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

After the jump I’ve enclosed clips describing some brazen behavior. Many Iowans think of corruption in public procurement as a problem for other people, like our neighbors in Illinois. But a former Iowa Department of Public Safety employee’s involvement in state contracts awarded to Smith & Wesson raises red flags. I was surprised to learn on Friday that no ethics case will be pursued regarding the possible conflict of interest.

Todd Dorman’s latest column for the Cedar Rapids Gazette highlights comments by “America’s Longest Serving Ironist” (Governor Terry Branstad) about Syrian refugees possibly being resettled in Iowa. Dorman noted that “The master of blindside edicts” now wants “transparency” from the federal government.

His piece reminded me of Branstad’s hypocritical (or non-self-aware, if we’re being charitable) remarks to Clare McCarthy for her feature about refugees for IowaWatch.org. Speaking to McCarthy on July 7, the governor described how refugees from Burma need mentors from within their community to help them adjust to life in Iowa–perhaps forgetting that only days before, he had vetoed funding for a pilot program to train “leaders from the refugee community to help other refugees work through challenges.”

When it comes to political leaders shamelessly doing whatever they want, then failing to take responsibility, Branstad’s got nothing on Russian President Vladimir Putin. Mr. desmoinesdem directed my attention to a classic anecdote about Putin pocketing a Superbowl ring belonging to New England Patriots owner Robert Kraft. Karen Dawisha related the story in her 2014 book Putin’s Kleptocracy: Who Owns Russia? Scroll to the end of this post to read the tale.

UPDATE: A reader commented that former State Representative Renee Schulte also committed a brazen act by shifting gears in a matter of days from being a contractor for the Iowa Department of Human Services to a consultant for a company bidding on contracts to manage Medicaid.

SECOND UPDATE: Not Iowa-specific, but certainly brazen in an “evil genius” way: a “a start-up run by a former hedge fund manager” bought the rights to a life-saving drug last month and “immediately raised the price to $750 a tablet from $13.50, bringing the annual cost of treatment for some patients to hundreds of thousands of dollars,” Andrew Pollack reported for the New York Times.  

Polk County District Court Judge Douglas Staskal ruled yesterday that a lawsuit challenging Governor Terry Branstad’s line-item vetoes of mental health facility funding can move forward.

A group of Democratic state legislators and AFSCME, Iowa’s largest public employee union, filed the lawsuit in July. Last month, attorneys for the state filed a motion to dismiss the lawsuit or force the plaintiffs to “recast” (revise and resubmit) their court filing.

But in a thirteen-page ruling, Judge Staskal rejected the state’s arguments that “the plaintiffs lack standing, have failed to state a claim upon which relief could be granted and that the case presents a nonjusticiable political question.” He found that AFSCME Iowa Council 61 President Danny Homan has standing because he represents the interests of state workers who were laid off when the state government closed in-patient mental health facilities in Clarinda and Mount Pleasant. The judge also noted that state legislators “have standing to challenge the propriety of the Governor’s exercise of his veto authority.” Judge Staskal found plaintiffs had stated a claim: “a challenge to the Governor’s exercise of his line-item veto authority.” As for the political question, the ruling noted, “Whether to close Clarinda and Mount Pleasant is a policy matter for the other branches of government. Whether the Governor’s particular use of his line-item veto power is constitutional is a matter for the courts.”

Judge Staskal did find in favor of one argument advanced by state attorneys, releasing Iowa Department of Human Services Director Chuck Palmer as a co-defendant: “The Director [Palmer] plainly has no authority to veto legislation and there is no allegation that he did veto legislation. Therefore, there is no conceivable set of facts upon which relief could be granted on the claim that the Director exercised an improper veto.”    

The legislators who joined this lawsuit are State Senators Rich Taylor, Tom Courtney, Janet Petersen, Tony Bisignano, Herman Quirmbach, and Dick Dearden, and State Representatives Bruce Hunter, Curt Hanson, Jerry Kearns, Mark Smith, Art Staed, Ako Abdul-Samad, Jo Oldson, Ruth Ann Gaines, Sharon Steckman, Todd Taylor, Mary Gaskill, Kirsten Running-Marquardt, Timi Brown-Powers, and Dave Jacoby.

Governor Terry Branstad has set the special election to replace Chuck Soderberg in Iowa House district 5 for November 3, Iowa Secretary of State Paul Pate told KTIV news today. Last month, Soderberg announced plans to resign in order to become general manager for the Iowa Association of Electric Cooperatives in Des Moines.

A map of House district 5 is after the jump. Even in a low-turnout special election, Democrats don’t have a realistic chance of winning this seat, where Mitt Romney carried 65.9 percent of the vote in 2012 and Joni Ernst won 71.2 percent of vote in last year’s U.S. Senate race. The latest figures from the Iowa Secretary of State’s Office show that House district 5 contains 3,819 active registered Democrats, 9,015 Republicans, and 6,697 no-party voters.

The special election in House district 5 will still be important, though. Whoever wins the Republican district nominating convention could be set up for a long legislative career. UPDATE: The GOP special nominating convention will take place on the evening of September 28 at the Farm Bureau Building in Le Mars.

Soderberg’s retirement will allow newly-selected Iowa House Speaker Linda Upmeyer to choose someone new to chair the House Appropriations Committee. I expect the 2016 Iowa legislative session to be largely unproductive, not only because it’s an election year but also because Branstad’s funding vetoes this summer destroyed any incentive toward bipartisan cooperation. That said, lawmakers cannot adjourn without passing a budget for the next fiscal year, so the Appropriations Committee chair will be an important player at the Capitol next year.

Notably, four key Republicans who were involved in this year’s budget negotiations (including Soderberg) have quit their jobs since Branstad exercised his veto power. The governor’s communications director Jimmy Centers announced last week that he too will soon leave the administration for an unspecified private-sector job.

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

Congratulations to Hawkeyes and commiserations to Cyclones over the outcome of yesterday’s big game. Not being a football fan, I can’t remember how many years it’s been since I watched Iowa play Iowa State. The last time I focused on the Cy-Hawk game was in 2013, when Iowa running back Mark Weisman’s decision to play on Yom Kippur (the most important Jewish holiday) was a big topic of conversation for central Iowa Jews.

