With less than a month remaining until the start of the 2012 fiscal year, Iowa House Republican leaders have stepped up efforts this week to draft the two-year budget Governor Terry Branstad is demanding. Republicans have drafted an omnibus budget bill combining all the usual appropriations bills, plus a few other things on their legislative wish list. The omnibus bill includes two small gestures toward a compromise with Democrats who control the Iowa Senate. However, Senate Democrats don’t sound ready to accept this package as the final work on state spending for the next two years.

Details and early reaction to this week’s budget news are after the jump.  

Prospects for a passenger rail connection between Chicago and Iowa City do not look good as state budget negotiations continue between Governor Terry Branstad and legislative leaders. Last October, the federal government awarded $230 million toward a rail line from Chicago to Iowa City. The Chicago to Quad Cities portion of the project will go ahead, because the state of Illinois has approved matching funds. However, Iowa House Speaker Kraig Paulsen says House Republicans are still dead-set against allocating state funds in fiscal year 2012 to match the federal grant. Iowa would need to appropriate $10 million, plus approximately $3 million in annual operating subsidies, although local officials in communities that would benefit from the rail link have offered to cover some of the operating funding.

Earlier this month, Representative Bruce Braley (IA-01) urged state legislators not to pass up the chance “to stimulate Iowa’s economy and create jobs by funding the high-speed passenger rail line.” Braley serves on the House Transportation Committee and has long advocated passenger rail between Chicago and Dubuque as well as to the Quad Cities and Iowa City. With Republicans in control of the U.S. House, the federal government is unlikely to make further large investments in passenger rail as part of a transportation bill or an economic stimulus package.

Central Iowa elected officials and business leaders also support the planned line to Iowa City, with the hope that rail would eventually be extended through Des Moines to Council Bluffs/Omaha. This week Democratic State Senator Matt McCoy, who represents part of Des Moines, urged Governor Terry Branstad to get involved and advocate for the passenger rail funds. McCoy argued that the project has economic benefits, is cost-effective and would reduce oil consumption. I’ve posted an excerpt from his editorial after the jump.

Branstad has been saying for months that he opposes state subsidies for rail. (Never mind that roads receive far larger subsidies than train travel.) I had hoped that Chamber of Commerce and Greater Des Moines Partnership types would be able to change Branstad’s mind on this issue. However, the governor told EasternIowaGovernment.com last week that he was “letting them sort that [rail funding] out between the House and Senate.”

Governor Terry Branstad seems to have thrown in the towel on his plan to replace Iowa’s universal voluntary preschool program for four-year-olds, judging from comments he made at town hall meetings today:

The budget impasse has dragged on so long Republican Gov. Terry Branstad doubts it will be possible to implement his plan for restructuring voluntary preschool for Iowa 4-year-olds in the 2011-12 school year.

“At this point in time, I think that’s unlikely to happen,” Branstad said May 24 about his plans to implement a need-based scholarship system that would require all parents to pay at least part of the cost of sending their children to preschool. Parents with higher incomes would pick up a larger share of the cost under his plan.

That was greeted with applause at a Branstad town hall meeting in Elkader and at another in Oelwein Tuesday afternoon.

However, Branstad and House Republicans have not agreed to fund the preschool program, projected to cost about $70 million in the 2012 fiscal year. Lonna Powers, director of a preschool in Oelwein, told Branstad and Lieutenant Governor Kim Reynolds that “it’s questionable whether I can hire certified staff and whether families can afford to send their children” during the coming school year without state funding.

The Republican-controlled Iowa House voted in January to repeal the voluntary preschool program for four-year-olds, but the Democratic-controlled Senate stripped that section out of a major “deappropriations” bill. The House again voted to scale back preschool spending in March, but the Senate did not act on that legislation (House File 535).

Education spending has emerged as the biggest obstacle to a broad budget agreement between House leaders and the governor on the one hand and Senate leaders on the other. Democrats contend that with Iowa projected to have approximately $1 billion in various surplus accounts as of June 30, the state can easily afford the $65 million it would cost to fund 2 percent allowable growth for K-12 school budgets in fiscal year 2012. Democrats also say the governor’s proposed cuts in state funding to public universities, private and community colleges are “severe and unnecessary.” Republicans insist on a general fund budget below $6 billion in fiscal year 2012, which would require some cuts in education spending. After the jump I’ve posted the Senate Democrats’ list of 10 budget areas on which they demand some compromise from Branstad. The top five are all connected to education.

This week the budget negotiations have become more productive, according to Branstad and House Speaker Kraig Paulsen. Notably, I haven’t seen such optimistic comments from leading Senate Democrats. Branstad expects a budget agreement by the first week of June, but if that doesn’t materialize he will stay in Des Moines, sending Reynolds on an Asian trade mission he is scheduled to lead next month.  

Terry Branstad was incensed last year when outgoing Governor Chet Culver quickly agreed to contract terms proposed by AFSCME and other unions representing state employees. Culver signed off on AFSCME’s request for a 2 percent across-the-board raise on July 1, 2011, followed by a 1 percent raise on January 1, 2012, another 2 percent raise on July 1, 2012, and a 1 percent raise on January 1, 2013. Other unions also asked for modest wage increases during the next two fiscal years.

On principle, Branstad felt Culver should have left the negotiating to the person who would be governor during the contract period. As a practical matter, Branstad insisted that the state of Iowa could not afford the salary hikes. He and other administration officials called on public sector unions to renegotiate the contracts, but union leaders refused to come back to the negotiating table.

This week Branstad formally asked the state legislature to give non-union state employees the same pay increases those represented by unions will receive.

While the governor continues to believe this contract spends too much money at a time when the state cannot afford it, there are not two classes of state employees, everyone is together and should be treated the same,” [Branstad’s spokesman Tim] Albrecht said.

The governor has not recommended the state pay for the upcoming salary increases. That means that state departments must find the money elsewhere in their budgets to pay for the salary increases.

House Study Bill 247 provides for the salary increases, as well as a few other things on the governor’s wish list. For instance, the bill would “lift the cap on the salary of Iowa’s economic development director, which Rep. Tyler Olson, D-Cedar Rapids, described as troubling.”

AFSCME and other state employee unions won this round, but count on a bruising battle when it’s time to negotiate contracts covering fiscal years 2014 and 2015. Branstad will resist pay increases and will demand benefit cuts, including substantial employee contributions to health insurance expenses. I wouldn’t be surprised to see the contracts for state employee unions end up in arbitration during the next go-around.

If Republicans gain an Iowa Senate majority in the 2012 elections, union-busting will be high on the agenda. A bill to limit state employees’ collective bargaining rights and curtail binding arbitration passed the Iowa House in March after a marathon floor debate. The bill died in the Iowa Senate Labor Committee.

P.S.–Branstad isn’t getting along much better with private-sector unions. Yesterday the Central Iowa Building and Construction Trades Council and the Cedar Rapids/Iowa City Building Trades Council filed a federal lawsuit seeking to force the governor and other state entities to honor project labor agreements for construction projects in Coralville and Marshalltown.

The Iowa legislature was supposed to adjourn for the year on April 29, but the session could go on for quite some time. The most important unresolved issues relate to the state budget and tax policy: whether legislators will pass spending plans for one fiscal year or two, how much and what kind of tax cuts will be approved, and whether the state will take the unprecedented step of passing no allowable growth for K-12 education budgets. I doubt all of this will be resolved in a week or two. Governor Terry Branstad and Republican leaders in the Iowa House worked out a deal on property tax reform, which cleared the House Ways and Means Committee on Wednesday, but it sounds like that is a non-starter in the Democratic-controlled Iowa Senate. Earlier this month, the Senate passed a $200 million commercial property tax break on a bipartisan 46 to 4 vote. Some Democrats have also warned that the Republican property tax plan usurps local government powers.

