Iowans continue to share their reasons for choosing a presidential candidate. -promoted by desmoinesdem

I will be caucusing for Martin O’Malley next week. When I decided to write a post, I began by highlighting a laundry list of Gov. O’Malley’s accomplishments and his goals for the country. He has an outstanding progressive record in Maryland and he put forward a well-founded program for the country. But that’s not WHY I am supporting O’Malley.

I am supporting Martin O’Malley because I want America to move FORWARD.

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For the past several months, both online and out in the real world, I have advocated for the candidacy of Senator Bernie Sanders. I believed then as I believe now that he is an honest, principled advocate for the concerns of working people who are seeing their livelihoods imperiled on a daily basis by political process that is rigged against them and an economic system that favors massive, inherited wealth and fosters inequality. I believed then as I believe now that the vast and growing gap between the wealthy elite and the struggling masses threatens the very foundation of our collective society and that the only way to prevent a new-fangled aristocracy from permanently seizing the reins of power would be for immediate and drastic actions to not only stop but reverse this devastating growth of inequality. I believed then as I believe now that, even though Secretary Hillary Clinton is an eminently qualified candidate to lead our nation, it was necessary for someone like Senator Sanders to challenge her to confront these issues and speak to and up for the losers of our economic system.

Dave Swenson

Elected officials are keen to flash their job creation scorecard even though local and state government officials don’t really create many jobs. The economy in the aggregate creates the overwhelming majority of jobs, and some of those jobs locate in our cities, counties, and state. For elected officials, though, if it happened on their watch, ipso facto, they’ve created jobs. Credit is always claimed.

When job “creation” (see above) becomes the measure of public service performance, however lacking in substance or result, we inevitably get phony statistics, misleading inferences, or dubious claims. Sometimes politicians cherry-pick the numbers to make the best case possible. And sometimes politicians or their willing accomplices create brand new statistics.

“Phony number” graphic created by Dave Swenson

I was encouraged when Beth Townsend became Iowa Workforce Development director early this year. The previous director, Teresa Wahlert, was one of Governor Terry Branstad’s worst appointees; I suspect her record for legal entanglements involving an agency director for the State of Iowa will never be surpassed. In contrast, I’d heard consistently good feedback about Townsend’s work as executive director of the Iowa Civil Rights Commission. The new director has taken several steps to bring Iowa Workforce Development’s operations in line with federal labor laws.

Which makes it even more disappointing to see Townsend sell one of the biggest lies of Branstad’s long, long stint as governor, first in her agency’s annual budget presentation, and now in the editorial pages of Iowa’s largest newspapers.

Dave Swenson
It’s obvious to everyone, and no one can argue with what’s literally right in front of our eyes and unarguably true: when it comes to presidential campaign spending, the vast majority of candidate effort is concentrated in Iowa, the first caucus state, and in New Hampshire, the first primary state. It stands to reason, then, that Iowa spending amounts must be huge, especially in a year when both parties have an active slate of candidates. Yet when we analyze campaign spending, that is, when we follow the money, precious little finds its way to Iowa. As I’d pondered before in my own research, what gives?

Here’s the money quote from a recent investigation by Brianne Pfannenstiel of the Des Moines Register where she looked at campaign spending in Iowa through the third quarter of 2015:

Despite Iowa’s outsize influence in the nation’s presidential nominating process, political spending is still funneled primarily to coastal states, which house major political consulting and advertising firms. Iowa accounts for just 3 percent of the $153.3 million that presidential campaigns have spent so far this cycle, filings with the Federal Election Commission show.

I took a good look at this during the last wide open Iowa Caucus.

For years, Governor Terry Branstad and his appointees have cited fake job creation statistics to create the illusion that Iowa was on track to fulfill one of Branstad’s key promises from the 2010 campaign. This week, the deception culminated in an official slideshow “indicating that 206,200 gross jobs have been created in Iowa since 2011, based upon current employment statistics.”

It’s a shame the governor can’t celebrate Iowa’s low unemployment rate without exaggerating job growth during his administration.

It’s even more unfortunate when major news media downplay the dishonesty underlying Branstad’s claims.

Television reporter and former KCRG morning show anchor Ashley Hinson emerged today as the likely Republican nominee in the Iowa House district that outgoing Speaker Kraig Paulsen is vacating. Paulsen announced in August that he would not seek another term in House district 67. Instead, he will take up a newly-created senior position at Iowa State University next year.

Hinson is on Twitter here and has a campaign website and Facebook page. At this writing, HinsonforHouse.com says little about political priorities; there’s no issues page or even a full bio of the candidate. The blurb on the front page offers a vague call to “stand up” against “politics as usual” and a promise to “make sure that everyone feels heard and is heard in Des Moines.” Hinson’s working campaign slogan appears to be “Trusted. Proven. Leader.”

Democrat Mark Seidl made his campaign in House district 67 official earlier this month. He unsuccessfully challenged Republican State Representative Renee Schulte in 2010 and ran against Paulsen in 2012. I am not aware of a Seidl campaign presence on Twitter or Facebook, but the candidate’s website is here. The issues page consists of bullet points on improving the business climate in Iowa, creating well-paid jobs, supporting education, balancing the budget, and maintaining “Iowa’s leadership in renewable energy.”

I enclose below a map of House district 67, details about the district’s political make-up and recent voting history, and background on Hinson and Seidl.

Former Maryland Governor Martin O’Malley’s presidential campaign is pushing a new line of attack against Senator Bernie Sanders: in 2011, Sanders said President Barack Obama was “weak” and perhaps should face a challenger in the 2012 Democratic primary. O’Malley’s communications staff have also pushed out reports suggesting Sanders himself was considering a primary challenge to Obama and failed to campaign vigorously for the president’s re-election later in 2012 (not that Vermont was ever in play for Mitt Romney).

Those talking points may fire up Democrats who already resent the fact that the self-proclaimed democratic socialist Sanders has always campaigned as an independent. But I doubt they are a promising line of attack for moving caucus-goers and primary voters away from Sanders and toward O’Malley. The inconvenient truth is that Obama’s record hasn’t always lined up with progressive principles or with his own campaign promises. I suspect those who “feel the Bern” are more likely to agree with than be offended by Sanders’ critique of the president.

