The rumors were true: Drake University Law Professor Jerry Foxhoven will be the new Iowa Department of Human Services director, effective tomorrow.

The May 31 press release announcing Chuck Palmer’s retirement linked to a job listing for the DHS director position, to close on June 11. I would be surprised if Governor Kim Reynolds interviewed or seriously considered anyone else for this job, given the rapid turnaround. I never heard a rumor about any candidate other than Foxhoven.

I enclose below the full text of today’s announcement, including background on the new director. Foxhoven has a lot of relevant experience for the job, and I wish him the best of luck as he attempts to lead a department where big mid-year spending cuts will give way to even lower funding levels for the next fiscal year. Morale is reportedly poor among DHS workers, in part because of too-large caseloads. Medicaid privatization has proved disastrous for many vulnerable Iowans and service providers.

Speaking of which, Disability Rights Iowa filed suit yesterday against Reynolds and former DHS Director Palmer, seeking “to halt discriminatory cuts in services to 15,000 Iowans with serious disabilities,” Tony Leys and Jason Clayworth reported for the Des Moines Register. Roxanne Conlin is helping the plaintiffs, who will seek certification for a class action.

UPDATE: Lee Rood and Tony Leys interviewed Foxhoven for the Des Moines Register. I posted excerpts below, but you should click through to read the whole thing.

Promising to stand up to powerful interests and raise her voice for those who are hurting, small business owner Cindy Axne announced this morning that she will run for Congress as a Democrat in Iowa’s third Congressional district. Her campaign is online here as well as on Facebook and Twitter. A Des Moines native, Axne runs a digital design firm with her husband. From 2005 to 2014, she worked in state government for the Department of Administrative Services, Department of Management, and Department of Natural Resources.

I enclose below more background on the candidate and today’s news release. Axne has never run for office before, but she has attended Democratic events around the state this year as a surrogate for gubernatorial candidate Rich Leopold.

Governor Kim Reynolds promised today not to “stop working until every Iowan, no matter where they live, has the same opportunity to succeed, have a satisfying career, raise a family and have a great quality of life.”

Judging by her first speech in her new role, Reynolds has some major blind spots about her own record and the challenges facing Iowans.

Disappointing but not surprising: the Iowa Senate on April 10 confirmed Geri Huser as chair of the Iowa Utilities Board by 44 votes to four. Senators delayed consideration of Huser’s nomination in late March, after Ryan Foley reported for the Associated Press that she “has maintained a busy and profitable private legal practice” during her first two years as board chair.

Iowa Code 474.8 stipulates that each utilities board member “shall devote the member’s whole time to the duties of the office.” For decades, every other attorney appointed to that board halted his or her legal practice during the term of service. For some reason, Huser decided those standards need not apply to her. She has also given out conflicting information about her work for the Skinner Law Office. Although she has claimed not to receive any income from that firm, she appears to work out of their office, as Bleeding Heartland discussed near the end of this post.

Only four senators–Democrats Tony Bisignano, Kevin Kinney, Bob Dvorsky, and Herman Quirmbach–found Huser’s outside legal work concerning enough to oppose giving her two more years of greater administrative responsibility and higher pay as the board chair. Most Iowa Senate confirmations are unanimous, so four votes against Huser indicates unusually strong discomfort with her conduct.

On the other hand, the 44 senators who supported Huser on Monday sent a clear message to Iowans. If state law on devoting one’s “full time” to public service gets in the way of a earning a side income, sometimes during regular business hours, powerful and well-connected officials don’t need to follow that rule.

Huser’s ongoing legal practice isn’t her only unprecedented behavior as Iowa Utilities Board chair. Less than six months into her term, she withheld funding for energy centers affiliated with state universities. That inappropriate exercise of her authority was disruptive to the centers and possibly illegal. At the time, a former lawmaker who helped create the energy centers described Huser’s interference as “way out of line.”

Democratic State Senator Joe Bolkcom works at the Center for Global and Regional Environmental Research at the University of Iowa, which got caught up in Huser’s power play, even though the Iowa Energy Center at Iowa State University was her primary target. I am seeking comment from Bolkcom on his vote to confirm Huser and will update this post as needed.

Real-world data don’t match figures Governor Terry Branstad and Lieutenant Governor Kim Reynolds released yesterday in order to demonstrated the alleged “continued success of modernizing our state’s Medicaid program.”

April 1 marked a year since Iowa allowed three private insurance companies to manage care for more than half a million Medicaid recipients. The shift was disruptive for thousands of Iowans as well as for caseworkers and service providers, some of which went out of business. Reimbursement problems and cutbacks to care are still affecting many people, Chelsea Keenan reported in this retrospective on the first year of the policy.

