# Federal Stimulus



Exploring Paul McKinley's fantasy world

If Iowa Senate Minority Leader Paul McKinley believes the spin he serves up to journalists and the Republican Party faithful, he must have an active imagination.

I don’t know which is most detached from reality: McKinley’s take on Iowa’s finances, his views on “state sovereignty” or his election predictions.

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Braley, Loebsack co-sponsoring new jobs bill

Representatives Bruce Braley and Dave Loebsack are among 105 co-sponsors of H.R. 4812, the Local Jobs for America Act. The bill “would provide direct funding to local governments to create, restore or save up to one million public and private jobs for the next two years.” According to the House Education and Labor Committee, the bill includes “$75 billion over two years to local communities to hire vital staff” and “[f]unding for 50,000 on-the-job private-sector training positions.” Some provisions that the House of Representatives approved in separate legislation are included in this bill too, such as $23 billion to “help states support 250,000 education jobs” and extra money for law enforcement and firefighters. Groups endorsing the bill include the U.S. Conference of Mayors.

Job creation needs to remain a top priority, because the latest recession saw the most severe employment drop the U.S. has experienced in the last seven decades. Congress recently approved a small jobs bill focused on tax credits and Build America Bonds, but direct support for state local budgets would probably have more stimulative effect. As the Center for Budget and Policy Priorities has warned, government spending cuts “are problematic policies during an economic downturn because they reduce overall demand and can make the downturn deeper.” If the federal government can soften the blow for state and local governments, the risk of a double-dip recession will be reduced.

I am seeking comment from Representative Leonard Boswell’s office about why he’s not co-sponsoring H.R. 4812 and will update this post when I hear back.

End of 2010 legislative session thread

The Iowa House and Senate adjourned for 2010 today, wrapping up the legislative session in just 79 days. In the coming weeks I will post about various bills that passed or failed to pass during the session. For now, you can read wrap-up posts at Iowa Independent, IowaPolitics.com, the Des Moines Register and Radio Iowa.

Democratic legislative leaders said the House and Senate “succeeded in responsibly balancing the budget without raising taxes while laying the groundwork for Iowa’s economic recovery.” Governor Chet Culver described the session as “a real victory for Iowans, particularly hardworking Iowa families.” He also hailed passage of an infrastructure bill including the final installment of the I-JOBS state bonding program. AFSCME Iowa Council 61 praised several bills that passed this year, such as the government reorganization bill, the early retirement program and a budget that saved many public employees’ jobs.

Republicans and their traditional interest-group allies saw things differently, of course. House Minority Leader Kraig Paulsen, Senate Minority Leader Paul McKinley and Iowans for Tax Relief all emphasized the use of one-time federal dollars to help cover state spending. Their talking points have made headway with Kathie Obradovich, but the reality is that much of the federal stimulus money was intended to backfill state budgets, and rightly so, because severe state spending cuts can deepen and prolong an economic recession.

Overall, I am not satisfied with the legislature’s work in 2010. Despite the massive costs of reconstruction after the 2008 floods, legislators lacked the political will to take any steps forward on floodplain management. Despite the film tax credit fiasco, not enough was done to rein in tax credits. Many other good ideas fell by the wayside for lack of time during the rushed session. (It strikes me as penny-wise and pound-foolish to save $800,000 by shortening the legislative calendar from 100 to 80 days.) Some other good proposals got bogged down in disagreements between the House and the Senate. Labor and environmental advocates once again saw no progress on their key legislative priorities, yet this Democratic-controlled legislature found the time to pass the top priority of the National Rifle Association. Pathetic.

On the plus side, the 2011 budget protected the right priorities, and most of the projects funded by the infrastructure spending bill, Senate File 2389, are worthwhile. Some good bills affecting public safety and veterans made it through. In addition, Democrats blocked a lot of bad Republican proposals. Credit must also go to the leaders who held their caucuses together against efforts to write discrimination into the Iowa Constitution.

Any relevant thoughts are welcome in this thread.

UPDATE: Read Todd Dorman on the Iowa House’s “parting gift to local government officials who like to play secret agent on your dime.”

