The stage is set for Chet Culver and Terry Branstad’s debate. According to the Culver-Judge campaign site,

To watch the debate you can tune your TV to one of the following channels:

KCAU – Sioux City

WOI – Des Moines

WHBF – Quad Cities

Mediacom Public Access channels

CSPAN

Or watch it live online at any of these websites:

myabc5.com

siouxcityjournal.com

qctimes.com

wcfcourier.com

Several Iowa politics-watchers will be live-blogging, but in an act of flagrant blogger malpractice I will be away from my tv and my computer this evening for a prior commitment. Bleeding Heartland readers, use this thread to chat about the debate. I’ll watch later and update with my thoughts.

I hope Culver is able to get Branstad on the defensive early and keep him there. The Branstad campaign continues to lie about Iowa’s fiscal condition in response to the new Culver television ad released today. After the jump I posted the Culver campaign’s fact check on Branstad’s response.

UPDATE: I didn’t catch the Iowa Public TV replay on my vcr, and I couldn’t find the video online last night. Still looking for a transcript; here’s the Sioux City Journal liveblog. Judging from that and the recaps posted at Iowa Independent, the Sioux City Journal, and the Des Moines Register, it seems like a solid performance for Culver. Bret Hayworth writes,

I give the debate edge to Culver. Branstad was just like the Campaign Trail Branstad, workmanlike, delivering a message, but ultimately reserved.

It sounds like Branstad had plenty of awkward moments, including apparently not understanding the debate rules. Hayworth and several others noted Culver’s inelegant phrase about wanting Iowa to have a “brain suck” rather than a “brain drain.” That reminds me of Ross Perot on the “giant sucking sound” of jobs heading to Mexico because of NAFTA.

After the jump I’ve posted three statements the Culver campaign released last night. The first hits the main themes Culver wants to take from the debate: Culver “delivers,” Branstad “confused and dishonest.” The second challenges Branstad’s failure to meet previous job-creation promises, and underscores problems with the Indiana economic development model Branstad favors. The third lists 60 taxes Branstad raised during his 16 years as governor.

SECOND UPDATE: Todd Dorman thinks “‘undecided’ likely gained some significant ground” because of the slugfest. He also listed the debate moments that stuck out in his mind: the candidates’ comments on judicial selection, mistakes, taxes, preschool and floods. I didn’t realize Branstad was backtracking on his anti-preschool stance and desire to change the way we select judges. Kathie Obradovich didn’t care for the debate and wrote, “I doubt this debate did more than cement supporters’ positions on both sides. Any undecided voters who ventured to watch could have easily been persuaded by the nonstop attacks to turn off the TV and find a place to hide their brains until Nov. 3.”

Also at the Des Moines Register, Jason Clayworth fact-checked a number of statements Culver and Branstad made during the debate. As Bleeding Heartland readers already know, Branstad inflates the cost of the I-JOBS bonding program.

THIRD UPDATE: Radio Iowa’s Kay Henderson posted a detailed live-blog here.

The Iowa Democratic Party posted six video clips of debate highlights here. I think my favorite is “Governor Culver on Terry Branstad’s love affair with Indiana.”

September 14, 2010:

CHET CULVER DELIVERS, TERRY BRANSTAD IS CONFUSED AND DISHONEST

Des Moines –  The first debate of the campaign season is over, and Governor Chet Culver delivered a strong performance by speaking honestly with Iowans about his record and our state’s future.  Meanwhile, Terry Branstad started the debate confused, and ended  it by continuing to distort his record and mislead Iowans about the strong work of the Culver/Judge Administration.

“Chet Culver knocked this one out of the park,” said Donn Stanley, Campaign Manager.  “He was calm, cool, collected, and set the record straight.  Unfortunately, Terry Branstad continued his misinformation campaign by spreading half-truths and distortions.”

Chet Culver set the record straight on his own strong record after one term as Governor.  He reminded Iowans that the budget is balanced, and has been balanced every day in office.  He highlighted Iowa’s AAA bond rating, something that Terry Branstad never could achieve.  He pointed out the outstanding work he has done to rebuild our state after the floods and storms of 2008, which to date has resulted in over $4.1 billion in recovery dollars for Iowa.