Although privatization was supposedly designed to save money and bring predictability to the state budget, the Branstad administration agreed last fall and again in February to hand over millions more state dollars to the managed-care organizations (MCOs), unlocking some $225 million in extra federal funding for the corporations, which have much higher administrative costs than Iowa’s state-run Medicaid program did.

I enclose below the latest deceptive official statements about the “modernization,” along with a demolition fact-checking job by Democratic State Senator Liz Mathis. I’ve also included independent State Senator David Johnson’s reaction to what he called a “lousy, lousy” press release. While still a member of the Republican caucus during the 2016 legislative session, Johnson worked with Democrats trying to halt Medicaid privatization or at least provide stronger legislative oversight of the program.

The Iowa Hospital Association can’t substantiate the Branstad/Reynolds claims on hospitalization rates, Tony Leys reported yesterday for the Des Moines Register. Excerpts from that story are at the end of this post.

On a related note: thousands of Iowans who follow this issue closely are mourning Rhonda Shouse, who died unexpectedly in late March. I never met Rhonda in person, but we communicated through social media, and I admired her relentless advocacy on behalf of those adversely affected by Medicaid privatization. Keenan marked her passing in the Cedar Rapids Gazette, and Leys did so in the Des Moines Register. May her memory always be for a blessing.

State senators will soon decide whether to confirm Geri Huser to another two years as chair of the Iowa Utilities Board.

The vote presents an opportunity to affirm that even the most powerful and well-connected state officials must follow the law.

Don’t count on senators seizing that chance.

Governor Terry Branstad’s staff have rebuffed repeated efforts to obtain a list of those invited to watch the governor sign sweeping changes to Iowa’s collective bargaining law last month.

Going against longtime standard practice for high-profile legislation, Branstad excluded reporters from attending what staff called a “private” event. Drew Klein, state director for Americans for Prosperity, later posted a picture of himself shaking the governor’s hand at the bill signing. The large number of pens on the governor’s desk suggest that many others celebrated the historic move to take rights away from an estimated 180,000 public workers.

Jodie Butler was determined to find out who else was in that room.

Iowa’s Revenue Estimating Conference delivered bad news yesterday. Revenues are lagging so far behind projections that even after enacting huge spending cuts in February, the state is on track to have a shortfall of $131 million at the end of the current fiscal year. Next year’s revenues are being revised downward by $191 million as well.

Governor Terry Branstad, Senate Majority Leader Bill Dix, and House Speaker Linda Upmeyer quickly announced plans to use the state’s cash reserves to cover the gap. Dix’s written statement explained, “We must not cripple our schools, public safety and many other essential services with further cuts this year. Our savings account exists for moments such as this.”

Two months ago, many Democratic lawmakers advocated dipping into “rainy day” funds as an alternative to the last round of painful reductions to higher education, human services, and public safety. At that time, Republican leaders portrayed such calls as irresponsible. A spokesperson said Branstad “doesn’t believe in using the one-time money for ongoing expenses.” Now, the governor assures the public, “Iowa is prepared,” thanks to hundreds of millions of dollars in the state’s cash reserves, and Dix boasts about the supposedly strong GOP leadership that filled those reserve funds.

Republican hypocrisy on state budget practices is irritating and all too predictable. But that’s not my focus today.

While transferring funds from cash reserves will solve the immediate problem, it won’t answer some important questions about how we got into this mess.

Mary Dyer, an advocate for Iowans with hearing loss, sounds the alarm about an imminent threat to deaf services. The Department of Human Rights has been forced to cut about $90,000 from its budget before the end of the current fiscal year on June 30. -promoted by desmoinesdem

RE: Cuts to Deaf Services Effective March 31

I was notified Monday, March 6, by Monica Stone, Deputy Director of the Iowa Department of Human Rights, that Stephanie Lyons, the full-time disabilities consultant with the Department of Deaf Services, is being terminated at the end of the month due to “necessary” budget cuts. This leaves one staff member working one-third-time for the entire department of Deaf Services, plus support staff. This is for the entire state of Iowa.

If you are someone with typical hearing, you have probably not thought of the challenges and limitations of having hearing loss. I learned about this the hard way.

Republicans have already inflicted immeasurable harm on Iowans during the 2017 legislative session, taking rights away from more than 180,000 workers, slashing funding for higher education and human services, and approving the third-smallest K-12 school funding increase in four decades. The worst part is, they’re nowhere near finished.