Hey, Republicans: Bruce Braley can multitask

The Democratic Congressional Campaign Committee confirmed yesterday that Representative Bruce Braley will co-chair the DCCC’s “Red to Blue” program this year. Red to Blue candidates are Democratic challengers seeking to win Republican-held House districts. DCCC Chairman Chris Van Hollen noted this week that even in a “tough cycle for Democrats,”

The DCCC is focused on not only protecting our threatened incumbents, but also staying aggressively on offense. The talented leadership of our battle-tested Red to Blue chairs Bruce Braley, Allyson Schwartz, Patrick Murphy, and Donna Edwards will ensure Democratic candidates have the infrastructure and support they need to be successful.

The Republican Party of Iowa responded with a boilerplate statement accusing Braley of being loyal to “San Franciscan Speaker of the House Nancy Pelosi” instead of the citizens of Iowa’s first Congressional district. Their attacks on Braley’s record could hardly be more misleading.  

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Republican hypocrisy watch: stimulus money edition

The conservative Washington Times newspaper noticed yesterday that some vocal opponents of last year’s stimulus bill haven’t been walking the walk:

More than a dozen Republican lawmakers, while denouncing the stimulus to the media and their constituents, privately sent letters to just one of the federal government’s many agencies seeking stimulus money for home-state pork projects.

The letters to the U.S. Department of Agriculture (USDA), obtained through the Freedom of Information Act, expose the gulf between lawmakers’ public criticism of the overall stimulus package and their private lobbying for projects close to home.

“It’s not illegal to talk out of both sides of your mouth, but it does seem to be a level of dishonesty troubling to the American public,” said Melanie Sloan, executive director of the watchdog group Citizens for Responsibility and Ethics in Washington.

The Washington Times learned that Iowa’s senior Senator Chuck Grassley

was yet another lawmaker who voted against the stimulus and later backed applications for stimulus money in two letters to the Agriculture Department.

“If the funds are there, Senator Grassleys going to help Iowa, rather than some other state, get its share,” spokeswoman Jill Kozeny said.

Iowa Democratic Party chair Michael Kiernan commented in a statement, “Someone needs to tell Chuck Grassley that you can’t have your cake and eat it too. You can’t vote against something and then take credit for the funds coming to Iowa.”

Sure he can, and he’ll keep doing that until Iowa journalists report that Grassley was against the spending before he was for it.

Longtime Bleeding Heartland readers may recall that Representatives Tom Latham (IA-04) and Steve King (IA-05) have played this game too. Last March, Latham bragged about earmarks he inserted in the 2009 omnibus spending bill he voted against. King sought out favorable publicity for stimulus money allocated to widen U.S. Highway 20 in northwest Iowa, even though he voted against the stimulus bill. Those actions earned King and Latham spots on the Democratic Congressional Campaign Committee’s “Hypocrisy Hall of Fame.” It’s not an exclusive club, though: 71 House Republicans have already been inducted.

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Congratulations to the Iowa Renewable Energy Association

The Iowa Renewable Energy Association announced Friday that it will receive $100,000 in federal stimulus money awarded by the Iowa Office of Energy Independence.

I-Renew will receive $100,000 under the training and information program to expand its staff in order to provide training related to wind, solar, and solar thermal in at least 24 workshops over the next two years. Introductory and advance level courses will be offered. […]

In addition, I-Renew will coordinate with Midwest Renewable Energy Association (MREA) to ensure that workshops of­fered by I-Renew fulfill the prerequisites for the MREA intermediate and advanced offerings.

For years, I-RENEW has run workshops for homeowners on installing renewable energy technology. The new workshop series will focus on training professional installers, who will be able to provide that service for many more Iowa homes and buildings. Lots of people who aren’t DIY types may be interested in having a wind turbine or solar panels on their property.

This program is only one small part of the federal stimulus bill, but it will yield long-term benefits in terms of cost and energy savings.

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Year in review: national politics in 2009 (part 1)

It took me a week longer than I anticipated, but I finally finished compiling links to Bleeding Heartland’s coverage from last year. This post and part 2, coming later today, include stories on national politics, mostly relating to Congress and Barack Obama’s administration. Diaries reviewing Iowa politics in 2009 will come soon.