The hoopla surrounding yesterday’s game reminded me of a good commentary by “Civic Skinny” in the Des Moines-based weekly Cityview last month. Skinny called attention to how rapidly athletic budgets have grown at Iowa and Iowa State in recent years, and how the athletic departments “continue to find ways to spend” the extra money, “without shipping any to the libraries or the English departments or any other academic endeavors at the two big universities.” I would bet few Iowans know that for many years, Iowa and Iowa State “regularly subsidized the athletic departments with money from the general fund.” I recommend clicking through for all the data in the original piece; excerpts are after the jump.

For two days, the Des Moines Register reported the Des Moines School Board District 1 race as “too close to call,” but Shane Schulte finally conceded to Heather Anderson on Friday. Schulte had earlier indicated plans to seek a recount, but truthfully, the race was never too close to call. When all the precincts reported on election night, Anderson led by 36 votes out of a little more than 2,500 ballots cast. The next day, her lead in unofficial returns grew to 46 votes. That’s a close election, but not close enough for a recount to have a realistic prospect of changing the outcome. Recounts of two Iowa Senate races in 2010 did not overturn Mark Chelgren’s twelve-vote lead out of more than 19,000 ballots cast or Tod Bowman’s 70-vote lead out of nearly 20,000 ballots cast. Two years later, Republican leads of fewer than two dozen votes in Chris Hagenow’s Iowa House race and Mike Breitbach’s Iowa Senate race both held up after recounts of roughly 17,500 ballots and 30,000 ballots, respectively.

Ever since the Affordable Care Act became law in 2010, conservative pundits and Republican politicians have predicted that “Obamacare” would force many businesses to drop health insurance coverage for their employees. This week, the Des Moines Register’s Tony Leys covered the latest data on employer-provided insurance in Iowa. The Clive-based David P. Lind Benchmark research firm surveyed 1,001 employers and found that only 1 percent (mostly “companies with fewer than 10 employees”) stopped offering health insurance coverage this year. The cost of insuring employees in 2015 increased by an average of 7.7 percent, up from the 6.8 percent increase in 2014 but “significantly lower” than typical price hikes “Iowa employers faced a decade or more ago.” Michael Ralston, who leads the Iowa Association of Business and Industry, told Leys “he heard more complaints about insurance costs years ago, when employers’ health insurance prices were rising at more than double the current clip. He still hears grumbling about the complex requirements of the Affordable Care Act, but not as often as in the years after it passed in 2010.” Scroll to the end of this post for more excerpts from Leys’s report.  

Contradicting official documents released less than a week ago, Iowa Board of Regents President Bruce Rastetter announced yesterday that “he will seek $4.5 million in additional funding for the University of Iowa” during the 2017 fiscal year after all.

The three-sentence news release is intriguing on several levels:

1. The way it conflates Rastetter’s personal opinion with a shift in Board of Regents policy.

2. The unusual timing of a state government body announcing a policy change on a public holiday.

3. The unconvincing attempt to give newly-appointed University of Iowa President Bruce Harreld some credit for the conciliatory move.

4. The effort to spin a relatively small funding increase as a significant investment in the university’s “strengths” and “core mission.”

By a unanimous vote, the Iowa Board of Regents today named J. Bruce Harreld as the next president of the University of Iowa. Of the four finalists for the job, only Harreld had never worked in academic administration. Up to now, his experience at universities has been limited to some adjunct teaching.

I’m going on record now: this experiment will not end well.

Governor Terry Branstad didn’t run for re-election last year on a plan to let private insurance companies manage health care for some 560,000 Iowans on Medicaid. He didn’t work with key state legislators to draw up his administration’s “Medicaid Modernization” plans. The governor’s draft budget, submitted in January, projected some $51 million in savings on Medicaid for the 2016 fiscal year. But key lawmakers like the chair of the Iowa Senate Health and Human Resources Appropriations subcommittee didn’t learn that four private companies would be selected to handle almost all Medicaid services until the Iowa Department of Human Services made its request for proposals public in February.

Recent accusations of bias and conflicts of interest, as well as allegedly inaccurate scoring of insurers’ proposals, have raised many questions about how the Iowa DHS selected the four companies now negotiating contracts to manage Medicaid for one-sixth of Iowans. Reports of campaign contributions by lobbyists and political action committees representing firms that sought Iowa’s Medicaid business prompted one watchdog to decry “pay to play” politics.

Those news stories point to a conclusion that isn’t getting enough attention: various insurance companies and their paid representatives knew what was coming down the pike long before the Branstad administration disclosed its plans to privatize Medicaid.

The Branstad administration has justified its “Medicaid Modernization Initiative” with optimistic projections about more “efficient, coordinated and high quality healthcare” and greater “accountability in health care coordination,” delivered at a savings to taxpayers.

Jason Clayworth shared a less encouraging perspective in the August 21 Des Moines Register: all four private insurance companies now negotiating contracts to manage Medicaid in Iowa have “faced serious charges of fraud or mismanagement” related to serving Medicaid recipients in other states. Some of those violations led to “hundreds of millions of dollars in fines” against the insurers.  

Bret Hayworth reported for the Sioux City Journal today that State Representative Chuck Soderberg will soon resign in order to become general manager for the Iowa Association of Electric Cooperatives in Des Moines. He has worked for the Northwest Iowa Power Cooperative in Le Mars for more than 35 years.

First elected to the statehouse in 2004, Soderberg chaired the House Commerce Committee for two years beginning in 2011 and has led the powerful Appropriations Committee since January 2013. No doubt quite a few members of the Iowa House GOP caucus would love to take on that role next year. Given the atmosphere of distrust that Governor Terry Branstad exacerbated by blowing apart this year’s spending compromises, I expect little constructive work to happen during the 2016 legislative session. But passing a budget is one thing lawmakers can’t leave town without doing, so the next person to do Soderberg’s job will exert considerable influence.

Surely Speaker Linda Upmeyer will give the Appropriations chair to someone with more experience than current vice chair Ken Rizer, who is in the middle of his first legislative term.

