't mention state employees in his proposal, but aides acknowledge hundreds of workers will lose their jobs.
Under Branstad's plan, the 12 percent corporate income tax rate would be cut in half and commercial property taxes would be lowered.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
