Here is the latest Iowa news from The Associated Press at 3:40 a.m. CDT

DES MOINES, Iowa (AP) — Iowa’s treasurer is warning that the state should borrow money to ensure it can pay its bills on time amid a potential budget shortfall, but Gov. Kim Reynolds argues the move is politically driven. Fitzgerald, a Democrat, announced Thursday that he had asked the Republican governor to authorize borrowing. He argues it would be a “sensible way” to manage “uncertainties.” Brenna Smith, Reynolds’ press secretary, says Fitzgerald is engaging in “headline-grabbing scare tactics.”

DES MOINES, Iowa (AP) — Iowa is seeking federal approval to cut a key Medicaid health care benefit for the elderly and poor in an effort to save money. The state has asked the Centers for Medicare and Medicaid Services to eliminate a provision that allows a person to get Medicaid coverage three months before he or she submits an application to join the program. DHS estimates $36.7 million would be saved, including $9.7 million for the state. The policy would impact new Medicaid patients.

DAVENPORT, Iowa (AP) — A 51-year-old Clinton gun shop owner has been sentenced to federal prison after pleading guilty earlier this year to federal firearms violations. The Quad-City Times reports that Brad Ries was sentenced Wednesday in Davenport to two six-month prison sentences _ to be served at the same time _ for knowingly transferring a firearm without a background check and making a false statement to an ATF agent.

MASON CITY, Iowa (AP) — A northern Iowa hospital plans to construct a $9.78 million building that will be able to serve more behavioral health patients. The Globe Gazette reports that officials from Mercy Medical Center-North Iowa in Mason announced details about the 27,200 square-foot facility Wednesday. The project will be funded by donations from the Jan Again Foundation and through a reinvestment of the hospital’s funds and capital. The hospital is expected to be completed by 2019.