Money local cities and school districts receive after the state legislature cut commercial property taxes in 2013 could be reduced as soon as next year.

Republicans in the Iowa House and Senate have called for cuts and the eventual elimination of the backfill program, citing difficult financial decisions and the desire to see the state government out of the business of supporting local municipalities.

However, cities and school districts have argued they have not been able to make up the revenue lost in those tax cuts on their own, and say they budgeted based on the promise they would be made whole.

According to City of Pella Finance Director Corey Goodenow, Pella could lose $183,796 if the backfill is completely eliminated, and the Pella School District projects they could lose over $40,000.

Most cities and schools have submitted their certified budgets for the upcoming fiscal year, but a bill in the Iowa House would cut some of the funds promised to cities during that time, as a proposal would seek a gradual reduction of the backfill over the next four years.