One thing struck me while compiling this post: on all of the House bills I covered here during 2009, Democrats Leonard Boswell, Bruce Braley and Dave Loebsack voted the same way. That was a big change from 2007 and 2008, when Blue Dog Boswell voted with Republicans and against the majority of the Democratic caucus on many key bills.

No federal policy issue inspired more posts last year than health care reform. Rereading my earlier, guardedly hopeful pieces was depressing in light of the mess the health care reform bill has become. I was never optimistic about getting a strong public health insurance option through Congress, but I thought we had a chance to pass a very good bill. If I had anticipated the magnitude of the Democratic sellout on so many aspects of reform in addition to the public option, I wouldn’t have spent so many hours writing about this issue. I can’t say I wasn’t warned (and warned), though.

Links to stories from January through June 2009 are after the jump. Any thoughts about last year’s political events are welcome in this thread.

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Iowa turning stimulus road funds around quickly

The U.S. House Transportation and Infrastructure Committee has been keeping track of how states are spending the stimulus funds allocated for roads. On September 2 the committee released a report ranking the states according to how much of the American Recovery and Reinvestment Act funding for highways and bridges had been put to work as of July 31. This pdf file contains the state rankings.

Iowa ranked second overall, having put 75 percent of its stimulus road funds to work by the end of July. Join me after the jump for more details from the report and analysis.  

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Cleaner water: tangible benefit of stimulus and bonding bills

Water quality has long been one of Iowa’s biggest environmental problems. Fortunately, the state plans to spend some $455 million cleaning up Iowa rivers and lakes, according to an excellent piece by Perry Beeman in the May 10 edition of the Des Moines Register:

After decades of struggling to address serious pollution problems, the state now has an unprecedented pool of state and federal money to solve some of its worst water-quality problems, said Charles Corell, the water chief of the Iowa Department of Natural Resources.

One of the biggest impacts: improved sewage treatment and septic systems in the 500 towns and rural subdivisions that don’t have any. […]

Much of the new money for water quality was approved last month by the Iowa Legislature as part of a huge bond package pushed by Gov. Chet Culver. Other money was awarded as part of flood recovery efforts.

Money for lake restorations – including popular spots like Clear Lake in Cerro Gordo County and Carter Lake in Pottawattamie County – will more than quadruple. Many predict the much larger pool will fuel recreation opportunities and improve local economies. […]

“You essentially have untreated or under-treated sewage getting into waterways,” said Corell, who visited Truesdale and Greenville on Thursday to discuss proposed sewer projects. “And it’s all the time, not just when it rains.”

After the jump I have posted details Beeman compiled about the new money that will be used to improve water quality in Iowa. A large sum came from the federal economic stimulus bill, which didn’t get a single Republican vote in the House of Representatives. Another major source is the I-JOBS bonding initiative, which passed the Iowa House and Senate last month with no Republican votes.

Republicans keep bashing the federal stimulus spending and the state-level borrowing, as if no Iowans will benefit from these policies (aside from the few thousand people who will work on the projects). One typical example was the e-mail blast Iowa Senate Republican leader Paul McKinley sent out last week. You won’t find it on the comically awful Iowa Senate Republicans website, which appears not to have been updated since April 16. However, I receive “McKinley’s Memos” via e-mail, and I’ve posted the May 15 edition after the jump to give you a flavor of current Republican ideology.

I addressed most of the points McKinley raises in this post. The Party of No’s indiscriminate stance against borrowing fails to recognize that when interest rates are relatively low, bonding to pay for worthwhile projects is a wise investment. It may be hard to assign a dollar value to reducing water pollution in Iowa, but that doesn’t mean it’s not important for human health, biodiversity and local economies.

Hundreds of thousands of Iowans will benefit from the clean water projects discussed in Beeman’s article. If Republicans had their way, the sewer improvements and lake cleanups wouldn’t happen for years, if ever.

Please share your own thoughts about penny-wise and pound-foolish conservative dogma in this thread.

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