DES MOINES — Lawmakers will focus on efforts to streamline state government and an early retirement package for state workers this week at the Iowa Legislature.

Democrats who hold majorities in the House and Senate said they need to deal with those two issues before they can move forward with the state’s cash-strapped budget.

“This reorganization bill is a critical piece for us to figure out the targets we’re going to get to our budget committees,” said Senate Majority Leader Michael Gronstal, D-Council Bluffs.

In the mix is the fate of the Mount Pleasant Mental Health Institute, which has been targeted for closure as a state cost-cutting measure.

Gov. Chet Culver based his proposed budget on finding $341 million in savings through streamlining state government. He issued an executive order cutting more than $100 million, but the Legislature has to approve the rest.

The debate begins this week, and Gronstal said lawmakers will have to see how much is politically possible.

“The budget is predicated on the entire set of recommendations,” Gronstal said. “We all want to get to the same place, but the route we take to get there may differ a little bit.”

He said key lawmakers are polishing the final version.

“There are still a few details that various people in our caucus are working out,” Gronstal said.

Today, the Senate is expected to debate part of the larger reorganization plan that would save an estimated $40 million by eliminating a number of boards and commissions, forcing up to eight smaller agencies to merge into larger entities and implement efficiencies on some larger state agencies, such as the Department of Human Services.

Right now, the Human Services efficiencies include closing the Mount Pleasant Mental Health Institute. But southeast lawmakers have been working to get the provision removed to keep the local services and save about 100 jobs.

Sen. Gene Fraise, D-Fort Madison, plans to introduce an amendment to remove the provision, if a larger amendment package does not include it.

“I’m up to 50-50 (odds) that I can pull it out,” said Fraise, who previously gave the odds at 40-60.

Rep. Dave Heaton, R-Mount Pleasant, said he’d heard there may be a shift to close Clarinda instead of Mount Pleasant, a move he does not support. Heaton, who is ranking member of the Health and Human Services Appropriations Subcommittee, said he will fight to save the state’s four mental health facilities since local services are lacking in some areas of the state.

On Tuesday, the House is scheduled to debate a set of early retirement incentives that backers claim would save the state another $60 million.

House Speaker Pat Murphy, D-Dubuque, said the House later in the week will begin moving on its version of a government reorganization plan.

“We feel like we need to know what our cost savings are both for early retirement and reorganization before we can deal with the budget,” Murphy said.

Republicans said they are willing to consider the reorganization effort, but some question how much money would actually be saved by the plan and proposed early retirement measure.

“I’ve got some folks who are supportive and some folks who are opposed,” said House Minority Leader Kraig Paulsen, R-Hiawatha. “I anticipate right now having a bill I’m going to be able to support.”

Also this week, lawmakers are expected to consider these issues:

* House Majority Leader Kevin McCarthy, D-Des Moines, hopes to have a draft version of a limited gambling expansion that could bring the state an additional $25 million annually.

As part of the measure, voters this year wouldn’t take up the question of whether casino licenses should be extended. In exchange, the state would collect a fee from the casinos. The casinos also would also be able to use more of their floor space for gambling.

* The Senate will likely give final approval to a measure requiring insurance companies to provide coverage for the routine care that cancer patients get while involved in clinical trials. Currently, 30 states and Washington, D.C., require such coverage. Backers note that insurance companies wouldn’t pay for the trials themselves, but only the routine care they would get in traditional treatments.

* The House and Senate are moving internally to quell a dispute with some of the hundreds of lobbyists who seek to influence lawmakers. Lawmakers plan to establish a notification requirement informing clients when lobbyists take a position on a specific measure.

Hawk Eye reporter Christinia Crippes contributed to this report.