My apologies for not getting this in closer to the actual new year, but you could say that “a day late and a dollar short” has been the theme of the new year so far for me. Or five days short, as the case may be.

In any case, before we start the new political year for real, I thought it might be fun to share our predictions for the new year. Here are nine predictions of mine for two thousand and nine.

1. The state budget is in far worse shape then we think. Expect the fight over the budget to get ugly, quick.

The Iowa state fiscal year runs from July 1 2008 to June 30 2009–right in the heart of the economic meltdown. Given that the estimates for this period are just starting to come in, it's reasonable to assume that the stories we're currently hearing about the “budget crisis” represent only the tip of a much larger iceberg. Likewise, the 1.5% across-the-board cut currently proposed by Gov. Culver isn't going to be nearly enough to solve the crisis. It's going to get ugly and fast.

2. Unemployment will hit 10% by the end of 2009, and recovery will not come until early 2010.

Call me a pessimist, but I think things are going to get much worse before they get better. When you combine the potential failure of the Big 3 (a still unresolved issue, by the way), plus a global manufacturing slowdown, with the fact that up to 25% of retail stores may declare bankrupcy in the next year–you have the recipie for unmitigated economic disaster.  

To complicate matters, I do not expect President Obama's recovery measures to be passed before May of this year. (There are already signs that a long battle is ahead for this bill.) That means that many of the infrastructure projects given funds through the program will miss out on the summer construction window–meaning they likely won't start until Summer 2010. Many other measures, like tax cuts or social programs won't go into effect until 2010 as well…moving the light at the end of the tunnel further and further away.

3. The Big 3 will not survive in their current form. Get ready for the Big 2.

Regardless of whether the auto bailout was the correct move at the time, by the time the big ball drops in 2010–there will no longer be a Big 3 as we know them now. My best guess is that one of the Big 3 automakers (most likely Chrysler) will implode into disorganized bankrupcy. No buyer will be found, and the brand will simply cease to exist. This will spark a crisis that will either lead to the organized bankrupcy/restructuring of the other companies, or government assistance with severe Bob Corker style conditions. 

The good news is that out of the multitude of laid-off engineers and designers, we could see new  and innovative technologies, designs, and companies form. By 2020 we could all be driving solar hybrids designed and built by ex-Big 3 designers who started their own companies.

6. The Supreme Court will rule in favor of same-sex marriage in the case of Varnum v. Brien.

Beware the ides of March rings true in Iowa in 2009. Expect a ruling on the case of Varnum v. Brien to come down with a rulings for several other cases on March 13, the conclusion of the Court's March session. When that happens expect a whirlwind of craziness to descend on the state: national media, a rush of spring weddings, celebrity attention, half-cocked legal challenges, right-wing rants, Fred Phelps-ian protests, legislative blustering, Steve Deace's head exploding, and who knows what else.

I don't think the moon turning to blood, the dead walking the streets, or any other Pat Robertson-style pronouncements will come true…but expect a wild ride.

5. The Republican candidate for Governor will be a serious contender who already holds a major elected office.

The current fight over the RPI chair has a definite and familiar theme: change. Old hacks are out, new hacks are in. While there is a faction of the GOP that clings to BVP like life preserver, the majority of the party is, I think, waiting for someone new to come along.

That someone is either State Auditor David Vaudt, Sec. of Agriculture Bill Northey, or 4th District Congressman Tom Latham.

Vaudt looks to emerge as one of the main faces of opposition to Culver on budget issues, a position he could use to slingshot him to the governorship. Northey is the darling of the Republican Party and, with agricultural issues on the back-burner this year and little to do, may find the Governor's race an attractive prospect. Latham, by all measures a low-importance member of the minority party might decide that its now or never for him. And he has nothing to lose: if he wins, he's the Governor; if he loses, he can run again as the elder-statesman in the dogfight that will be the new 3rd district.

The big news of the day is that the FBI arrested Illinois Governor Rod Blagojevich on federal corruption charges. Apparently he has been under investigation for some time, and he was caught on tape talking about trying to get something of value in exchange for appointing someone to fill Barack Obama’s Senate seat. Click the link for more details.

If the allegations are true, Blagojevich needs not just to resign, but to go to jail. Also, way to hand the Republicans another great talking point against “corrupt” Illinois Democrats and the Chicago machine. That is sure to be used against Obama and whoever succeeds him in the Senate.

The possibility that New York Governor David Paterson will appoint Caroline Kennedy to replace Hillary Clinton in the Senate has divided the blogosphere, with more and more heavyweights speaking out against the move. Jane Hamsher of FireDogLake explains why this would be a “truly terrible idea”:

Her leadership could have been really helpful when the rest of us were trying to keep the progressive lights on and getting the stuffing beaten out of us by a very well-financed right wing for the past eight years.  But when things were tough, she was nowhere to be found.

