# Chet Culver



Events coming up during the next two weeks

I’m looking forward to the Iowa Democratic Party’s Jefferson-Jackson dinner this weekend. It will be live-streamed for those who can’t be there in person. The Iowa branch of Organizing for America is having a grand opening on Saturday as well, right before the JJ dinner.

Details for those and other events are after the jump. Post a comment or send me an e-mail (desmoinesdem AT yahoo.com) if you know if something I’ve left out.

Linn County Dems: Don’t forget that November 24 is the special election in Iowa House district 33.

One more “save the date”: the Culver-Judge campaign’s holiday party will be on Saturday, December 5 at the Val-Air Ballroom in West Des Moines from 7:30 pm to 11:00 pm. Tickets are just $35 for an individual, $10 for students and $50 for a family. Call 515-244-5151 or go to www.chetculver.com for more information.

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New Register poll has bad news for Culver

Governor Chet Culver has gone through a couple of very tough months, with the film tax credit scandal breaking in September and low revenue projections prompting a 10 percent across-the-board budget cut in October. Selzer and Co. polled Iowans for the Des Moines Register last week, and Culver’s numbers are at an all-time low. He’s at 40 percent approve/49 percent disapprove (Selzer’s last poll in September pegged his approval at 50 percent). The right direction/wrong track numbers are 34/57, the worst they’ve been in ten years.

Culver loses a hypothetical matchup with former Governor Terry Branstad 57 percent to 33 percent, and he loses a hypothetical matchup with Bob Vander Plaats 45 percent to 37 percent. Against Chris Rants and Christian Fong, Culver can’t break 50 percent. He’s ahead of Rants 42-35 and ahead of Fong 42-34.

The last governor to score as low was Branstad. In February 1992, as he grappled with that year’s recession and budget crisis, only 37 percent of Iowans approved of his performance.

The economy was in much better shape by the time Branstad had to face voters in 1994. Culver’s only got a year to turn things around. There’s no guarantee unemployment will be falling by then, especially if President Obama decides to act like Herbert Hoover during the next year. Iowa’s unemployment rate, though low by nationwide standards, is the highest it’s been since the mid-1980s.

The only good thing I can say about this poll is that it may convince conservative Republicans that Vander Plaats can win the general election. During the summer, Branstad looked like a hail-mary pass for the GOP.

UPDATE: I forgot to mention that Research 2000 found much better numbers for Culver a month ago. Either the budget situation has caused his approval to nosedive in the past month, or one of these polls is an outlier. Unfortunately, I wouldn’t bet on a Selzer poll being an outlier in Iowa.

Rasmussen’s Iowa poll from September found numbers similar to what Selzer found last week.

SECOND UPDATE: I agree with Tom Beaumont of the Des Moines Register:

Culver has kept up an optimistic tone, predicting Iowa will emerge from the recession in better economic health than most states. Several key statistics show Iowa’s overall economy and its state government have weathered the tough times better than other states. A report issued last week by the Pew Center on the States ranked Iowa as tied for second among states in terms of fiscal health.

But that message isn’t registering with Iowans.

That Pew report gave Iowa good marks for money-management practices, and put Iowa in the group of states “least like California” in terms of budget problems, but I don’t know how Culver can get that message across. Republicans have simple talking points: budget problems = Culver incompetence.

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Iowa gets good marks in report on state budget problems

Iowa has relatively good money-management practices and is among the states “least like California” in terms of budget problems, according to a report released yesterday by the Pew Center on the States.

In the report, Pew’s researchers identified factors that have contributed significantly to California’s difficulties, then determined the degree to which other states are experiencing the same challenges. These factors are: (1) loss of state revenues; (2) the relative size of budget gaps; (3) increasing joblessness; (4) high foreclosure rates; (5) legal obstacles to balanced budgets-specifically, a supermajority requirement for tax increases or budget bills and (6) poor money-management practices.

Pew scored all 50 states using the best available data as of July 31, 2009. The snapshot captures an important juncture: the first and second quarters of 2009, the pressure point for governors and legislatures in the throes of crafting their budgets for fiscal year 2010 (which began on July 1 in all but four states).

Click here to view a map showing which states are most and least like California. On that page you’ll also find links to download the full report, its methodology, and a 50-state scorecard (pdf file).

Scanning the scorecard, I noticed that only one state has a better score overall than Iowa. The size of Iowa’s budget gap (as a percentage of total spending) ranks 15th. Only three states had a smaller change in the unemployment rate than Iowa. Only seven states had a lower foreclosure rate. We were among eight states that received a B+ grade for money-management practices (only five states received an A or A- in that category).

Republicans can complain about so-called fiscal mismanagement by Governor Chet Culver and the Democratic-controlled legislature, but compared to many other states, Iowa is weathering this challenging economy well.

Commenting on the Pew report yesterday, Mark Zandi of Moodys.com called for additional federal stimulus funding to support state budgets in fiscal year 2011: “In the past six decades, state and local governments have never seen the kind of tax-revenue collapse they are now experiencing, Mr. Zandi said.”

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Republicans trying to have it both ways on I-JOBS

Attacking Governor Chet Culver’s I-JOBS infrastructure bonding initiative continues to be a staple of Republican Party rhetoric. I’ve written about the GOP’s misleading talking points before, but State Representative Chris Rants added a new twist at last night’s fundraising dinner in Scott County. Not long ago, Rants altered his stump speech to complain about Sergeant Bluff receiving an I-JOBS grant while Culver’s recent across-the-board budget cuts will cost the community a larger amount. Speaking to a crowd of 300 in Bettendorf, Rants put a local spin on this story:

Rants began his remarks by sharing the story about Lt. Governor Patty Judge coming to Sergeant Bluff, a town that Rants represents, to give them an I-Jobs grant to refurbish the city hall. Rants then told the audience, “What Patty Judge giveth, Chet Culver taketh away.” Rants then told the crowd that Culver’s fiscal mismanagement will force the Sergeant Bluff school district to increase property taxes by over $400,000.

Rants then asked if anyone in the room knew what Governor Culver’s budget cuts were going to cost the property tax payers in the Davenport School district. Rants informed them that the cost will be $7.6 million. He also drove home the point that, while Sergeant Bluff received $250,000 I-Jobs grant to remodel their city hall, the city of Davenport has not received any I-Jobs money for its big sewer project. Rants’ ability to talk about local issues played well with the audience. Of all the candidate speeches, Rants was the one candidate who grabbed everyone’s attention.

It is clever for Rants to capitalize on local resentment about I-JOBS. Although entities in Scott County have received more than $5 million in I-JOBS grants, officials in the Quad City area have understandably been frustrated by the lack of I-JOBS support for Davenport’s sewer and flood prevention projects.

What Rants glosses over is that without I-JOBS, unmet needs for infrastructure improvements would be even greater. The I-JOBS program includes $118.5 million for flood prevention and reconstructing buildings in communities affected by last year’s flooding. But requests for that portion of the I-JOBS money totaled $333.6 million.

I-JOBS allocated $80 million for water quality improvements, including sewer construction and repair. Substandard and outdated sewer systems are a huge environmental problem in Iowa, as the Des Moines Register’s Perry Beeman and Chase Davis chronicled last week here and here. Iowa has more than 500 unsewered communities. At least I-JOBS and the federal stimulus package will help make a dent in this problem.

Rants wants to have it both ways, criticizing Culver for borrowing while claiming the governor’s program hasn’t done enough for Scott County. If Republicans in Congress and the state legislature had had their way, Iowa cities and towns would not be getting any help this year for improving their sewage systems.

I have yet to hear Rants or any Republican candidate explain how they would have paid for flood recovery projects without state borrowing. For instance, I-JOBS included $100 million targeted for the University of Iowa, which unlocked $500 million in federal funding to help rebuild flood-damaged buildings on campus. How would Republicans have addressed this problem? Would they have turned down the federal funding, and if not, where would they have found $100 million to match the federal dollars?

Linn County received $45 million from I-JOBS for flood recovery. That’s in addition to money raised from the local-option sales tax (which most Republicans opposed). How would Republican candidates have paid for flood recovery in the Cedar Rapids area without I-JOBS?

Terry Branstad’s criticism of I-JOBS reaches a special level of hypocrisy. He asserted on Saturday night, “Too much debt is bad and those that create it should be thrown out of office.” But while he was governor, Branstad used state bonding several times, and his total borrowing in inflation-adjusted dollars was larger than the I-JOBS program. After the jump I’ve posted a press release from the Iowa Democratic Party, which contains more details about Branstad’s use of state bonding.

It’s also worth noting that interest rates are currently near historic lows. That, coupled with Iowa’s rock-solid bond rating, reduced the cost of the I-JOBS borrowing. I would wager that the state had to pay higher interest rates on bonds issued while Branstad was governor.

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AFSCME members will vote on deal to spare jobs

Members of the American Federation of State, County and Municipal Employees will vote between November 19 and November 25 on the deal reached by Governor Chet Culver and the union’s leadership:

The agreement includes five mandatory unpaid furlough days between now and June 30, which is expected to save about $22.7 million.