This Tuesday, May 3, Linn County residents will be able to vote on whether to extend the one percent local option sales and services tax beyond July 1, 2014. Cedar Rapids would use the local option sales tax revenue “for flood protection, street repairs, and property tax relief.” Click here for more details on the ballot initiative and flood prevention plans.

Cedar Rapids officials have asked state legislators to let the city use $200 million in state sales tax revenues for flood prevention over the next two decades. The idea has some support at the capitol but hasn’t won final approval yet. Peter Fisher of the Iowa Policy Project and Iowa Fiscal Partnership has made a convincing case against this approach to funding flood prevention (see also here).

Iowans for Tax Relief has experienced a mass exodus of high-level staff this month, and the influential conservative group’s most prominent board member resigned as well. I’m sure there’s an interesting back-story, but the latest public communication from Iowans for Tax Relief Chairman Dave Stanley wasn’t enlightening. Maybe the group will turn up on some Republican presidential campaign staff soon.

Good news and bad news came out of the April 27 meeting of the State Board of Regents. The bad news is that students at Iowa State will pay 3 percent more next year for room and board. Those charges will go up 4.3 percent at the University of Northern Iowa and 5 percent at the University of Iowa. The good news is that the University of Iowa will expand its small certificate program for students with intellectual disabilities. Former Iowa Lieutenant Governor Sally Pederson was instrumental in getting that program going; click here for more background.

Speaking of college life, the country’s conservative noise machine was up in arms this week about a dust-up in Iowa City. Anthropology and Women’s Studies Professor Ellen Lewin used an obscene epithet responding to an e-mail from the College Republicans about a conservative “coming out” event on campus. University President Sally Mason has already spoken out against the “bad behavior” by a faculty member. Natalie Ginty, leader of the College Republicans, isn’t satisfied and filed a formal complaint against Lewin, seeking further investigation of the incident. I don’t know what she expects investigators to turn up regarding a hasty “F** You” e-mail. I think we can all agree that faculty shouldn’t communicate with students in that way. The Daily Iowan editorial board got it right in my opinion:

There is no evidence that this was anything more than a momentary lapse in professionalism. Professors, like students, are justified in having their own political perspectives – as long as they do not get in the way of their duties. If Lewin were engaged in a pattern of harassing conservative students, strict punitive measures would be justified; an inappropriately vulgar expression of outrage is another matter. […]

The disproportionate response to this case is indicative of a Manichean partisan culture in which both sides thrive on misplaced martyrdom.

Harsh punitive measures would only serve to legitimize the exaggerated indignation, and our rhetorical culture deserves better.

A simple reprimand would remind Lewin of her duties as a professor: to hold herself as an example of intellectual, professional competence and a model of reasoned argumentation.

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

UPDATE: State Senator Bill Dotzler delivered clever floor remarks on May 2, giving five reasons Iowans for Tax Relief should hire Senate Ways and Means Committee Chair Joe Bolkcom as its next executive director. I’ve posted the case he made after the jump.

Before this year’s legislative session began, I thought the Democrats in the Iowa Senate would more easily find common ground with Governor Terry Branstad than with the Republican-controlled Iowa House. Branstad dealt with a Democratic or divided legislature for 14 of his 16 previous years as governor, while most of the House Republicans weren’t serving in the legislature at that time.

This week Branstad proved me wrong, rejecting key provisions of a compromise bill that passed both chambers unanimously and a Democratic offer to meet him halfway on biennial budgeting. Follow me after the jump for more on those stories.

Governor Terry Branstad, Republican Iowa House Speaker Kraig Paulsen and Democratic Senate Majority Leader Mike Gronstal met yesterday to talk about the state budget. Paulsen left the meeting feeling less optimistic that the Iowa legislature will finish its work for the year on schedule, by April 29. Senate President Jack Kibbie concurred that the budget discussion “didn’t go very well.” Unresolved issues include the overall amount of state spending, allocations for education and human services, and the right approach for commercial property tax reform.

Kibbie told IowaPolitics.com that the biggest roadblock is Branstad’s commitment to two-year budgeting. The governor vetoed a one-year transportation appropriations bill last week, claiming two-year plans were essential to “restore predictability and stability to the state budgeting process.” In a press release on Monday, Branstad repeated that his administration “remains committed to a biennial state budget,” which, he said, would provide “predictability for communities while ensuring a solid fiscal foundation for future generations of Iowans.”

I’ve never understood how Branstad can say with a straight face that it’s fiscally responsible to approve a two-year spending plan in the absence of two-year revenue projections. Furthermore, most states that adopt biennial budgets face a projected budget gap larger than Iowa’s for fiscal year 2012. Names and numbers are after the jump.

In the first major breakthrough on tax policy this legislative session, a bill containing tax cuts and supplemental appropriations cleared an Iowa House and Senate conference committee Monday, then passed both chambers unanimously.

Details are after the jump, along with recent news on efforts to reach a compromise on the state budget for fiscal year 2012.

Governor Terry Branstad told the crowd at a Republican fundraiser this weekend that he will use his veto power until the legislature sends him a two-year budget to sign.

He didn’t mention that Iowa lacks two-year revenue projections to back up his promises to spend no more than state government takes in. More background and details are after the jump.

Overshadowed by other news from the capitol this week, the Iowa House approved the first budget bill of the 2011 session. In keeping with Governor Terry Branstad’s desire to move Iowa to biennial budgeting, the House Appropriations Committee wrote House File 642 to include two years of funding for the Department of Transportation. In most areas of the DOT’s work, House File 642 allocates the same amount of money for fiscal year 2013 (July 2012 through June 2013) as it does for fiscal year 2012 (beginning this July, ending next June).

Since Iowa Republicans have promised countless times not to spend more than the state takes in, it’s important to remember that there are no Iowa revenue forecasts for fiscal year 2013. The Revenue Estimating Conference meets periodically to revise revenue projections for the current budget year and the one to come, but even the most preliminary numbers for fiscal year 2013 have yet to appear. Iowa law restricts general fund spending to no more than 99 percent of projected revenues, but if Republicans who control the Iowa House write the remaining budget bills they way they wrote House File 642, they will have no idea whether they are spending 89 percent or 99 percent or 109 percent of state revenues in 2013. They’ll be making a shot in the dark.

Over the last several decades, many states have moved away from biennial budgeting. It’s hard enough to forecast revenues 12-18 months into the future, let alone for a full year beyond that. Minnesota’s use of biennial budgets is one reason why its fiscal problems during the “Great Recession” were much worse than Iowa’s. But at least in Minnesota, lawmakers have two-year revenue projections to work with when they draft a two-year spending plan. Iowa House Republicans seem ready to take on faith that revenues will be at least as high in fiscal year 2013 as in fiscal year 2012.

State Representative Tyler Olson, the ranking Democrat on the House Appropriations Committee, argued against pulling numbers “out of thin air” for House File 642. During floor debate on March 30, he offered an amendment to make the bill cover one fiscal year instead. His amendment failed on a party-line 58 to 40 vote (pdf). Shortly after, House File 642 passed 60 to 39, with only Democrat Brian Quirk (district 15) joining all Republicans present to vote yes. House File 642 contains a $5.2 million appropriation to replace a facility in New Hampton (Chickasaw County), which is in Quirk’s district.

In the Democratic-controlled Iowa Senate, biennial budgeting will be a tough sell. I expect the Senate Appropriations Committee to strike all fiscal year 2013 appropriations from House File 642. Add this to the list of contentious budget issues that Senate Democrats, the governor and House Republicans must settle during the next month. I have no idea what concessions either side will be willing to make.