Now that the Democrats are in power, she’d like to come in at the top.  We have absolutely no idea if she’s qualified, or whether she can take the heat of being a Kennedy in public life.  She’s certainly shown no appetite for it in the past.  She’ll have a target on her back and if she can’t take it, if she crumbles, she will become a rallying point that the right will easily organize around.

The woman has never run for office in her life.  We have no idea how she’d fare on the campaign trail, or how well she could stand up to the electoral process.  She simply picks up the phone and lets it be known that she just might be up for having one of the highest offices in the land handed to her because — well, because why?  Because her uncle once held the seat?  Because she’s a Kennedy?  Because she took part as a child in the public’s romantic dreams of Camelot?  I’m not quite sure.

And the guy with the biggest megaphone, Markos, piles on:

I hate political dynasties. Hate them. But Jane is right, in this case, the idea is particularly egregious — Caroline has done nothing to help beat back the right-wing machine. But now, she’s supposed to be handed by fiat what others fight their whole lives to attain?

I would like to see Paterson appoint one of New York’s 26 Democratic members of Congress. It would benefit the state to have someone with legislative experience replace Hillary. Daily Kos diarist Laura Stein made a strong case for Representative Carolyn Maloney.

Moving on to the cabinet, on Sunday Obama named retired General Eric Shinseki to run the Department of Veterans Affairs. Everyone seems to think this is a great idea. From the Boston Globe:

In the Bush administration, General Eric K. Shinseki committed the crime of truth-telling: He told the Senate in early 2003 that maintaining order in Iraq would take far more US troops than Donald Rumsfeld planned for. It cost him his job as Army chief of staff. That same virtue, honesty, should stand him in good stead now that President-elect Barack Obama has nominated him to be secretary of the Department of Veterans Affairs.

The choice is a stinging rebuke not just of Rumsfeld and President Bush for failing to take Shinseki’s advice on the Iraq war, but also of the administration’s weak effort to solve the medical, educational, emotional, and employment problems that veterans are having in returning to civilian life. Just as the Bush administration thought it could oust Saddam Hussein and create a peaceful, democratic Iraq with a bare-bones force, it has tried to skimp on veterans services.

Daily Kos user Homer J wrote this interesting reflection on an afternoon he spent with Shinseki.

Al Gore is going to Chicago today to meet with Obama, leading to speculation that he may be asked to head the Environmental Protection Agency or the Department of Energy. I think it’s more likely Obama is seeking Gore’s input on other possible choice. I’d be surprised if Gore would consider a cabinet position now. Some people have suggested Obama might create an environment/climate “czar” position, which could go to someone with stature like Gore.

Interior is emerging as a major battleground, with  more than 130 environmental groups signing a letter backing Congressman Raul Grijalva of Arizona for the position, even though he is rumored to have fallen off Obama’s short list.

Meanwhile, environmentalists are upset that Blue Dog Congressman Mike Thompson of California appears to be the leading candidate for Scretary of the Interior. The environmental blog Grist has some highlights of Thompson’s voting record:

In 2003, he voted for Bush’s controversial Healthy Forests Restoration Act, which enviros saw as a massive gift to the timber industry.

In 2004, he voted against an amendment to an Interior appropriations bill intended to protect wildlife and old growth trees in Alaska’s Tongass National Forest by stopping taxpayer-subsidized logging road construction. The measure passed by a vote of 222-205, and he was the only California Democrat to vote against it. He also opposed an amendment to ban the act of bear-baiting in national forests and Bureau of Land Management lands.

He was also one of only 30 Democrats in 2006 to vote against an amendment to the Forest Emergency Recovery and Research Act that would maintain areas of the national forests protected under the Roadless Rule. He also voted against another amendment that would have required the Forest Service to comply with environmental protection, endangered species, and historic preservation laws when conducting “salvage logging” operations in national forests. The amendment failed.

Anyone who supported Bush’s policies on “healthy forests” and road-building is by definition not “change we can believe in.” I sincerely hope Obama will do better than this. Another top-tier candidate for Interior is said to be Kevin Gover, who would be the first Native-American cabinet secretary if appointed.

Here’s a list of people rumored to be in the running for secretary of education.

Over the weekend, Kansas Governor Kathleen Sebelius took herself out of the running for any cabinet position, saying she needs to finish her term and deal with budget and economic challenges in Kansas. She had been mentioned for several possible cabinet positions. Some believe she withdrew her name to save face, having gotten the word that she was being passed over. It seems just as likely to me that she has decided to run for Senate in 2010. Scout Finch has more on that possibility.