The state’s contribution to employees’ deferred compensation also will be temporarily suspended until June 30, for a savings of $3.7 million.

The total savings of $26.4 million is expected to save 479 AFSCME jobs. Culver sought concessions from the union in order to avoid the layoffs of state workers, especially state troopers and correctional officers working in state prisons.

Under the terms of the agreement, no member of the union who is an executive branch employee can be laid off until June 30, the end of the current fiscal year. Employees outside the bargaining units who are laid off will not be allowed to displace AFSCME employees.

The Des Moines Register has a few more details on the vote:

WHAT: A “memorandum of understanding” would require about 20,000 state workers to take five unpaid days off over the next seven months and sacrifice about $75 a month in state contributions to their deferred compensation, which is a supplemental retirement plan.

WHO CAN VOTE: Only active state workers who are currently paying dues to AFSCME will be eligible to cast a ballot.

WHEN: Voting will begin Nov. 19 and end Nov. 25.

WHERE: AFSCME will set up about 30 polling places across the state, such as at the Iowa Veterans Home and state prisons, for 12-hour periods.

Sounds like a pretty good deal to me. If I were in the union, I would vote yes. Losing some retirement contributions and a week’s salary will cause some hardship, but many private-sector workers have also seen their wages drop during this recession. Minimizing layoffs should be the top priority.

Does anyone think the AFSCME members might vote down this agreement?

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Branstad underwhelms and other highlights from the GOP fundraiser

Minnesota Governor Tim Pawlenty headlined the Republican Party of Iowa’s fall fundraising dinner on Saturday night, but I was more interested in the remarks by Republican candidates for governor. O.Kay Henderson and Craig Robinson live-blogged the proceedings, and the video is available at C-SPAN’s site.

Former Governor Terry Branstad wasn’t at the top of his game, stumbling at times, reading from notes and messing up his applause lines. Kathie Obradovich observed,

The audience of about 500 at the Republican Party of Iowa’s “Leadership for Iowa” dinner was polite. But there was no sense of excitement for the candidate who many believe is the favorite for the nomination.

Follow me after the jump for highlights from the candidates’ pitches, along with a little commentary and fact-checking.

UPDATE: Also read John Deeth’s take:

Terry Branstad’s first appearance as an all but official candidate fell flat on Saturday night, and illustrates one of the dilemmas he’ll face going forward. He’s now competing with all the other gubertatorial candidates on the same level, instead of as an above the fray Dream Candidate.

Sometimes, dream candidates turn out to be All That, as Barack Obama illustrated. But more often, the dream turns into an awkward and embarrassing morning after, as the one-time next best thing takes the walk of shame off the political stage. […]

Branstad has the worst of all worlds: he’s a dream candidate with a long record.

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Culver launches new campaign ad

While you’re waiting for tonight’s election returns, check out the television commercial Governor Chet Culver’s campaign launched today:

Like the commercial Culver ran last month, this ad emphasizes that the governor cut spending and his own salary in order to balance the state budget during this recession without raising taxes. I think the ad is well-crafted in terms of script and visuals, but like Bleeding Heartland users IowaVoter and dricey, I am concerned when Democrats rely heavily on Republican anti-tax messaging. Culver may be reinforcing conservative frames and limiting his future policy options if he does win re-election.

Kathie Obradovich highlighted another potential problem not long ago:

Gov. Chet Culver vowed to balance the state budget without raising taxes. And yet a third or more of Iowa school districts might end up raising property taxes as a direct result of the cut to state school aid ordered by Culver.

Is the governor breaking his promise? Well, no. And yes.

When Culver talks about avoiding a tax increase, he really means income and sales taxes – the two major revenue streams for the state. He’s referring to tax increases that he would have to sign into law. In that sense, he hasn’t raised taxes.

But he acknowledges that property taxes are a concern. Culver says he’ll ask the Legislature next year to require school districts to use their cash reserves before raising taxes.

Republicans are already blaming Democrats for the property tax increases many Iowans will experience next year. Their outrage is hypocritical, because the state cuts affecting education and local governments would have been far more severe if not for the federal stimulus bill, which included aid to state governments. Of course, Republicans denounced the stimulus package and bashed Culver for using these federal funds for their intended purpose: to help backfill the 2009 budget.

In any event, Democrats should be wary about staking next year’s campaign on “we didn’t raise your taxes during this recession.” That won’t be a comforting message to Iowans who have to pay a larger property tax bill in September 2010.

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Layoffs for some, furloughs for others as Culver announces budget cuts

This afternoon Governor Chet Culver announced the next steps toward cutting $565 million from the 2010 budget. I’ve posted the governor’s statement after the jump, and you can find pdf files with more details about the cuts here. (UPDATE: The Des Moines Register posted this chart showing the cuts Culver approved.) Highlights:

Culver is ordering all of the 3,258 non-contract (that is, non-union) employees in the executive branch “to take seven days without pay between now and the end of the fiscal year. I do not believe it is fair for any state employee to not contribute toward our solution.”

Culver approved spending cut plans submitted by 28 department heads and approved, with minor changes, spending cut plans submitted by 6 other department heads. The Des Moines Register’s Jennifer Jacobs summarized the impact:

Altogether, the 34 approved plans will save the state’s general fund about $520 million, he said.

The approved plans call for a total of 180 layoffs and the elimination of 229 open positions. The total job loss, so far, is 410.

Here’s where there the layoffs will be: 79 from the Department of Human Services, 35 from the Department of Revenue, 10.8 from the Department of Inspections and Appeals,  13 from the Department of Education, eight from Iowa Public Television, eight from the Department of Public Health, seven from the Department of Economic Development, seven from the Department of Cultural Affairs, four from the Department of Administration, four from the Department of Management, two from the Alcoholic Beverages Division, two from the Department of Veterans Affairs, and one from the Iowa Ethics & Campaign Disclosure Board.

Forty-three state employees tentatively set for layoffs in the Department of Commerce will be spared. The 10 percent across-the-board cut will not be applied to the divisions of banking, credit union, insurance and utilities divisions, which are agencies within the commerce department.

Culver rejected the $45 million spending reduction plans offered by the directors of the Department of Corrections and the Department of Public Safety, saying,

I reject these two plans because I am hopeful that we can find an alternative to laying off hundreds of correctional officers, state troopers and law enforcement personnel.

I am rejecting these plans because public safety is essential to our daily lives.

That is why yesterday I sent a letter to the state’s three bargaining units – AFSCME, Iowa United Professionals, and the State Police Officers Council – who represent more than 16,000 state employees – asking them to join me in negotiations for amending their current contract.  This past Saturday, I met with AFSCME’s bargaining unit – which represents more than 13,000 state employees – to discuss ideas for moving forward.  We followed that meeting with a three hour session yesterday morning and the talks have been very productive.  And earlier today, I met with the State Police Officers Council representatives and those talks were productive.  Finally, I will meet with the Iowa United Professionals union leadership as soon as schedules permits, but our staff has been in daily contact with their representatives.

I seek substantive discussions with all three unions on issues that may impact our state budget cuts.  Our goal is to do everything we can to prevent layoffs related to essential public safety.

If we cannot reach agreement with the unions, then I will implement the layoff plans submitted by these two departments.

Unfortunately, we do not have an endless amount of time in which to reach an agreement and to have it ratified by each respective union. I expect to know by Friday, November 6 whether we will move forward in discussions with the unions or implement the layoff plans.

The president of AFSCME Council 61 issued a statement saying his union will negotiate with the governor in the hope of avoiding layoffs. Both sides are promising not to release any details about the discussion until the talks conclude, but no doubt some proposed alternatives to layoffs will leak out before then.

The Des Moines Register’s Tom Beaumont covered Republican gubernatorial candidates’ ideas for cutting the budget here.

Share any relevant thoughts in this thread.

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Is the Big Lug too big to win? What Gov. Culver can learn from Chris Chrstie.

( - promoted by desmoinesdem)

Is being overweight a political handicap? That's the big question posed by Daniel Engber in a very interesting piece this week at Slate.com. At issue, the contentious Corzine-Christie race in New Jersey and a weighty issue that has developed between the two men. Namely, the issue of weight.

You see, Corzine (D), the incumbent governor, is an average-to-fit 62. He considers himself a “health nut”. He runs marathons. For a man who was very nearly killed in a car accident two years ago, he is in excellent health. 

His opponent, Chris Christie (R), is an obese 47-year old. He considers himself “a Jersey guy, with a Jersey gut”. He jokes about his weight. He says that he has been heavy since his teenage years, and has tried to lose the weight several times, to no avail.

The controversy all started with this ad:

The ad doesn't explicitly mention weight at all. The gist of the ad, rather, is that Christie used his power as U.S. Attorney to get out of some nasty driving tickets. However, instead of the phrase “used his power”, the ad says  “threw his weight around”. In classic attack ad fashion, the ad closes on an unnatural slow-motion image of the opponent–only this time, he's getting out of a car–and well, jiggling.