Soderberg’s retirement also opens up Iowa House district 5, covering all of Plymouth County and some rural areas of Woodbury County. I enclose a detailed map after the jump. This seat isn’t realistically within reach for Democrats; Mitt Romney carried 65.9 percent of the presidential vote here in 2012, and Joni Ernst won 71.2 percent of the 2014 votes for U.S. Senate. The latest figures from the Iowa Secretary of State’s Office show that House district 5 contains 3,820 active registered Democrats, 8,988 Republicans, and 6,659 no-party voters.

A safe legislative seat will be tempting for many ambitious Republicans in Plymouth or Woodbury County. The GOP district nominating convention, likely to happen sometime in September, should be highly competitive.

This thread is for any speculation about Soderberg’s successor on the House Appropriations Committee or as the lawmaker representing House district 5.

The U.S. Election Assistance Commission has determined that spending $240,000 on criminal investigations of voter fraud in Iowa was an “allowable, allocable and reasonable” use of federal Help America Vote Act funds, Ryan Foley reported for the Associated Press today. I enclose the commission’s two-page memorandum of August 13 after the jump (hat tip to Foley). A spokesman for the commission told the AP “he wasn’t aware of other states using HAVA funding for similar investigations.”

Former Secretary of State Matt Schultz made battling voter fraud a major theme of his four years in office. The full-time investigator, pulled from other work at the Iowa Department of Criminal Investigations, turned up a few examples of improper registration and voting but no evidence of any large-scale voter fraud problem. Democratic State Senator Tom Courtney was among the leading critics of Schultz’s use of HAVA funds for that purpose. In October 2012, he requested state and federal audits of the matter. Deputy State Auditor Warren Jenkins announced in December 2013 that his office’s review could not determine whether criminal investigations were a proper or improper use of HAVA funds. He advised the Secretary of State’s Office to “have a plan in place” in case Iowa needed to repay the money to the federal government later.

The commission’s ruling is a lucky break for Schultz, who was elected Madison County attorney last November after losing the GOP primary in the third Congressional district. He’s keeping busy now as state chair for Senator Ted Cruz’s presidential campaign. When Schultz seeks higher office again, he can claim he was vindicated in using federal funds to investigate fraud.

For those wondering why it took federal officials so long to consider Iowa’s use of HAVA money: because Senate Republicans refused to confirm President Barack Obama’s nominees, the Election Assistance Commission didn’t have the necessary quorum to take any official actions from 2010 until January of this year, when three new commissioners were sworn in. Senators had confirmed them during the December 2014 lame-duck session of Congress as part of a large bloc of nominees approved by unanimous consent.

UPDATE: Added below a statement from Courtney urging Secretary of State Paul Pate “to formally pledge not to use federal funds for any future voter purge effort” and to make clear “that Iowa is no longer one of the states where election officials use tax dollars to suppress voter turnout.”

SECOND UPDATE: Schultz told the AP, “This was always about improving the administration of elections.” Rita Bettis, legal director for the American Civil Liberties Union of Iowa, called it “truly troublesome for our national democracy” that Schultz’s “model of voter intimidation can now be exported to other states ahead of the 2016 General Election.”

Iowa House Republicans chose Linda Upmeyer to replace Kraig Paulsen as House speaker today. First elected to the legislature in 2002, Upmeyer has served as majority leader since 2011. House leaders did not release details on today’s vote. State Representative Josh Byrnes was the only other candidate to seek the speaker’s post, despite rumors that one or more other Republicans were sounding out colleagues about the race. All credit to Byrnes for putting himself out there against the party establishment favorite. That takes guts.

O.Kay Henderson posted highlights from Upmeyer’s remarks to reporters today, as well as the audio clip. Not known for showing a lot of emotions in public, Upmeyer’s voice broke as she talked about her late father, Del Stromer, who served as House speaker during the 1980s. She doesn’t sound inclined to change much about how Paulsen was running the lower chamber, but joked, “I use more words than Speaker Paulsen, and I will try to curb that temptation going forward.”

Chris Hagenow will move up from majority whip to replace Upmeyer as majority leader, and Joel Fry will move from an assistant majority leader position to majority whip. Matt Windschitl will continue to serve as House speaker pro-tem. Hagenow told reporters that no one else sought the majority leader post. Bobby Kaufmann ran for majority whip.

Henderson quoted Byrnes as saying,

“I feel like I’m in that movie, Groundhog Day….It’s the same leadership in the House, the same leadership in the Senate. It’s the same governor and the parameters just feel like they’re just set and we can’t move from them. We need new ideas. We need new energy, we need to be able to accept other people’s concepts and infuse those in and I hope that, you know, she can do that.”

According to Byrnes, rank-and-file legislators are upset with missed deadlines, as the legislature has failed to set state school aid levels on time and met for weeks past its scheduled adjournment date. Byrnes also said Iowans are soured by the hyper-partisanship they see from statehouse politicians. […]

Upmeyer told reporters she’ll address the concerns Brynes raised.

“We never should be comfortable with where we’re at,” Upmeyer said. “We always should be striving for innovation and to do things smarter and better and so I absolutely applaud that.”

No need for a lot of innovation here, Madam Speaker: just accept reasonable compromises instead of refusing to budge from your initial negotiating position, and approve school funding bills on time, as happened for a decade and a half before Iowa House Republicans decided to stop following state law a few years back.

After the jump I’ve enclosed official comments on the House leadership election from the Republican Party of Iowa and House Minority Leader Mark Smith, as well as a Facebook status update Byrnes posted after today’s vote.

Refugees from Burma (Myanmar) spend an average of 10-15 years in a refugee camp before coming to America. They get 3 days head’s up before coming to the United States. They take out a government loan of several thousand dollars that they must pay back just to get here. They are then assigned a caseworker from a resettlement agency. This agency and the refugee(s) have 90 days to learn a completely new language and culture, understand school systems, public transportation, healthcare – everything from Winter clothing to brushing their teeth. After 90 days, the federal government stops supporting the refugees all together. The resettlement agency, due to overwhelming demand, must be off to assist the next incoming family. So who takes over?

People like me.