Speaking of transportation, Bleeding Heartland readers may recall that Branstad hasn’t yet appointed a new director for the Iowa DOT. Instead, he asked Nancy Richardson to stay on in that role through the end of the 2011 legislative session. Branstad’s spokesman said in December that the administration needed extra time to do a nationwide search for a director. That would be unlike the way Branstad filled other state government positions. Jason Clayworth reported this week that as governor-elect, Branstad interviewed only one candidate for many jobs. Often Branstad overlooked all applicants to choose a person who hadn’t even applied for the position.

“In most cases I sought out people for these positions,” Branstad said. “Some of them applied, but, for the most part, I really went after people who I thought would be the best.”

I still wonder whether Branstad has always had a particular person in mind to run the DOT. Delaying that appointment until after the legislative session would make sense if Branstad’s choice was unavailable until late spring or summer, or was controversial enough to face problems during the Iowa Senate confirmation process.

The Board of Regents approved a significant tuition hike yesterday in response to expected reductions in state funding for the University of Iowa, Iowa State University and the University of Northern Iowa. B.A. Morelli reported for the Iowa City Press-Citizen,

In-state students at UI, Iowa State University and the University of Northern Iowa will see a 5 percent increase. But there are additional mandatory fees, and out-of-state students and students in specialized programs, such as business, engineering and nursing, will have increases up to 41.4 percent.

Details and background information are after the jump.

Three days into floor discussion of a bill to reduce public employee bargaining rights, Iowa House Republicans voted to cut off debate on House File 525 yesterday. At least 80 percent of more than 100 amendments proposed by House Democrats had not been discussed yet. The House proceeded to reject the remaining Democratic-proposed amendments in a quick series of votes, and the final bill passed 57 to 39. The House Journal (pdf) contains details on yesterday’s debate, including all the roll calls. Most of the votes went along party lines. I was surprised to see one House Republican (Gary Worthan of district 52) vote with the whole Democratic caucus against final passage of the bill. I wonder whether he accidentally pressed the wrong button there, because he voted with the rest of the Republicans on ending debate and lots of amendments.

House Democrats were outraged by the Republican maneuver and the fact that the House switchboard wasn’t working Friday morning (which House Speaker Kraig Paulsen said was an oversight). Jason Clayworth noted at the Des Moines Register, “Limiting debate without the prior agreement to both parties is rare but not unique. Democrats, for example, limited debate in 2009 on another union bill known as prevailing wage that would have setting standards for minimum pay and benefits on government projects.”

Paulsen said the bill “addresses the cost of government in Iowa” by “leveling the playing field for taxpayers.” I am so tired of Republicans scapegoating public employees for our budgetary constraints. Iowa is in better fiscal condition than more than 40 other states. In any event, there is “no correlation between state budget shortfalls and union negotiating laws”:

“The thing that’s driving budget shortfalls is the impact of the national economy on state revenues,” said Elizabeth McNichol of the Center on Budget and Policy Priorities, a research group in Washington, D.C. “It’s definitely other factors driving these shortfalls,” rather than union agreements, she said. […]

Five states – Georgia, North Carolina, South Carolina, Texas and Virginia – prohibit public employee union negotiations. Each of those states faces budget shortfalls that cumulatively amount to almost $20 billion, the Center on Budget and Policy Priorities and the National Council on Teacher Quality say.

Texas, one of the states prohibiting public union negotiations, has one of the largest projected budget shortfalls for next year, figured as a percentage of the current budget.

Iowa is among states with one of the lowest projected shortfalls for next year.

Forty-five states face budget shortfalls for the fiscal year that begins July 1. Of the five states that do not face budget shortfalls, each allows some type of public employee union bargaining.

Iowa’s public employees are paid less than their private sector counterparts when education levels, experience and hours worked are taken into account. Republicans tell us modest raises (about 3 percent per year) for state employees are unaffordable because they would cost $414 million over two years (if non-contract employees get the same pay increases). Yet David Osterberg pointed out this week,

The Iowa House has proposed cutting state income taxes by 20 percent. That would cost $350 million in 2012 and $700 million per year subsequently.

The governor has proposed lowering the top rate on the corporate income tax. That would cost $130 million in 2012 and $200 million per year subsequently.

The Senate and House have proposed adopting “bonus depreciation” rules. These new breaks for business would cost the treasury between $27 million and $83 million in 2011 and $99 million and $141 million in 2012.

While Republicans are selling House File 525 as a way to control government spending, the bill appears to be designed to undermine organized labor. It would shred binding arbitration and create new incentives for state employees not to join a union. In a statement yesterday, Iowa House Minority Leader Kevin McCarthy said, “Like Wisconsin, Republicans in Iowa will stop at nothing to take away rights from police officers, fire fighters, state troopers, teachers, correctional officers and other hard-working Iowans. This bill to end collective bargaining is worse than the bill approved in Wisconsin earlier today.” After the jump I’ve posted excerpts from a House Democratic Research staff analysis on the bill.

Senate Democratic leaders have made clear that House File 525 is going nowhere in the upper chamber this year. If Republicans gain a majority in the Iowa Senate in 2012, they will certainly revive this kind of legislation.

Members of Congress rarely comment on news from the Iowa legislature, but both Senator Tom Harkin and Representative Bruce Braley (IA-01) released statements on yesterday’s Iowa House vote. I’ve posted those after the jump.

MARCH 14 UPDATE: Iowa Senate Labor Committee Chair Wally Horn confirmed that this bill won’t make it out of committee in the upper chamber and is therefore dead for the 2011 legislative session.

The Des Moines Register continues to release results from its latest statewide poll. Selzer and Co surveyed 800 Iowa adults between February 13 and 16. Bleeding Heartland discussed the Register’s poll numbers on Governor Terry Branstad here.

Follow me after the jump to discuss President Barack Obama’s approval inching up in Iowa, slight growth in support for same-sex marriage rights, views on ways to close the state budget gap, and more.

The first all-nighter of the 2011 legislative session ended this morning around 6:05 am, as the Iowa House Labor Committee approved a bill restricting public employees’ collective bargaining rights on a party-line vote.

Details on the bill, the debate, and the fight to come are after the jump.

The Des Moines Register’s first statewide poll since Governor Terry Branstad returned to office shows that 45 percent of respondents approve of the job Branstad is doing, 35 percent disapprove and 20 percent are not sure. Selzer and Co surveyed 800 Iowa adults between February 13 and 16, and the poll has a margin of error of plus or minus 3.5 percent. Ann Selzer commented in the Des Moines Register over the weekend, “Iowans are giving Gov Branstad no honeymoon.”

Elected officials never like to see their approval ratings below 50 percent, but the Register poll numbers are better for Branstad than Public Policy Polling’s latest Iowa survey. Just 40 percent of Iowa voters polled by PPP in January had a favorable opinion of Branstad, while 44 percent had an unfavorable opinion. Those low numbers probably don’t reflect a big drop in support for Branstad since November, but they underscore how strongly the 2010 voter pool skewed Republican in Iowa.

The Register’s new poll indicates that most Iowans don’t expect Branstad to fulfill key campaign promises. Asked about various goals Branstad mentioned while running for governor, respondents who were “mostly skeptical” the governor could accomplish the goal outnumbered those who were “mostly confident” he would succeed on every question.

Cut state spending by 15 percent over 5 years: 47 percent mostly confident, 49 percent mostly skeptical

Cut regulations that hamper business growth: 44 percent mostly confident, 49 percent mostly skeptical

Cut corporate income tax rates: 39 percent mostly confident, 52 percent mostly skeptical

Cut commercial property tax rates: 36 percent mostly confident, 57 percent mostly skeptical

Add 200,000 jobs within five years: 21 percent mostly confident, 76 percent mostly skeptical

Raise family incomes 25 percent over five years: 13 percent mostly confident, 84 percent mostly skeptical

The Register’s Tom Beaumont noted in his write-up of the poll,

Some Iowa economists said during the campaign that Branstad’s goals were unrealistic. The number of jobs in Iowa has grown by 233,000 since 1981, according to the Iowa Department of Workforce Development.