As you can see, the message is pretty clear. Christie claims this is “character assassination”. Corzine claims that he “…doesn't give a hoot about Mr. Christie's weight.”

Still, the real issue is, is it working? The answer is, very likely yes. As Engber points out, two separate polls by  Public Policy Polling (.pdf) and the New York Times both confirm–independent voters are significantly less likely to vote for an overweight candidate.

And, as Engber tells us, that bias might just be reflected already in the nation's governors. Nate Silver at FiveThirtyEight.com recently looked at the shape of the nation's governors and found that (in his non-medical, decidedly tongue-in-cheek estimation) only 10 (or 20%) current governors are visibly overweight. (He includes Gov. Culver, who he calls “squarish”, based on this photo.)

Engbert accounts for this disparity (remember that more than two-thirds of Americans are overweight) with the following analysis:

…there's no constituency for a fat politician. Conservatives see excess weight as a sign of moral failing or a breach of personal responsibility. Liberals sneer at the bloated American lifestyle, even while imagining the war on obesity as a fight for social justice.

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Previewing the Vander Plaats case against Branstad

Bob Vander Plaats was the clear front-runner in the Republican field of gubernatorial candidates a few months ago. He’s been campaigning for the job longer and more actively than anyone else. He had contacts statewide from his 2006 campaign for lieutenant governor, and from Mike Huckabee’s presidential campaign. He also had several endorsements from state legislators and a big lead in a Republican poll taken in July.

During the past six months, various potential Republican candidates have ruled out a campaign for governor, including Secretary of Agriculture Bill Northey and State Auditor David Vaudt. Efforts to recruit a business leader (like Mary Andringa) failed too. Some Iowa politicos believe that these people backed off not because they thought Governor Chet Culver was unbeatable, but because they couldn’t see a way to defeat Vander Plaats in the Republican primary.

Most people would now agree that Vander Plaats is an underdog. Branstad will have more money, more media coverage and more support from Republican power-brokers. He’ll be able to cite last week’s Research 2000 poll, showing Branstad narrowly ahead of Culver, but Vander Plaats way behind the incumbent.

Vander Plaats won’t give up without a fight, though. He has promised to stay in this race through the June primary, and he has some strong cards to play, as I’ll discuss after the jump.  

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Branstad to hit the road; Culver hits the airwaves

Former Governor Terry Branstad is coming to a venue near you. In the course of announcing his retirement as president of Des Moines University today, Branstad said he will “fully explore” whether to run for governor again. Somehow I doubt he would ditch a job that pays half a million dollars a year without being absolutely committed to running for governor.

Branstad plans to visit all 99 counties, but he didn’t say when he will make a final decision or whether he will attend events featuring other Republican candidates. Branstad avoided answering a question about same-sex marriage today. He’ll need an answer ready soon if he’s going to tour the state.

Branstad didn’t criticize other Republican candidates today, but noted that he has more experience and name recognition than they do. He had harsh words for Governor Chet Culver’s handling of the budget, which he called a “fiscal debacle” (he would know). During his four terms as governor, Iowa’s sales tax and gas taxes went up, but Branstad said today that he cut taxes as well and will be happy to debate his record on taxes. My memory is that when times were tough, Branstad raised regressive taxes, but when times were good, he preferred to cut income taxes, especially for the wealthiest Iowans.

Bret Hayworth of the Sioux City Journal interviewed Doug Gross this week about Branstad as a potential candidate. Gross was one of Branstad’s top aides and has remained close to the former governor. He told Hayworth that as a friend, he hasn’t encouraged Branstad to get back into politics, but that seems disingenuous. The Branstad recruitment efforts might never have happened if not for polls on the governor’s race that Gross’s Iowa First Foundation commissioned in March and July.

Meanwhile, Culver launched the first television commercial of his re-election campaign today:

It’s risky to make a virtue out of budget cuts that may turn out to be unpopular. On the other hand, this ad pre-empts Republican charges that Culver didn’t act quickly and decisively to balance the budget.

The line about choosing to rebuild after the floods refers to the I-JOBS state bonding initiative, which includes $165 million for disaster recovery and prevention, along with $100 million to reconstruct flood-damaged buildings at the University of Iowa. Republicans have unanimously denounced the bonding program.

The line about investing in new industries alludes to the Iowa Power Fund, which has also drawn Republican criticism. Allocated $25 million in state funding a year for four years, the Power Fund has supported a wide range of projects.

Revive the Iowa Food Policy Council

Over the weekend I talked with lots of people who attended the Community Food Security Coalition’s annual conference in Des Moines. Good programs in Iowa and other states are encouraging more people to eat food produced on nearby farms. Iowans have long supported our farmer’s markets, but we could be doing more to promote and expand our local food networks.

One step in the right direction would be for Governor Chet Culver to revive the Iowa Food Policy Council, which functioned from 2001 to 2004. (The council’s reports are available here.) Hear me out after the jump.

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Democratic leaders enabled Branstad's big money haul

Until last week, the money raised to support Terry Branstad as a gubernatorial candidate was hidden in the bank accounts of two 527 groups: the Iowa First Foundation and the Draft Branstad PAC. Now that Branstad has formed an exploratory committee, I expect we’ll soon see a press release about eye-popping early money raised for his campaign. Major Republican donors were key players in the effort to lure the former governor back into politics.

While Branstad’s signing all those thank-you notes to Republicans, he may as well acknowledge three Democrats who have helped him raise the big bucks: Governor Chet Culver, Iowa House Speaker Pat Murphy, and Iowa Senate Majority Leader Mike Gronstal. Branstad wouldn’t be able to accept those $25,000 and $50,000 checks if Democrats had passed meaningful campaign finance reform during the past three years.

This rant continues after the jump.

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Iowa NAACP head needs a history lesson

Sioux City businessman and Republican gubernatorial candidate Bob Vander Plaats got a surprising endorsement on Monday from Keith Ratliff, pastor of the Maple Street Missionary Baptist Church in Des Moines and president of the Iowa-Nebraska chapter of the NAACP.

Vander Plaats was the front-runner in the Republican field until former Governor Terry Branstad entered the race. Ratliff said Vander Plaats’ position on same-sex marriage rights was “an important factor” in his endorsement.

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Culver orders 10 percent budget cut (updated)

Governor Chet Culver announced today that he is cutting spending 10 percent across the board in the 2010 budget. The move follows yesterday’s Revenue Estimating Conference report, which projected that revenue will drop by 8.4 percent this fiscal year, leaving state government with $414 million less to spend. Culver said he doesn’t support any tax hikes or increasing the amount drawn from the state’s cash reserves during the current fiscal year.

Republicans have hammered Democrats for allegedly overspending in the 2010 budget, but Culver rightly noted in a statement on Wednesday,

I proposed and the legislature approved a balanced budget for fiscal year 2010, which began on July 1. This budget was based on the official REC estimates from their March meeting last spring. The budget included a nearly $100 million ending balance, and $373 million in reserves.

During an economic recession, it is not prudent to slash government spending by more than is absolutely necessary. Government cuts themselves can become a drag on the economy, and demand for government social services goes up along with unemployment. The 2010 budget was based on the latest REC estimate during the legislative session, so Republicans are wrong to charge that Democrats overspent.

On the other hand, I agree with Republican critics who say Culver should have convened a special session of the legislature to make targeted cuts. An across-the-board cut is the governor’s only way to reduce spending without legislative approval. It’s faster and cleaner than a special session, but in my opinion an across-the-board cut this large will affect essential services at some agencies.

Culver said he will try to find money in December or January to beef up staffing at Iowa Workforce Development, which helps unemployed Iowans find new jobs. He will also try to backfill money for certain areas of public safety, he said.

This midyear cut is off the charts compared with what any governor in recent history has faced, and it will mean unprecedented turmoil for state employees and state agencies.

Part of the reason the cut is so deep is that Culver said he wants to leave a cushion of around $100 million. The current ending balance for this budget year is $97 million. […]

He will appoint Joni Klaassen, deputy chief of staff for aministration, to help unions to address reduction in the state government workforce.

And he will ask the Legislature to require school districts to spend money from their cash reserves rather than raise property taxes.

After spending 24 hours to think about his options, Culver chose an across-the-board cut option, rather than calling state lawmakers back for a special session.

It would have taken too long to bring the lawmakers back to the Capitol, then to secure 51 votes in the Iowa House and 26 votes in the Iowa Senate.

“We would’ve had 150 different opinions on where to cut. […] But the fact is we need to act. We need to move,” Culver said. I was concerned it would literally take weeks and weeks to reach an agreement.”

I understand the need to move quickly, but it seems unfair to make state employees bear almost all of the pain, instead of imposing a combination of spending cuts and reductions in tax breaks. In that context, I agree with yesterday’s statement from AFSCME Iowa Council 61, which I’ve posted after the jump.

