I’ve never seen a bigger disconnect between Iowa Democratic Party donors and activists than in their attitude toward Dr. Andy McGuire as a candidate for governor.

I’ve never seen a bigger disconnect between Iowa pundits and activists than in their assessment of McGuire’s chances to become the Democratic nominee.

Since McGuire rolled out her campaign three weeks ago, I’ve been thinking about how she might persuade enough rank-and-file Democrats to support her in a crowded gubernatorial field. I’m stumped.

Iowa is one of only twelve states with no limits on individual contributions to state-level races. John Norris is challenging Democrats who run for governor in 2018 to “lead by example,” adopting federal campaign contribution limits (capped at $2,700 per person) for the primary election.

Speaking to Democratic activists in Panora (Guthrie County) on April 27, Norris also urged gubernatorial candidates to agree to keep their primary election spending below $1.5 million, saying, “We should campaign on the power of our ideas and spend our time talking to Iowans and not chasing money from wealthy special interests.” I enclose below a longer excerpt from his speech.

Norris will decide soon whether to run for governor. Democrats Rich Leopold, Jon Neiderbach, and Dr. Andy McGuire are already running, likely to be joined by State Representative Todd Prichard, State Senator Nate Boulton, Fred Hubbell, Mike Matson, and/or Mike Carberry (though many Democrats expect Carberry to seek re-election as Johnson County supervisor instead).

Among those candidates, McGuire, Boulton, and Hubbell are the only ones well-positioned to collect many campaign donations larger than $2,700. McGuire recently completed a two-year stint as Iowa Democratic Party chair, during which she solicited many four-figure and five-figure gifts. Roxanne Conlin is among McGuire’s most prominent endorsers. Boulton raised a considerable amount for his first campaign in 2016 and is expected to have strong support from labor unions and attorneys if he joins the field. Hubbell is independently wealthy, having donated $30,000 to the state party during the 2016 cycle, as well as four-figure sums to some other Democratic campaigns. He is rumored to have the support of other central Iowa major donors including Bill Knapp, who gave the Iowa Democratic Party more than $60,000 during the last two years alone. (You can search any individual’s Iowa political donation history here.)

Neiderbach has made campaign finance reform a major theme of his early stump speeches and has promised not to accept any contribution exceeding $500. Leopold speaks often of the need to break the grip “expensive consultants, corporate lobbyists and powerful special interests” have on Iowa’s “insider elite political class.” Bleeding Heartland will soon publish an in-depth interview with Leopold that touches on similar themes.

UPDATE/CLARIFICATION: Former Iowa Democratic Party executive director Norm Sterzenbach, who has been advising Prichard in recent months, noted in response to this post that both Norris and Prichard have networks outside traditional Iowa donors. Point taken, and I did not mean to imply that other gubernatorial candidates would be unable to raise contributions larger than $2,700. Prichard’s leadership team includes some political heavyweights. Norris has years of experience fundraising for Iowa Democrats and connections to many potential out-of-state donors, due to his past work in President Barack Obama’s administration and with nationally-known Democratic operatives like David Plouffe.

Reacting to this post on Facebook, Neiderbach commented, “Do we want a Governor beholden to the voters – especially those who have historically been marginalized or ignored – or beholden to the rich, to big business, and to other special interests? Couldn’t the money spent on endless TV ads and campaign consultants better be spent donated to food banks and homeless shelters and our underfunded schools? Spending $1.5 million on a primary is obscene. Voters are tired of it. I urge all candidates to follow my lead and limit all donors to $500, telling those who would donate more to feed the hungry, house the homeless, and educate our students.”

Following up on my review of news from the first half of last year, I’ve posted links to Bleeding Heartland’s coverage of Iowa politics from July through December 2009 after the jump.

Hot topics on this blog during the second half of the year included the governor’s race, the special election in Iowa House district 90, candidates announcing plans to run for the state legislature next year, the growing number of Republicans ready to challenge Representative Leonard Boswell, state budget constraints, and a scandal involving the tax credit for film-making.

On Monday Governor Chet Culver appointed Bret Mills as the new director of the Iowa Department of Economic Development. Mills will replace Fred Hubbell, who agreed to serve as interim IDED director this fall after Mike Tramontina resigned due to problems with Iowa’s film tax credit.

Up to now, Mills has been director of the Iowa Finance Authority. Also on Monday, Culver appointed Joe O’Hern to replace Mills as IFA director. For the last three months, O’Hern has been interim deputy director of IDED.

In addition, Culver announced plans to move the HOME Investment Partnership program from IDED to the Iowa Finance Authority: “This not only will help streamline our housing efforts, but it will ensure that IDED is staying true to its mission: attracting new businesses, growing current companies, and retaining and creating jobs statewide.”

