In an ideal world, evidence that more than half of Midwest rivers and streams can’t support aquatic life would inspire policy-makers to clean up our waterways. Rivers that are suitable for swimming, fishing, and other recreation can be a huge economic engine for Iowa communities.

We live in Iowa, where most of our lawmakers take the Patty Judge view: “Iowa is an agricultural state and anyone who doesn’t like it can leave in any of four directions.”

Yesterday the Iowa House approved a bill to relax manure storage regulations for large confined animal feeding operations (CAFOs). All of the House Republicans and two-thirds of the Democrats supported this bad legislation. Details on the bill and the House vote are below.

Representative Bruce Braley’s campaign for the U.S. Senate has steadily rolled out endorsements this month. Eight labor unions have backed Braley’s Senate bid so far, joined today by Iowa Attorney General Tom Miller and Iowa State Treasurer Michael Fitzgerald.

Since Braley lacks any competition in the Democratic primary, these endorsements aren’t newsworthy at face value. However, a closer look at the announcements points to five major themes the Braley campaign will highlight over the next 19 months.

UPDATE: Added a sixth theme below.

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

Governor Terry Branstad didn’t draw the right lessons from Indiana’s experience when he proposed his Healthy Iowa Plan as an alternative to expanding Medicaid. Below I’ve posted excerpts from Laura Hermer’s recent commentary on the Healthy Indiana Plan.

Iowa’s top economic development official, Debi Durham, still can’t answer basic questions about why the state offered more than $100 million in tax incentives to a company that was going to build a fertilizer plant in Iowa anyway. Follow me after the jump for Durham’s non-responsive response on the Orascom deal during this week’s “Iowa Press” program.

Speaking of which, the Branstad administration is stonewalling Iowa Watchdog reporter Sheena Dooley’s efforts to obtain more information about the Orascom deal.

UPDATE: For the hundredth time, family budgets are not comparable to the federal budget. Plus, Michael Tomasky summarizes three basic principles of fiscal policy that should be conventional wisdom already: “Modest deficits are perfectly sustainable. Budget cutting, far from being ‘responsible,’ hurts the economy. And balanced budgets don’t create jobs-it’s the other way around.”

On Friday the U.S. House approved a bill that would reorganize nearly three dozen federal job training programs into one fund providing job training money to states. Iowa’s four representatives split on party lines.

March 14 is the International Day of Action for Rivers. These stories about water pollution and the economic potential of healthy rivers are worth a read.

Contrary to what agribusiness industry lobbyists would have you believe, a majority of Iowa farmers “support expanding conservation requirements for soil erosion and the control of nitrogen and phosphorous runoff.”

Iowa’s confined animal feeding operations (CAFOs or factory livestock farms) create more untreated manure annually than the total sewage output of the U.S. population.

Aging sewer systems in urban areas also allow too much sewage to leak into watersheds. The I-JOBS infrastructure bonding initiative (signed into law by Governor Chet Culver) included some money to improve sewer systems in Iowa, but we need to do much more on this front.

Iowa Rivers Revival Executive Director Rosalyn Lehman recently published a call to revive Iowa’s rivers in the Des Moines Register. I’ve posted excerpts from her guest editorial after the jump.

The Metro Waste Authority has created an Adopt a Stream website, with “resources to help you organize a stream cleanup in the Greater Des Moines area.”

Dam removal as part of a river restoration project supports local economic activity as well as the environment.

Governor Terry Branstad traveled to Fort Madison yesterday to discuss a fertilizer plant project involving the largest tax incentive package in Iowa history. Previewing a likely theme of his re-election campaign next year, Branstad spun questions over his administration’s handling of the Orascom deal into an attack on Iowa Senate Democrats and the Koch brothers.

Expanding Medicaid in Iowa would add nearly $2.2 billion to the state’s economy, create an estimated 2,362 jobs, and save state government about $1.6 billion, according to a new study. For now, Governor Terry Branstad is sticking to his alternative plan for covering some low-income Iowans, but Senator Tom Harkin predicted last week that federal officials will not approve a waiver for Branstad’s approach.

Follow me after the jump for details on those stories and more about Medicaid in Iowa. I’ve also enclosed a moving personal statement State Senator Mary Jo Wilhelm delivered today about Iowans who can’t afford health insurance.

What’s on your mind this weekend, Bleeding Heartland readers? The Bureau of Labor Statistics released a better than expected jobs report on Friday, but not all the numbers were encouraging. States have continued to cut jobs even after the end of the “Great Recession,” and the “sequester” federal budget cuts will lead to more public-sector job losses later this year. Disappearing state government jobs are a drag on the national economy.