Iowa Senate Minority Leader Rob Hogg has flagged twelve of the most destructive bills still alive in the GOP-controlled House and Senate. Any Iowan can attend public hearings scheduled for March 6 or 7 on four of those “dirty dozen” bills. Those who are unable to come to the Capitol in person can submit written comments on the legislation or contact Republican state representatives or senators directly by phone or e-mail.

Here’s what you need to know about the four bills most urgently requiring attention.

A new bill that would have named a task force to study licensing requirements in Iowa will not move forward this legislative session, Republican State Representative Dawn Pettengill told representatives of the National Association of Social Workers Iowa chapter. House Study Bill 174 replaced an earlier proposal from Governor Terry Branstad, which would have eliminated licensing requirements for numerous professions. During the past week, House Study Bill 138 generated as many constituent contacts to Iowa lawmakers as the bill passed earlier this month to destroy collective bargaining rights. Among other things, the governor’s licensing bill would have reduced insurance coverage for mental health care services. On February 27, an Iowa House State Government subcommittee voted not to move that bill forward.

House State Government Committee Chair Ken Rizer introduced the replacement licensing bill on February 28. In addition to changing regulations in several other areas, House Study Bill 174 called for a new task force to review Iowa’s licensing requirements and report back to the legislature by the end of 2017.

Although Rizer’s bill would not have immediately affected marriage and family therapists, mental health counselors, or social workers, the leading association representing Iowa’s social workers expressed concern that “the taskforce as outlined would mostly be selected by the Governor, who has demonstrated that he wants to de-professionalize many different important professions that serve some of our most vulnerable populations.” (You can read the task force membership provisions on on page 37.) The social workers group was seeking an amendment to give licensed professionals greater influence over the task force membership. But last night, Pettengill–one of two Republicans on the subcommittee where the new bill was assigned–said House Study Bill 174 was dead.

Most non-appropriations bills must be approved by at least one Iowa House or Senate committee by March 3 in order to stay alive for this year. Bills need to clear a subcommittee before coming up for a full committee vote.

Whether the licensing task force language led to the new bill’s demise is not clear. The lobbyist declarations on House Study Bill 174 show substantial opposition, presumably related to other provisions on regulating hospitals and electricians.

P.S. Attention-seeking State Representative Bobby Kaufmann could have let the governor’s original licensing bill die quietly by not scheduling a subcommittee hearing, as is normal practice in the Iowa legislature. Instead, the publicity hound wasted a lot of people’s time before drawing cheers as he ripped up the bill’s cover sheet. Alas, television cameras had already left the meeting room before Kaufmann’s dramatic gesture. The young Republican lawmaker was literally not ready for prime time.

ISU economist Dave Swenson returns to the important topic of exaggerated claims about job creation and other economic impacts. -promoted by desmoinesdem

The Iowa Department of Education released a study recently claiming Iowa’s community colleges support $5.4 billion in income and 107,170 jobs in Iowa.

The claim is ludicrous, and I’ll get to the details in a bit, but it is on par with a range of private and public economic impact studies of higher education that contort econometric methods in ways never intended in order to provide ever-desperate college and university administrators with economy-benefiting claims that wow legislators and garner public support.

To “avoid any questions about a potential conflict,” Iowa Attorney General Tom Miller will request that outside legal counsel defend the state against a public employee union’s legal challenge to Iowa’s new collective bargaining law. AFSCME, the largest labor union representing state workers, and four of its members filed suit on February 20, charging that House File 291 violates Iowa constitutional provisions on equal protection and non-interference in contracts. In a statement I enclose in full below, Miller said he will ask the Iowa Executive Council to approve other counsel for this case, because “the new collective bargaining law has the potential to existentially threaten the viability of public sector unions,” which have supported him in past campaigns.

The council is likely to approve Miller’s request. Its five members are Governor Terry Branstad, Secretary of State Paul Pate, State Treasurer Mike Fitzgerald, Secretary of Agriculture Bill Northey, and State Auditor Mary Mosiman. Branstad’s spokesperson Ben Hammes told Barbara Rodriguez of the Associated Press, “[Miller] summed it up when he said that AFSCME had supported him in the past and he wants to avoid any questions about a potential conflict.”

The Attorney General’s Office defended the Branstad administration against a lawsuit challenging the closure of the Iowa Juvenile Home, for which AFSCME Iowa Council 61 President Danny Homan was a plaintiff. But outside counsel defended the state when Democratic lawmakers and Homan challenged the governor’s use of line-item vetoes to close Iowa Workforce Development offices.