Culver praised the tremendous work his administration has done on expanding preschool, and ensuring that every Iowa child has the opportunity to succeed.   He promised to make preschool available in every school district in the state by 2014.  And he pointed out that despite the misinformation was coming from Terry Branstad, he has worked with over 250 companies to bring 20,000 jobs to Iowa.

Unfortunately, the performance from the other side of the stage left a lot to be desired.  Tonight’s debate began with Terry Branstad confused about the rules, making one of the biggest gaffes one can in a political debate.

Branstad went on to tell flood victims that we should wait 15 years to help prepare us for future natural disasters. Terry’s strategy didn’t work so well after 1993.  Just as the folks affected b y the floods and storms of 2008.

Branstad then had to face up the fact that he had raised taxes 60 times as Governor, many of which Iowans are still paying, while Governor Culver has resisted tax increases time and time again throughout his administration.

Finally, Branstad reiterated his promise to create 200,000 new jobs.  Unfortunately, we are still waiting for the 335,000 jobs that he has yet to create after similar promises during his 16 years as Governor.

“Chet Culver has a record that all Iowans should be proud of,” said Stanley.  “This debate shows that Iowans have a clear choice  this fall.  And  after the performances given tonight, there is no doubt that choice is Chet Culver.”

September 14, 2010:

BRANSTAD PROMISES JOBS, AND BRANSTAD NEVER DELIVERS

Des Moines –  Terry Branstad tonight talked about his goal of creating 200,000 jobs in Iowa over the next four years.  This strikes a familiar tone for Iowans who have heard these promises time and time again from Branstad.  Unfortunately, he has never delivered.

“Terry Branstad thinks that if he just makes up a high number, that will get him elected,” said Donn Stanley, Campaign Manager.  “Unfortunately, Iowans want to know how.  And the problem with Branstad is he has made this promises before, and he has never delivered.  Iowans need strong leadership over the next four years.  Chet Culver has, and can, deliver.  Terry Branstad simply can’t.”

In 1982, Terry Branstad promised to create 180,000 new jobs.  In 1983, Iowa experienced record high unemployment.  Even after he cooked the books, he was 110,000 short of his promise.

In 1994, even in good economic times, he couldn’t deliver his inflated promise of 300,000 new jobs, coming up almost a quarter of a million jobs short.  The fact is, Iowans can’t trust Terry Branstad when it comes to jobs.

Now, Branstad is promising 200,000 new jobs, and he says he will do it by following the Indiana model.  Unfortunately, the facts prove that just doesn’t work, and here is the proof.

At least 40%, if not more, of the so-called jobs created by the Indiana Economic Development Corporation (IEDC) were bogus. WTHR-TV Indianapolis reported in May 2010 that “where the Indiana Economic Development Corporation claims tens of thousands of new jobs, 13 Investigates documents empty factories and undeveloped corn fields all across the state. WTHR’s investigation found that at least 40% of Indiana’s ‘new jobs’ promoted by the IEDC and Governor Mitch Daniels have never come, drawing the governor’s ire.” [WTHR-TV Website, 5/26/2010]

IEDC refused to release information on how many jobs were actually created. WTHR-TV Indianapolis reported in May 2010 that “IEDC director Mitch Roob explained the governor and IEDC will not release detailed job numbers to anyone. While the state uses Hoosier tax dollars to help attract new jobs, Hoosier tax payers do not get to see what they’re paying for.” [WTHR-TV Website, 5/26/2010]

IEDC withheld information on how much tax credits each company is receiving. WHRT-TV Indianapolis reported in May 2010 that “when 13 Investigates did receive the records it requested, wage, tax credit, employment, and job realization information had been crossed out.” [WHRT-TV Website, 5/26/2010]

Many of IEDC’s job creation claims were obviously bogus. WTHR-TV Indianapolis reported in March 2010 that “in Lake County, a vacant lot sits where IEDC claimed Plasmatronics would bring 221 new jobs […] in Perry County, you’ll find a quiet boat ramp where the state announced Tell City Marine would create 243 jobs […] in Tipton County, a massive factory is empty and padlocked despite the state’s claim of 1400 new jobs […] from Angola and Evansville to Jeffersonville and Gary, 13 investigates discovered similar scenarios in every corner of the state. In big cities like Indianapolis and small towns like Cayuga, WTHR found economic success stories that fell far short of expectations or simply didn’t come true at all.” [WTHR-TV Website, 3/1/2010]

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September 14, 2010:

BRANSTAD FORCED TO RECKON WITH TAX-AND-SPEND PAST

Des Moines –  Terry Branstad had to face a hard reality tonight.  During the first debate of the 2010 election, Governor Chet Culver forced Branstad to face up to the fact that he raised taxes 60 times over his 16 years as Governor.