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

Ryan Foley’s August 3 story for the Associated Press was disturbing on several levels. A “Serious Mismanagement Report” described a “decade of dysfunction” at the Effigy Mounds National Monument in northeast Iowa. Between 1999 and 2010, “78 construction projects costing a total of $3.4 million were approved there in violation of federal laws meant to protect archaeological resources and historic sites.” Also troubling: National Park Service officials have suppressed the report’s publication and recently denied that it existed. They have commissioned another team to write a separate (less critical) review of Effigy Mounds operations. National Park Service deputy regional director Patricia Trap delivered some unintentional comedy when she said, “I’m not denying some serious mismanagement […] But also there were actions taken along the way that were actually appropriate management.” I’m so relieved to know that Effigy Mounds officials handled some matters appropriately in addition to the seventy-eight projects that failed to comply with federal law.

Iowa Public Radio’s Morning Edition with Clay Masters interviewed Foley about the mismanagement and next steps at Effigy Mounds. Click through for the audio and transcript.

The Des Moines Register published a front-page piece by Grant Rodgers on August 5 about the “uncertain future” for Iowa’s regional drug courts. Those courts steer defendants into treatment rather than prison, turning lives around at lower cost than incarceration. “Yet despite their popularity among prosecutors, judges and community leaders, several Iowa drug courts have experienced sluggish legislative funding – so much so that they now are in jeopardy,” Rodgers reports. What a classic case of penny-wise and pound-foolish budgeting by state legislators who brag to their constituents about fiscal responsibility. With an ending balance (surplus) of at least $300 million expected for Iowa’s budget in the 2016 fiscal year, it’s ridiculous that the drug court in Council Bluffs will shut down on October 1, with courts in Burlington and Ottumwa “at risk of closing” later this year.

The front page of today’s Sunday Des Moines Register features a depressing must-read by Tony Leys about former residents of the now-closed Iowa Mental Health Institute at Clarinda, which “cared for some of the frailest and most complicated psychiatric patients in the state.” Of the eighteen people who lived in the Clarinda facility earlier this year, eight

were transferred to four traditional nursing homes, all of which are rated “below average” or “much below average” on a federal registry. The four facilities are in the bottom 29 percent of Iowa nursing homes for overall quality, according to the Medicare registry. Two of those eight patients died shortly after their transfers.

I’ve enclosed excerpts from all of the above stories after the jump, but I recommend clicking through to read the articles in their entirety.

Iowa House Speaker Kraig Paulsen announced yesterday that he will not seek re-election in 2016 and will step down from leadership before next year’s legislative session. His surprise move kicks off what will be the most competitive leadership election within the House Republican caucus since colleagues elected Paulsen minority leader shortly after the 2008 general election.

Linda Upmeyer, a seven-term incumbent who has served as majority leader since 2011, immediately confirmed that she will run for speaker. She would be the first woman to lead the Iowa House, and to my knowledge, the first child of an Iowa legislative leader to follow a parent in that role. Upmeyer’s father Del Stromer was House speaker for part of the 1980s.

She won’t get Paulsen’s job without a fight, though.  

Governor Terry Branstad’s vetoes of education and mental health funding will stand, as the two-thirds majority needed to call a special legislative session has failed to materialize in either the Iowa House or Senate.

A special session always looked like a long-shot, given that Iowa House Republican leaders didn’t want to spend extra money on education and only reluctantly agreed to extend funding for mental health institutions. In addition, 23 of the 24 Iowa Senate Republicans voted against the supplemental spending bill. They had no stake in the compromise the governor blew apart.

Still, the outcry over school funding (including dozens of normally non-political superintendents speaking out) created an opening for Republican lawmakers. Even if they didn’t believe in the substantive value of additional education or mental health funding, they could have taken a big issue off the table for next year’s statehouse elections. So far, very few Republicans seem worried about the political fallout from not overriding Branstad’s vetoes. Democrats appear ready to remind voters at every opportunity who created the holes local education leaders are scrambling to fill.  

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

All five Democratic presidential candidates appeared at the Iowa Democratic Party’s Hall of Fame dinner in Cedar Rapids on Friday night. I’ve posted below my impressions from the speeches; you can watch the videos on C-SPAN. It’s a shame the venue couldn’t accommodate more people, because lots of interested Iowa Democrats were unable to get tickets for the event.

Before the Hall of Fame dinner, I spent some time with an old friend who’s a huge Hillary Clinton supporter. Huge, as in, she didn’t take down her Hillary yard sign until the grass was long enough to need mowing in the spring of 2008. She mentioned to me that she’s relieved to see Clinton working hard this year instead of “ignoring” Iowa like last time. When I told my friend that Hillary visited Iowa more than 30 times in 2007, spending all or part of 70 days in the state, she was surprised. I’m amazed by how many Iowans have bought into the media-constructed narrative that Clinton “bombed” in the caucuses because she took the state for granted.

Ten Republican presidential candidates came to Ames on Saturday for the Family Leadership Summit organized by Bob Vander Plaats’ FAMiLY Leader organization. C-SPAN posted all of those speeches here. As usual, Donald Trump sucked up most of the oxygen in the room by questioning whether Senator John McCain had been a hero during the Vietnam War. O.Kay Henderson posted the audio at Radio Iowa. Rival presidential candidates with the exception of Ted Cruz rushed to condemn Trump’s remarks. Some of the Family Leadership Summit attendees may have been more upset by Trump’s comments about his three marriages and his admission that when he’s done something wrong, “I don’t bring God into that picture.”

Bleeding Heartland’s “Where are they now?” posts usually focus on new jobs for former elected officials, candidates for high office, or other prominent individuals in Iowa politics.

Todd Dorman’s latest commentary for the Cedar Rapids Gazette prompted me to follow up on a smear from the 2010 state legislative elections.

Iowa’s largest public employee union and 20 Democratic state legislators filed a lawsuit today challenging the closure of mental health institutes in Mount Pleasant and Clarinda. I enclose below a press release from AFSCME Council 61, which lists the six state senators and fourteen state representatives who joined the lawsuit naming Governor Terry Branstad and Department of Human Services Director Chuck Palmer.

The Branstad administration announced plans in January to close two of Iowa’s four in-patient mental health facilities. State legislators were neither consulted nor notified in advance. The Department of Human Services started winding down operations well before the end of the 2015 fiscal year. Democrats fought to include funding for the Clarinda and Mount Pleasant institutes in the budget for the current fiscal year, but Branstad item-vetoed the appropriation. The lawsuit contends that closing the facilities violates Iowa Code, which holds that the state “shall operate” mental health institutes in Mount Pleasant and Clarinda. The governor’s communications director told KCCI that AFSCME’s leader in Iowa “is resistant to change” and that the closed “centers were not suited to offer modern mental health care.”

