We're keeping the focus on expanding Iowa's middle class as we develop the next state budget. At the same time, we're committed to a balanced, stable and sustainable budget.
With that goal in mind, we are on track to do the right things to improve the economy, education and health care. We will make strategic investments to help Iowa workers gain new skills, improve our local schools, reduce health care worries and grow Main Street businesses.
The Senate Democratic plan includes new workforce training to reduce our state's shortage of skilled workers, increasing state support for local schools, expanding access to affordable health care for tens of thousands of Iowans, and cutting taxes for working families. a commercial property tax cut that especially helps Iowa's small businesses.
In addition, every commercial property owner in the state will get a tax cut under a plan we're working on in the Senate. Iowa commercial property owners currently pay taxes on 100 percent of assessed value, about twice what residential property taxpayers pay. That can hinder job creation and efforts to bring businesses to the state.
The Main Street Tax Cut (SSB 1135) addresses that problem. Our $250 million plan will provide a tax cut to every Iowa business. Eight out of 10 commercial properties will pay the same rate as residential properties. And 9 out of 10 properties do better under our tax-cut plan than under Governor Branstad's plan, which transfers tens of millions of dollars to large, out-of-state corporations.
Unlike other proposals, the Main Street Tax Cut does not shift the tax burden onto residential property taxpayers because it uses state dollars to replace funding that schools and local services depend on.