“Terry Branstad is not being honest with the people of Iowa.  He has done it before, and he will do it again,” said Donn Stanley, Campaign Manager.

Contrary to his position as a tax cutting conservative, his record betrays him again as someone who is willing to tax and spend to balance the budget.

During Branstad’s 16 years as Governor, he raised the gas tax 53% and the sales tax 67%.  These are two taxes that Iowans are still paying today.

This is something that Chet Culver has resisted time and time again as Governor.

Below is a list of the 60 taxes Terry Branstad raised as Governor.

1.       Individual Minimum Tax – Increase in the state minimum tax (SF 386, 1983)

2.       Changes to non-business casualty loss deduction that generate revenue (SF 386, 1983)

3.       Changes to corporate tax preference item that generate revenue (SF 386, 1983)

4.       Changes to medical expense deduction that generate revenue (SF 386, 1983)

5.       Investment credit reduction (SF 386, 1983)

6.       Construction period interest and tax changes that generate revenue (SF 386, 1983)

7.       Changes to withholding on interest and dividends that generate revenue (SF 386, 1983)

8.       Unemployment Compensation Taxes -Temporary provision to generate revenue (SF 386, 1983)

9.       Pari-Mutuel Tax – New tax to accompany the legalization of racing (SF 92, 1983)

10.   Property Tax – Allow 3 cents/$1000 assessed for equipment replacement (SF 537, 1983)

11.   Sales and Use Tax – Increase from 3% to 4% (HF 184, 1983)

12.   Property Taxes – Increase in maximum levy for law enforcement districts (HF 2525, 1984)

13.   Sales Tax- Removes sales tax exemption for electronic repair and installation (SF 2330, 1984)

14.   Sales Tax – Removes exemption for licensed executive search agencies (SF 2330, 1984)

15.   Sales Tax – Removes exemption from some types of rentals (SF 2330, 1984)

16.   Pork Producers Levy – Allows the Pork Producers Council to impose an assessment levy on pork production for the purposes of promoting pork. (SF 581, 1985)

17.   Local Earnings Tax- Allows increased assessments of local earnings tax (SF 395, 1985)

18.   Local Vehicle Fund Tax – Allows increased assessment of local vehicle fund taxes (SF 395, 1985)

19.   Local Sales and Services Tax- Allows increased assessment of local sales and services tax (SF 395, 1985)

20.   Property Tax – Allows increased assessment of real property tax (SF 395, 1985)

21.   Insurance Premium Tax – Creates a new 2% insurance premium tax on certain mutual service corporations (mainly Blue Cross/Blue Shield) (HF 570, 1985)

22.   Gas Tax – Increase the gas tax by two cents from 7/1/1985 to 12/31/1985 (SF 565, 1985)

23.   Gas Tax – Further increase of one cent starting 1/1/1985 (SF 565, 1985)

24.   Diesel Tax – Increase in diesel tax by one cent from  7/1/1985 to 12/31/1985 (SF 565, 1985)

25.   Diesel Tax – Further increase of one cent from 1/1/1986 to 12/31/1986 (SF 565, 1985) (Note: Department of Revenue Tax History states this was a half-cent increase)

26.   Diesel Tax – Further one cent increase starting 1/1/1987 (SF 565, 1985) (Note: Department of Revenue Tax History states this was a one and a half-cent increase)

27.   Property Tax- Allows a local levies for emergency warning systems (HF 768, 1985)

28.   Property Tax – Allows local levies for urban drainage district improvements (SF 568, 1985)

29.   Sales Tax- Expands Sales Tax to cover lottery tickets (SF 395, 1985)

30.   Insurance Premium Tax – Require that risk retention groups pay a tax equivalent to 2% of the gross amount of premiums received (HF 673, 1987).