Miller may need to ask outside counsel to be appointed if other labor unions and public employees file additional lawsuits challenging the collective bargaining law. Aside from the points raised by AFSCME, several other provisions may raise constitutional questions:

• The law bans automatic payroll deductions for labor union dues, while allowing such deductions to continue for professional association memberships or recurring charitable contributions.

• The law may violate free association rights by requiring unions to win a majority of all eligible voters, not just those who cast ballots, in order to stay certified.

• The law eliminates a quid pro quo contained in the first paragraph of Chapter 20, which could be seen as a due process violation.

AFSCME Iowa Council 61 and four of its members filed suit today in Polk County District Court, saying the collective bargaining law Governor Terry Branstad signed on Friday is unconstitutional. I enclose below the petition filed on behalf of Iowa’s largest union representing state employees, as well as the plaintiffs’ request for expedited hearing. The filing repeatedly refers to “the amendments” because House File 291 amended Chapter 20 of the Iowa Code, which has regulated collective bargaining since 1974.

The new law’s disparate treatment of “public safety workers” and other public employees is the central issue raised in AFSCME’s lawsuit. Plaintiffs argue that Article I, section 6 of the Iowa Constitution requires that “all laws of a general nature shall have a uniform operation” and that the legislature “shall not grant to any citizen, or class of citizens, privileges or immunities, which, upon the same terms shall not equally belong to all citizens.” All four individual plaintiffs fail to qualify as “public safety workers,” and therefore have lost almost all meaningful collective bargaining rights, even though some of their occupations are as dangerous or more so, compared to some of the “public safety” jobs. Johnathon Good is a corrections officer, Ryan De Vries is a police officer III, Terra Kinney is a motor vehicle enforcement officer, and Susan Baker is a drafter for the University of Northern Iowa. Excerpt from page 7 of the petition:

The arbitrary definition of “Public Safety Employee,” the arbitrary classification of public employees as “Public Safety Employees” or other public employees and the arbitrary classification of bargaining units into those whose members are at least thirty percent “Public Safety Employees” and those whose members are not which are included in the Amendments deprive Officer Good, Officer De Vries, and Ms. Baker of the constitutional guaranty of equality of all before the law that is set forth in Art. I, § 6 of the Iowa Constitution.

The petition also argues that “transition procedures” altering and terminating bargaining procedures and schedules established in the union contracts violate Article I, section 21 of the Iowa Constitution, which prohibits passing a “law impairing the obligation of contracts.”

Before the text of House File 291 became public, Republican lawmakers were rumored to be at odds over whether to exempt “public safety workers” from most of the new restrictions on collective bargaining. Supposedly Iowa House Republicans opposed that division, while key GOP senators wanted to copy the political strategy used in Wisconsin six years ago. The collective bargaining bill Iowa House Republicans approved in 2011 did not treat law enforcement officers or firefighters differently from other public employees.

Sources in Iowa’s labor community expect other lawsuits challenging the collective bargaining law to be filed later this year. The two main union-busting provisions are seen as particularly ripe for challenge: onerous election requirements for unions to stay certified, and a ban on automatic payroll deductions for union members, even though employees will still be able to automatically deduct membership fees in other professional associations and recurring charitable donations. Neither provision was part of the 2011 Iowa House collective bargaining bill.

One of my blogging new year’s resolutions for 2016 was to publish more work by other authors, and I’m grateful to the many talented writers who helped me meet that goal. After the jump I’ve linked to all 140 guest posts published here last year.

I encourage readers to consider writing for this site in 2017. Guest authors can write about any political issue of local, state, or national importance. As you can see from the stories enclosed below, a wide range of topics and perspectives are welcome here.

Pieces can be short or long, funny or sad. You can write in a detached voice or let your emotions show.

Posts can analyze what happened or advocate for what should happen, either in terms of public policy or a political strategy for Democrats. Authors can share first-person accounts of campaign events or more personal reflections about public figures.

Guest authors do not need to e-mail a draft to me or ask permission to pursue a story idea. Just register for an account (using the “sign up” link near the upper right), log in, write a post, edit as needed, and hit “submit for review” when you are ready to publish. The piece will be “pending” until I approve it for publication, to prevent spammers from using the site to sell their wares. You can write under your own name or choose any pseudonym not already claimed by another Bleeding Heartland user. I do not reveal authors’ identity without their permission.

I also want to thank everyone who comments on posts here. If you’ve never participated that way, feel free to register for a user account and share your views. If you used to comment occasionally but have not done so lately, you may need to reset your password. Let me know if you have any problems registering for an account, logging in, or changing a password. My address is near the lower right-hand corner of this page.