I don’t know yet for whom I will caucus, the first time I’ve ever been undecided so late in the election cycle. But I count myself among those “millions of Americans” Sanders described as “deeply disappointed in the president” during the interview O’Malley’s campaign portrays as harmful. I caucused uncommitted in 2012 to send the message that the president “hasn’t stood up for core principles of the Democratic Party.” Moreover, O’Malley’s own stump speech hints at some valid reasons for Democrats to be disaffected by Obama’s rightward drift.

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome.

In what the Des Moines Register’s editors described as a “new low in the out-of-control race to keep or attract employers,” a state board unanimously approved $4.75 million in financial assistance to Kraft Heinz, which plans to replace a large factory in Davenport with a new facility on the northwest side of town. Although at least 900 people are expected to lose their jobs in the downsizing, the city of Davenport will put up $10 million in tax-increment financing to support the project. The Iowa Department of Transportation and the city are expected to commit $5.8 million for road work around the new factory site too. Never one to shy away from handing state funds to large corporations, Iowa Economic Development Authority Director Debi Durham has let all downsizing companies know that the state of Iowa’s wallet is open: “‘Will I take this deal any day? You bet,’ Durham said Thursday morning. ‘This is a future play.’” Durham also told reporters she “expects the state to do more of these kinds of deals in the future, as more massive companies merge.”

Iowa State University economist Dave Swenson characterized the Kraft Heinz incentive package as “bizarre,” adding, “The idea of providing public assistance for a company that has billions of dollars of annual sales cannot make sense to anybody.” The Register’s editors noted, “the company could get $20.75 million in state and local assistance,” which “works out to nearly $43,700 for every job Kraft Heinz agrees to keep”–and roughly 200 of the jobs the company promised to save will pay less than $37,000 a year.”

Speaking of lousy deals, Iowa’s plan to privatize Medicaid looks worse and worse. A post in progress will discuss this policy in more detail; for now I enclose below excerpts from several stories by Jason Clayworth for the Des Moines Register. In recent weeks, Clayworth has exposed damning facts, including:

• Some claims made in bidding documents from the four private insurers chosen to manage Medicaid in Iowa “contain unverifiable data, misleading statements or half-truths.”

• No data support the government’s estimate that privatizing Medicaid would save $51 million from the state budget during the first six months of the program.

• The insurers selected to manage Medicaid “have each been held accountable in other states for serious service and administrative errors, including some that wrongly delayed or denied medical services to poor residents […].”

• Iowa’s Medicaid director Mikki Stier “had improper communications with an insurance company consultant and former lawmaker during a critical review period that ended with the for-profit company being selected” as a managed care provider for Medicaid.

A November 6 letter from the Centers for Medicare and Medicaid Services to Stier enumerated “significant concerns” about the transition to managed care; excerpts from that letter are at the end of this post. Federal officials and Iowa Senate Democrats have scheduled “listening sessions” around the state to focus on Medicaid privatization. Click through for meeting details, as well as a list of state and federal officials to contact with concerns. Only the feds can stop this train by denying the necessary waivers. Branstad administration officials have been unmoved by any of the Register’s revelations or by the risks to vulnerable Iowans, which many speakers raised during Legislative Oversight Committee hearings on November 3.

Claire Celsi announced on Monday that she is running against Republican State Representative Peter Cownie in Iowa House district 42, which covers most of West Des Moines in Polk County. A detailed district map is below, along with background on both candidates. Celsi’s campaign is on the web at Claire4Iowa.com and on Facebook here. Celsi is also on Twitter. Her key campaign promises are to “fight for strong public education, protecting our environment and for sensible economic development that includes the district’s small business owners in the mix.”

House district 42 is relatively balanced politically, with 6,242 active registered Democrats, 7,097 Republicans, and 6,676 no-party voters, according to the latest figures from the Iowa Secretary of State’s office. The HD-42 precincts voted slightly more Republican than Iowa did as a whole in the 2012 presidential election, giving Barack Obama 49.85 percent of the vote while Mitt Romney won 48.83 percent. On the other hand, Joni Ernst outpolled Bruce Braley here in the 2014 U.S. Senate race by a little less than her winning margin statewide: 51.55 percent to 45.51 percent.

Cownie outperformed the top of the Republican ticket in the last two general elections, winning 56.61 percent of the vote in 2012 and 60.17 percent of the vote last year. He comes from a well-connected family in Polk County, which helped him raise far more money than a typical Iowa House incumbent for his 2012 and 2014 re-election campaigns. Cownie spent very little of those funds on his own race, kicking most of the cash over to the Republican Party of Iowa and its Eisenhower Club for use in other statehouse contests.

First elected in 2008 to replace retiring Republican lawmaker Libby Jacobs, Cownie has chaired the House Commerce Committee since 2013 and led the State Government Committee for two years before that. He is not what you’d call a workhorse at the Capitol. He has co-sponsored various bills and resolutions, but I’m not aware of any particular legislative achievements or causes he has tried to advance. Although many moderate Republicans live in West Des Moines, I can’t think of a time Cownie voted independently from his caucus or stuck his neck out to advocate a less conservative stance on a high-profile issue. For instance, even though he represents an LGBT-friendly district and is of a generation that mostly supports marriage equality, Cownie voted just like everyone else in the GOP caucus for a constitutional amendment to ban same-sex marriage in 2011. (He opted not to co-sponsor the marriage amendment in subsequent legislatures, but to my knowledge he has never spoken out for equal marriage rights.) Nor did Cownie criticize, let alone try to over-ride, Governor Terry Branstad’s education funding vetoes this summer, which blew a $1 million hole in the West Des Moines school district’s budget after the start of the current fiscal year.

Cownie was rumored to be interested in the House speaker’s chair in 2013, but when the position became available this summer, he did not put his name in as an alternative to Linda Upmeyer.

Iowa House Democratic leaders have not made this district a top target in the past. However, Celsi has been involved with enough Democratic campaigns to understand what successful candidates need to do. If she can raise enough money to run a credible effort, HD-42 could become a targeted race. At the very least, Cownie will need to spend more of his energy and money on his own turf. I consider Celsi a friend and will make time to volunteer for her campaign next year, when I’m not knocking doors for the Democratic nominee in my own House district. (Jennifer Konfrst and Jon Neiderbach are competing for the chance to take on House Majority Leader Chris Hagenow in HD-43.)