Surprise, surprise: the Iowa Chamber Alliance thinks shoveling more taxpayer dollars to large corporations is the best way to create jobs. The Iowa Policy Project disagrees and points out that Iowa is already writing large subsidy checks to some companies that paid no income tax in 2012. UPDATE: Forgot to mention that Iowa just agreed to give the Principal Financial Group $22.5 million in tax credits for its $285 million renovation plan in downtown Des Moines. Why should Iowa taxpayers underwrite office remodeling for a profitable company? That’s part of the cost of doing business.

Conservatives who think high tax rates can’t coexist with economic prosperity should explain why “the average Canadian household is now richer than an average American household for the first time ever.” My guess is the answer is related to Canada’s efficient, single-payer health care system (no medical bankruptcies or huge out of pocket costs because of health problems).

Senator Tom Harkin has introduced a bill to raise the minimum wage from $7.25 to $10.10 over three years before “before indexing it to keep up with the rising cost of living.” Indexing the minimum wage to inflation should have happened a long time ago.

This is an open thread.

U.S. Transportation Secretary Ray LaHood warned yesterday that air traffic control across the country may be severely disrupted if the “sequester” goes into effect. Budget cuts may prompt the Federal Aviation Administration to shut down air traffic control towers at three Iowa airports as early as April.

CORRECTION: Closing the air traffic control towers would not necessarily shut down all traffic at the affected airports. On the other hand, “many corporations won’t fly into airports that don’t have an active tower.”

Eighteen casinos currently operate in Iowa, but if backers have their way, that number will grow in the near future. Early voting is under way for the March 5 Linn County referendum on a proposed casino in Cedar Rapids.

Meanwhile, this week some people rolled out plans for a new casino in Norwalk (Warren County), just south of the Des Moines metro area. Links and details are after the jump.

Any comments related to expanding casino gambling are welcome in this thread. I tend to agree with Richard Florida, an expert on urban development who made the case against casinos in the Cedar Rapids Gazette not long ago. Florida commented this week that casinos are a good litmus test, showing which self-styled “city builders” are actually “city destroyers.”

The Egyptian company that received the largest tax incentive package in Iowa history has a subsidiary accused of defrauding the federal government out of $332 million, Ryan Foley reported yesterday in a must-read story for the Associated Press. Excerpts from Foley’s article are after the jump, but I strongly recommend reading the whole piece.

Iowa Economic Development Authority Director Debi Durham admitted that the federal lawsuit over improper contracts “did not come up in our due diligence,” which is no surprise. Durham’s negotiating strategy seems to have been not to question anything Orascom executives told Iowa officials. Although Governor Terry Branstad has claimed Iowa landed the fertilizer plant deal “by the skin of our teeth,” evidence suggests Orascom would have invested in Iowa even without generous state and local tax incentives.

Iowa Economic Development Authority Director Debi Durham went to the statehouse yesterday to advocate for more tax credits to use as business incentives during the next fiscal year. She inadvertently revealed that in the negotiating department, she could benefit from wisdom that President Ronald Reagan borrowed from a Russian proverb.

The non-profit organization Iowa Rivers Revival announced yesterday that its 2013 River Town of the Year award goes to Central City, a Linn County town on the Wapsipinicon River. Five Iowa towns have previously won the award: Webster City (Hamilton County), Elkader (Clayton County), Coon Rapids (Carroll County), Cedar Falls (Black Hawk County), and Charles City (Floyd County).

Details on Central City’s award are below. At the end of January, a larger city in Iowa will be named River City of the Year.  

Many Iowa Farmers and residents are becoming interested in distributed electrical generation (DG). DG is a broad category, usually consisting of generation installed on Distribution lines (not transmission lines) close to electrical load. Common technologies are Solar PV, Wind Turbines, Fuel Cells, Biomass, etc. Size of systems start with small solar arrays and wind turbines installed on rooftops or farm yards, and continue up to systems of several megawatts constructed near communities or large electric users.

Iowans stand ready to invest in and build these types of renewable energy facilities. However, development of this type lags behind other states and countries, despite the fact that Iowa has excellent wind, solar, and biomass resources. The reason for this is that Iowa lawmakers have not made the policy changes necessary for them to proceed. DG simply needs a fair price for the electricity produced and simple procedures for interconnecting to the electric grid. Iowa lawmakers have declined to take this issue up for several years, fearing the wrath of the utility lobby. Since 2005, Iowa legislators have only been willing to encourage DG in Iowa with several, mostly ineffective incentive programs. The main programs are a tax credit program passed in 2005 to encourage distributed wind energy and a tax credit for solar PV passed in the 2012 legislative session. DG systems need fair treatment from Iowa Utilities, not subsidized, in order to move forward.

Let’s look a little deeper.  

A new study by the Center on Budget and Policy Priorities shows that the gap between the richest and poorest Americans grew substantially during the last decade, both in Iowa and across the country. The authors used “the latest Census Bureau data to measure post-federal-tax changes in real incomes among high-, middle- and low-income households in each of the 50 states and the District of Columbia at four points: the late 1970s, the late 1990s, and the mid-2000s – similar points (“peaks”) in the business cycle – and the late 2000s.”