UPDATE: Maine Senator Olympia Snowe wants Obama to elevate the head of the Small Business Administration to a cabinet-level position. I fully agree with Jonathan Singer that the best move for Obama here would be to elevate the SBA and appoint Snowe to head that cabinet department. She’s a moderate Republican, and it would free up a Senate seat in a blue state.

Yesterday runoff elections were held in Louisiana’s second and fourth Congressional districts.

In the biggest Congressional upset of the year, Democratic incumbent “Dollar Bill” Jefferson lost to Republican Joseph Cao in LA-02. You may remember Jefferson as the guy who kept $90,000 in cash in his freezer and used the National Guard to visit his home in the aftermath of Hurricane Katrina. I’m normally a yellow-dog Democrat, but Jefferson is one Democrat I’m happy to see go.

No need to worry about winning back this seat in 2010, as David from Swing State Project explains:

So LA-02 is D+28 (old PVI). There is no district that is as red as this one is blue – UT-03 tops out at R+26. This reminds me of IL-05 in 1994 (1990s PVI: D+11) – corrupt Dan Rostenkowski got beaten by the unknown Michael Flanagan, who got soundly thumped by Rod Blagojevich two years later.

Remember, there are only nine other Republicans in Congress representing House districts with any kind of Democratic lean, and the most Democratic of those districts is D+6.5. Assuming Louisiana Democrats come up with a credible candidate in 2010, LA-02 should be an easy pickup.

The result in LA-04 yesterday was more disappointing. Democrat Paul Carmouche appears to be just 350 votes (less than 0.5 percent) behind Republican John Fleming. Carmouche is not conceding yet, but I doubt there are enough outstanding provisional and absentee ballots to put him over the top here. On the other hand, keeping it this close represents a kind of moral victory for Democrats, since John McCain carried LA-04 by 19 points on November 4. A Democrat “should” not even be competitive in a district like this.

Within the past week Democratic candidates conceded in California’s fourth and forty-fourth districts, which were both unexpectedly close despite having strong Republican partisan voting index numbers.

Provisional ballots are still being counted in Ohio’s fifteenth district. It looks like Democrat Mary Jo Kilroy has a decent chance at beating Republican incumbent Steve Stivers, because the 26,000 provisional ballots are in her stronghold (see this post by brownsox for more details). Am I the only one who finds it suspicious that so many voters had to fill out provisional ballots? That’s almost 10 percent of all the voters in the district on November 4.

UPDATE: Kilroy has won OH-15 by about 2,000 votes. Her margin of victory is large enough not to trigger an automatic recount. Assuming the recount in LA-04 does not change last night’s result, the next Congress will have 257 Democrats and 178 Republicans. I’ll take it!

Moving to the Senate races, the Minnesota contest is sure to end up in the courts and perhaps resolved by the U.S. Senate. The state canvassing board has delayed its meeting to review thousands of challenged ballots until December 16, because one precinct that favored Al Franken appears to have lost about 130 ballots that were counted on election night. If the ballots are not found, he could lose several dozen votes, which could make the difference in this ridiculously close race. It’s still unclear whether absentee ballots that were rejected because of clerical errors will be counted in Minnesota.

Click here to find a bunch of recent (and more detailed) accounts of what’s going on in Minnesota. Whoever ends up getting seated in the Senate is going to be viewed as illegitimate by many on the other side. I still can’t believe more than 400,000 Minnesotans voted for independent candidate Dean Barkley.

The presidential election results created a few Senate vacancies. The governor of Delaware appointed Ted Kaufman, a former chief of staff to Joe Biden, to take Biden’s place. The consensus seems to be that Biden set this up to leave the path clear for his son, Delaware Attorney General Beau Biden, to run in 2010 when there is a special election to determine who will serve out Joe Biden’s term (which ends in 2014). The younger Biden cannot serve in the Senate now because he has been deployed in Iraq.

In New York, Caroline Kennedy (the daughter of President John F. Kennedy) has become the surprise favorite to be appointed to take Hillary Clinton’s place. It strikes me as an odd choice in a state with many capable Democrats in the U.S. House. Nothing against Kennedy, who seems very smart and principled, but I think Governor David Paterson should pick someone with more relevant political experience for this job. More speculation on the New York Senate seat is here. As in Delaware, there will be a special election in 2010 to determine who will serve out Clinton’s term (which ends in 2012).

Illinois Governor Rod Blagojevich still has not announced his choice to replace Barack Obama in the Senate. Many people still expect Tammy Duckworth to have the inside track, especially since Obama is going with retired General Eric Shinseki for Secretary of Veterans’ Affairs. On the other hand, Fox News says Illinois Senate President Emil Jones will be picked to serve out Obama’s term (which ends in 2010). Jones is considered a “safe” choice because he is both black and an “elder statesman” placeholder. If he is the pick, expect a very competitive Democratic Senate primary in Illinois in 2010.