The Des Moines metro area has made plenty of “best places” lists during the last five years, but Chamber of Commerce types won’t be bragging about the top ten ranking that appeared last week. After examining “the disparities between white and black Americans in several economic and social measures” across the country, Thomas C. Frohlich and Sam Stebbins of the 24/7 Wall St. website “identified the 10 worst cities for black Americans.” The authors noted, “Four of the cities with the worst racial inequality are in Illinois, two are in Iowa, and all are in the Midwest.”

Follow me after the jump to learn why the Des Moines metro area ranked ninth and the Waterloo/Cedar Falls metro area tenth on this list.

After dropping some unsubtle hints in recent days, Republican State Senator Mark Chelgren confirmed today that he will run for Congress in Iowa’s second district, William Petroski reported for the Des Moines Register. He will launch the campaign in Iowa City this afternoon on October 6 before appearing at the Scott County Republican Party Ronald Reagan Dinner in Bettendorf. Scott County has the largest population and Johnson County (containing Iowa City) the second-largest among the 24 counties in IA-02.

Speaking to the Register, Chelgren said he doesn’t dislike five-term Democratic incumbent Dave Loebsack, but “This is a question of who is better suited to change Washington, D.C. […] you are not going to do it by following party lines and doing what you are told.” In reality, Loebsack has not blindly followed the lead of his fellow House Democrats. The Progressive Punch database of Congressional voting indicates that Loebsack is only the 157th most progressive current member of the House. He has also voted with Republicans rather than with most of his own caucus on more than 30 percent of the “crucial votes” tallied by Progressive Punch since 2007.

A business owner in Ottumwa, Chelgren told the Register he is running to represent the people of southeast Iowa and hopes to bring to Washington his experience creating jobs at the local level. Speaking to Bleeding Heartland in July, Chelgren outlined other key themes of his potential Congressional campaign: changing our trade policy, upgrading our infrastructure, fixing a “massively broken” education system, and bringing more long-range planning to the federal government.

Chelgren’s ten-vote victory in a 2010 Iowa Senate race neither party had its eye on still evokes unprintable words from many Democrats. Despite being the most vulnerable GOP Iowa Senate incumbent going into the 2014 election cycle, Chelgren managed to win re-election by 374 votes after calling attention to some unforced errors by the Democratic candidate. So no one should count him out.

That said, IA-02 would be a long-shot prospect for any Republican candidate in 2016. The district leans Democratic with a partisan voter index of D+4. According to the latest figures from the Iowa Secretary of State’s Office, the 24 counties in the district contain 160,325 active registered Democrats, 136,237 Republicans, and 183,235 no-party voters. The last time Loebsack was on the ballot in a presidential election year, he defeated John Archer by a comfortable margin of 55.6 percent to 42.5 percent.

UPDATE: Added below Chelgren’s press release announcing his candidacy.

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome.

More than twenty Iowa Democratic county committees put on a great “Wing Ding” in Clear Lake Friday night. The Surf Ballroom was packed to capacity, thanks to appearances by four of the five Democratic presidential hopefuls. Despite a fairly long list of speakers including candidates for U.S. House and Senate and State Senator Amanda Ragan, who was receiving an award, the Wing Ding amazingly finished ahead of schedule. I enclose below my take on all the speeches.

For those following the saga of three former Ron Paul campaign operatives, recently indicted for their role in making illegal payments to then State Senator Kent Sorenson: Russ Choma covered the prosecutors’ latest court filing for Mother Jones. Prosecutors allege the operatives “were prepared to leak documents to harm Sorenson in 2012 if they couldn’t obtain his endorsement for Ron Paul.” An attorney for Jesse Benton acknowledged that in late 2011, his client “threatened to expose Mr. Sorenson, believing that Mr. Sorenson was trying to blackmail the 2012 RP Campaign, if Mr. Sorenson did not make up his mind on whether to commit to the Ron Paul Campaign.” But the lawyer said Benton did not follow through on what he described as “a knee-jerk, emotional reaction.” Of course, there would have been no reason to carry out the threat after Sorenson agreed to take the money in exchange for switching his allegiance to Paul.

State Senator Mark Chelgren is looking “seriously” at running against five-term Representative Dave Loebsack in Iowa’s second Congressional district, he told Bleeding Heartland yesterday. He said he has no timeline for making a decision. If he runs for Congress, his key issues would include:

• The economy. Chelgren said our country’s manufacturing base “has been deteriorating over the past 50 years.” He added that he doesn’t support how the U.S. has negotiated trade agreements. Asked whether he would support giving the White House trade promotion authority, which Congress passed last month, Chelgren replied, “Hell no.” While the economy and the world have “changed dramatically,” American policy-makers “have done almost nothing to upgrade our infrastructure.” Chelgren clarified that he was not talking primarily about 20th-century infrastructure like roads and railroads but about 21st-century needs such as high-speed internet access “to every community.” Meanwhile, the federal government is keeping interest rates “artificially low” and “diluting the strength of the economy” by printing money.

• Education. Chelgren believes “our education system is massively broken.” It “was designed to create assembly-line workers” or people working in office cubicles, rather than to prepare students for the modern economy.

• Long-range planning. “We have politicians at the state and federal level that think in two-year increments,” whereas we need “better vision” looking five to ten years ahead, according to Chelgren.

By this point in the 2012 election cycle, three Republicans had announced plans to run against Loebsack. Not only has no GOP candidate launched a campaign in IA-02 yet, I haven’t heard rumors about any prospective candidates other than Chelgren. Loebsack’s last general-election opponent, Marionette Miller-Meeks, is unlikely to run again after losing to Loebsack three times, twice in Republican wave years (2010 and 2014). Former State Representative Mark Lofgren, who lost last year’s GOP primary to Miller-Meeks, is running for Iowa Senate district 46 in 2016. Chelgren doesn’t need to choose between serving in the state legislative and running for Congress, because he was just re-elected to a second four-year term and won’t be on the ballot in Iowa Senate district 41 again until 2018.

IA-02 leans Democratic with a partisan voter index of D+4. According to the latest figures from the Iowa Secretary of State’s Office, the 24 counties in the district contain 160,562 active registered Democrats, 136,215 Republicans, and 182,047 no-party voters. The last time Loebsack was on the ballot in a presidential year, he defeated John Archer by a comfortable margin of 55.6 percent to 42.5 percent.