The Iowa legislature’s decision next year on whether to fund the Clarinda and Mount Pleasant facilities will be critically important. The Iowa Supreme Court recently dismissed the lawsuit challenging the closure of the Iowa Juvenile Home in 2014, without considering the merits of that case, on the grounds that the legislature made the issue “moot” by no longer appropriating state money to operate that facility. By refusing to include funding for the two closed mental health institutes in the budget for fiscal year 2017, Iowa House Republicans could bolster the Branstad administration’s efforts to defeat the lawsuit filed today.

UPDATE: Added more speculation about this lawsuit’s prospects below.

The apparent attempt to bury Governor Terry Branstad’s large batch of budget cuts before the July 4 holiday weekend isn’t working. Fallout from the governor’s line-item vetoes continues to make news on a daily basis. Today, Iowa Senate Democratic leaders announced that they have formally asked colleagues to request a special legislative session to override the highest-profile and largest vetoes, which affected education and mental health funding.

Meanwhile, the latest article by the Des Moines Register’s “Reader’s Watchdog” Lee Rood called attention to an item veto that flew below the radar last week: $100,000 from the health and human services budget, intended for a pilot project to serve refugees in Polk County. The amount of money was so small–far less than one-tenth of 1 percent of the $7 billion state budget–that Branstad couldn’t fall back on misleading statements about “fiscal health” to justify this item veto. Instead, he cited an equally weak pretext.

Waterloo high school teacher Vaughn Gross e-mailed 23 Iowa Republican state senators this week, urging them to “help call a special [legislative] session to fund our schools.” State Senator David Johnson sent back a dismissive reply, telling Gross to “Quit whining” and complaining that Democrats had cost him money by sending the Iowa legislative session into overtime.

I’m surprised an experienced politician would respond in that tone to Gross’s respectful, heartfelt appeal. But Johnson outdid himself later in the day, after his message to the teacher went viral. Far from seeking a graceful way out of the situation, Johnson defended his choice of words and indicated that he sees GOP legislators as the victims of a “concerted attack” on their votes. In his view, Republicans should not be criticized for education funding levels.

Really?

Late in the afternoon on the last day state offices were open before the long holiday weekend, Governor Terry Branstad used his veto pen to strike “all the big deals” Iowa House Republicans and Senate Democrats negotiated to end this year’s legislative session.

The budget compromise was already a much better deal for statehouse Republicans than for Democrats. House GOP leaders got the global budget targets they had demanded, which were lower than what the governor requested and Democrats proposed. Most of the concessions to Democrats came in House File 666, a $125 million collection of one-time appropriations.

While Branstad didn’t veto the entire supplemental spending bill like he did in 2014, he cut out House File 666’s largest and highest-priority items for statehouse Democrats: $55.7 million for K-12 school districts, $2.5 million for community colleges, nearly $2.9 million for the University of Iowa, $2.25 million for Iowa State University, and $1.1 million for the University of Northern Iowa.

In other words, after standing on the sidelines during most of the battle over the 2016 budget, Branstad handed House Republicans near-total victory. The fallout will be substantial.

Governor Terry Branstad does not feel bound by spending compromises Iowa Senate Democrats and House Republicans made to end the 2015 legislative session, he told reporters yesterday. Democrats reluctantly agreed to most of the GOP budget targets in exchange for extra funding for education and other key programs in a $125 million supplemental spending bill. But last year, Branstad vetoed one supplemental spending bill in its entirety and item vetoed from other legislation some hard-fought increases in conservation funding. Similar action in the coming weeks would make an already disappointing session for Democrats even worse.

In more surprising comments yesterday, Branstad indicated that he hasn’t ruled out calling lawmakers back to Des Moines for a special session to set K-12 school funding for the 2016/2017 academic year. Under a 20-year-old state law, the Iowa House and Senate should have acted on that issue months ago, but in recent years House Republicans have refused to follow the timetable for giving school districts a year’s warning on state aid levels. As a result, administrators and school board members were forced to fly blind when adopting budgets for the 2015/2016 academic year. While I’m glad Branstad is back on board with following the law on school funding (he wasn’t always so inclined), I have trouble seeing how a special session could overcome House Republicans’ intransigence.

Follow me after the jump for more details from Branstad’s press conference.

The Iowa legislature is wrapping up its work for this year with the usual frenzy of appropriations bills. Months of stalemate over K-12 education funding and social safety net programs ended late last week with a deal that gave Iowa House Republican leaders what they wanted on overall state spending ($7.168 billion) and “allowable growth” for local school district budgets (up by only 1.25 percent). A $125 million supplemental spending bill will allocate one-time money for K-12 schools and some other Democratic priorities.

It will take a while to sort through the wreckage and identify the good, bad, and ugly line items hiding in the appropriations bills for fiscal year 2016. Democrats can only pray that Governor Terry Branstad won’t veto the supplemental spending bill like he did last year.

What’s already clear: Republicans have many more reasons to celebrate. House Speaker Kraig Paulsen was all smiles about the budget deal, while Senate Majority Leader Mike Gronstal admitted candidly, “I think there’s plenty of disappointment to go around, but we fought long and hard for what we thought was important and I think we, in the end, had some success.” Speaking to reporters earlier this week, Gronstal noted, “If left to our own devices, we would pass a very different budget. But it is our duty to work together to come to common ground between the two sides.”

Why did this “common ground between the two sides” end up so much closer to the Republican negotiating position? Because months ago, Gronstal gave House leaders what they wanted on tax bills, without securing any concessions on spending. Even a brilliant politician can make a mistake.

Nearly a week after the deadline for school districts to certify their budgets for the coming year, Iowa lawmakers are still not close to a deal on K-12 education funding. Some 300 teachers have been laid off in anticipation of no increase or only a minimal increase in state aid.