The Branstad-Reynolds Scholarship Fund, which collected money to pay for Governor Terry Branstad’s 2011 and 2015 inaugural celebrations, has not disclosed the names of donors who contributed $1.1 million in 2015, Ryan Foley reported today for the Associated Press. That information should have been included on the non-profit’s 2015 tax return. However, the return filed on November 15, 2016 named only one donor: Principal Financial Group, which gave $25,000.

Before considering Branstad’s nomination to be U.S. ambassador to China, the Senate Foreign Relations Committee should insist that the governor bring his non-profit into compliance with federal law. Senators should also scrutinize all donations to the group, to see whether Branstad did any political favors for individuals or businesses that bankrolled his inaugural.

For the first time last year, I put some thought into what posts had consumed the greatest amount of my energy. I realized that some of those deep dives were among my most satisfying writing projects. That new awareness informed my editorial choices in good and bad ways. Unfortunately, some election-related stories I would have covered in previous cycles didn’t get written in 2016, because I was immersed in other topics. On the plus side, those rabbit holes led to work I’m proud to have published.

Assembling this post was more challenging than last year’s version. Several pieces that would have been among my most labor-intensive in another year didn’t make the cut. A couple of posts that might have made the top ten were not ready to go before the holidays. Maybe they will end up in a future collection of seventeen posts I worked hardest on in 2017.

During the first week of December 2015, an unexpected political scandal went out with a whimper as the Iowa Energy Center and the Center for Global and Regional Environmental Research finally received the remittances the Iowa Utilities Board had collected on their behalf from gas and electric utility companies. For many years, the board had transferred those funds without incident, as stipulated by state law. But in her first year as Iowa Utilities Board chair, Geri Huser took the “unusual, perhaps illegal, step of withholding funding […].”

Huser’s power play was aimed at the Iowa Energy Center affiliated with Iowa State University. (Its leaders denied her unsupported claim that they had refused to provide sufficient financial information to the board.) Because funds for both centers are calculated and released at the same time, the unprecedented board action also delayed resources for the Center for Global and Regional Environmental Research at the University of Iowa. Huser backed down a week after Ryan Foley of the Associated Press exposed the controversy to a wider audience.

Having heard nothing about the energy centers’ funding lately, I reached out this week to Iowa Utilities Board communications director Don Tormey. He sent documents showing that in accordance with the usual formula for splitting the remittances, the board disbursed $4,123,150.49 to the Iowa Energy Center and $727,614.79 to the Center for Global and Regional Environmental Research. The board sent warrants (paper checks) using regular mail, as had happened in 2015 for reasons I still don’t understand. Before last year, the board typically transmitted those funds via wire transfer.

Communications staff at the state universities confirmed that the energy centers received checks in the mail last month for $4,123,150.49 and $727,614.79, respectively. Those totals comprise the remittances from utility companies but not the interest accrued on those funds. John McCarroll of Iowa State University noted, “In the letter with the check, IUB said they will be forward[ing] the interest payment in June 2017 as they close out the fiscal year. This is how they handled the interest in 2016.”

The board has faced criticism on other fronts this year after approving the Dakota Access (Bakken) pipeline and allowing its construction to commence this summer, when Dakota Access did not have all applicable federal permits. Pending lawsuits are challenging the board’s authority to use eminent domain for the pipeline, saying a 2006 Iowa law does not allow a company that isn’t a utility to condemn farmland. It would have been foolish for Huser to stir up more trouble by flexing her muscles at the energy centers’ expense again. Also possibly relevant: former Iowa Energy Center executive director Mark Petri, with whom Huser had tangled, left Ames this summer to take a new job as director of the Critical Infrastructure Resilience Institute at the University of Illinois at Urbana-Champaign.

What a way to begin the holiday season: Governor Terry Branstad’s administration is negotiating new employment contracts on the assumption that health insurance benefits will no longer be subject to collective bargaining.

Judging by past experience in Iowa and other states, the 59 incoming House Republicans and 29 Senate Republicans will rubber-stamp the new policy, gutting a collective bargaining law that has served this state well since 1974.

Today the New York Times published short lists for every position in Donald Trump’s cabinet, “using information from the Trump transition team, lawmakers, lobbyists and Washington experts.” The leading names for secretary of agriculture are Kansas Governor Sam Brownback, Texas Agricultural Commissioner Sid Miller, former Georgia Governor Sonny Perdue, and Chuck Conner, CEO of the National Council of Farmer Cooperatives.