Dave Swenson

Most of us don’t really know that much about the economy.  We don’t know, for example, which private sector industry group in the U.S. has the most workers (retail sales at 18.4 million), or which sector grew the most over the last decade (mining at +100%), or which sector declined the most (manufacturing  at -15%).

OK, maybe that last one is a more widely known, especially if you live in the Midwest.   And if it is, then a statement by Michael Hicks, director of the Center for Business and Economic Research at Ball State University, is truly curious. In a Des Moines Register story on Iowa’s manufacturing situation and its strengths on July 7th, he is quoted as saying the “U.S. manufacturing base is not in decline, and we have recovered from the recession.”  

After serving in Congress for 25 years as an independent, Senator Bernie Sanders of Vermont announced today that he will seek the Democratic nomination for president.  

Former Maryland Governor Martin O’Malley has been laying the groundwork for a presidential campaign for quite a while. These past few days, he continued to walk and talk just like a presidential candidate would in Iowa. On Thursday, he spoke at Simpson College and headlined a fundraiser for State Representative Scott Ourth before speaking to a good crowd in a heavily Democratic Des Moines neighborhood. The next day, he taped an episode of “Iowa Press” on Iowa Public Television (video and full transcript here; excerpts after the jump). O’Malley wrapped up Friday with a well-received speech at the Polk County Democrats’ spring event (click through for video or audio). The stump speech blended a summary of his accomplishments as Baltimore mayor and Maryland governor with a vision for the future. For laughs and applause, he threw in some good jabs at tea party Republicans. Before and after the speech, O’Malley worked the room of activists. His staff had put down placemats and postcards for people to take home.

Yet I still can’t shake the feeling that O’Malley will not follow through with running for president.  

The U.S. House approved two more anti-regulation bills this week. On February 4, all the Republicans present and nine Democrats passed the “Unfunded Mandates Information and Transparency Act of 2015” by 250 votes to 173 (roll call). The following day, nineteen Democrats joined the whole GOP caucus to approve the “Small Business Regulatory Flexibility Improvements Act of 2015” by 260 votes to 163 (roll call).

Iowa Republicans Rod Blum (IA-01), David Young (IA-03), and Steve King (IA-04) voted for both bills. Democrat Dave Loebsack (IA-02) opposed them both; he also voted against last year’s version of the unfunded mandates bill.

The bill claiming to deal with unfunded mandates “would further require agencies to consult with private sector entities impacted by the proposed rules,” Cristina Marcos reported. The bill approved on Thursday “would require federal agencies to calculate the direct, as well as indirect, costs of proposed rules.”

I haven’t seen any public comment on these votes from the Iowans in Congress, but after the jump I enclose open letters from leaders of the Coalition for Sensible Safeguards, an alliance of more than 150 “consumer, small business, labor, scientific, research, good government, faith, community, health, environmental, and public interest groups.” They urged House members to reject the Unfunded Mandates Information and Transparency Act, because it “neither improves nor streamlines the regulatory process” and “would rob the American people of many critical upgrades to public health and safety standards, especially those that ensure clean air and water, safe food and consumer products, safe workplaces, and a stable, prosperous economy.” The same coalition opposed the Small Business Regulatory Flexibility Improvements Act, because it “would increase unnecessary and lengthy regulatory delays, increase undue influence by regulated industries and encourage convoluted court challenges.”

Votes like this fly under the radar as media pursue more news stories that interest the “core demographic.” That’s unfortunate, because this kind of non-glamorous policy-making could affect millions of people. Few Iowans will learn that under the guise of “cutting red tape,” our state’s Republicans in Congress would jeopardize rules that are meant to protect the public interest. Loebsack deserves credit for standing up against these bad bills. Major corporations and industries already have too much influence over government rules.  

President Barack Obama announced yesterday that the U.S. would normalize relations with Cuba after about a year of secret negotiations involving Canada and Pope Francis. On hearing the news, my first thought was that when the Soviet Union collapsed, I would never have believed it would be another 23 years before this happened. My second thought was that expanded trade with Cuba would help Iowa’s economy. Matt Milner reported for the Ottumwa Courier that agricultural groups are bullish on the news. I’ve posted excerpts from his story after the jump. Key point:

A paper written in 2003 for Iowa State University’s Center for Agricultural and Rural Development, shortly after some restrictions were lifted, said Iowa could benefit more from increased Cuban trade than any other state aside from Arkansas and California.

I was surprised not to see more reaction to yesterday’s news from members of Iowa’s Congressional delegation. I know everyone’s gone home for the Christmas recess, but still–big news. I will update this post as needed.

Several possible presidential candidates commented on the new U.S. approach to Cuba. Senator Rand Paul was supportive, saying Obama’s decision was a “good idea” since the American embargo against Cuba “just hasn’t worked.” Republicans who bashed the president on this issue included former Florida Governor Jeb Bush, Senators Ted Cruz and Marco Rubio, Wisconsin Governor Scott Walker, and Louisiana Governor Bobby Jindal.

Former Secretary of State Hillary Clinton has advocated normal relations with Cuba for some time.

UPDATE: Bleeding Heartland user cocinero posted Senator Chuck Grassley’s reaction in the comments.

Governor Terry Branstad has repeatedly used his power to supersede local government decision-making, from 1990s policies to block counties from restricting large hog confinements to an executive order banning project labor agreements the very first day he was back in office in January 2011.

On Friday Iowans saw the latest example of Branstad’s disregard for local officials’ ability to decide what’s best.

Iowans want clean water, but that has not motivated Iowa policymakers to tackle water pollution.

Rather, the driving fear is stronger regulation by the Environmental Protection Agency (EPA) because of the “dead zone.” That 5,000-square-mile area in the Gulf of Mexico has become toxic to life because of nitrogen and phosphorus, mostly from farm runoff. Iowa and Illinois are the top culprits.

The state’s “nutrient reduction strategy” is a narrow approach designed not to clean up Iowa’s water in our lifetimes, but to forestall specific federal limits on polluted water. The plan is focused on how to manage fertilizer. That piece is good as far as it goes, but does not go far enough. Iowa needs a broader strategy.

The Gulf of Mexico is not the only water body with a “dead zone.” For example, Maryland depends on  the Chesapeake Bay as a $1 trillion economic driver, including tourism, recreation, seafood and other industries. Maryland has been fouling its own nest for decades.