Click here to read the full report and view data from each state. After the jump I’ve posted the key findings about income inequality in Iowa, where the average incomes among the richest 5 percent of households are 3.5 times as large as the average incomes in the middle 20 percent and 8.7 times as large as average incomes in the bottom 20 percent of households. Speaking to the Public News Service, Elizabeth McNichol of the Center on Budget and Policy Priorities explained why growing income inequality is bad for the economy as a whole.

More than 100 scientists and researchers from 27 Iowa colleges and universities have signed a new statement on the relationship between climate change and weather extremes like the drought of 2012.

Yesterday Local 61 of the American Federation of State, County and Municipal Employees (AFSCME) released its first proposal for the next two-year contract covering roughly 20,000 state employees in Iowa. I’ll be shocked if these contract talks don’t end up in arbitration.

I planned to write several posts this fall about the third Congressional district race between Representatives Tom Latham and Leonard Boswell. Instead, every time I sat down to write about the campaign, I found myself turning to other topics. Central Iowa radio and television stations have been so over-saturated with cookie-cutter attack ads against both candidates. If a political junkie like me finds it off-putting, I can’t imagine how disengaged other people feel when they hear the beginning of yet another negative commercial.

Neither Latham nor Boswell has offered a compelling case for re-election, but after the jump I review the main messages from both campaigns and from various outside groups that have been advertising in Des Moines and Omaha.

After landing significant state and local tax incentives, a large corporation confirmed plans yesterday to expand its fertilizer plant in Port Neal (Woodbury County). Officials hailed the “single largest capital investment” in Iowa history, eclipsing the $1.4 billion fertilizer plant project announced in September for Lee County.

More details and reaction to the CF Industries project are after the jump.

Four new Iowa polls were released during the past 24 hours, and both Barack Obama’s and Mitt Romney’s campaigns have scheduled multiple rallies in Iowa this week. Follow me after the jump for clips on those stories and related news.

Any comments about the presidential race are welcome in this thread.

UPDATE: Added another poll below and excerpts from a new Romney campaign memo on Iowa.

Republican Mitt Romney leads President Barack Obama in Public Policy Polling’s latest survey of likely voters in Iowa by 49 percent to 48 percent. For Romney, that’s a big improvement since PPP polled Iowa in late September and a much better finding than yesterday’s poll from NBC/Wall Street Journal/Marist.

PPP’s new poll also suggests Iowa Supreme Court Justice David Wiggins might not be retained. More details are below.

UPDATE: On October 21, PPP released a different Iowa poll conducted during the same period, which showed Obama leading Romney by 49 percent to 48 percent. I’ve added excerpts from that polling memo at the end of this post.

The Iowa Department of Natural Resources has denied a request to extend the public comment period on the air permit for a large fertilizer plant to be constructed in southeast Iowa. Wallace Taylor, a Cedar Rapids attorney representing Lee County citizens who oppose the project, asked for a 60-day extension to the October 19 deadline for submitting comments. He cited the complexity of the Iowa Fertilizer Company’s permit application, which involves “unique processes, numerous sources and pollutants, and 23 separate draft permits.”

Taylor gave me permission to publish the relevant e-mail correspondence with DNR Director Chuck Gipp below. He added that he had “never seen the DNR deny a request to extend a comment period before, especially in a case like this.”

Governor Terry Branstad and state economic development officials offered the Egyptian firm Orascom the largest incentive package in Iowa history to build the fertilizer plant in Lee County. Iowa Senate Ways and Means Committee Chair Joe Bolkcom has argued that taxpayers “got taken to the cleaners” on the deal, since Orascom would have built its factory in Iowa even without incentives totaling more than $1 million per permanent job created. An Illinois economic development official told the Quad-City Times that the state of Illinois “never put an offer [to Orascom] on the table. We recognized early on that Iowa’s bid was excessive, and we were not going to engage in a bidding war.”

Republican presidential nominee Mitt Romney stopped in Iowa yesterday to push his economic and farm policies. However, his comments on abortion during an interview with the Des Moines Register overshadowed his speech to supporters at a rally in rural Van Meter (Madison County).

UPDATE: Added the fuller version of Romney’s remarks and Paul Ryan’s reaction below.

Republican nominee Mitt Romney and President Barack Obama face off in their first debate tonight, beginning at 8 pm central time. I’ve posted a few links related to the presidential race after the jump and will update during and after the debate. I don’t expect any major fireworks or gaffes.

Any comments about the debate or the presidential election in general are are welcome in this thread.