Family incomes in Iowa grew by 21.7 percent from 1999 to 2009, according to the U.S. Census Bureau.

Although Iowa has experienced months of economic and job growth, respondents for the Register’s new poll still see signs of economic distress. About 47 percent of respondents said Iowa is on the wrong track, compared to just 40 percent who see the state headed in the right direction. Some 47 percent of respondents said they are “personally still feeling the effects of a recession” and 41 percent said they are not personally feeling a recession but are “seeing it affect others” around them. Those numbers were almost identical to findings from the Register’s Iowa poll from January 2009, when the economy was by various measures in worse shape.

House File 45 heads to Governor Terry Branstad’s desk today after the Iowa House approved the “deappropriations” bill by a 95 to zero vote. The bill was the top legislative priority for House Republican leaders, but the Democratic-controlled Iowa Senate eliminated many of its controversial provisions last week. The full text of House File 45 is here, and the complete bill history is here. The Senate Journal for February 17 contains roll calls for votes on House File 45 and various amendments (pdf file). The final Senate version of House File 45 passed with 48 yes votes. First-term Republican Senator Mark Chelgren voted against the bill, and Republican Senator Sandy Greiner was absent.

Thanks to the Senate amendment, state funding for preschool, family planning, passenger rail, smoking cessation programs, and the core curriculum live to fight another day in the Iowa legislature. So do the Power Fund, the Office of Energy Independence, and the Grow Iowa Values Fund, all economic development programs long targeted by statehouse Republicans.

In addition, the Senate removed language from House File 45 that would have reduced funding for state universities, area education agencies, land acquisitions by the Department of Natural Resources and the Resource Enhancement and Protection fund.

The Senate’s version of House File 45 also did not include language creating a “tax relief fund” that would have collected surplus revenues after state reserve funds were filled.

After the jump I’ve posted an overview compiled by the Iowa House Democratic research staff on “major items eliminated” by the Senate amendment to House File 45. I’ve also listed some other significant points of divergence between the Senate and House versions of this bill, as well as key points on which the Senate left House File 45’s language intact.

Finally, I’ve posted the House Democratic research staff’s explanation of language that would create searchable databases on the state budget and tax rates.  

The Iowa Fiscal Partnership released a must-read report yesterday by economist Peter Fisher. Facts don’t support political rhetoric about a supposedly unfriendly tax environment for Iowa business, Fisher demonstrates:

Whether one focuses only on the corporate income tax, or the whole range of taxes falling on business, Iowa’s state and local taxes are well below average, and have been for some time.

Iowa’s corporate income tax in recent years has been considerably lower than the national average level of taxation and lower than all but 11 states. How can this be when the top tax rate – 12 percent – is the highest in the nation? The answer is simple: That 12 percent tax rate is applied to only a small portion of a company’s profits in Iowa. Iowa is one of only four states that allows a portion of federal corporate income taxes to be deducted from income. On top of this, Iowa determines how much of a multi-state firm’s profits are taxable in Iowa solely on the basis of sales in Iowa. The majority of states take into account a firm’s payroll and property in the state as well as sales. As a result, many large corporations selling nationally and worldwide earn substantial profits on Iowa operations but pay taxes on only a small fraction of those profits. Finally, Iowa offers a range of generous tax credits that further reduce corporate tax liability.

I recommend reading the full report, Corporate Taxes and State Economic Growth (pdf file) or at least the two-page backgrounder. While you’re on the Iowa Fiscal Partnership’s site, check out the many other valuable reports they have published in recent years. For instance, last month’s report showed why “additional cuts to essential public services are not needed to balance the 2011-12 [Iowa] budget.” The Iowa Policy Project, which is part of the Iowa Fiscal Partnership, is on Twitter here.

After the jump I’ve posted a few excerpts highlighting key conclusions from Fisher’s latest research. Keep these facts in mind next time you hear Iowa Republicans claim that we “can’t afford” a modest raise for state employees, continued investment in preschool or any growth in K-12 education budgets.

UPDATE: Agree 100 percent with what Fisher told Iowa Independent:

“Revenues are improving, in spite of the drain already in place by business breaks. A responsible budget does not include new breaks, especially when we know that the services provided by state and local government are important to a thriving business climate,” Fisher said. “We should be looking for ways to avoid cuts in services that will actually hurt Iowa jobs and the Iowa economy.”

Governor Terry Branstad presents his draft budget to members of the Iowa House and Senate this morning. His staff have indicated he will outline about $700 million in budget cuts, including layoffs of hundreds of workers. Branstad and Republican legislators say Iowa needs to reduce spending by $700 million to make up for the projected budget gap for fiscal year 2012, which begins on July 1.

The facts tell a different story: Iowa has a projected gap of around $263 million for the coming fiscal year. That figure was the Legislative Services Agency’s best guess as of December 2010, but it probably overstates the gap. Congress extended the Bush tax cuts for all income levels, which means higher-income Iowans will not be forced to pay more federal taxes and therefore will not have more to deduct from their state tax returns. With the Bush tax cuts in place, Iowa can expect to collect about $140 million more in state tax receipts for the 2012 fiscal year. That would be enough to cover the estimated cost of the new AFSCME contract Branstad has declared unaffordable.

The $700 million figure Branstad uses assumes Iowa will use more than $300 million from the current-year budget surplus to pay for corporate and other tax cuts. He also wants to reduce commercial property taxes, which will cost the state more money to reimburse local governments. Those are Branstad’s preferences, not policies state government is obliged to implement. It’s not that Iowa can’t afford to continue the preschool program that costs about $70 million per year, or can’t afford any allowable growth in K-12 education budgets. Republicans simply want to do other things with the public’s money.

I am curious to hear what Branstad says about transportation funding today, since he came out this week against passenger rail subsidies but for a future gas tax hike to build more roads. I also wonder whether he will propose any specific reform to tax-increment financing in Iowa. TIF was originally intended to spur redevelopment in “slum and blighted” urban areas but has become increasingly costly for state government and has created inequities in commercial property taxes.

I’ll update this post with details from Branstad’s speech and political reaction after the jump. Meanwhile, share any thoughts about the state budget in this thread.

UPDATE: IowaPolitics.com posted the prepared text of Branstad’s speech. Big surprise: he’s not planning to eliminate appropriations for preschool, just to reduce them to $43 million per year. Further thoughts are below.

FRIDAY UPDATE: At the end of this post I’ve added Senator Rob Hogg’s assessment of Branstad’s draft budget. He notes that zero percent allowable growth for K-12 schools for two years is “unprecedented in the history of Iowa’s school financing formula which was created in 1973.”

Lack of funding for various flood mitigation and watershed management programs also concerns Hogg, a Democrat representing Cedar Rapids and a leading advocate of improved flood prevention efforts in Iowa.

UPDATE: Click here for more details on the draft budget the governor presented on January 27.

During his regular weekly press conference, Governor Terry Branstad announced today that state departments would have to take cuts because the state can’t afford the salary increases in the two-year contract Governor Chet Culver approved last year with AFSCME, the largest labor union representing state workers. Branstad added that he’s not worried about facing a lawsuit (like the one AFSCME successfully filed against him in 1991) because the Iowa legislature won’t fund the new AFSCME contract. AFSCME members overwhelmingly voted to approve the contract, which includes salary increases of just under 3 percent in fiscal years 2012 and 2013. Branstad wants the union to reopen negotiations.

Citing budget constraints, Branstad said today “he will not request any increase in ‘allowable growth’ in state aid for K-12 school districts base budgets in either of the next two fiscal years.” I believe the Democratic-controlled Iowa Senate will resist that plan.