Imagine the Gulf of Mexico in Iowa. No doubt dealing with our 489 impaired lakes and streams suffering death by a thousand drips would become more urgent, undeserving of the 80 percent budget cut inflicted by Governor Branstad this year.

As both perpetrators and victims, Maryland citizens made clean water a top public priority. In leaner economic times, a 2012 poll showed that 91 percent of Maryland residents said cleaner water was important and nearly two-thirds supported increasing a statewide household tax to do it. Eighty percent wanted the state to be active in managing growth.

I spent a day on a recent trip to Maryland learning about the Chesapeake Bay. Governor Martin O’Malley put his staff at my disposal after I met him on his summer visit to Iowa. What lessons can be learned from the Chesapeake initiative that might be helpful to us?

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome.

About a year ago, the U.S. Environmental Protection Agency announced plans to change the Renewable Fuel Standard, which regulates how much ethanol must be blended into gasoline. Iowa elected officials from both parties expressed unanimous outrage, with Governor Terry Branstad and Representative Bruce Braley seeking out especially prominent roles in the battle against reducing the Renewable Fuel Standard. The very first week of the Iowa legislature’s 2014 session, state lawmakers unanimously approved a non-binding resolution urging the EPA to abandon its proposed rule.

The EPA proposal was supposed to become final in the spring of 2014, but political pressure forced a series of delays. Finally, this past Friday the agency announced “that it will not be finalizing 2014 applicable percentage standards under the Renewable Fuel Standard (RFS) program before the end of 2014.” After the jump I’ve posted reaction from Senators Tom Harkin and Chuck Grassley, Governor Branstad, and Representative Dave Loebsack (D, IA-02).

The immediate impact will be more uncertainty for Iowans whose livelihood depends either directly or indirectly on the ethanol industry. But I would guess that every delay makes it less likely that the EPA will move forward with its original proposal, which could be construed as a victory for Iowa biofuels.

The reality is more complicated than such unusual political consensus implies. At an “all-day pepfest for ethanol” organized by the governor in January, Francis Thicke was the only person to offer the “other side” of the story. Thicke has a doctorate in agronomy and soil science from Iowa State University. His testimony asserted that it is “disingenuous to frame the debate on the Renewable Fuels Standards (RFS) as a struggle between farmers and Big Oil” and that “EPA’s proposed changes to the RFS are not that radical.” Thicke also pointed out, “Corn ethanol was always meant to be a stepping stone to advanced biofuels.” In this guest post, Bleeding Heartland user black desert nomad likewise questioned whether corn ethanol was really “under attack” and argued that “Vested interests want to double-down on endless growth in corn ethanol, but they have lost sight of the long game amidst a tangled web of conflict-of-interest.”  

President Barack Obama delivered a prime-time televised address last night to explain his new executive order on immigration. The order would remove the threat of deportation for an estimated 5 million of the 11 million immigrants who came to this country illegally. After the jump I’ve posted the full text of the president’s speech, as well as reaction from some members of Iowa’s Congressional delegation and several advocacy groups. I will update this post as needed.

Last year, Iowa’s U.S. senators split when the Senate approved a comprehensive immigration reform bill, which has never come up for a vote in the U.S. House. Just before Congress adjourned for five weeks this summer, Iowa’s representatives in the House split on party lines over a border security funding bill bill designed to speed up deportations of unaccompanied children entering this country. Likewise, Tom Latham (IA-03) and Steve King (IA-04) voted for and Bruce Braley (IA-01) and Dave Loebsack (IA-02) against a separate bill that would have reversed the president’s policy (announced two years ago) to suspend deportations of some undocumented immigrants who were brought to this country as children. Click here for background on those bills.

Note: King has been all over the national media the last couple of weeks, as journalists and pundits have discussed the president’s expected action on immigration. Over the summer, King raised the prospect that Obama could be impeached over unilateral action on immigration. But as you can see from statements posted below, more recently he has not advocated impeachment. Instead, King has called on Congress to defund the federal agencies that would carry out Obama’s executive order. Unfortunately for him, that approach is “impossible.”

Both Hillary Clinton and Bill Clinton have expressed support for Obama’s executive order in the absence of Congressional action on comprehensive immigration reform.

Several Republican governors who may run for president in 2016 are considering legal action aimed at blocking the president’s executive order. Such a lawsuit could raise the standing of Texas Governor Rick Perry, Louisiana Governor Bobby Jindal, Wisconsin Governor Scott Walker, or Indiana Governor Mike Pence with Iowa conservatives who are likely to participate in the next GOP caucuses. I am seeking comment on whether Iowa Governor Terry Branstad might join this legal action.

The Obama administration is already preparing a legal defense that would include precedent from the U.S. Supreme Court’s 2012 ruling on an Arizona law relating to illegal immigration. Federal officials “have always exercised discretion” in prioritizing cases for deportation.

Depending on where you live in Iowa and who you interact with, you may have some quirky conclusions about how income gets made.  It’s common and correct to conclude that many folks get along with the help of public assistance: many in fact wouldn’t get along at all without public aid.  But most of us don’t have a clue how money gets made in this state, let alone who the recipients of public assistance are.  We go to annual estimates by the U.S. Bureau of Economic Analysis to get the numbers.

Here's how $138.34 billion in 2013 total personal income was divided up: Two-thirds ($91.3 billion) came from total earnings, which are wages and salaries, payments to proprietors, and the value of all employer-supplied benefits like medical insurance and retirement contributions.  Investment incomes (dividends, interests, and rents) made up 18 percent ($24.7 billion).  And transfers – payments by the federal government or, to a lesser extent, state government to individuals either in cash, vouchers, or direct assistance – were 16 percent of state income. 

Stated differently, 84 percent of our incomes came from market activity, and 16 percent came from governmental tranfers.  Market incomes trumped government payments to individuals by a ratio of better than 5 to 1.  

Few members of Congress have done more to link themselves with the “No Labels” movement than U.S. Representative Bruce Braley. He spoke at the group’s launch event in December 2010. He participated in the group’s December 2011 release of a 12-point action plan to “Make Congress Work.” In 2012, Braley co-sponsored “No Budget, No Pay” legislation supported by No Labels; similar language was included in a budget bill President Barack Obama signed the following year. A review of Braley’s voting record on a wide range of issues shows many examples of the Democrat voting with the majority of House Republicans and against most members of his own caucus.

