DES MOINES, Iowa (AP) – Gov. Terry Branstad has told Iowa lawmakers he wants to invest more money in education and water quality initiatives for the upcoming fiscal year.  Branstad made the remarks during his 2016 Condition of the State speech to the Iowa General Assembly on Tuesday. He says he wants more money for schools and seeks to improve the state’s water supply. He is proposing a state general fund budget of roughly $7.4 billion for the fiscal year that begins on July 1.

Branstad stressed it would be a “tight” budget year and growing Medicaid costs put a strain on state finances. School funding could once again be a contentious debate in the Democratic-controlled Senate and the Republican-majority House. Democrats want more funding for education, while Republicans are skeptical of spending increases.