Legislators faced with an unusual problem in Iowa

Iowa State House in Des Moines

After years of cutting Iowaâ??s budget, legislators that head back to work Monday will have to determine what to do with a $1 billion surplus.

The top budget aide to Governor Terry Branstad, Dave Roederer, credits the surplus to spending cuts and conservative budgeting.

Governor Branstad is set to release his budget plans on Tuesday. He is expected to announce plans to invest in education and cut commercial property taxes.

Some Republican lawmakers also argue reductions to the income tax should be part of any tax package.

Senate Majority Leader Mike Gronstal of Council Bluffs says Democrats would support some tax cuts, but they also want to see more spending on programs such as adult education and job training.

Some Democrats also want to expand Medicaid.

(The Associated Press contributed to this story.)