A lack of state revenue will result in cutting nearly $173 million in spending from the budget proposed by Iowa Gov. Terry Branstad for the fiscal year beginning July 1, The Des Moines Register reported. 

The budget blueprint, as outlined in the 1,046-page 2018-19 report, originally displayed a recommendation of $7.456 billion in spending from the state.

As reported by The Register based on a revised budget packed released by Branstad aides Tuesday night, the spending decreased to $7.293 billion for fiscal year 2018 – nearly 2.3 percent less.

Branstad originally proposed the fiscal year 2018-19 budget during his Condition of the State address in January.  

It was also during this time that Branstad announced $118 million in budget cuts from the current fiscal year ending June 31, which resulted in an $8 million loss in funding from Iowa State.

As proposed in the original fiscal year 2018-19 proposed budget by Branstad, the Iowa Board of Regents – which oversees Iowa State, the University of Iowa and the University of Northern Iowa – would receive $587 million in state funding.

This number is $37 million short of what the board previously requested, a continuous display of lagging state support from higher education in Iowa as the result of statewide budget cuts. 

The newly revised budget package by Branstad nearly mirrors the current fiscal year spending plan of $7.259 after the adjustments made in January.

“Investment in public higher education is an investment in a prosperous Iowa long term,” Iowa State President Steven Leath said in February. “We are facing a very difficult budget challenge. The cut we are seeing now is very unfortunate.”

Branstad’s previous budget proposal, as reported by The Register, would decrease education spending by $58.4 million – Iowa State facing a $5.9 million cut, the University of Iowa a $5.3 million cut and the University of Northern Iowa, just less than $1 million.

Apart from funding, the revised budget plans for the state to fully repay $131 million to the state’s cash reserve fund over the next two years that was needed to balance the current state budget, The Register reported.