Iowa Republican leaders say Culver’s move will lead to higher property taxes, and I wouldn’t be surprised if they’re right about that. What they don’t tell you is that the Republican-proposed spending cuts of $300 million also would likely lead to higher property taxes.

Share any relevant thoughts in this thread.

UPDATE: I should have emphasized that Culver cut spending by more than the amount needed to take the Revenue Estimating Conference’s projections into account. That means that even though he didn’t call a special legislative session, lawmakers will have some wiggle room during the regular 2010 session to restore funding to certain agencies.

I am tired of reading about the “unsustainable” growth in state government spending (e.g. in Todd Dorman’s latest column) that doesn’t acknowledge the unsustainable growth in tax breaks for business in Iowa. Spending on tax credits has risen far more sharply than spending from the general fund.

Click here and scroll down to view the Iowa Policy Project’s report on Iowa’s real spending problem: “tax expenditures on autopilot.” Excerpt from that pdf file:

State business tax expenditures have been one of the fastest growing parts of the state budget. Business assistance tax credits, a major component of business tax expenditures, increased from $144.3 million in  FY2006 to $242.7 million in FY2008, alone. The Department of Revenue has projected that these credits will grow to $405.9 million in FY2010, a 181 percent growth in just four years.1 Once enacted, these business tax credits are not subject to annual reauthorization and can grow well beyond their intended size and for activities well beyond their intended purpose.

This report doesn’t even include the growth in Tax Increment Financing, which I believe accounted for more than $200 million statewide last year. Tax Increment Financing was intended to spur redevelopment of blighted urban areas but during the last decade was expanded to include lots of suburban sprawl development, including Glen Oaks and Jordan Creek Town Center in West Des Moines. The developers get a big tax break, and city and county governments need to collect more property taxes from individuals. I am hoping to get a guest diary posted here that explains this problem in more detail. My point is that the legislature needs to look beyond simply cutting spending and services to make up for the expected revenue shortfall.

In addition to being unfair, it’s not even wise to slash government spending more than you need to during a recession, because that can prolong and deepen the recession. You’ll never get the party of Hoover to acknowledge that, however.

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Early Republican reaction to Branstad's move

Terry Branstad shook up the Iowa governor’s race yesterday when he formed an exploratory committee headed by Mary Andringa, the CEO of Pella’s Vermeer Corporation. (Republican power-brokers tried and failed to recruit Andringa to run for governor earlier this year.)

Election-watchers like the Swing State Project and Campaign Diaries bloggers immediately recognized that Branstad is the toughest potential challenger for Governor Chet Culver. But some Iowa Republicans have doubts about going back to the future:

Drew Ivers, a longtime social conservative Republican leader, said some party activists object to the growth in the state budget during Branstad’s tenure. The budget Branstad approved in 1983, his first year in office, included $2.05 billion in general fund spending. In 1998, his last year in office, he approved general fund spending of $4.5 billion.

“The party needs to get back to the Goldwater definition of conservative: that which governs least governs best,” said Ivers, of Webster City, who is uncommitted in the race. […]

Branstad brings many assets, but not a fresh face, noted Roger Hughes, a longtime Iowa Republican strategist.

“I would be hard-pressed to vote against my friend Terry Branstad, but I think we need some new folks,” said Hughes. “I’m not sure him running is good for the party.”

The Republican primary field will narrow if and when Branstad formally becomes a candidate, but no one dropped out in response to yesterday’s news. Updates on the other Republican gubernatorial candidates are after the jump.

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Setting the Branstad record straight

UPDATE: Branstad did file papers to form an exploratory committee today.

The Iowa Republican blog reported today,

This morning, former Governor Terry Branstad will file paperwork with the Iowa Ethics and Campaign Disclosure Board (IECDB), essentially launching his campaign for governor.

All state candidates are required to file with the IECDB once they spend or raise more than $750.00. While some candidates have claimed that filing this paperwork is like opening an exploratory committee, there are no special distinctions allowed under Iowa law for such committees, meaning that when you file with the IECDB, you are announcing that you are a candidate.

Branstad announced this summer that he would decide in October whether to run for governor again. It’s been clear he was planning to be a candidate since the Draft Branstad PAC started raising big money and running statewide radio ads last month, so why wait? Some people think Branstad, now president of Des Moines University, wanted to make his decision known to that university’s Board of Trustees at this month’s scheduled meeting before announcing his candidacy.

I have been wondering whether Branstad wanted to remain outside the campaign during September so that the Des Moines Register’s Iowa poll by Selzer and Co. would measure his support at the highest possible level. After he formally enters the race, his record will face tougher scrutiny, and his favorability ratings are likely to go down. The Register’s poll (released on September 20 and 21) showed that 70 percent of Iowans approved of his performance as governor, but only 48 percent thought it would be a good idea for him to run again. That poll did not include a head to head matchup against Governor Chet Culver. Republican firm Rasmussen conducted a one-day poll on September 22, which showed Branstad leading Culver by 20 points.

In the coming months, rival Republican candidates are likely to open three main lines of attack on Branstad:

1. During his first three terms as governor, Branstad kept two sets of books in order to run illegal deficits. His fiscal mismanagement was the main factor driving support for then Congressman Fred Grandy during the 1994 Republican primary. State Representative Chris Rants has already started hitting Branstad on this front. Last week he asserted,

“Culver’s repeating the mistakes Branstad made in the 80’s. He moved money on paper and delayed payments from one fiscal year to another until it finally caught up to him and he raised the sales tax to square the books. He could only hide his deficits for so long. It’s these kinds of accounting gimmicks that caused the fallout between Auditor Johnson and Branstad.”

“We Republicans need to be better than that if we expect to earn the trust of Iowans,” added Rants.

Richard Johnson, state auditor during most of Branstad’s tenure, is now co-chairing Bob Vander Plaats’ campaign. Expect to hear more from him in the future.

2. During his four terms as governor, Branstad didn’t deliver on various issues of importance to conservatives. Branstad selected a pro-choice lieutenant governor and didn’t get an abortion ban through the legislature even when it was under Republican control during his final term. Vander Plaats has already promised not to balance his ticket with a moderate, and if Branstad announces a pro-choice running mate, a lot of the Republican rank and file will be furious.

Branstad campaigned every four years on a promise to reinstate the death penalty, but he never got it done as governor.

Last week Rants promised to press for an amendment on gun rights to the Iowa Constitution. Perhaps we’ll hear more in the future about Branstad’s failure to do enough on this front.

3. Branstad raised sales taxes, the gas tax, and favored other tax increases as well.

Tax hikes are never popular with the GOP base, and Rants and Vander Plaats are certain to educate primary voters about Branstad’s record. If Christian Fong decides to stay in the race, we’ll be hearing from him about this issue too. Ed Failor, head of Iowans for Tax Relief, is one of Fong’s key political backers and fundraisers.

The Iowa Democratic Party has already started responding to the Draft Branstad PAC’s revisionist history, and will continue to call attention to how Branstad governed. I’ve posted the Iowa Democratic Party’s response to the first pro-Branstad radio ad after the jump. The IDP has also created the entertaining Iowa Knows Better website, with information about all of the GOP candidates for governor. Here is the page on Branstad, with details on Branstad’s two sets of books, tax increases, use of state bonding, and failure to pay state employees what they had earned.

Branstad will have more money and institutional support than the other Republican candidates and will be heavily favored to win the primary. But I doubt public approval for his work as governor will still be at 70 percent six months from now.

UPDATE: Swing State Project is now calling the Iowa governor’s race a tossup.

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Branstad running mate speculation thread

Former Governor Terry Branstad is expected to announce soon that he’s running for governor again. The rumor going around town is that he will name his running mate immediately upon entering the race. One person I’ve heard mentioned for that role is former State Representative Libby Jacobs. She represented Iowa House district 60, containing most of West Des Moines, from 1995 until she retired in 2008.

Jacobs would be a logical choice for Branstad in some ways. She could help correct the gender gap that hurts Republican candidates. She could help the GOP in wealthy suburban areas that are no longer solidly Republican. Jacobs never faced serious opposition in House district 60, but Chet Culver carried the district in 2006. Although House district 60 voters elected Republican Peter Cownie to replace Jacobs last November, Barack Obama narrowly beat John McCain in the district.

Jacobs also has time to embark on an aggressive campaign. In May of this year, she was laid off as a spokeswoman for the Principal Financial Group.

Choosing Jacobs would incur some political risks for Branstad, because she was a fairly reliable pro-choice vote in the Iowa House. Jacobs hasn’t been active in Planned Parenthood like some other former Republican women legislators (Joy Corning, Janet Metcalf, Betty Grundberg, Julia Gentleman), but that distinction won’t matter to social conservatives. Certain people on the religious right had trouble accepting even GOP Congressional candidate Mariannette Miller-Meeks, who was against abortion rights with very few exceptions.