Six Iowans were among more than 60 people on the “Agricultural Advisory Committee” Trump’s campaign announced in August. Governor Terry Branstad has never expressed interest in a federal government job. Iowa Secretary of Agriculture Bill Northey is widely expected to run for governor in 2018, unless Branstad seeks a seventh term. Sam Clovis is under consideration for deputy chief of staff for policy. Former State Representative Annette Sweeney, who leads a public policy group called Iowa Agri-Women, doesn’t have the stature for a cabinet position. The same goes for Ron Heck, a farmer and past president of the American Soybean Association.

Then there’s Bruce Rastetter, who made a fortune building factory farms and another fortune in the ethanol industry. Often described as a “kingmaker” despite the mixed results for candidates he has favored, Rastetter may soon need a new gig for throwing his weight around politically. His term on the Iowa Board of Regents, where he is nominally president but de facto the decider for the nine-member board, expires at the end of April 2017. Even after last week’s devastation, Democrats have enough votes in the Iowa Senate to block Rastetter’s confirmation, assuming Branstad renominates him to the governing board for the three state universities.

Trump is reportedly considering quite a few corporate executives for cabinet positions, so why isn’t Rastetter on the short list? He may be a casualty of New Jersey Governor Chris Christie’s declining influence in Trump’s inner circle. Rastetter has long been on good terms with Christie, but the governor was replaced as leader of Trump’s transition team soon after the election. (A source told Deadspin that “Trump had just picked Christie as transition chair nominally, as everyone had assumed the New Jersey governor would never actually have to do any work.”)

What will be Rastetter’s next political move if no federal job is forthcoming, and the Iowa Senate declines to confirm him to another term on the Board of Regents? Spin your own scenarios in this thread.

P.S.-Searches on the Iowa Ethics and Campaign Disclosure Board’s website indicate that Rastetter gave less money to Iowa Republican candidates and political committees during the 2016 cycle than he had during the previous several elections. His only five-figure gifts in 2015 or 2016 were $10,000 to Kim Reynolds for Lieutenant Governor, $25,000 to Iowa Senate Minority Leader Bill Dix’s committee, and several gifts totaling $40,000 to House Speaker Linda Upmeyer’s committee. That’s a significant drop from Rastetter’s large contributions to GOP candidates and committees during the 2014 and 2012 election cycles. He hasn’t given any money to Nick Ryan’s Team Iowa PAC since 2012, when his donations to that PAC alone totaled $120,000. The Team Iowa PAC ceased to be a major player in Iowa legislative races after the 2012 election. The American Future Fund 501(c)4 group, for which Rastetter provided “seed money” in 2007, spent less to influence federal elections in 2014 and 2016 than it had in 2012.

UPDATE: Trump’s son-in-law Jared Kushner is reportedly behind the “purge” of Christie loyalists from Trump’s transition team. When Christie was a U.S. attorney, he put Kushner’s father in prison.

Pop quiz: Who is best positioned to investigate a possible violation of Iowa law by a state university president?

A. The top prosecutor in the county where the university is located

B. Officials in the Iowa Division of Criminal Investigation

C. Attorneys in the Iowa Attorney General’s Office

D. A guy who reports to a guy who reports to the university president

If you picked “D,” you have something in common with Story County Attorney Jessica Reynolds.

Iowa is blessed with an unusually large number of competitive state legislative districts, thanks to our non-partisan redistricting process. Most election years, at least half a dozen Iowa Senate seats and twice as many House seats are in play. Campaign finance reports showing where candidates and party leaders are spending the most money provide the best clue on which legislative races are worth watching.

That said, most years at least one little-noticed candidate pulls off a big upset in an Iowa House or Senate district neither party was targeting. Now-disgraced Kent Sorenson won his first race in 2008, taking a House seat that had been considered safe for Democrats. Two years later, Kim Pearson got no help from GOP leaders en route to winning a House seat where the Democratic incumbent had been unopposed the previous election. Republican Mark Chelgren won an Ottumwa-based Senate district for the first time by ten votes. That seat had been considered so safe that the Democratic incumbent was knocking doors for a colleague in another district during the final weekend. I learned later that internal GOP polling had Chelgren almost 20 points down a couple of seeks before the election.

I can’t shake the feeling that in this strange campaign with two unpopular presidential nominees, something weird will happen in a down-ballot race no one is watching. So before I get back to Bleeding Heartland’s last few battleground Senate and House race profiles, a few words on why I feel a race in Iowa’s southeast corner could produce a shocking result.

During his long tenure, Governor Terry Branstad has typically been attentive to the concerns of for-profit corporations. So when the insurance companies picked to manage Medicaid for more than half a million Iowans reported in August that they were losing money on the deal, they got a favorable hearing.