When Braley received the No Labels “Problem Solver Seal of Approval” this July, his U.S. Senate campaign enthusiastically spread the news along with a long list of his bipartisan accomplishments in the House.

It must have come as a shock when No Labels turned around and gave Republican State Senator Joni Ernst the same “Problem Solver Seal of Approval” a few days ago. Just in time for the Senate nominees’ first debate on Sunday, without any bipartisan legislative accomplishments to speak of, Ernst got outside validation for her campaign’s otherwise laughable pivot from the “mother, soldier, conservative” tag line to “mother, soldier, independent leader.” All she had to do to gain equal status with Braley was pay lip service to the No Labels “National Strategic Agenda.”

I’ve long believed that No Labels is an “astroturf” (fake grassroots) movement founded on false premises, and that Democrats who got mixed up with the latest incarnation of Beltway “centrists” were making a mistake. Braley may not be the last to learn this lesson the hard way. Follow me after the jump for more thoughts on No Labels’ wrong-headed policy stands and political choices.  

Governor Terry Branstad and Democratic State Senator Jack Hatch are holding their second debate tonight in Burlington. The discussion will focus on economic issues. C-SPAN is televising the debate (channel 95 in the Des Moines area). I’ll be live-blogging after the jump. I expect to hear a lot of bogus statistics from Branstad about jobs he allegedly created. Reality: no economist or labor market analyst tracks the fake statistic the Branstad administration made up (“gross over the month job gains”). That’s just a fiction to allow Branstad to claim he’s on track to create 200,000 jobs. Also, median incomes in Iowa have not grown significantly.

Any comments about the debate or the governor’s race in general are welcome in this thread.  

Agriculture is and always has been a major part of Iowa’s economy, but given our abundance of world-class farmland, we could do much more to make local food available to Iowans. When the non-profit food advocacy group Strolling of the Heifers introduced its “Locavore Index” two years ago, Iowa ranked second only to Vermont in terms of local food availability. At that time, the index measured per-capita presence of Community-Supported Agricultural enterprises and farmers markets.

Last year, Strolling of the Heifers added a third component to the index: the per capita presence of “food hubs,” those “facilities that handle the aggregation, distribution and marketing of foods from a group of farms and food producers in a region.” Iowa dropped to fifth place on the Locavore Index.

For 2014, Strolling of the Heifers added a fourth component: the percentage of school districts with Farm-to-School programs, according to U.S. Department of Agriculture data. Sadly, only 31 percent of Iowa school districts have a Farm-to-School program, putting us below many states with insignificant agricultural output compared to Iowa. We should be doing better seven years after the state legislature first funded Farm-to-School efforts. While our state is still strong in farmers markets per capita, our national rank on the Locavore Index dropped to tenth.

August and September are arguably the best months to shop at Iowa farmers markets. With peak late-summer produce being harvested around the start of the academic year, it’s a shame more Iowa students don’t have access to fresh, local food. We should have more flash-freezing facilities to make it easier for larger facilities to buy local as well–not just public school districts but also nursing homes, hospitals, colleges and universities. Iowa State University Extension and Outreach “provides technical assistance to school food service staff” in six northeast Iowa counties. Here’s hoping that project will expand statewide.

After the jump I’ve posted the Strolling of the Heifers chart showing all state-level data on local food availability. I added the group’s “10 reasons to consume local foods,” covering economic, health, environmental, and taste benefits. Iowa’s Healthiest State Initiative doesn’t include a strong local food component, although it promotes healthier eating at schools. The Iowa Department of Agriculture and Land Stewardship administers a few Farm-to-School programs and has provided grants for a few dozen schools to start vegetable gardens each year.

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

Sunday’s Des Moines Register includes a good feature by Lauren Mills of IowaWatch.org and the Iowa Center for Public Affairs Journalism. She lays out how payday lenders are “burying Iowans” in debt. Iowa Senate Ways and Means Committee Chair Joe Bolkcom pointed out that the payday lending business model depends on “locking people into this cycle of debt.” Previous research has indicated that payday lenders cost Iowa consumers about $36 million per year. Mills reports that this industry spends heavily on campaign contributions and lobbying the Iowa legislature. Lobbyists talk a good game about jobs and helping people who need cash for emergency expenses. But think how many more jobs could be created if Iowans living paycheck to paycheck had $36 million more to spend on goods and services, rather than on outlandish “loan shark rates.”

Mills reports that legislation to regulate interest rates charged by payday lenders has been stalled. Bolkcom said Senate Majority Leader Mike Gronstal won’t bring up the bill unless it can pass the Republican-controlled Iowa House. House Majority Leader Linda Upmeyer called that a “convenient excuse” for the Senate not to act. I haven’t noticed her or any other House Republicans acknowledging this problem, though.

The best chance for Iowa lawmakers to address payday lending was during the period when Democrats controlled “the trifecta.” In 2007, the Iowa House and Senate approved, and Governor Chet Culver signed, a bill capping interest rates on car title loans. (Such legislation had been stalled for years when Republicans controlled the Iowa House, although it attracted bipartisan support in both chambers in 2007.) Three years later, Bolkcom and then Iowa House Democrat Janet Petersen made a major push to pass a similar interest rate cap on payday lenders. However, industry lobbyists warned that such a law would put payday lenders out of business, as had happened with car title lenders. A wide range of organizations supported the payday lending reform, including the Iowa Attorney General’s office, the Iowa Catholic Conference, the Child and Family Policy Center, and Iowa Citizens for Community Improvement. But ultimately, the House version of that bill died when conservadem State Representative Mike Reasoner sided with two Republicans to kill it in subcommittee.

Some Iowa local governments, most recently in Waterloo, have passed zoning rules to try to prevent payday lenders from targeting low-income neighborhoods. But state regulations are the only realistic way to stop the cycle of debt perpetuated by lenders who keep borrowers coming back for more high-interest loans and cash advances. Iowans on the edge are paying the price for the legislature’s failure to act years ago.

Cedar Rapids movers and shakers should be pursuing alternative plans for a prime downtown location rejected for a casino license in April. Instead, city leaders have vowed to find a legislative path to their casino dream. Now a former Linn County attorney hopes a court will throw out the Iowa Racing and Gaming Commission’s decision. Rick Smith reports for the Cedar Rapids Gazette,

[Eugene] Kopecky filed a lawsuit this week in Linn County District Court against the commission and the four of five commission members who voted April 17 to deny a state gaming license to casino investor group Cedar Rapids Development Group LLC.