Branstad didn’t attend the Iowa Family Policy Center’s big fundraiser in September, and he skipped last weekend’s Iowa Christian Alliance dinner too. Selecting Jacobs or any other pro-choice running mate would indicate that Branstad agrees with his longtime top aide Doug Gross, who says Republicans will continue to lose until they stop alienating moderates and shift their focus from social issues to the economy. In effect, Branstad would be telling social conservatives, “I’ve got the money to win this primary, we need to appeal to the center, now sit down and shut up.”

Republicans who believe Gross hurts the party and are looking for Branstad to distance himself from him will be disappointed. Those who share Bob Vander Plaats’ view (Republicans have been losing elections in Iowa because they’re not conservative enough) will be enraged. Expect WHO talk radio host Steve Deace to go ballistic if Branstad shuns his campaign advice.

Of course, the rumor about Jacobs could turn out to be false. Branstad might choose a running mate with strong backing among social conservatives. That would indicate a desire to unify the party and neutralize critics who are angry that he chose Joy Corning to serve as lieutenant governor. If Branstad has any concerns about losing the Republican primary, he might take this route. Doing so would undercut Vander Plaats, who has already pledged not to pick a pro-choice running mate. State Representative Jodi Tymeson, who co-chairs the Vander Plaats campaign, is widely expected to be his choice for lieutenant governor.

Share any relevant rumors, thoughts or predictions in this thread.

Survey USA finds record low approval for Grassley

Via the Senate Guru blog I saw that Survey USA released results from its late September poll of 600 adults in Iowa (margin of error 4.1 percent). The survey measured Senator Chuck Grassley’s approval rating at 50 percent. That’s the lowest figure ever for Grassley by this pollster, and you can see from this graph that Grassley’s trendlines are ugly. A full 40 percent of respondents disapprove of Grassley’s performance. His high-profile role in the health care reform debate seems to have hurt his image. Senate Guru notes, “Grassley is also below 50% approval among independents (48%) and self-described moderates (47%).”

The Des Moines Register published a new article Monday on rumors that a well-known and well-funded Democrat will give Grassley “the race of his life.” Speculation seems to be centering on former First Lady Christie Vilsack, who is now executive director of the Iowa Initiative, and prominent attorney Roxanne Conlin, a onetime U.S. Attorney who was the Democratic nominee for governor in 1982.

Other notable findings from Survey USA in September: Senator Tom Harkin is at 44 percent approval and 46 percent disapproval. President Barack Obama’s approve/disapprove numbers in Iowa are now 46/48, but there is a huge gender gap. Among male respondents, 39 percent approve of Obama and 56 disapprove. Among female respondents, 53 percent approve and only 40 percent disapprove.

I was surprised to see that Survey USA didn’t find nearly as much of a gender gap concerning Governor Chet Culver. Culver’s at 41 percent approve/48 percent disapprove overall. Among men and women, 41 percent approve of Culver’s performance. The difference is that 55 percent of men said they disapprove of Culver, versus only 44 percent of women (a full 15 percent of female respondents answered “not sure”). If I were running Culver’s re-election campaign, I would put a high priority on building support among women voters. If a well-known woman makes a serious run at Grassley, that should help boost turnout among women Democrats and leaners.

Incidentally, Swing State Project changed its rating on the Iowa governor’s race from “race to watch” (but safe for the incumbent) to “likely D.” They may revise that rating again if former Governor Terry Branstad enters the campaign.

Survey USA’s Iowa sample in September consisted of 35 percent Democrats, 29 percent Republicans, and 31 percent independents. The sample for their August Iowa poll was quite different: 28 percent Democrats, 34 percent Republicans, and 35 percent independents. That alone could explain why Grassley’s approval rating fell from August to September, while Culver’s rose a bit from his all-time Survey USA low in August.

It’s obviously way too early to predict what proportion of Democrats and Republicans will turn out to vote in Iowa next November. The GOP primary for governor could energize that party’s base or cause lasting divisions. The Democratic base may or may not be excited, depending on what Culver and state legislators accomplish next session and whether Grassley’s race becomes competitive.  Unemployment seems likely to keep rising.  

Share any relevant thoughts in this thread.

Gronstal: Legislators see few benefits from film tax credit

Iowa Senate Majority Leader Mike Gronstal discussed the film tax credit fiasco on this weekend’s Iowa Press program, and it sounds like defenders of the tax credit will be fighting an uphill battle during next year’s legislative session:

“I think we’re going to get this investigation from the Attorney General and from the State Auditor. I think we’re going to do a good evaluation of the program and if we can’t show a real benefit to the state of Iowa – and not just a few part-time jobs, but a real long-term benefit to the state of Iowa – I think it’s 50-50 as to whether this program continues.”

According to Gronstal, he and other legislators right now “see very little in terms of potential benefits” to the state from the film tax credits which have been awarded already.  […]

Gronstal says he may regret having voted to create the program and he expects some political fall-out from this episode.

“People will be disappointed in that, but I think it’s the responsibility of the legislature – we try things in economic development. Everything we try doesn’t work and it’s perfectly o.k. to occasionally decide, ‘You know, we’ve (gone) down a road and that road doesn’t make as much as sense as we thought it made,’” Gronstal says. “And so we’re going to go back and change that.”

Gronstal also defended Governor Chet Culver, saying “once he found out about [problems with the film tax credit] he acted quickly and put the program on hold and got people to investigate.”

Gronstal expressed surprise that a flood of applications for film tax credits this spring allowed producers to get around the $50 million annual cap the legislature approved for the program. (Note to legislators: next time you cap a tax credit, make the law go into effect immediately on being signed by the governor.)

Culver has ordered a comprehensive review of all Iowa tax credits, and Gronstal made clear that legislators will subject these programs to additional scrutiny in the coming year:

“If you can show that a tax credit creates a climate, for instance, the research activities tax credit – if you can show that that keeps an industry here in the state of Iowa and builds long-term jobs and high-wage, high-skills jobs in this state where there’s a net benefit to the state by having that set of jobs come along with it, yeah, that makes sense,” Gronstal says.  But Gronstal says if you can’t show that, then the tax credit should be repealed.

A critical analysis of Iowa’s tax credits is overdue, but better late than never. State revenues continue to lag behind projections because of the recession. Repealing wasteful tax credits could reduce the size of state spending cuts during the 2010 fiscal year. Iowa Republicans would like to plug the budget gap entirely through spending cuts, but they forget that deep spending reductions by state and local governments can also be a drag on the economy.  

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Rasmussen poll shows Culver losing to Branstad, Vander Plaats

The Republican polling firm Rasmussen Reports surveyed 500 “likely voters” in Iowa on September 22 and came up with bad numbers for Governor Chet Culver. Former Governor Terry Branstad leads Culver by 54 percent to 34 percent, and Bob Vander Plaats leads Culver by 43 percent to 39 percent. Culver’s approval rating is 43 percent, with 53 percent of respondents disapproving of the job he is doing.

Topline results and favorability ratings are here. Culver was viewed very or somewhat favorably by 43 percent of respondents and viewed very or somewhat unfavorably by 50 percent. Branstad’s favorability was 64 percent, and his unfavorable numbers were just 29 percent. Vander Plaats was viewed favorably by 45 percent and unfavorably by 30 percent.

These numbers will encourage Branstad, who appears likely to seek his old job again. He has said he’ll decide by October, and I’ve heard rumors that Branstad will announce his candidacy very soon (September 28 according to one person, October 3 according to someone else). I believe that the numbers we see for Branstad this month will be his high water mark, since no one has campaigned against him for 15 years.

Vander Plaats will surely cite the Rasmussen poll as proof that he can beat Culver. The whole “draft Branstad” movement grew out of fears that Vander Plaats could not win a general election.

As a rule, Rasmussen polls tend to come in with somewhat better numbers for Republican candidates and worse numbers for Democrats. Go to Pollster.com and click on almost any national or state-level race to compare recent results from different pollsters.

The recent Selzer Iowa poll for the Des Moines Register found much better numbers for Culver (50 percent approve, 39 percent disapprove). Selzer polled 803 Iowans over a three-day period (3.5 percent margin of error), while Rasmussen polled 500 “likely voters” on a single day (4.5 percent margin of error). Selzer did not poll Culver against Branstad or any other Republican.

I am seeking further information about the likely voter screen Rasmussen used, as well as the proportion of Democrats, Republicans and no-party voters in the sample. I will update this post if I receive more details. If any Rasmussen premium subscriber is reading, feel free to post a comment here or e-mail me at desmoinesdem AT yahoo.com.

The same Rasmussen poll shows Senator Chuck Grassley leading Democrat Bob Krause 56 percent to 30 percent. Chase Martyn looks at the trendlines and concludes that Grassley could become vulnerable next year. In my opinion, Grassley is still well outside the danger zone for an incumbent despite his falling approval numbers.

Click here for Rasmussen’s results on how Iowans view President Obama, the economy and health care reform proposals.

UPDATE: The commenters at Swing State Project trust Selzer a lot more than Rasmussen. One person pointed out that in late July, Rasmussen found Senator Barbara Boxer of California leading Republican Carly Fiorina by just four points (45-41), while a few weeks later Research 2000 found Boxer leading Fiorina 52-31. It appears that Rasmussen’s likely voter screen produces a sample skewed a bit toward Republicans.