A senior analyst from Iowa’s non-partisan Legislative Services Agency confirmed on Friday that the Branstad administration has agreed to pay an extra $33.2 million to the three Medicaid managed care providers for the contract period beginning on April 1 and continuing through June 2017. I enclose that e-mail below, along with reaction from several Democratic state senators.

Hardly a week goes by without my hearing yet another story about an Iowan hurt by Medicaid privatization. Thousands of people have been forced to change doctors or have lost access to therapy for loved ones. This summer, a survey of care providers for Iowans on Medicaid found that:

90% say their administrative costs have increased;
80% say more health care claims are being denied;
79% of providers say they are not getting paid on time;
66% say they are being reimbursed at rates lower than their contracted rates;
61% say the quality of services they can provide has been reduced;
46% have or plan to cut their services; and
28% have taken out loans while waiting to be paid.

Branstad refuses to adjust his Medicaid policy to help patients who are suffering or care providers struggling to keep the doors open. On the contrary, he keeps spinning tales (backed up by no evidence) about “protecting the interests of the taxpayers” and “stopping significant fraud and abuse.” His administration hasn’t followed up on supposed new benefits for patients and puts out impossible-to-verify accounts of “success stories.”

Critics warned that any money saved by privatizing Medicaid would come at the expense of health care for vulnerable patients. They warned that those apparent savings would evaporate once for-profit insurers demanded more money from the state, as had happened in Florida following that state’s rapid privatization of Medicaid.

Iowa enjoyed low administrative costs under the old Medicaid system. Thanks to our governor and his Republican enablers in the state legislature, taxpayers will now experience the “nightmare” scenario that has already unfolded for Medicaid patients and care providers. Connecticut saved money by moving away from managed care, back to the state-run, fee-for-service model.

Don’t expect anything that sensible from Branstad, who happily spends other people’s money when corporations come calling.

UPDATE: Branstad claimed at an October 31 press conference that the state budget will still save money thanks to efficiencies in the new Medicaid system. If those savings materialize (they didn’t in Connecticut), it will happen through companies denying health care services to Iowans.

SECOND UPDATE: Added below excerpts from an excellent post by Iowa Policy Project Executive Director Mike Owen.

Since the day he launched his 2010 campaign for governor, Terry Branstad has been promising to raise Iowa family incomes by 25 percent. That aspiration is still highlighted on the front page of the governor’s website.

Family incomes haven’t increased in any significant way, according to a September 2015 report by the Iowa Fiscal Partnership: “Median household income was $53,712 in 2014 — compared with $53,031 the year before. It was also statistically unchanged from 2007 ($53,994 in 2014 dollars) and from 2000 ($52,483 in 2014 dollars).” U.S. Census Bureau data indicate that as of July 2015, the median family income in Iowa was $52,716.

Despite the lack of progress toward one of his central goals, Branstad has opposed various policies that would raise incomes, especially toward the lower end of the scale.

Most recently, he moved last week to block a new U.S. Department of Labor rule, which would make at least 120,000 Iowans eligible to earn overtime pay.

Republicans are testing potentially damaging messages about Iowa House Democratic candidates, along with statements that might increase support for GOP candidates in battleground legislative districts. After listening to several recordings of these telephone polls and hearing accounts from other respondents, I have three big takeaways:

• Republicans are seeking ways to insulate themselves from voter anger over inadequate education funding and the Branstad administration’s botched Medicaid privatization;
• The time-honored GOP strategy of distorting obscure legislative votes is alive and well;
• The Iowa Democratic Party’s platform plank on legalizing all drugs may be used against candidates across the state.

Read on for much more about these surveys.

Tom Witosky covered sports, politics and business for many years as an investigative reporter at the Des Moines Register. -promoted by desmoinesdem

-30-

Back when newspaper reporters typed their stories onto paper, the notation -30- at the bottom of the final page indicated the end of a story.

When the U.S. Men’s Olympic basketball team on Sunday defeated Serbia, 96-66, the 30-point drubbing fittingly symbolized the end of one of the best Olympic efforts ever by U.S. male and female athletes. Medal totals told the story: U.S. teams earned 121 medals (45 gold, 37 silver and 38 bronze) outpacing China’s second place finish with 70 medals.

But what’s more interesting is how the dominance of U.S. female athletes, likely the most superior women’s team ever fielded by the United States Olympic Committee, played such a huge role in that success.

In many ways, the U.S. success provides another metaphor for the progress that has been made in this country’s striving for a better union. Like the breaking of the racial barrier in Major League Baseball by Jackie Robinson, and the breaking of the sexual-orientation barrier by a variety of athletes, the success of the U.S. women illustrates vividly that commitment to equality and diversity does pay despite long-term, deep-seated resistance from those who disagree.