Statehouse Republicans who are resisting the obvious compromise on school funding claim Iowa doesn’t have the money Democrats want to spend on K-12 schools, let alone the amount educators asked for. Reality: money could be found for an adequate increase in state aid to schools if not for an expensive commercial property tax cut lawmakers approved two years ago, adding some $277 million in fiscal year 2016 alone to other costly tax breaks for Iowa business interests.  

Annals of the absurd: Iowa’s longest-serving state legislator, who sought a ninth Senate term last year at the age of 80, is now beating the drum for term limits.

What a terrible idea, especially for a state whose governor already takes an expansive view of his own powers.  

Governor Terry Branstad made a remarkable claim at his latest press conference: because “the people of Iowa elected me to reduce the size and cost of government,” he has the authority to “make tough decisions” on closing state-run mental health facilities and reorganizing Medicaid services for more than half a million Iowans.

To justify his position, Branstad channeled President Harry Truman: “The buck stops with me.” But his view of governance reminds me more of Mel Brooks in the movie “History of the World, Part 1”: “It’s good to be the king.”

Iowa legislative leaders like to boast about how well they work together, in contrast to the “gridlock” seen in Washington when different parties controlled the upper and lower chambers of Congress.

Yet Iowa lawmakers can be remarkably slow to move toward obvious solutions to some disagreements. Less than two weeks before school districts need to adopt budgets covering the 2015/2016 academic year, Iowa House Republicans and Senate Democrats are nowhere close to a deal on K-12 school funding. What is their problem?  

For the third time in a row, binding arbitration was needed to finalize a two-year contract for state workers covered by Iowa’s largest labor union. For the first time in decades, workers covered by American Federation of State, County and Municipal Employees (AFSCME) will pay a small amount toward their health insurance premiums, but not nearly as large a share as Governor Terry Branstad wanted them to contribute.

On the other hand, the arbitrator accepted the state’s final offer on salary increases for the roughly 40,000 public employees covered by AFSCME Iowa Council 61. Details are after the jump.

This morning Governor Terry Branstad signed Senate File 257, which raises the state gasoline tax by 10 cents a gallon and includes several other provisions related to transportation funding, permit fees, and fuel taxes. The Iowa House and Senate just approved the bill yesterday, with substantial bipartisan support and opposition in both chambers.

Gas tax revenues go into Iowa’s Road Use Tax Fund, which distributes money among state, county and local governments according to a set formula. Because Iowa lawmakers did not incorporate any  “fix it first” language in Senate File 257, I remain concerned that the bulk of the new money will be spent on new road construction or building new lanes on existing roads, rather than on fixing the crumbling infrastructure that was cited to justify this tax increase. Branstad already signaled as much this morning:

Branstad said having the tax hike go into effect March 1 means the state will collect more fuel taxes than expected in the last four months of the state fiscal year – and the starting date for some road and bridge projects may be moved up.

“Highway 20 is one of those that has been around for a long time and we want to see that completed and moved up,” Branstad said, “and this is a way that hopefully that and other key projects can get priority and be expedited.”

The project to expand all 300 miles of the Highway 20 route from Dubuque and Sioux City into a divided four-lane highway began 50 years ago. Branstad told reporters this morning that he’s recently talked with the Iowa DOT’s director about speeding up the Highway 20 project.

Current Road Use Tax Fund revenues fall an estimated $215 million short of what Iowa needs annually to maintain existing infrastructure. According to the fiscal note produced by the non-partisan Legislative Services Agency, Senate File 257 will bring in a little more than $200 million in additional funds each year for the next several years. Money spent on new roads or new lanes on roads like Highway 20 won’t help us catch up with ongoing maintenance needs. How many structurally deficient bridges won’t be fixed because four-laning Highway 20 was expedited? The same dynamic could play out in many counties and local governments too, because new roads or road expansions are often seen as better economic development than fixing a road or bridge that’s in bad shape.

A standoff over state funding for K-12 education appears unlikely to be resolved anytime soon. The Republican-controlled Iowa House has approved legislation setting “allowable growth” in state funding to school districts at 1.25 percent for fiscal year 2016; the House Journal for January 27 includes details on the debate, during which members rejected on a party-line vote a Democratic amendment to increase school spending, and later approved House File 80, also along party lines. House Republicans reportedly support a 2.45 percent increase in school funding for fiscal year 2017 but have not brought legislation before the full chamber yet.

Meanwhile, Democrats who control the Iowa Senate are committed to setting allowable growth at 4 percent for each of the next two fiscal years. Many education groups have lobbied lawmakers for at least 4 percent allowable growth, and in a Senate Democratic survey of Iowa superintendents, 96 percent of respondents said the appropriate level of supplemental state aid for the coming fiscal year should be 4 percent or higher.

Yesterday four education funding bills passed the upper chamber; a statement enclosed after the jump covers the key points in each bill. The legislation setting allowable growth at 4 percent for fiscal year 2016 and 2017 passed on party-line votes (roll calls are in the Senate Journal). Republicans joined their colleagues to unanimously approve the other two bills, which would “have the state pick up the 12.5 percent property tax share under the state’s foundation aid formula for both fiscal years.” Rod Boshart summed up the bottom line:

Under the GOP approach, current state per-pupil funding of $6,366 would grow by $80 in fiscal 2016 and another $158 in fiscal 2017. By contrast, the Senate’s 4 percent position would boost per-pupil funding to $6,621 for the 2015-16 academic year and $6,886 the following school year.

Or to view it another way, the House approach would include nearly $100 million in additional K-12 school funding for fiscal year 2016, while the Senate approach would provide an additional $212 million this coming year and $217 million the following year.

The obvious compromise would be to increase school aid by somewhere between 2-3 percent for each of the next two years, but Republican lawmakers and Governor Terry Branstad insist there’s no room in the state budget for that much additional spending. Note that no one questioned whether Iowans could afford an extra $100 million in tax cuts, mostly for business, which just passed the Iowa House unanimously.

During yesterday’s debate, Democratic State Senator Tony Bisignano argued that the big commercial property tax cut approved in 2013 will shortchange Iowa students. (Indeed, when that commercial property tax bill passed, many people warned that it would lead to cuts in public services.) State Senator Joe Bolkcom also criticized “messed up” priorities that favor “special interests” in the state tax code. As long as I’ve been paying attention to the Iowa legislature, tax expenditures have always been an easier sell than more money for schools or other public services. That dynamic won’t change this year.