UPDATE: Doesn’t sound like a way to provide “world-class education” for Iowa kids. Under Branstad’s “no allowable growth” proposal,

a school would not be legally allowed to expand their budgets unless the district sees a surge in enrollment.

Inflation for such things as employee salaries and fuel costs make a no-growth policy virtually impossible for hundreds of Iowa’s district to handle without massive cuts to programs, services and teachers, educational advocates said.

“The only way they can make it up is to cut programs or services and most of the schools have already been doing that,” said Brad Hudson, a lobbyist for the Iowa State Education Association. “Most of the schools have already looked at reductions to music, art and physical education. Now we’re to the point of looking at the elimination of programs and probably larger class sizes.”

Also during today’s press conference, Branstad said he does not favor state subsidies for passenger rail, although he isn’t against communities or railroads subsidizing that service, the Des Moines Register’s Kathie Obradovich reported. Those comments indicate that like Iowa House Republicans, Branstad wants to eliminate about $10 million in state funding needed to secure an $81 million in federal money to extend passenger rail service from the Quad Cities to Iowa City. The federal government awarded the funds last October.

UPDATE: William Petroski has more detail on Branstad’s passenger rail stance:

He noted that the $310 million state-federal project in cooperation with the state of Illinois would include money to upgrade the tracks of the Iowa Interstate Railroad, and he suggested the railroad could be asked to help contribute towards the costs.

“There are two questions: One is the state’s initial requirement and then there is an ongoing subsidy. I am most troubled by the ongoing subsidy. I don’t think we should be in the business of subsidizing passenger train service,” Branstad told reporters. […]

The governor, who will issue his state budget recommendations on Thursday, added that he still hasn’t made a final decision yet about the proposed Iowa City-to-Chicago train.

Branstad continued to advocate for biennial budgeting today. Legislators from both parties are wary of that proposal, because it would in effect increase the governor’s budget transfer powers. The national trend has been away from biennial budgeting, which tends to result in less accurate budget forecasting and greater need for supplemental appropriations than annual budgeting.

The Iowa House approved a major “deappropriations” bill, House File 45, on January 19 by a party-line vote of 60 to 40. Republican leaders fast-tracked what they call the Taxpayers First Act, which passed the House Appropriations Committee on the third day of the 2011 session. The bill would cut dozens of programs while increasing spending in a few areas. In addition, $327.4 million from this year’s surplus revenue would go into a new “Tax Relief Fund,” instead of being used to help close the projected budget gap for fiscal year 2012. This bill summary (pdf) lists the budget cuts and supplemental appropriations in House File 45. Click here for the full bill text.

Although the majority of speakers at a January 18 public hearing opposed the bill, and organizations lobbying against the bill outnumber those that have signed on in support, the House Republicans passed the bill with few significant changes. Democrats offered many amendments as floor debate went late into the evening on January 19, trying to save funds for the statewide voluntary preschool program, passenger rail, smoking cessation programs, and sustainable communities, among other things. Representatives rejected almost all those amendments on party-line votes. This page shows what amendments were filed, and the House Journal for January 19 contains the roll call votes.

House File 45 now moves to the Iowa Senate, which has a 26-24 Democratic majority. Democratic senators are likely to back increased expenditures for mental health services and indigent defense while opposing many of the spending cuts. After the jump I take a closer look at some of the most controversial provisions in House File 45.

Tuesday is shaping up to be the big day in Iowa politics this week, with a special election to fill a state Senate seat and a public hearing on the first bill to clear a House committee during the 2011 session.

Details on those and other events are after the jump. Activists and politicians, send me your public schedule so I can add the information to these calendars.

The preschool program will be at the center of Democratic opposition to a “deappropriations” bill the Iowa House Appropriations Committee approved this week. Republicans say House Study Bill 1, which has been renamed House File 45, would save $500 million over three years. Nearly a third of that total would come from eliminating the statewide voluntary preschool program for four-year-olds (estimated to cost $69.9 million in fiscal year 2012 and $75.1 million in fiscal year 2013). Click here for a summary listing the budget cuts and supplemental appropriations in House File 45.

On January 13, House Democrats launched a website to help mobilize Iowans who value the long-term benefits of preschool. Ending the program could affect 20,000 children across the state. This chart (pdf file) shows the preschool enrollment for four-year-olds and cost to the state for each school district. For instance, in the Des Moines area there are 1,335 children enrolled in the preschool program through the Des Moines Community Schools, 235 in the West Des Moines school district, 208 in Johnston, 207 in Southeast Polk, 163 in Norwalk, 147 in Urbandale, and 122 in Ankeny. In the Cedar Rapids area, 473 children are enrolled in preschool through the Cedar Rapids school district and 175 in Linn-Mar.

A public hearing on House File 45 will take place Tuesday, January 18 from 6:30 p.m. to 8:30 p.m. in the House chambers at the capitol. Only 40 people will be allowed to speak, but any Iowan can send written comments on the bill to lioinfo AT legis.state.ia.us, with “testimony” in the e-mail subject line. House Democrats are also asking members of the public to post comments at the Save Preschool site.

Statehouse Republicans and incoming Governor Terry Branstad want to replace the preschool program with a voucher system geared to low-income families. However, many middle-income families in Iowa are also unable to afford preschool, which can easily cost $700 to $800 per month. If state assistance for middle-class families disappears, many preschools could close for lack of students.

It’s unfortunate that preschool became a partisan issue in Iowa. A Pew Center on the States report published last month found, “Despite persistent budget shortfalls, the majority of state legislatures have once again made the prudent decision to protect pre-k programs.” In addition, more than a dozen states “with control of the executive and legislative branches split between the two major parties” nevertheless “protected their pre-k investments from budget cuts.”

The Iowa House Appropriations Committee passed House Study Bill 1 on January 12, by a party-line vote of 15 to 10. Republicans call the bill the “Taxpayers First Act” and claim it would save the state more than $500 million over three years, while refunding some money to taxpayers and allocating an extra $25 million for mental health services over the next 18 months. As Bleeding Heartland discussed here, the potential savings in the current budget year are far smaller. The Democratic-controlled Iowa Senate is unlikely to approve some of the big-ticket spending cuts, such as complete elimination of the voluntary preschool program for four-year-olds. The full text of the bill as introduced is here (pdf file). The Legislative Services Agency analysis of how much various provisions would cost or save is here (pdf file).

Looking through the lobbyist declarations on HSB 1, so far only Iowans for Tax Relief, the National Federation of Independent Business, and the Washington-based 501(c)4 group American Principles in Action have declared support for it. The bill’s opponents include the Greater Des Moines Partnership, the Iowa City Area Chamber of Commerce, the Iowa Association of School Boards, the Iowa chapter of the National Association of Social Workers, major labor unions (AFSCME and the Iowa State Education Association), the State Bar Association, and many organizations that advocate for public health and environmental causes. Numerous lobbyists haven’t taken a position on the bill; influential organizations still undecided include the Iowa Farm Bureau Federation, the Iowa Association of Business and Industry, the League of Cities, the State Association of Counties, the Iowa Medical Society, the Cedar Rapids Chamber of Commerce, the Iowa Chamber Alliance, and the American Association of Retired Persons.

UPDATE: The “deappropriations” bill was renamed House File 45. Click here for a bill summary.

The Iowa legislature convenes this morning for its 2011 session. Join me after the jump for clips on two of the most contentious issues to be resolved this session: proposed spending cuts and impeachment proceedings against four Iowa Supreme Court justices.

UPDATE: You can listen to opening speeches by Senate President Jack Kibbie, Senate Minority Leader Paul McKinley, Senate Majority Leader Mike Gronstal, House Speaker Kraig Paulsen, House Speaker Pro Tempore Jeff Kaufmann, House Minority Leader Kevin McCarthy, and House Majority Leader Linda Upmeyer at the Radio Iowa site.