31.   Property Tax – Resets the livestock property tax replacement monies to 1974 levels but limits it to school districts only. Leads to $2.94 million decrease in property tax replacement funds. (HF 626, 1987)

32.   Property Tax – Continues the three cents/$1,000 assessed tax for equipment at Iowa’s 15 merged area schools. This had been set to sunset on 7/1/1988. (HF 589, 1987)

33.   Mobile Home Room Rentals – Imposes a tax on renting a room in a mobile home (HF 605, 1987)

34.   Gas Tax – Increase by two cents on 4/1/1988 (SF 2196, 1988)

35.   Gasohol Tax – Increase by two cents on 4/1/1988 (SF 2196, 1988)

36.   Gas Tax – Increase by an additional two cents on 1/1/1989 (SF 2196, 1988)

37.   Gasohol Tax- Increase by an additional two cents on 1/1/1989 (SF 2196, 1988)

38.   Sales and Use Tax – Eliminates the Exemption for Casual Sales of Aircraft (HF 2465, 1988)

39.   Property Tax – Permits the establishment of local property tax levies for library service (HF 665,  1988)

40.   Sales Tax – Eliminates the exemption for retail packaging products that are not degradable (SF 2058, 1988)

41.   Sales Tax – Requires out-of-state sellers who sell products to Iowans via TV or mail to pay sales tax (HF 2459, 1988)

42.   Egg Excise Tax – Removes the ability of egg producers to claim a refund on excise taxes paid on eggs by the producer to support the Iowa Egg Council (SF 386, 1989)

43.   Legal Expense Insurance Tax – 2% tax on legal expense insurance (SF 332, 1990)

44.   Marijuana Tax – Creates a tax on manufacturing, producing, shipping, transporting or importing of marijuana and controlled substances (SF 2413, 1990)

45.   Property Tax – Allows an additional levy of 20.25 cents/$1000 assessed for benefited fire levy districts (SF 2415, 1990)

46.   Franchise Tax – Requires that certain interest and dividends be included when computing the franchise tax (SF 350, 1991)

47.   Sales Tax – Imposes sales tax on municipal pay television (HF 487, 1991)

48.   Property Tax – Increases the maximum amount of money an extension district may raise by the county agricultural extension tax for FY 1993 (HF 691, 1991)

49.   Property Tax- Increases the city transit property tax limit from 54 cents per $1000 assessed to 95 cents per $1000 assessed (HF 700, 1991)

50.   Sales Tax – Increase from 4% to 5% (SF 2393,1992)

51.   Sales Tax- Imposes sales tax on automobile rentals (HF 695, 1992)

52.   Property Tax – Allows local governments to form EMS districts and impose a levy of up to $1 per $1,000 assessed for the EMS district in non-agricultural unincorporated land (HF 2400, 1992)

53.   Local Income Tax – Allows a local government to impose an ad valorem property tax or income tax surcharge to fund emergency services (HF 2400, 1992)

54.   Sales Tax – Rewrites sales tax exemptions of prescription drugs and medical devices and eliminates retroactivity of exemptions. (HF 661, 1993)

55.   Property Tax – Allows cities and counties to increase property tax dollars certified in FY 1994 by 0.17% (HF 663, 1993)

56.   Property Tax- Creates new levy to fund mental illness, mental retardation, and developmental disabilities services (SF 69, 1995)

57.   Franchise Tax – Eliminates the deduction of expenses allocable to investment in an “investment subsidiary” (SF 478, 1995)

58.   Leased Vehicle Excise Tax- Creates a 5% tax on leased vehicles over 16,000 pounds

59.   Property Tax- Extends the school budget guarantee. The ways this was done was projected raise property taxes $2.5 million more compared to the existing law. (SF 189, 1997)

60.   Property Tax- Increase the maximum Physical Plant and Equipment Levy from $0.67 to $1.34 per $1000 taxable valuation. (SF 531, 1997)

61.   Diesel Tax – Increase from 18.5 cents to 20.5 cents in 1988  (Iowa Department of Revenue Tax History, http://www.iowa.gov/tax/taxlaw…

62.   Diesel Tax -Increase from 20.5 cents to 22.5 cents in 1989 (Iowa Department of Revenue Tax History, http://www.iowa.gov/tax/taxlaw…

63.   Wine Gallonage Tax- DMR article states that the tax was $1.75 per gallon in June 1992. However, the tax was initially set at $1.50/gallon in SF 395 in 1985. Thus there must have been a tax increase (Des Moines Register, 6/16/1992)

Statement released before the debate on September 14, 2010:

BRANSTAD’S BUDGETS CLAIMS CONTINUE TO BE DISHONEST

Des Moines – The Branstad campaign issued a press release that continued to be dishonest about Iowa’s budget, economy, and Governor Culver’s record even after the Des Moines Register said that he “should be honest.”