The press release from the governor’s office contains more background on the HOME program and short official bios of Mills and O’Hern. Given their qualifications, they should have no trouble being confirmed by the Iowa Senate.

The film tax credit fiasco sparked the turmoil at IDED, and the department won’t issue new credits under that program for the remainder of this fiscal year. However, film credits already awarded will cost taxpayers tens of millions of dollars.

The upside is that all state tax credits are being subjected to much more scrutiny. Debates about scrapping or scaling back some of the business tax credits will be among the most contentious issues of the 2010 legislative session. Ordinarily, I would not expect legislators to defy any well-funded corporate interests, but this year the budget is so tight that I see no way they can continue with the status quo. Lee Rood reported for the Des Moines Register earlier this month:

Iowa’s incentives for filmmaking may have been the most generous in the country, but they were not the first of the state’s tax credits to skyrocket in cost.

Over the years, other carrots offered by the state to stimulate job creation, development and research have grown dramatically – while sometimes being subject to limited oversight.

A Des Moines Register review of some of the state’s biggest tax credit incentives found state leaders had reason to worry about runaway costs, lack of transparency and waste long before Iowa’s botched attempt at using tax breaks to jump-start a film industry made international news.

That review found the state auditor had identified almost identical oversight problems in another tax credit program; state law required almost no outside oversight of some of the biggest credit programs; and authorities already knew that a portion of projects that tapped the most widely used programs had problems […]

In yesterday’s Register, Rood reviewed five tax credits that “could cost the state more money over the next five years than the film-making tax incentives […] for research, job training, historic preservation, development in distressed areas and high-quality jobs.”  

Iowa Democratic Party chair Michael Kiernan spoke confidently today about a “first-round draft pick” who is ready to run against Senator Chuck Grassley, Kay Henderson reported for Radio Iowa.

“I’m going to tell you here today that Chuck Grassley is going to be in for the race of his life.” […]

“You’re just going to have to wait to find out,” Kiernan said this morning during taping of this weekend’s “Iowa Press” program.  “We want to wait ’til, obviously, after Terry Branstad announced his candidacy for governor.”

Kiernan isn’t revealing the characteristics this phantom candidate may have either. “I’ll just wait for the announcement,” Kiernan said.  “You will be impressed.” […]

“I’m here to tell you today that it will be the toughest race that Chuck Grassley has faced since John Culver,” Kiernan said.

Grassley defeated Senator John Culver (Governor Chet Culver’s father) in the 1980 Reagan landslide.

Speaking to reporters after today’s taping, Kiernan said the big-name challenger is “100 percent committed” to this race.

Your guess is as good as mine. A retired politician? Christie Vilsack? A celebrity in a non-political field? Someone from the business world? (Retired Principal Financial Group CEO Barry Griswell has ruled out running, as has Fred Hubbell, the incoming interim director of the Iowa Department of Economic Development.)

Grassley’s approval rating has fallen this year, but it’ll take a lot to convince me that we can defeat him. He’s still got a strong brand name and 30 years of constituent service behind him.

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

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

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

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

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

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

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

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

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

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

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

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

UPDATE: Hubbell told Iowa Independent he’s not interested in running against Grassley.

The Progressive Change Campaign Committee and Democracy for America have produced a new television commercial, which asks which side Chuck Grassley is on:

Click here to donate to help keep this ad on the air in Iowa and Washington, DC.

Speaking of which side Grassley’s on, Monday’s Des Moines Register reports on our senior senator’s massive campaign contributions from health industry interest groups. Thomas Beaumont’s story was based on numbers compiled by Maplight.org.

Meanwhile, Representative Bruce Braley confirmed on Friday that he is running for re-election in Iowa’s first Congressional district. I consider him highly likely to run for U.S. Senate when one of our current senators retires.

Rumors persist that a prominent Democrat will join Bob Krause and Tom Fiegen in challenging Grassley next year. Al Swearengen of The Iowa Republican blog speculates that Fred Hubbell is the mystery candidate. Hubbell currently chairs the Iowa Power Fund Board. From his official bio:

Fred S. Hubbell was a member of the Executive Board and Chairman of Insurance and Asset Management Americas for ING Group. Mr. Hubbell retired from ING Group’s Executive Board effective April 25, 2006. Mr. Hubbell was formerly Chairman, President and Chief Executive Officer of Equitable of Iowa Companies, an insurance holding company, serving in his position as Chairman from May 1993 to October 1997, and as President and Chief Executive Officer from May 1989 to October 1997.

Charlotte Hubbell, Fred Hubbell’s wife, serves on the Environmental Protection Commission.