SECOND UPDATE: Lawmakers issued the official canvass of the 2010 gubernatorial election: Branstad/Reynolds 592,079 votes, Culver/Judge 484,798 votes.

Iowa House Republican leaders rolled out their state budget cutting proposals yesterday. They plan to introduce the “Taxpayers First Act” immediately when the 2011 session begins next week. Rod Boshart covered the planned spending cuts here, repeating the House Republicans’ claim that the bill would “cut state spending by $114 million this year.” That figure doesn’t appear to correspond to the non-partisan Legislative Services Agency’s document spelling out how much each proposal would save in fiscal years 2011, 2012 and 2013. The first two pages of that document cover fiscal savings from proposals that would not require legislative action; the second two cover proposals that would require new legislation (and therefore support from the Democratic-controlled Iowa Senate as well as Governor-elect Terry Branstad’s signature). Click here to download that document as a pdf file.

If everything on the first two pages of the GOP wish list happens, general fund spending would actually increase by $23 million in the current budget year, while about $43 million would be saved from other state government funds, leading to net savings of around $19 million. Even if you assume everything on the second two pages also becomes law (very unlikely), at most $73 million would be saved from the fiscal 2011 budget. That’s way short of the “hundreds of millions” of dollars incoming Iowa House Speaker Kraig Paulsen promised Republicans would cut from the current-year budget.

What happened? The LSA analysis didn’t support the fantasy budget cut numbers House Republicans have been throwing around for ages. Six examples are after the jump.

I also cover some spending cuts that really would save about as much as Republicans have claimed, but in a penny-wise and pound-foolish way.

AFSCME Iowa Council 61 announced on December 22 that its membership overwhelmingly approved a new contract covering fiscal years 2012 and 2013. The vote means Governor-elect Terry Branstad will not be able to persuade state employees to accept a pay freeze in the name of budget austerity.

Details on the vote and more are after the jump.

The Board of Regents unanimously approved requests last week for 95 sabbaticals in the coming year, to be taken by faculty at the University of Iowa, Iowa State University and the University of Northern Iowa. That number was way down from the 167 sabbaticals approved a few years ago. But Republicans, including the next Iowa House Speaker Kraig Paulsen, had called for a moratorium on sabbaticals to save money.

House Republicans have estimated that eliminating sabbaticals at the regents universities for a year would save taxpayers $6 million. However, “According to the regents, the 95 sabbaticals carry a $422,000 cost for replacement teachers, and last year’s sabbaticals generated $5.2 million in grants.”

Oops. The Republican savings estimate is off by more than a factor of ten. How did that happen? The Iowa City Press-Citizen explains:

[Iowa House Republicans’] projected savings apparently includes salaries that professors will earn whether they are on sabbatical or not.

Great fact-checking there on the House Republican staff. You’ve been circulating this $6 million figure for months, based on a false assumption that if universities stopped granting faculty sabbaticals, they could stop paying those professors’ salaries.

In a rational world, politicians wouldn’t try to micromanage affairs at the state universities, and would recognize their mistake in exaggerating the cost of sabbaticals. But Republicans have found an issue with a lot of symbolic punch. Like Paulsen says, “Why should the taxpayers of Iowa be paying to basically give these folks a year off from teaching?” Good universities have controls to ensure that faculty have research and publications to show for their sabbatical time, but the breaks from teaching can easily be portrayed as a big paid vacation for elitist eggheads.

Steve Kettering, who will be minority whip in the Iowa Senate, told the Press-Citizen that the regents’ vote on sabbaticals “is a thumb in their eye […] It just furthers the distance the people of Iowa feel about their universities. There is just a difference between the lives Iowans lead and the lives of the people in the university sector.” Kettering said legislators may respond either through reducing appropriations to the regents universities, or by passing a law to stop sabbaticals. I don’t think Republicans would be deterred by a Legislative Services Agency analysis showing the cost savings in the range of a few hundred thousand dollars, rather than the $6 million Republicans dream of.

Under Democratic control, the Iowa Senate probably would not pass a specific law halting sabbaticals, and senators would resist deep cuts to the regents universities’ budgets. However, if the Republican-controlled House appropriates far less to the universities, citing the regents’ failure to control costs, the final budget deal struck between the state senators and representatives could end up reducing appropriations by a lot more than the true cost of sabbaticals. The three state universities’ operating request for fiscal year 2012 is about $639 million.

A related concern is that yet again, we learn that a Republican proposal to save millions of taxpayer dollars isn’t supported by facts. Paulsen has made big promises about cutting hundreds of millions of dollars from the state budget in the current year and beyond, in order to pay for GOP tax-cutting plans. Where will that money come from? Laying off some state employees and axing a few Democratic initiatives, like the Power Fund and voluntary preschool for four-year-olds, won’t add up to enough in savings. Significant cuts to higher education may be on the way, and the Board of Regents could become the scapegoat.

LATE UPDATE: University of Iowa President Sally Mason and P. Barry Butler, the university’s interim executive vice president and provost, published a guest column in the December 28 Des Moines Register defending “career development assignments.” Excerpts are after the jump.

Governor-elect Terry Branstad announced today that ophthalmologist Dr. Mariannette Miller-Meeks will run the Iowa Department of Public Health in his administration. A press release noted that Miller-Meeks “has served as the first woman President of the Iowa Medical Society and was the first [woman] on the faculty in the Department of Ophthalmology at the University of Iowa and councilor for Iowa to the American Academy of Ophthalmology.” Miller-Meeks was the Republican nominee in Iowa’s second Congressional district in 2008 and 2010. She worked hard during both campaigns but lost to Dave Loebsack in Iowa’s most Democratic-leaning Congressional district.

Also on December 9, Branstad announced that he will tap Chuck Palmer to head the Department of Human Services in his administration. Palmer did that job during Branstad’s previous time as governor from 1989 to 1999. Most recently he has been president of Iowans for Social and Economic Development, “an asset development organization with the mission of creating opportunities for low and moderate income Iowans to increase income and achieve financial stability.”

Branstad has pledged to reduce the size of state government by 15 percent, and keeping that promise would likely require significant cuts in the departments Miller-Meeks and Palmer will be running. The current budget (fiscal year 2011) allocated $935.5 million from the general fund to health and human services. That’s 17.7 percent of the general fund budget alone, or 15.9 percent of total state expenditures, including federal stimulus money and reserve funds as well as general fund spending. More than $200 million in federal stimulus money supported Iowa’s Medicaid budget in the current budget year, but similar support won’t be forthcoming in future years now that Republicans have a majority in the U.S. House of Representatives.

Branstad administration press releases on Miller-Meeks and Palmer are after the jump.

Incoming Iowa House Speaker Kraig Paulsen discussed plans for shrinking state government in a December 8 speech. Rod Boshart has the story:

“You should us expect us to make some tough choices,” Paulsen told a Des Moines Partnership lunch crowd. “I think you’re going to see us just wholesale eliminate a couple difference programs and a couple different offices and we’re going to start with those that have marginal or no benefit.

The incoming House leader said voters sent a clear signal that government at all levels is growing too big too fast, regulating too much, and spending and taxing too much – issues the reconfigured House plans to address next session.[…]

The Power Fund has been administered by the Iowa Office of Energy Independence in conjunction with the Iowa Power Fund Board, two entities that were created when the program was enacted in the 2007 legislative session.

Paulsen also said he would prefer to replace the Grow Iowa Values Fund, started by former Gov. Tom Vilsack, with “things that would grow the economy” under the new public-private partnership envisioned by Governor-elect Terry Branstad [….]

Paulsen’s premise is incorrect. Iowa’s state government has not been growing during the past decade; on the contrary, general fund spending has fallen as a share of the economy and of personal income. But that’s a subject for another day.