It would have been helpful if the Des Moines Register’s recent poll had asked respondents about Culver and Branstad and Vander Plaats. Craig Robinson is wrong to imply that the Register might have asked those questions and decided to cover up the results. The Register published the full questionnaire from its recent poll. Some pollsters don’t think head to head matchups are useful this far out from an election.

Fred Hubbell to serve as interim director of IDED

Governor Chet Culver announced on Tuesday that he has appointed Fred Hubbell to serve as interim director of the Iowa Department of Economic Development (IDED). Hubbell will start working there on October 5. He will continue to serve on the Power Fund board, only he will now be IDED’s representative on that body. Last month the rumor mill floated Hubbell’s name as a possible challenger to Senator Chuck Grassley, but he said he was not interested in running for Senate.

Culver picked Joe O’Hern, deputy director at the Iowa Finance Authority, to be the new interim deputy director at IDED, focusing on IDED’s flood recovery efforts. This press release from the governor’s office contains more background on Hubbell and O’Hern.

Culver spoke about the abuse of Iowa’s film tax credit program during a press conference in Cedar Rapids on Tuesday:

When information was first brought to my attention last week about Iowa’s film tax credit program, I was troubled. But as we began our investigation into this program, and more information has come to light, frankly, I am outraged – not only that a program involving millions of Iowa tax dollars was so mismanaged but that some companies were taking advantage of this situation.

This problem first came to my attention last week when I was traveling on Tuesday with former director Tramontina. At that time, I asked him to prepare for me a memo outlining problems with the program. And, after receiving that memo, I took immediate steps to protect the taxpayers of Iowa. […]

These actions are intended to protect the best interest of Iowans, and not to harm the growing film and television industry in our state. This program should continue only after we have the controls, oversight, and due diligence in place to assure that it operates properly.

But, while there were clearly not the controls and oversight in place at the Iowa Film Office, we need to make sure that the film and TV productions in our state are following the rules.

For example, projects must have commitments for at least 50% of their funding before even applying for assistance under the program.

In addition, projects are not to receive tax credits until after their work is complete and they have submitted invoices of qualified expenses.

And, we expect film and television productions to obey Iowa’s labor laws – which mean people get paid for the work they do. That does not mean they wait until after their tax credit has been approved.

Iowans will not be taken for suckers. While we need to make changes to strengthen management of this program, we are not going to be taken advantage of – and if we are, we are going to claw back and make sure any money wrongfully provided is returned.

If something good can come out of this scandal, I hope that all of Iowa’s tax credit programs will now receive greater scrutiny. Even if there are no other tax credits being abused, we may not be getting our money’s worth for all of these programs. In a weak economy that puts pressure on state revenues, wasteful tax credits need to be on the chopping block along with government spending.

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More fallout from film tax-credit scandal

Governor Chet Culver took more steps on Monday to deal with the scandal surrounding Iowa’s tax credits for the movie industry:

Culver fired Iowa Film Office manager Tom Wheeler, who was in charge of coordinating tax-credit deals with moviemakers, who flocked to Iowa during the past year.

Vince Lintz, deputy director of the Iowa Department of Economic Development, which oversaw the film office, turned in his resignation. […]

On Monday, Culver asked state Auditor David Vaudt, Iowa Department of Revenue director Mark Schuling and Attorney General Tom Miller to assist in reviewing the program.

Culver said he was “very troubled” by reports of abuses in the tax credit program, which reportedly included purchase of two luxury vehicles by unidentified movie executives, and lax oversight.

“I’ve made it very clear from the very beginning that we would like to continue the program,” Culver told The Des Moines Register. “But not until we have all of the controls in place, the oversight, the due diligence that is necessary to run any program involving taxpayer money.”

Surely we’ll be hearing a lot more about this mess, which already prompted the Department of Economic Development director’s resignation last Friday.

Naturally, Republican legislative leaders are blaming the “governor’s lack of oversight and failure to properly manage the film tax credit” for the problems. Several people I’ve spoken with share Bleeding Heartland user American007’s view that this scandal is going to become a major headache for Culver, like wrongdoing at the Central Iowa Employment Training Consortium was used to attack Governor Tom Vilsack and other Democrats a few years ago.

It’s not clear to me how Culver could have or should have micromanaged the film tax credit program. Upon learning of problems, he has acted promptly and appropriately. If the governor were resisting change to this program, protecting the officials who screwed up, or blocking an investigation, that would be a different story.

In addition, as you can see from this CIETC scandal timeline, the CIETC abuses became public knowledge during the spring of 2006. The scandal didn’t stop Iowa Democrats from making big gains that November. Mike Mauro was elected secretary of state that year, even though he shared a surname with one of the CIETC board members (I remember some fretting over that at the time).

Culver should brace himself for more bad news about the film tax credits when investigators have completed their reviews, but I don’t see this issue being salient with voters more than a year from now.

Share any relevant thoughts in this thread.

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New Iowa poll has mixed news for Culver, Branstad

The Sunday Des Moines Register published results from its latest Iowa poll. Selzer and Associates surveyed 803 Iowans between September 14 and 16 (click here and scroll down to read the questionnaire).

50 percent of respondents approve of Governor Chet Culver’s performance, while 39 percent disapprove. The last Iowa poll for the Register, published in April, found Culver’s approval rating at 55 percent. Culver’s re-elect number continues to drop, which is a bit worrying. In this poll, only 28 percent of respondents said they would definitely vote to re-elect Culver, while 27 percent would consider an alternative and 21 percent would definitely vote for an alternative.

On the other hand, Culver’s approval numbers are still net positive, which isn’t bad given the state of the economy. The right direction/wrong track numbers in this poll are 48/41.

Survey USA has had Culver in net negative territory for most of the year, but it looks to me like that pollster has some kind of negative house effect. The only public polls showing Culver below 50 percent approval this year have been by Survey USA. The Register poll’s approval numbers for Senators Chuck Grassley and Tom Harkin are also more than 10 points above Survey USA’s comparable numbers.

The Register’s new poll may encourage former Governor Terry Branstad to take the plunge, as it shows 70 percent of respondents approve of the job he did as governor. Branstad’s favorability rating is 59 percent, a bit higher than Culver’s 55 percent. Political columnist Kathie Obradovich suggested that these numbers should “incinerate” any doubts Branstad might have about getting back into politics.

I see the results somewhat differently. Today’s numbers are probably Branstad’s high water mark, since no one has campaigned against him for 15 years. Once he becomes a candidate, his real record, as opposed to the Draft Branstad PAC’s version, will get more scrutiny. Yet even today’s poll indicates that just 48 percent of all respondents think it would be a good idea for Branstad to run for governor again (36 percent thought it would be a bad idea).

Among Republicans, 60 percent thought Branstad should run. However, 26 percent of Republicans thought that would be a bad idea. Again, that’s before anyone seriously campaigns against him. I assume Branstad would win a GOP primary by a healthy margin, but he will have to fight for it, and a significant proportion of Republicans won’t welcome his return. Will he be able to count on disappointed party members to vote for him, or activists to volunteer for him next November? He’ll need help to overcome Iowa Democrats’ voter registration advantage, which Branstad never faced in any of his previous elections.

If I were Branstad, the most worrying sign in the Register’s poll would be something else Obradovich mentioned in her column on Sunday:

The former governor’s biggest problem comes from seniors, who are usually dependable voters. Among the 65-and-older set, nearly half think it’s a bad idea for Branstad to run again. Only about three in 10 said it’s a good idea.

It’s telling that Iowans who were adults during the entirety of Branstad’s tenure as governor, and are old enough to remember his predecessor Bob Ray, are the least likely to want Branstad back in politics. In contrast, various polls have indicated that Culver’s support is higher among over-50 Iowans than in the population as a whole. (I didn’t see the age breakdown for Culver’s numbers in this poll.)

Doubts about Branstad are likely to grow when the inevitable negative commercials hit the airwaves, focusing on the Mastercard governor’s two sets of books or his failure to deliver on some key promises made to Republicans.

No wonder longtime political observers like Des Moines Register columnist Marc Hansen and Civic Skinny’s unnamed source think it would be a mistake for Branstad to run for governor again.

Share any relevant thoughts in this thread.

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Tramontina resigns over problems with film tax credits

Talk about a bolt from the blue:

A memo from auditors investigating irregularities in a state tax-credit program for filmmaking paint a picture of movie producers and film executives taking personal advantage of the program and state administrators paying little attention.

The director of the Iowa Department of Economic Development, Mike Tramontina, abruptly resigned Friday after allegations of mismanagement of the program surfaced. The department oversees the Iowa Film Office. The manager of that office, Tom Wheeler, was placed on paid administrative leave.

The departure of Tramontina, who was appointed to the post by Gov. Chet Culver in 2007, came after preliminary findings from auditors looking into allegations that filmmakers had purchased luxury vehicles for themselves.