Any relevant comments are welcome in this thread.  

Governor Terry Branstad will expand the number of Medicaid recipients who are covered under private managed-care companies, Tony Leys reported for the January 21 Des Moines Register.

Details are scarce on how the plan would work, but Branstad projects it would save $51.3 million from January through June 2016, its first six months. […]

“Through better coordinated care in Medicaid, focused on improving outcomes, Iowa can better serve Medicaid patients and provide more predictability for Iowa taxpayers,” [Branstad spokesman Jimmy Centers] wrote in an email to the Register. “The growth of Medicaid spending in Iowa is unsustainable over the long-term and it limits Iowa’s ability to provide high-quality and stable health services to our most vulnerable residents as well as our ability to invest state taxpayer dollars in other key programs aimed at growing our state.” […]

Rep. Linda Miller, a Bettendorf Republican who serves on the [Human Resources] committee, said most of the savings would come from improved care, so Medicaid members wouldn’t need hospitalization or other expensive services as often. She said legislators want to make sure the shift won’t lead to cuts in services or in payment rates to medical providers.

Amy McCoy, a spokeswoman for the Iowa Department of Human Services, said the state and federal governments spend about $4.2 billion annually – including $1.5 billion of state money – on Iowa’s Medicaid program. That’s up 73 percent since 2003, she said.

If Branstad’s plan really would save $51.3 million each year (I am skeptical), that figure represents a little more than 1 percent of Medicaid’s total annual costs in Iowa, or about 3.4 percent of the state’s share of Medicaid costs.

Approximately 564,000 Iowans are now covered under the Medicaid program. It’s not clear how many of them would be shifted to private companies; the Department of Human Services is expected to release a plan in March. Magellan of Iowa has offered “a broad range of mental health and substance abuse services” to most Iowans on Medicaid since 1995. Meridian Health Plan has been providing coverage to some Medicaid recipients since 2012 “through a contract with the Iowa Department of Human Services.” Currently about 17,000 beneficiaries are covered through Meridian.

Leys quoted Iowa House Republican Dave Heaton as saying the governor can implement this change without legislative approval.

Any relevant comments are welcome in this thread.

P.S. – Who is old enough to remember when Republicans demonized the idea of “managed care” as evil interference between doctors and their patients?

Governor Terry Branstad will deliver his annual Condition of the State address to members of the Iowa House and Senate this morning at 10 am. You can watch the speech live on Iowa Public Television’s website or on IPTV World (channel 119 on Mediacom in central Iowa). The full text as prepared will be available on the governor’s official website.

Judging by yesterday’s opening remarks from state legislative leaders, Iowa House Republicans most want to see new tax reform proposals from the governor. Iowa Senate Democrats are most closely watching to see whether Branstad will propose adequate funding for education at all levels, from pre-school to K-12 to community colleges and state universities. I’ll update this post later with highlights from the day. Any comments about the governor’s speech (content or delivery) or the upcoming legislative session are welcome in this thread.

UPDATE: Added highlights and some reaction to the “Together We Can” speech below. James Q. Lynch created a graphic showing the words Branstad used most.

Chutzpah alert: Branstad is urging lawmakers to “bring together state agencies that have a shared interest in quality of life initiatives and invest in our parks, trails, lakes and museums.” Maybe he’s forgotten that the state legislature did that last year, before he vetoed millions of dollars that would have gone toward parks, trails, water quality programs and other amenities.

It’s also disappointing that the governor can’t quit lying about how many jobs have been created since he returned to public office.

It’s encouraging to hear the governor call for stronger efforts to protect victims of domestic violence and end bullying in schools. The devil will be in the details of those proposals. Speaking to Radio Iowa, Iowa Senate President Pam Jochum said “the anti-bullying proposal as well as the anti-domestic violence proposal will get a very good response from the Iowa Senate.” But she said the governor’s proposed education funding is “less than what we know we need in order to bring Iowa’s per pupil spending investment up to at least close the national average.” Meanwhile, House Speaker Kraig Paulsen told Radio Iowa that his caucus will continue to look for tax cuts (“a way to for Iowans to leave more of their own money in their pockets”).

SECOND UPDATE: As he did last year, the governor called for expanding access to broadband statewide. But strangely, Branstad does not plan to attend President Barack Obama’s scheduled January 14 event in Cedar Falls, where the president will “propose plans to increase affordable access to high-speed broadband internet.”

LATE UPDATE: Nate Monson, executive director for Iowa Safe Schools, characterized the governor’s anti-bullying bill as a “giant leap forward for gay youth” in Iowa. I’ve enclosed excerpts from his Des Moines Register guest editorial at the end of this post.

Exciting times for Iowa politics watchers: the state legislature’s 2015 session began in Des Moines today. A tentative schedule for this year’s work is available here (pdf). The last day lawmakers will receive per diem expenses is on May 1, but for the past four years of divided control between a Republican House and a Democratic Senate, the session has always gone into overtime–sometimes by a little and sometimes by a lot. Bleeding Heartland previously posted details on the each chamber’s majority and minority leadership teams, along with all chairs, vice chairs, and members of standing committees. Click here for who’s who in the Iowa House, and here for who’s who in the Iowa Senate.

Today legislative leaders from both parties pledged to work together. After the jump I’ve enclosed the full texts of opening day remarks. Iowa Senate Majority Leader Mike Gronstal called for making Iowa’s middle class the “focus of the 2015 session” by ensuring adequate education spending, fighting wage theft, and expanding worker training while keeping a balanced budget. He praised Governor Terry Branstad for agreeing to go back to setting K-12 school funding a year in advance, as is required by state law, but warned the governor not to make a partisan statement by proposing too little funding for education when he addresses the legislature tomorrow.

Echoing some of the priorities she named last year, Senate President Pam Jochum said building an economy that “works for everyone” means supporting families and especially children: “For too long, the well-being of children has been considered a woman’s issue.’ It is not just a ‘woman’s issue’. It is an American issue. It is an Iowan issue.” Jochum urged lawmakers to expand access to education from pre-K through college, make “quality, affordable childcare” more available across the state, and boost an initiative to “detect and help prevent mental health and developmental problems among young children.”