Kopecky, who has practiced law in Cedar Rapids since 1966, said Thursday that his lawsuit seeks a declaratory judgment. He said he wants the court to instruct the commission on the state’s gaming law in a way that would require the commission to revisit the Cedar Rapids casino application and grant a state gaming license.

Kopecky said the state’s gaming law requires voters in a county to approve gaming before a casino is permitted to operate. […]

He said state law doesn’t give the state commission the ability to deny a casino license in one county based on a license in another county, he said.

The fact that voters must approve a plan before a casino can be licensed does not imply that the commission must approve every application for a casino license where a referendum has passed. The Racing and Gaming Commission has denied some two dozen gambling licenses in its 30-year history. There is ample precedent for the commission denying a license based on concerns a new casino would largely cannibalize from existing ones. I’ve seen no evidence that state legislators thought commissioners were exceeding their authority in those cases. I’m not an attorney, but I would be shocked if a court agreed with Kopecky’s interpretation of Iowa statute.

Cedar Rapids Mayor Ron Corbett commented yesterday that he supports the lawsuit. For his part, Kopecky “said his lawsuit could take more than two years to make its way through the Iowa court system if a decision in Linn County District Court is appealed.”

What a shame to waste so much time on a Hail-Mary pass, when Cedar Rapids could be considering other development plans for the downtown space. Richard Florida, a leading expert on urban land use, has written that “urbanists across the ideological spectrum are unanimous” about one thing: “building casinos, especially in an already thriving downtown, is a truly terrible idea.”  

A detailed analysis by the Iowa Policy Project shows that immigrants contribute substantially “to Iowa’s economy both as workers and employers,” and could contribute more “if immigration reform were to make work authorization or a path to citizenship possible” for some undocumented Iowa residents. You can read the full report by Heather Gibney and Peter Fisher here (pdf). I’ve enclosed excerpts from the executive summary after the jump.

One key finding is that contrary to the image fostered by some politicians, undocumented immigrants are not a drain on state or federal budgets. They generate significant revenue for public assistance programs, from which they cannot benefit. Representative Steve King (R, IA-04) is notorious for his demagoguery against “illegals,” but sadly many other Iowa Republican elected officials, including Governor Terry Branstad, have promoted myths about undocumented immigrants taking state benefits.

Commenting on the latest evidence of herbicide-resistant “superweeds” spreading in Iowa, Drake Law Professor Neil Hamilton argued in an editorial this week that we must not embrace “solutions” offered by biotech companies that “will simply repeat our mistakes.”

Hamilton’s appeal was not addressed to any specific person. Yet one Iowan is uniquely positioned to heed his warning: U.S. Secretary of Agriculture Tom Vilsack. As the USDA considers the biotech industry’s “next silver bullet solution” for herbicide-resistant weeds, Vilsack should think hard about the risks, “rather than just believing people who have some shiny new product to sell,” in Hamilton’s words. Vilsack’s record raises doubts about whether he is up to this task.

Sunday’s Des Moines Register carried the latest journalistic exploration of herbicide-resistant “superweeds” on Iowa farmland. The story’s not new: agronomists at Iowa State University anticipated this problem and have been warning farmers for at least 15 years. Various published studies have shown the connection between widespread corn and soybean farming practices and the “rapid selection of 21 species of glyphosate-resistant weeds.”

Industry groups representing conventional growers have repeatedly accused advocates for clean water and sustainable farming of threatening rural Iowans’ way of life. Yet the dominant practices of corn and soybeans growers have accelerated the spread of resistant weeds through natural selection, potentially putting many Iowa farmers out of business in the coming years.

After the jump I’ve posted excerpts from Donelle Eller’s story for the Sunday Register and more background on the herbicide-resistant weed problem. The 2013 Union of Concerned Scientists briefing paper on “The Rise of Superweeds-and What to Do About It” is an excellent starting point.

The Iowa Racing and Gaming Commission voted 3-2 today to grant a casino license for a $40 million project near Jefferson (Greene County) in western Iowa, between Boone and Carroll counties. Residents had overwhelmingly approved a gambling referendum last year, but the outcome was in doubt because the commission recently voted down a casino proposal for Cedar Rapids. According to Dar Danielson’s report for Radio Iowa, the commissioners who opposed the license cited evidence a new casino would largely take business from existing Iowa casinos, and that the Greene County community didn’t need a gambling facility as much as other amenities. The commissioners who favored the license cited the potential economic impact for a rural area.

The Prairie Meadows Racetrack and Casino in Polk County had lobbied the commission to reject Greene County’s application, citing potential impact on its business. Jefferson is a little more than an hour’s drive northwest of the Des Moines metro area. But in casting the decisive yes vote, Racing and Gaming Commission Chair Jeff Lamberti noted,

We have lots of advantages in Polk County and I think we have lots of advantages that are going to come in the future,” Lamberti explained. “We’ve got significant population growth amongst all of our suburbs. We’ve got some good things that are in the work that are pretty historic by Iowa standards. And quite frankly, we have advantages that a lot of other parts of the state don’t have, and quite frankly I think we are going to be just fine.”

Cedar Rapids Mayor Ron Corbett, who has vowed to keep working toward a casino for his city, sounds furious about today’s decision. I’ve posted some of his comments below.  

Yesterday the U.S. Environmental Protection Agency rolled out a proposed rule to reduce carbon emissions from power plants. The full text of the rule and several short fact sheets are available on the EPA’s website. Click here to read EPA Administrator Gina McCarthy’s speech about the new policy. This fact sheet makes the short and sweet case for targeting power plants, “the largest source of carbon pollution in the U.S.” The new policy goal is to “cut carbon pollution from the power sector by 30 percent from 2005 levels” by the year 2030. Other associated benefits: cutting levels of soot and smog in the air by over 25 percent in 2030, and saving money and lives through reducing air pollution. In fact, the EPA estimates $7 in health benefits for every dollar spent to implement the new policy.

While some in the environmental community were hoping for more aggressive carbon reduction targets, the new rule would be a big step in the right direction. For too long, elected officials in Iowa and nationally have ignored evidence that we need to address climate change. Furthermore, coal’s “assault on human health” is immense and under-appreciated.