According to the memo obtained by The Des Moines Register, auditors found a long list of bookkeeping lapses and poor oversight in the program, which has spent $32 million on tax credits for 20 film projects since its inception in 2007. The program was aimed at promoting filmmaking in Iowa as a way to contribute to the local and state economy.

The governor’s office announced Tramontina’s resignation at 4:56 pm on Friday. Culver also suspended the tax credit program until auditors complete a review of it.

State Senator Tom Courtney, a Democrat from Burlington, told the Des Moines Register “he talked to state officials about problems with the movie tax credits about a month ago, when labor officials complained that few Iowans were getting hired to work on the movies.” Courtney raised those concerns again in a meeting with the Iowa Economic Development Board the day before Tramontina resigned:

“I’m hearing nothing but complaints that workers are being brought in from other states” during film productions in Iowa, Courtney said. “I don’t imagine we have a lot of Clint Eastwoods running around, but with a little training, we could be doing many of those jobs.”

Michael Tramontina, the state’s economic development leader, said he couldn’t put a number on how many jobs are created, since many are temporary – from contractors used to build sets to caterers and “extra” actors.

“Anecdotally from the film industry, it ranges from 20 to 60 percent Iowans” employed on films produced in Iowa, Tramontina said. […]

Tramontina said the agency is working to develop “employment thresholds” for a film, but hitting a number is complicated.

Employment requirements should depend on the kind of film being made – whether it’s a feature film being made over three to six months or a TV series that might run for years. […]

Courtney said lawmakers might need to address closing what he called “an open door” in film tax credits if Tramontina’s agency is unable to do it. He said most Iowa economic development incentives carry job-creation requirements. “Iowa has a bright future in the film industry, but we have to help the people who live here.”

While Republicans harp on the need to cut spending further, it’s equally important to subject every tax credit to scrutiny. The Iowa Policy Project has found that expenditures on tax credits for business have “skyrocketed” in recent years, far outstripping the rate of increase in spending from Iowa’s general fund. These tax credits should be on the table as legislators look for ways to balance the budget.

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Events coming up this weekend and next week

This weekend is packed with good events for Iowa progressives. If you love books, make your way to the Planned Parenthood Book Sale in the 4-H building at the State Fairgrounds in Des Moines. Admission is free; the sale is open from 9-9 Friday and Saturday and from 9-6 Sunday and Monday. The sale offers great deals on books, DVDs, prints, comics, and music, especially on Sunday, when everything is half-price, and on Monday, when everything left is 25 cents.

Proceeds support Planned Parenthood’s education programs, which you can learn more about here.

Incidentally, Planned Parenthood of Greater Iowa recently merged with Planned Parenthood of Nebraska/Council Bluffs to form a new affiliate called Planned Parenthood of the Heartland.

The Iowa Renewable Energy Association‘s annual Energy and Sustainability Expo takes place in Norway Saturday and Sunday. There’s so much to learn at the I-RENEW expos.

On Sunday, Senator Al Franken (cartographer extraordinaire) will headline Senator Tom Harkin’s 32nd Annual Steak Fry. The event will be at the Warren County Fairgrounds from 1 pm to 4 pm. Click here for more info and to buy tickets.

Follow me after the jump for details on many other events coming up soon.

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Survey USA finds record low approval for Iowa leaders

The Bean Walker, Iowa’s copycat version of The Drudge Report, was thrilled to link to the latest approval numbers from Survey USA yesterday:

Iowa

Pres. Obama: 45 / 51

Sen. Grassley: 54 / 34

Sen. Harkin: 49 / 38

Gov. Culver: 36 / 51

This statewide poll of 600 adults was conducted on August 26 and 27 and is said to have a margin of error of 4 percent. It’s the first time any pollster has found the president below 50 percent approval in Iowa, and the first time any pollster has found the governor’s approval in the 30s. For more details about various demographic groups in this poll, you can find Culver’s chart here, charts on Harkin and Grassley here, and Obama’s chart here.

Looking at Survey USA’s trendlines for Culver since he took office, I noticed that Culver’s disapproval number is basically unchanged this summer, but his approval number has dropped significantly from 42 percent in June and 44 percent in July to 36 percent in late August.

Before anyone panics, remember that Survey USA’s approval numbers for Culver tend to run low compared to other pollsters. In early July, the poll commissioned by The Iowa Republican blog found Culver’s approve/disapprove numbers to be 53 percent/41 percent. Later the same month, Hill Research Consultants’ poll for the Iowa First Foundation found Culver’s favorability at 52 percent. (The Iowa First Foundation did not release the governor’s approval number from that poll, but you better believe they would have if the number had been in the 30s or even the low 40s.) Meanwhile, Survey USA pegged Culver’s approval at 44 percent on July 20.

Survey USA’s numbers for Obama, Harkin and Grassley are also noticeably down in the latest poll. Obama is at a record low in Iowa. Grassley’s approval of 54 percent is the lowest Survey USA has found in at least four years. I couldn’t find a similar graph for Harkin’s numbers, but it’s been a long time since I can remember seeing his approval rating below 50.

Of course, it’s possible that the recession and the health care debate have affected Iowans’ view of all political leaders. Still, I would like to see these numbers confirmed by some other pollster. Even with the best sampling techniques, approximately 1 in 20 polls is wrong just by chance (“wrong” meaning that the true state of public opinion lies outside the margin of error for that poll). Right now this poll looks like an outlier.

I also agree with Steve Singiser that if Culver were this unpopular in Iowa, Democrat Curt Hanson probably would not have won yesterday’s special election in House district 90 (a swing district). The Republicans ran at least two television ads linking Hanson to Culver (see here and here).

I’m looking forward to the next Selzer and Associates poll for the Des Moines Register, which probably will come later this month or in early October.

Share any relevant thoughts in this thread.

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Branstad hit piece speculation thread

A few days after an unregistered group distributed a flyer attacking former Governor Terry Branstad from the right, a YouTube has appeared portraying Branstad as just like Governor Chet Culver on fiscal matters:

The comparison is ridiculous, since Culver never kept two sets of books to conceal deficit spending. Also, contrary to the claim made in this video, Culver didn’t try to sell the Iowa Lottery.

Still, the YouTube is a preview of attacks Branstad will face if he enters the governor’s race. He probably would win the nomination anyway, but the question is whether he wants to get mired in this kind of fight. I don’t know whether all of these claims are true; for instance, I don’t recall Branstad trying to end federal deductibility, although that may have happened while I was living outside Iowa.

I take as a given that no rival candidate directly authorized the creation of the flyer or the YouTube. People usually try not to let this kind of hit piece be linked to a campaign. Supporters of other Republican candidates may have acted independently, though. They have an obvious interest in keeping Branstad out of the race. Bob Vander Plaats is the front-runner now, but his prospects drop sharply with Branstad in. Most if not all of the other candidates would have no hope of competing against Vander Plaats and Branstad at the same time.

Over at The Iowa Republican blog, Krusty Konservative sees visual and stylistic clues in the YouTube pointing to Victory Enterprises, a firm working for Christian Fong’s campaign. I have no idea whether Krusty’s right, but consultants working for Fong stand to lose a lot of money if Branstad forces Fong from the race several months before next June’s primary.

Share any thoughts or speculation about the attacks on Branstad or the Republican primary campaign in this thread.

LATE UPDATE: Krusty followed up with another piece explaining why he believes someone at Victory Enterprises produced this video.

Links on making ends meet in the 2010 budget

With the economic recession continuing to drag down tax revenues, the 2010 budget that the Iowa Legislature approved in April is likely to require significant adjustments.

In June the Legislative Council agreed to cut more than 10 percent from the Legislature’s budget in 2010. The cost-saving measures “include a pay freeze for all legislative employees, reducing travel budgets, and cutting back next year’s legislative session by 10 days.”

A State Government Reorganization Commission will look for other ways to cut spending next year. It will be interesting to compare that commission’s proposals with the kind of cuts Iowa Republicans have been advocating. During the last legislative session, Republicans called for $300 million in spending cuts, but I have been unable to find a link to a document with details about that proposal. (Note: I’ll have more to say in a future post about the state budget reforms Iowa Republicans proposed yesterday.)

After the jump I’ve posted some links and analysis related to the budget constraints facing Iowa and just about every other state right now.

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McKinley's campaign may end before it began

On July 7 Iowa Senate Minority Leader Paul McKinley announced plans to “aggressively explore” running for governor next year. His dictionary must have a different definition of “aggressive” than mine, because McKinley’s gubernatorial campaign hasn’t been sending out any press releases, and the would-be candidate has skipped various opportunities to introduce himself to Republican voters. For instance, McKinley didn’t attend the IowaPolitics.com forum for gubernatorial candidates or the Dallas County GOP Family Picnic. He’s also conspicuously absent from the list of Republicans scheduled to hang out at the GOP’s Iowa State Fair booth. (UPDATE: I went to the fair on August 19, and though McKinley wasn’t on the schedule, I think I saw him at the GOP booth.)