Iowa House Minority Leader Mark Smith said the top priorities for House Democrats are strengthening the middle class and re-vitalizing rural Iowa. In addition to expanding early childhood education and providing adequate funds for K-12 schools, Smith called for raising the minimum wage, though GOP leaders have shown no willingness to negotiate on that issue.

As has been true in recent years, top Iowa House and Senate Republicans focused on fiscal issues and mostly avoided social issues. Iowa House Speaker Kraig Paulsen challenged his colleagues “to ensure that government do less and do it better” when “others bring forward their laundry list of funding opportunities, spending priorities, or flashy government programs.” He called for more tax cuts along the lines of a 2006 bipartisan agreement to eliminate the state tax on Social Security benefits. (Mike Owen of the Iowa Policy Project explained in a guest column for the Quad-City Times why that tax cut was passed “under false pretenses” and skewed Iowa’s tax code “further to the benefit of the wealthy.”) House Majority Leader Linda Upmeyer emphasized the need to “craft a responsible budget.” She singled out the Medicaid program for criticism, claiming growth in Medicaid spending is “not sustainable” and will threaten lawmakers’ ability to invest in education, job training, infrastructure, and renewable energy. Iowa Senate Minority Leader Bill Dix called on senators to “work together to rein in spending, make cuts and reduce the size of government and lift up all Iowans in the process by reducing their tax burdens.”

None of the Republicans set a goal of undoing marriage equality, and only House Speaker Pro Tem Matt Windschitl made passing reference to other top priorities for social conservatives when he said, “Let us work together to make Iowa the best place to live, where taxes are low, jobs are abundant, education is top of the line, innocent life is protected and Second Amendment rights are fully embraced.”

Any comments about the legislative session are welcome in this thread. By the way, here’s some trivia you may not know about Speaker Paulsen.  

Happy new year to everyone in the Bleeding Heartland community! Undeterred by my failure (yet again) to win, place, or show in my own blog’s election contest, I offer fifteen Iowa politics predictions for this calendar year.

Your own predictions or any other relevant comments are welcome in this thread. At the end of this year I’ll look back to see what we got right or wrong.

In the busy days before Thanksgiving, I missed this unintentional comedy from Governor Terry Branstad’s weekly press conference (hat tip to Todd Dorman):

“There’s also a constitutional question about whether the president of the United States has the authority to act unilaterally on issues like this [immigration policy],” Branstad said. “So I expect there’s going to be a lot of unanswered questions that I need to get information about and what the impact would have on our state.”

Asked if he would take executive action on state immigration policy, Branstad responded, “We don’t operate that way in Iowa.”

“That’s the difference between Washington, D.C., and Iowa,” Branstad said. “In Iowa, I’m very careful to recognize the separation of powers and to work with the Legislature.”

Where to begin?

State Auditor Mary Mosiman, who in her previous job stood by and watched other people collect salaries for doing no work, has doubled down on her defense of the status quo in state auditing procedures.

Highlights from Thomas Geyer’s report for the Quad-City Times are after the jump, along with state auditor candidate Jon Neiderbach’s reaction to the incumbent’s “reckless comments.”

Iowa’s state auditor is a low-profile position and a difficult office to campaign for, even without a marquee U.S. Senate race sucking up all the oxygen. But there are huge contrasts between Republican incumbent Mary Mosiman, appointed to the office last year, and her Democratic challenger Jonathan Neiderbach.

Last week, Robert Rees hosted a mini-debate of the state auditor candidates during his “Morning Drive” program on the Des Moines-based talk radio station 98.3 The Torch. You can listen to the 15-minute exchange here or look it up on the list of Morning Drive podcasts for October 21. The big takeaway is that Mosiman wants to maintain the status quo in State Auditor’s office operations, despite mismanagement including secret payouts to state employees, which several years of audits failed to uncover. Neiderbach wants to improve the audits so that they are meeting the tasks set out in Iowa Code.

Follow me after the jump for highlights from last week’s debate and two more reasons to support Neiderbach for state auditor.

I've had enough.

Gov. Branstad continues to spread misinformation about his record on water quality. The simple fact? He vetoed $20 million in funds that would have improved Iowa's natural resources and protected water quality of our rivers, lakes and streams.

With full disclosure, I'm the Director for Citizens for a Healthy Iowa. We are a non-profit (c4) organized here in Iowa and we work primarily on water quality issues – public education & issue advocacy. More about our new ad, and campaign, after the jump ….

Yesterday the National Republican Congressional Committee launched its first television commercial in Iowa this year. After the jump I’ve posted the video and transcript of the 30-second spot attacking Democratic candidate Staci Appel over spending votes she cast in the Iowa Senate. Bleeding Heartland provided background here on one of the points, which was a staple of Iowa Republican campaign rhetoric in 2010. Short version: money was never spent on those “decorative flowerpots,” because Governor Chet Culver line-item vetoed the allocation. But in any case, they were not intended purely for decoration around the State Capitol grounds. Rather, they were similar to heavy planters commonly seen around federal government buildings, as much a security measure as a decorative one.

I’ve also enclosed below background on the historic musical instrument for which Appel and other state lawmakers allocated restoration funds. UPDATE: It turns out that GOP candidate David Young’s boss, Senator Chuck Grassley, went to bat for federal funding to restore the same organ. Scroll down for details.

Governor Terry Branstad and State Senator Jack Hatch are debating this afternoon at the Iowa State Fair. Iowa Public Television is live-streaming the event and will replay the debate at 7 pm tonight. Share any comments about the governor’s race in this thread. I will be updating with my thoughts after the jump.

Branstad has agreed to two other debates with Hatch, but his team are refusing to allow Lieutenant Governor Kim Reynolds to debate Hatch’s running mate, Cedar Rapids City Council member Monica Vernon. It’s a strange stance for a guy who is determined to make Reynolds the next governor.

UPDATE: My live-blog is after the jump. I will add more links and discussion later. If you missed the debate, you can watch at 7 pm on Iowa Public Television. They may also keep the video up on the IPTV website. SECOND UPDATE: The full debate transcript is now available here.

THIRD UPDATE: Mike Glover saw this debate as a sign Iowa “will actually have a governor’s race this year.” Click through to read the whole piece; I’ve posted excerpts below, after the liveblog.