Iowa political reaction to yesterday’s news was mostly disappointing but not surprising. I’ve enclosed noteworthy comments at the end of this post. But first, let’s examine three reasons Iowans should embrace the EPA’s new rule.  

During the legislative session that just ended, the Iowa House and Senate approved substantial increases in funding for some key environmental programs.

Lawmakers committed to providing $25 million to mark the 25th anniversary of the Department of Natural Resources’ Resource Enhancement and Protection program (REAP) achieved their goal. REAP had only been funded at the $20 million level once before during the past two and a half decades. The REAP money came from three separate bills appropriating funds for the 2015 fiscal year; I’ve posted details after the jump. Many REAP-funded projects have a lasting positive impact on local communities for decades. Click here for more background on the kind of projects REAP has supported around Iowa.

Last month, Linn County Supervisor Brent Oleson posted a guest diary warning about legislative proposals that would indirectly undermine REAP by changing the program’s funding formula. Fortunately, the conference committee agreement negotiated by Iowa House and Senate members did not include that language in the final bill.

Senate File 2349 allocates Rebuild Iowa Infrastructure Fund money, which mostly comes from gambling revenues. That bill included $9.6 million for lake restoration funding during the 2015 fiscal year, a big improvement on the recent past when lawmakers approved just $5.5 million for lake restoration projects. The Rebuild Iowa Infrastructure Fund bill also included $2 million “for the administration of a water trails and lowhead dam public hazard statewide plan.” Just a few years ago, environmental groups including Iowa Rivers Revival were fighting for even $1 million in state funding for rivers. The only downside to the river funding was that the conference committee went with House-approved language allocating the whole $2 million to low-head dam removal and water trails. Iowa Rivers Revival preferred the Senate-passed bill, which contained $1 million for that purpose and $1 million to launch a new Iowa River Restoration Program. You can find the Senate-passed version of Senate File 2349 here and the conference committee report describing agreed changes in detail here (the river funding is discussed on pages 4-5 of the Senate bill).

Governor Terry Branstad hasn’t signed any of these appropriations bills yet, so funding for REAP and Iowa lakes are rivers is not a sure thing. I would be surprised if he item-vetoed any of these appropriations, although in 2011, Branstad vetoed river restoration funds that lawmakers had allocated for fiscal year 2012.

The State Racing and Gaming Commission voted 4-1 this morning against allowing a new casino to be built in downtown Cedar Rapids. Last year Linn County voters approved a casino referendum by a 20-point margin. Even some opponents of the project believed its construction was inevitable, given the political connections of the group hoping to build in Cedar Rapids. However, today’s vote is in line with the precedent of approving gambling licenses only where new casinos would not “cannibalize” from existing ones in Iowa. Four years ago, the Racing and Gaming Commission rejected applications for casino projects in Fort Dodge, Ottumwa and Tama County, despite public approval of all three plans. Multiple studies indicated that the Cedar Rapids casino would draw much of its business from Iowans who now visit casinos in Riverside or Waterloo.

I will update this post as needed with political reaction to today’s vote. Although many Bleeding Heartland readers will be disappointed, I agree with economists who have argued that the “interior casinos” not near Iowa borders do not promote economic development. Meanwhile, new casinos incur significant social costs.

Already I’ve seen several Cedar Rapids residents asking whether the CEO of the Riverside casino will build the waterpark he promised last year, if Linn County voters rejected the casino project. Don’t hold your breath.

UPDATE: In his report for the Cedar Rapids Gazette, Rick Smith noted that Cedar Rapids Mayor Ron Corbett “served in the legislature with three of the five members of the Iowa Racing and Gaming Commission.” Former Iowa House Republican and Iowa Senate Republican Jeff Lamberti both voted no this morning. Dolores Mertz, who used to be the most conservative Iowa House Democrat, was the only commissioner to vote yes.

SECOND UPDATE: Further thoughts and more reaction are after the jump.

Since at least 2007, roughly half of Iowa’s land in agricultural production has been rented or leased rather than farmed by its owner. Farmland values at historically high levels are making it even more difficult for Iowans to pursue a secure career in farming. Almost no one can afford a large parcel of farmland at more than $8,000 per acre (or $10,000 per acre of high-grade land). Banks are rarely willing to lend aspiring farmers the kind of money needed to buy a farm, or to buy out siblings or cousins who inherited parts of the family farm.

Some experts believe Iowa farmland values have peaked, but via Tom Philpott I came across evidence that pressure from large buyers may continue to drive up prices. The Oakland Institute analyzed the trend of Wall Street investors buying farmland in the U.S. As institutional investors pile into this market, Iowa farmland may become increasingly unaffordable.

After the jump I’ve posted a few excerpts from the Oakland Institute‘s report, but I recommend downloading the whole piece to see supporting charts and references.

The trend toward absentee landlords owning Iowa farms is one among many reasons we can’t rely on purely voluntary efforts to protect soil and water quality. Tenant farmers have no incentive to spend money on conservation practices to improve land for the long-term. Landowners (whether they be Wall Street firms or individual investors) are often looking for the highest rent this year, not farming practices that preserve soil fertility and keep excess nutrients out of waterways.  

The Winneshiek County seat of Decorah has a well-deserved reputation as one of Iowa’s most environmental-minded towns. Organic farmers and gardeners from all over the country have long relied on Seed Savers Exchange as a source for heirloom vegetable seeds and herbs. Two years ago, Luther College installed Iowa’s largest solar array. Small-scale renewable energy allows a growing number of people in the Decorah area to live “off the grid.”

This month, the non-profit group Iowa Rivers Revival honored Decorah for “efforts by the city and its many partners to make the Upper Iowa River the heart and soul of the community and a focus for recreation, economic development, and environmental stewardship.” The news release I’ve enclosed below highlights an impressive range of programs and projects, which have made the Upper Iowa River both cleaner and more usable for locals and tourists. Here’s hoping many other city leaders and Iowa school districts will learn from Decorah’s success.

UPDATE: The April edition of Smithsonian magazine ranked Decorah as number 19 on its list of America’s 20 “best small towns” to visit. The story noted, “Decorah sits in the heart of Iowa’s bluff country, an area heralded for scenic beauty and wildlife. Dunning Springs, just minutes from downtown Decorah, is a 200-foot waterfall-visitors can explore the area by bike or via a network of hiking trails.”