The official McKinley for Iowa website makes no mention of a possible gubernatorial bid. One of the few things McKinley has done in the last six weeks is advocate passing a meaningless “state sovereignty” resolution. Republican blogger Al Swearengen claims McKinley will formally withdraw from the race soon, having raised almost no money.

Meanwhile, even the Republicans who are actively running for governor are struggling to raise money and support now that former Governor Terry Branstad has said he’s seriously thinking about running again. Branstad told a Republican gathering last week that he will decide by October whether to challenge Governor Chet Culver.

Post any comments about the governor’s race or the Republican Party in this thread.

LATE UPDATE: McKinley was also a no-show at the Black Hawk County Republican dinner on August 23.

Nice work if you can get it

Have you gotten four raises in the past six years? Jefferson County supervisor Stephen Burgmeier has, I learned after writing about the Republican’s first television ad for the September 1 special election in Iowa House district 90. Burgmeier is highlighting alleged overspending by Democrats, but if he’s so stingy with the people’s money, why did he keep voting to raise his own pay?

The “check the facts” page on Democratic candidate Curt Hanson’s website contains other useful information too. In addition to raising his own pay repeatedly, Burgmeier voted five times to raise taxes on Jefferson County residents. Did Iowans for Tax Relief know about this record when the group took responsibility for running Burgmeier’s campaign?

The Iowa Democratic Party is running this ad backing Hanson:

Share any relevant thoughts about phony Republican posturing in this thread. You can sign up here to volunteer for the Hanson campaign.

Republican ad for special election targets Culver, borrowing

UPDATE: Curt Hanson has already posted a rapid response at his campaign website.

Two and a half weeks before the September 1 special election in Iowa House district 90, Republican Stephen Burgmeier’s campaign launched its first television commercial:

The producers fit quite a few misleading statements into one 30-second ad. The visual suggests Iowa has taken on “a billion dollar debt,” and the voice-over emphasizes the word “billion,” even though the I-JOBS infrastructure bonding initiative was for $830 million.

The commercial accuses “Governor Culver and his allies” of borrowing “almost a BILLION dollars to pay their bills.” However, the I-JOBS program was created to fund infrastructure projects and has nothing to do with meeting state government’s ongoing spending obligations. (Click here for a breakdown of how the money will be spent.)

During this recession, several other states have been forced to borrow money to pay their bills, but Iowa is borrowing for capital investments. Credit analysts and national institutional investors understand the difference, even if Iowa Republicans don’t. That’s why “investor enthusiasm and high market demand” drove down the interest rate on the I-JOBS bonds.

Next, Burgmeier’s ad shows a man saying, “That’s money taxpayers are on the hook for,” implying that taxes will go up to repay the debt. In fact, existing gaming revenues will provide the approximately $43.2 million in annual payments on the bonds.

The ad begins with a voice-over asserting that “red ink is rising in Des Moines” and later shows a woman saying, “Stop the red ink.” Those statements, along with the cartoon of red ink drowning Culver and the capitol, wrongly suggest that the infrastructure borrowing is deficit spending.

The second part of the ad promises that Burgmeier will vote for a new budget law “to make it harder to waste tax dollars.” I’d like more details about how such a law would work, and I’d also like Burgmeier to specify which of these investments he considers wasteful.

The ad promises Burgmeier will “serve as a check and balance to Governor Culver’s runaway spending” and closes by saying Burgmeier will bring “balance and spending restraint back to our government.” Iowa Republicans may believe Culver is very unpopular in district 90, or they may have decided to run against him in order to rile up their base. It’s notable that the ad never uses the word “Republican” and doesn’t identify the candidate’s political party. I guess the outside interest groups running the Burgmeier campaign don’t have much confidence in the Republican brand to carry the day.

The Iowa GOP didn’t announce the size of the ad buy, which networks would run the ad or which programs have been targeted. If you live in the viewing area for this district, let us know whether you’ve seen the ad, and if so during which television shows. If you prefer not to post a comment here, you can send me a confidential e-mail at desmoinesdem AT yahoo.com. Please also report on any radio ads you’ve heard.

I’m curious to see whether this will be Burgmeier’s only television commercial or if his campaign will mention other issues, including same-sex marriage, in later ads.

Having spent no time in this district lately, I have no idea whether Burgmeier or Democrat Curt Hanson has an edge. Political scientists will tell you that as a general rule, the party out of power does well in low-turnout by-elections and special elections. Both Democrats and Republicans are working hard to get out the vote in district 90. State GOP Chairman Matt Strawn and some other Republicans view this race as a must-win.

Share any relevant thoughts in this thread.

Rants misses the point of the Power Fund

State Representative Chris Rants promised to run his gubernatorial campaign on “Diet Coke and Casey’s pizza and ethanol,” but attacks on Governor Chet Culver are the real fuel for his political ambitions. He’s been bashing Culver’s economic policies all summer. His latest target is the Power Fund, which Rants would ax to help balance the state budget.

Culver and his office have repeatedly cited a study by the Green Jobs Initiative Committee, which estimated that Iowa has more than 8,700 “green jobs,” a substantial increase in the past few years. Culver has credited the Power Fund with helping create thousands of jobs, while Rants says Culver is misleading Iowans because fewer than 100 jobs can be directly attributed to Power Fund grants.

If I were Culver, I would seize the chance to debate renewable energy with Republicans.  

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Vilsack declines pork industry request (for now)

Following up on the request by nine governors and pork industry giants for the U.S. Department of Agriculture to spend $50 million on excess pork products, Radio Iowa reported on Tuesday that the USDA can’t help right now:

“We are down to our last $7 or 8 million because there’s been such a demand for so many kinds of commodities, including pork. I think in the last fiscal year $62 million worth of pork purchases have been made,” [Secretary of Agriculture Tom] Vilsack says. “…So we are trying to meet the demands of everyone.”

Vilsack says there may be more money in the pipeline this fall. “When October 1 comes, when the new fiscal year starts, we have a little greater flexibility and at that time we are taking a look at all these requests,” Vilsack says, “and we will make determinations at that point in time in terms of what is being requested of us and what we think makes sense.” […]

“We are very sensitive to the concerns of the pork industry. We have tried to respond by asking our institutional purchasers like the Department of Defense and others to purchase more pork products. We’ll continue to do that,” Vilsack says. “But I think we are stuck by virtue of the amount of money left in the account that we use to do this, but in October 1 it gets replenished and we’ll be in a different position.”

Meanwhile, Iowa Citizens for Community Improvement makes it easy for you to e-mail Governor Chet Culver to tell him you oppose taxpayer-funded bailouts of factory farms.

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No more bailouts for factory farms

If your widget factory produces too many widgets, you will be stuck with extra inventory, affecting your bottom line.

In contrast, if your factory farm contributes to excess production of pork, high-level elected officials will ask the federal government to bail you out. I learned from Iowa Citizens for Community Improvement today that last week nine governors, including Chet Culver,

requested $50 million of taxpayer money from the U.S Department of Agriculture (USDA) to buy over-produced pork off the market.  This follows similar requests made by the National Pork Producers Council in early May and Iowa Secretary of Ag Bill Northey in June.

The hog factory industry, though, has received two recent taxpayer-funded bailouts from USDA — one for $25 million in March 2009 and the other for $50 million in April 2008 — to buy over-produced pork off the market. […]

Ag economists have warned for months that the pork industry must stabilize prices by trimming the fat and reducing the herd size.  But the pork industry has ignored basic economic rules and continues to increase supply as demand goes down.  This is the result of continuous government subsidies and bailouts to the factory farm industry.

“Corporate ag receives government subsidies and guaranteed loans that promote the expansion of factory farms on the front end,” said CCI member Lori Nelson of Bayard.  “And then, when they produce too much pork, they ask the government — that’s us — to bail them out with huge amounts of taxpayer dollars. The factory farm industry is a house of cards that would crumble as soon as you take away taxpayers propping them up.”

The governors of Nebraska, Colorado, Michigan, North Carolina, Wisconsin, Kentucky, Illinois and Oklahoma joined Culver in signing the appeal for federal aid. According to DTN/The Progressive Farmer, “Representatives from the Iowa and the National Pork Producers Councils, Tyson Fresh Foods, Hormel Foods and Paragon Economics support the letter’s three proposals for aid.”

I’ve posted the full text of Iowa CCI’s press release after the jump. There’s no reason to exempt corporate agriculture from basic laws of supply and demand. Taxpayers already pay too much to subsidize factory hog farms.

By the way, Iowa CCI might be willing to cut Culver more slack if the governor had done more during the past three years to address the hidden environmental costs of CAFOs (air and water pollution). It’s also worth noting that Culver has done nothing since his election to push for agricultural zoning at the county level. During the 2006 campaign, Culver said he backed “local control.” Add this to the list of reasons why part of the Democratic base doesn’t approve of Culver’s performance.

LATE UPDATE: The USDA announced plans to buy $30 million of pork in September.

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