House Republicans have advocated cutting the Power Fund for some time, and doing so would theoretically save $25 million per budget year. According to Boshart, the Values Fund received $45 million in fiscal year 2010 and $38 million for fiscal year 2011. I don’t believe the real savings will be nearly so large, because too many business interests have benefited from Values Fund and Power Fund grants. Lobbyists will work to ensure that significant funding for business support remains under a different department or program.

In addition, the Iowa Senate, which is under Democratic control, may insist that the state continue to invest significant resources in renewable energy. Senate Majority Leader Mike Gronstal said last month,

If [R]epublicans have another approach that will help keep us at the forefront of renewable energy in this state and clean energy and green energy we’re completely open to looking at that. It doesn’t have to be called a power fund, it doesn’t have to be called I-jobs.

I will say this: cutting the Power Fund is more realistic than some other big savings proposed by House Republicans in the past. I expect Paulsen will be disappointed by the Legislative Services Agency’s analysis of how much can truly be saved by privatizing the state vehicle fleet or denying benefits to undocumented immigrants. The Iowa Senate will block efforts to eliminate the preschool program, although some money may be saved by means-testing that program, as Governor-elect Terry Branstad has advocated. Last year’s government reorganization already improved efficiencies in state purchasing.

One old Republican idea I haven’t heard Paulsen mention lately is implementing “the Principal Plan” to impose salary cuts on non-union state employees. House Republicans have called for requiring the governor to negotiate pay reductions on a sliding scale, from 2 percent for employees earning less than $40,000 per year up to a 10 percent salary reduction for those earning more than $100,000. This pdf file shows the projected savings in the different categories.

Share any thoughts about the state budget in this thread.

Iowa’s three-member Revenue Estimating Conference again raised projections for state revenues during the current fiscal year and fiscal year 2012, following another month of growing state tax collections in November. The news hasn’t deterred Republican leaders from planning mid-year budget cuts, and legislators from both parties acknowledged the end of federal stimulus funds will make the next budget year difficult. Details and proposals are after the jump.

Debi Durham’s appointment as economic development leader was the big news of the week from Governor-elect Terry Branstad’s camp, but he and his close advisers continue to lay the groundwork for his administration.

After the jump I catch up on stories about the state budget, inauguration plans, and top Branstad donors from the past year.

What’s on your mind this weekend, Bleeding Heartland readers?

Past and perhaps future presidential candidate Mike Huckabee is in Des Moines tonight Sunday, headlining the Iowa Family Policy Center’s annual fundraiser. Other speakers include WHO talk radio personality Steve Deace and Iowa Family Policy Center Action president Chuck Hurley.

The big event is also Bob Vander Plaats’ debut as “president and chief executive officer of an umbrella group that includes the Iowa Family Policy Center, Marriage Matters and their political action committee.” The Iowa Family Policy Center endorsed Vander Plaats for governor. Huckabee came to Iowa to campaign for Vander Plaats, who chaired his successful Iowa caucus campaign in 2008.

Vander Plaats told journalists this week that his umbrella group will mobilize social conservatives and endorse a candidate for the upcoming Iowa caucus campaign. If Huckabee stays out of the presidential race, several campaigns will work hard to win the approval of Vander Plaats, Hurley and Deace. If Huckabee runs again, other candidates may as well not waste their time.

I got a robocall from Huckabee Thursday or Friday of this week, but I don’t know whether it was a fundraising call or an attempt to identify supporters. The call ended quickly after I answered “no” to the question, “Do you consider yourself pro-life?”

I’m headed to a friend’s birthday party tonight as soon as my version of Jewish noodle kugel comes out of the oven for the potluck. Quite a few Branstad voters will be in attendance (including the birthday girl), and I’m determined not to get into any arguments.

My Twitter feed is full of Republicans freaking out about Governor Chet Culver’s deal with AFSCME. A 2 percent raise for state employees, followed by a 1 percent raise, is far from excessive. Republican complaints about Culver’s lack of “courtesy” amuse me. It wasn’t too polite of Terry Branstad to spend millions of dollars on tv ads lying about I-JOBS and how Culver managed the state’s finances.

UPDATE: To clarify, the proposed contract with AFSCME involves a 2 percent across the board salary increase starting July 1, 2011, a 1 percent across the board salary increase starting January 1, 2012, another 2 percent across the board salary increase beginning July 1, 2012, and a 1 percent across the board salary increase starting January 1, 2013.

This is an open thread.

UPDATE: Kay Henderson posted a good liveblog of Huckabee’s November 21 press conference and his speech to the Iowa Family Policy Center crowd. The same post links to an audio clip of Huckabee’s comments to reporters and covers Vander Plaats’ speech to the crowd at the fundraiser.

Governor Chet Culver accepted a tentative deal today on a new two-year contract with with largest union representing state employees. The contract would increase the pay of all state workers covered by AFSCME by 2 percent in fiscal year 2012 (from July 2011 through June 2012), with another 1 percent wage increase in fiscal year 2013. Some employees would qualify for other pay increases as well.

Iowa Republicans immediately denounced the deal.

The Iowa Senate Democratic caucus on November 14 re-elected Mike Gronstal as majority leader and Jack Kibbie as Senate president. Five senators will serve as assistant majority leaders: Joe Bolkcom of Iowa City, Bill Dotzler of Waterloo, Wally Horn of Cedar Rapids, Amanda Ragan of Mason City, and Steve Sodders of State Center. Linn County Supervisor Brent Oleson got Iowa Republicans excited on Saturday by tweeting that Horn would challenge Gronstal, but according to this Des Moines Register report by Jennifer Jacobs, “No one mounted a challenge for either leadership role, several senators said.”

More Iowa Senate news is after the jump.

In case you hadn’t noticed that President Barack Obama named the wrong people to his debt commission, check out the commission’s preliminary recommendations, an idiotic blend of Social Security cuts and tax increases for most Americans. The cuts would cover the cost of deeper tax cuts for high earners, as if the top 1 percent in the U.S. need any more help. Congress would never pass this package as-is, but it was probably leaked to make the final horrible recommendations look reasonable by comparison. The best thing Obama could do is dissolve this commission. It only puts bipartisan window-dressing on right-wing ideas.

Speaking of Washington Republicans, the incoming House Majority Leader, Eric Cantor, recently assured the Israeli prime minister that Congressional Republicans will be a “check” on the Obama administration and that “the Republican majority understands the special relationship between Israel and the United States.” Imagine if a Democratic Congressional leader had promised a foreign prime minister to stand up for that country against the Bush administration if necessary.

When Congress reconvenes next week, members will consider budget bills for fiscal year 2011. Incredibly, the Senate seems poised to reduce funding for the Low Income Home Energy Assistance Program (LIHEAP), even though poverty rates are up because of the recession and high unemployment rate. Helping families pay their heating bills keeps people from freezing in the winter, or burning their house down by using unsafe portable heaters. It also is stimulative, because it cash that qualifying families don’t have to spend on utility bills is cash they will spend on goods and services. The LIHEAP Action Center calculates that if the Senate doesn’t approve the higher level of funding passed by the House, Iowa’s share of LIHEAP funding stands to drop from $75 million in fiscal year 2010 to $36.8 million in the coming year.

Speaking of unwise budget cuts, Governor-elect Terry Branstad and the Republicans in the state legislature want to eliminate public funding for family planning services. That will please the GOP base but doesn’t make fiscal sense:

The results of the study by the University of Iowa Public Policy Center show that publicly funded family planning services are cost-effective for women who would use Medicaid and other public assistance programs if they became pregnant and gave birth.

“With the prevention of an unintended pregnancy, a significant amount of future public funding expenditure can be avoided,” said lead researcher Belinda Udeh, assistant research scientist at the Public Policy Center.