I thought Mitt Romney made a strategic error in choosing Paul Ryan as a running mate. However, after listening to clips from Ryan’s campaign stops in eastern Iowa Monday and yesterday, I can see why many consider Ryan an asset to the Republican ticket.

The non-profit organizations 1000 Friends of Iowa and Iowa Rivers Revival are accepting nominations for this year’s Best Development Awards and Iowa River Town of the Year. More details are after the jump.

Iowa Senate Ways and Means Committee Chair Joe Bolkcom asserted today that state and local tax dollars were “wasted” on a deal to lure a company to build a fertilizer plant in Lee County, because the Orascom corporation already had huge financial incentives to build in Iowa.

Boring, cookie-cutter commercials may not help candidates like Republican John Archer much, but at least they do no harm. The same can’t be said for Representative Dave Loebsack’s latest tv ad, unless picking a fight with a major employer in your district has some upside I’m missing.

The more I read about Beef Products Inc.’s defamation lawsuit against ABC News over its “pink slime” reporting, the more I’m convinced the maker of lean finely textured beef should not have taken this public relations battle to court.

Republican Vice Presidential nominee Paul Ryan campaigned in Des Moines yesterday, while Vice President Joe Biden kicked off a two-day swing through Iowa in Burlington. I’ve enclosed highlights from both men’s speeches after the jump. I’ll update this post later with clips from Biden’s events today in Ottumwa and Grinnell.

One of Republican Mitt Romney’s latest television commercials in Iowa asserts that cutting government spending and eliminating the federal deficit will create 130,000 jobs in Iowa. Meanwhile, in states with more military bases and defense sector industry, Romney campaign advertising promises to create hundreds of thousands of jobs by reversing planned cuts in defense spending.

Three days after proudly announcing the largest set of tax incentives Iowa has ever offered to a corporation, Governor Terry Branstad criticized President Barack Obama’s “penchant for trying to pick winners and losers in the marketplace.”

Public-sector jobs continue to decline, and private-sector job growth is not nearly strong enough to make a significant dent in the national unemployment rate, according to the latest monthly jobs report from the U.S. Bureau of Labor Statistics. On the contrary, another recession is well within the range of possibilities for the coming year. Equally worrying, there appears to be no chance of passing another government stimulus package, no matter who wins the presidential election.

President Barack Obama just finished officially accepting the Democratic nomination for president. Normally I am not a fan of his speaking style, but that was one of his best performances in my opinion–better than the celebrated “Yes We Can.” Given how well Michelle Obama and Bill Clinton did earlier this week, I will be surprised if Obama doesn’t get a bump out of this convention. However, I don’t know what the television ratings have been like this week. Far fewer people watched this year’s Republican convention than in 2008.

Any comments about the presidential election are welcome in this thread. I’ll update the post later with more links related to the Iowa delegation and other speeches in the convention hall today. UPDATE: Links and clips are now after the jump.

Voting for the so-called “failed stimulus” has become a stock phrase in Republican attack ads against Congressional Democrats. But as Bleeding Heartland has discussed many times before, the “Great Recession” would have been more devastating without the 2009 American Recovery and Reinvestment Act.

State budget cuts are a huge drag on the economy. Follow me after the jump for a picture that’s worth a thousand words on how a favorite conservative punching bag helped soften the recession’s impact in Iowa.

Hope the Bleeding Heartland community has been enjoying the long holiday weekend. This is an open thread. I’ve enclosed some Labor Day-related links after the jump, including an excerpt from the Iowa Policy Project’s recent report on wage theft, which “deprives low-wage Iowa workers of an estimated $600 million, deprives state and local government of revenue, and puts law-abiding businesses at a competitive disadvantage.”

Some politicians at the federal and state level would have you believe that rules intended to protect public health and the environment are “job-killing regulations.” Congressional Republicans and some Democrats have voted several times to block air quality rules that would force certain industrial plants to retrofit. Although the Obama administration has enacted promising rules to reduce air pollution from coal-fired power plants, President Barack Obama has occasionally validated Republican scaremongering over pollution regulations. For instance, he delayed new smog rules from going into effect in 2011, citing a concern for “reducing regulatory burdens and regulatory uncertainty, particularly as our economy continues to recover.”

The reality of pollution control looks different. It looks like hundreds of construction workers getting a job, and Ottumwa-area businesses reaping the benefits.

Iowa’s five U.S. House members helped approve one of Representative Ron Paul’s top legislative priorities yesterday.  

Most parts of Iowa are experiencing the worst drought conditions since 1988. Ten links on the drought and its consequences are after the jump. Any relevant comments are welcome in this thread.  

After failing to deliver on its promises, a Cedar Rapids company has agreed to pay back–with interest–a $250,000 loan the Iowa Economic Development Authority awarded last year. Solid reporting by a local journalist may have made the difference between this case and the sad story from Webster City, which Bleeding Heartland discussed here.