Culver/Judge Campaign Manager Donn Stanley released the following statement in response:

“Just hours before the debate tonight the Branstad campaign continues to make false and misleading attacks about Iowa’s budget and economy. He’s playing shell games with the truth just as he did as Governor.

“Terry Branstad kept two sets of books and even admitted the ‘budget was never balanced,’ and now that he’s running again he’s attempting to say he budgeted honestly and be dishonest about the budget under Governor Culver. Iowans don’t like politicians that make these kinds of dishonest attacks to get a job.”

“If Terry Branstad wants to win the debate tonight he should come clean with Iowans and admit the whole truth: Chet Culver has balanced the budget every year and Terry Branstad had to borrow billions to cover up his deficits.”

Fact Check on Branstad Campaign’s Claims

BRANSTAD CLAIM: The budget isn’t really balanced

FALSE: Chet Culver’s budget is balanced. This is unlike Governor Branstad, who ran illegal deficits for twelve years. He criticizes the use of rainy day funds created specifically to assist the state budget during economic downturns. Every Governor, Democratic or Republican, has used federal funds created to assist states in maintaining public services.

BRANSTAD CLAIM:Credit Ratings aren’t important

FALSE: Terry Branstad knows that credit ratings are important and have to be earned. That’s why when he was Governor he celebrated when after a dozen years of fiscal mismanagement, he was actually able to obtain a Single A bond rating:

Branstad Press Aide Touted increase to single A bond rating. The Des Moines Register reported in April 1994 that “[Branstad Press Secretary Christina] Martin said that an independent rating agency, Standard and Poors, recently raised the state’s bond rating. She said they did so because of the state’s “conservative budgeting practices and financial reforms.” The agency raised the rating from “A minus” to “A,” which is in about the mid-range of ratings.” [Des Moines Register, 4/1/1994]

BRANSTAD CLAIM: Terry Branstad didn’t borrow as Governor and Chet Culver has borrowed more

FALSE: Terry Branstad borrowed over $3 billion in payday loans just to balance the state budget. He borrowed $4.3 billion total. He’s just not being honest with Iowans on the subject of debt.

BRANSTAD CLAIM: Iowa’s business climate is one of the worst in the nation

FALSE: The facts speak for themselves and the Des Moines Register agrees: Branstad is misleading Iowans about Iowa’s economy. During a historic national recession, Governor Culver has fought hard to create jobs for Iowans. Because of his efforts, Iowa has the 9th lowest unemployment rate in the nation.

Background on Branstad’s Bonding

Branstad issued over $4 billion in bonds.

By September 1986, Branstad Bonded for $1.3 Billion.  [Des Moines Register, 9/4/86]

From FY 1986 onward, per an Open Records Request Response from the Treasurer of State:

Long-Term Bonds

Par Value Issued

Underground Storage Tank

1990

Underground Storage Tank

1991

Underground Storage Tank

1994

Corrections (Clarinda)

1994

$22,605,000

Corrections (Cedar Rapids/Marshalltown)

1994

$2,925,000

Corrections (Newton)

1995

$37,015,000

Corrections (Fort Dodge)

1996

$35,495,000

Iowa Communications Network

1998

$114,530,000

Refunding Bonds

Underground Storage Tank

1997

$42,610,000

Tax and Revenue Anticipation Notes (short-term)

FY86

$452,000,000

FY87

$463,000,000

FY88

$205,000,000

FY89

$230,000,000

FY90

$250,000,000

FY91

$355,000,000

FY92

$330,000,000

FY93

$375,000,000

FY94

$600,000,000

When you account for the fact that there was an overlap between these sources of one year, FY 1986 ($452 million), you can get a total amount of bonding.

Between these two sources, Branstad’s total is $4.363 billion in bonding.

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