The study focused on women being served by Iowa’s publicly funded family planning clinics in 2009. Study co-authors were Mary Losch of the Center for Social and Behavioral Research and the Department of Psychology at the University of Northern Iowa and Erica Spies, a UI graduate research assistant.

The study based on data collected in 2009 also concluded that publicly funded family planning is most cost-effective for women under the age of 30. When considering forecasting the avoided expenditures for just one year for this age group, over $3 could be saved for every $1 spent on family planning services, Udeh said. The probability of averting a pregnancy need only be 2 percent for this age category for family planning services to be considered cost effective, she added.

The study further reported an overall weighted average for all age categories.  For women already receiving assistance, $3.40 could be avoided in the first year for every $1 spent on family planning services, and $10.84 when the savings are forecast for five years. The savings are even greater for women who would be newly eligible for assistance with savings of $3.78 and $15.12 for every $1 spent on family planning in one-year and five-year forecasts, respectively.

Taxpayers get excellent value for money spent on family planning services. Can’t say the same for the absurd amount we spend on salaries for the head football coach and his assistants at the University of Iowa.

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

Cutting spending from the current-year budget as well as from the budget for fiscal year 2012 will be statehouse Republicans’ top priority, incoming Iowa House Speaker Kraig Paulsen told journalists yesterday. Paulsen said Republicans will seek to reduce fiscal year 2011 spending by “hundreds of millions” of dollars.

Mid-year spending cuts would make sense if Iowa faced revenue shortfalls, like the declines that prompted Governor Chet Culver’s across the board budget cut in October 2009. However, state revenues have been coming in ahead of projections since fiscal year 2011 began, and the 2011 budget was balanced when Democratic legislators approved it in March. The Revenue Estimating Conference will meet again in December. If their projections show that Iowa’s finances are on solid ground, with revenues still exceeding expectations for the current-year budget, how will Republicans justify their planned cuts?

Paulsen asserts there are “several hundred million dollars in the current year’s budget of marginal or no value to Iowans,” but a large share of the budget goes toward education and human services. Todd Dorman posted the wish lists for spending cuts Iowa House Republicans offered during the last two legislative sessions. Some of the ideas are more realistic than others. Republicans could save tens of millions by scrapping the preschool program and the Power Fund. However, Iowa doesn’t spend anything like the $92.3 million Republicans claim we could save by ending “all state benefits to adult illegal immigrants.” I expect the Legislative Services Agency to point that out next year.

Republicans have said $18.5 million could be saved through privatizing the state’s vehicle fleet. However, Democrats have disputed those projections:

Since December 2009, the Department of Administrative Services has already achieved more than $10.5 million in cost savings under [Executive Order] 20 and [Senate File] 2088 on fleet management reforms. A 2007 Iowa Legislative Services Report concluded that selling off the entire state fleet would cost taxpayers millions of dollars, instead of saving money.

I doubt it would be workable to combine administrative functions at the University of Iowa, Iowa State and the University of Northern Iowa, which Republicans claim would save taxpayers $62 million.

Republican plans to save $4 million by eliminating “taxpayer-funded lobbyists” are misleading too. Although some state employees register as lobbyists during the legislative session to weigh in on bills that would affect their departments, the state does not hire any contract lobbyists. A Des Moines Register report from last summer identified $1.8 million in Iowa taxpayer-funded lobbying costs, but that figure included lobbying expenses of “state agencies, municipalities, county agencies and associations where member dues are paid by taxpayers, such as the Iowa League of Cities.”  

Any comments about the state budget are welcome in this thread.

UPDATE: In the comments, willinIA points out that the $62 million in supposed savings from merging administrative functions at the regents universities was pulled out of the air by Ed Failor of Iowans for Tax Relief.

Advocates celebrated passage of a constitutional amendment creating a Natural Resources and Outdoor Recreation Trust Fund for Iowa, but there’s no guarantee new money will ever be allocated to protecting soil and water. Governor-elect Terry Branstad and incoming Iowa House Speaker Kraig Paulsen said yesterday a sales tax increase is off the table:

“This election was to a large extent driven by growth in government,’ said Paulsen, a Republican from Hiawatha. “Too much spending. Too much debt. The public did not elect Republicans so we could come down and raise taxes.”

“I don’t see House Republicans passing a sales tax increase for the forseeable future,” Paulsen said. “I don’t even think that will be under consideration.”

Said Branstad, of Boone: “I don’t support any tax increases. I made that clear during the election,” Branstad said. ” If it’s contingent on a sales tax increase, we’ve said there won’t be a sales tax increase. I’m supportive of conservation funding, but not raising taxes.”

Sean McMahon of Iowa’s Water & Land Legacy, the coalition that pushed for the new fund, on Tuesday said his organization is considering its next move. It may leave it up to individual Iowans and various environmental and recreation groups to push for the tax.  The group spent several years pushing the issue to a vote, and some of the preparation went back a decade.

Asking environmental groups and the “hook and bullet” crowd (Izaak Walton League, Pheasants Forever, Ducks Unlimited) to push for a sales tax increase would be a disastrous waste of time. The votes won’t be there in the legislature, and Branstad won’t want to break his promise on tax hikes as quickly as he did in 1983. Anyway, people like me didn’t get involved with the environmental movement to advocate for regressive taxes.

Groups that worked to pass this amendment should focus on lobbying for direct appropriations to the new fund. Voters approved the amendment by a wide margin. Making waterways safer for recreation and improving habitat for wildlife can be viewed as economic development tools for small towns and rural areas. Finding private donors who agree to match all or part of the state’s contribution to the fund might persuade legislators to get the conservation efforts going on a small scale. Successes would build a constituency for increasing the funding in future years.

That strategy may not work, but it’s better than pinning all hopes on a sales tax hike that won’t happen. Bleeding Heartland readers, please share your thoughts or suggestions for getting money allocated to the natural resources fund.

So-called reckless spending has been one of the Republicans’ top talking points in this year’s state legislative elections. Direct mail, television and radio commercials targeting at least two dozen incumbent Democrats have decried wasteful, pork-barrel spending. A few specific spending programs come up most frequently in GOP candidates’ messaging. Bleeding Heartland already discussed the misleading talk about “heated sidewalks” here. Three other popular examples of alleged out-of-control spending are $120,000 for flowerpots in Des Moines, $690,000 for trolley service in Des Moines, and $1.8 million for kayak waterways.

Follow me after the jump for background on those appropriations.

Governor Chet Culver and Republican Terry Branstad debate for the third and last time today at noon in the Iowa Public Television studios. You can watch live at the Des Moines Register website, IPTV.org or on Mediacom Channel 119. Tonight Iowa Public TV will rebroadcast the debate statewide at 8 pm.

After the jump I’ll cover recent news from the gubernatorial campaign and the main points Culver and Branstad are likely to emphasize today.  

A longer update on the governor’s race is in progress, but Terry Branstad’s comments on the budget during yesterday’s Des Moines Register interview are a must-read. Since the day he declared his candidacy, Branstad has said “the cost of government must be reduced by at least 15 percent.” He put that promise in his stump speech and in his television and radio commercials. But anyone who has paid attention to his campaign rhetoric could see that the program cuts he has mentioned so far wouldn’t put Iowa on track to reduce spending by 15 percent over five years. Moreover, Branstad’s property tax relief proposal depends on the state taking over some county government functions, which would increase the state budget.

As Jason Clayworth writes,

The Register has for weeks requested Branstad outline how he would reduce Iowa’s $5.3 billion budget, of which more than 80 percent is spent on education and human services that assist the state’s economically- or physically-disadvantaged families.

Branstad’s been good at evading such questions, but his time ran out yesterday when he sat down face to face with the Register’s reporters and editorial writers. I encourage you to read Clayworth’s whole piece as well as Kathie Obradovich’s take. Some excerpts are after the jump.