The U.S. Army Corps of Engineers has granted the Texas-based Dakota Access company a federal permit to build the Bakken pipeline across Iowa.

Although opponents plan various forms of direct action, the best remaining chance for stopping the pipeline is a lawsuit challenging the Iowa Utilities Board’s authority to use eminent domain for a project with no legitimate public purpose.

Dave Swenson

The news out of West Des Moines last week was that Microsoft will add a third data center. At first glance, a data center cluster looks to be popping-up in Iowa. We have the three Microsoft projects in West Des Moines, Facebook’s two complexes on the other side of the metro in Altoona, Google’s two projects in Council Bluffs, and a smattering of smaller centers scattered about the state.

“Microsoft could build these centers anywhere in the world,” said West Des Moines Mayor Steve Gaer, as quoted in the Des Moines Register, but they’re building them right here in Iowa. A map of data centers across the U.S. tells us, though, that data centers of all sorts and sizes are just about everywhere there are people. In short, Iowa isn’t that special. Don’t tell West Des Moines.

While most political junkies were engrossed in high drama at the Republican National Convention, the Iowa Utilities Board adopted an order this week that should expand small-scale solar projects.

As public sector bad behavior goes, this example may not be as repulsive as a member of Congress from Iowa displaying a Confederate flag on his desk, but prepare to be disgusted by this July 13 story from the Cedar Rapids Gazette’s Vanessa Miller:

The Iowa Department of Natural Resources amended a permit to allow Dakota Access to run the Bakken pipeline under a sensitive area in the Big Sioux River Wildlife Management Area, William Petroski reported for the Des Moines Register on June 20. The amendment means Dakota Access is no longer subject to the stop-work order the DNR imposed last month. DNR spokesperson Kevin Baskins told Petroski the company will run the pipeline “about 85 feet underground” to avoid disrupting sacred ground, which may include American Indian burial sites.

State Archaeologist John Doershuk said in an email last week to DNR Director Chuck Gipp that the proposed directional boring construction method is a satisfactory avoidance procedure from an archaeological standpoint that he supports in this case. However, Doershuk emphasized he could not speak for American Indian tribes that have expressed concerns about the pipeline project.

Energy Transfer Partners, the parent company of Dakota Access, maintains that a 2004 archeological review of the site in question did not turn up any areas of cultural significance. Gavin Aronsen posted that document and comments from a company spokeswoman at Iowa Informer.

Now that the DNR has lifted the stop-work order and the Iowa Utilities Board has changed its stance to allow pipeline construction before Dakota Access has all federal permits in hand, only two legal obstacles stand in the way of completing the project across eighteen Iowa counties. The U.S. Army Corps of Engineers has yet to issue permits covering a small portion of the Iowa route–though I would be shocked to see the federal government stand in the way once construction has begun. A series of landowner lawsuits are challenging the use of eminent domain for the Bakken pipeline, saying a 2006 Iowa law does not allow farmland to be condemned for a private project by a company that is not a utility.

The Iowa Utilities Board voted today to allow Dakota Access LLC to begin construction of the Bakken pipeline on Iowa land that is not subject to the federal permitting process and where the company has obtained easements from landowners. The decision marks a shift from the stance the board took when approving the pipeline proposal in March.

A retired University of Iowa employee has filed suit to nullify last year’s hiring of University President Bruce Harreld, on the grounds that five members of the Iowa Board of Regents violated the state’s open meetings law, Ryan Foley reported yesterday for the Associated Press.

I enclose below more background on the case as well as the full text of the plaintiff’s court filing.

Thanks to Jon Muller for a close look at the effects of a law that is a major reason Iowa lacked the revenue to fund K-12 schools and higher education adequately this year. -promoted by desmoinesdem

Senate File 295, the keystone tax bill passed into Iowa law in 2013, is now in full swing. It left a big hole in the State’s General Fund. It delivered handsomely on its promise to cut taxes for commercial property owners, at least in the short run. It provided modest help to the working poor. For its $500 million (plus) price tag, it has accomplished little else.

One positive aspect from the bill, at least from the perspective of most readers on this blog, was an increase in the Earned Income Tax Credit, which returns approximately $30 million to low-income working Iowans. Whether that benefit was worth the hundreds of millions given away to Iowa commercial property owners is a question left to the political analysts.

The remainder of this piece will focus on the property tax components of the bill. For reasons economic, these provisions are not likely to fulfill their stated purpose of spurring development or reducing rents for small businesses and renters. Those issues will be the subject of a different blog post. This post addresses a variety of tax burden shifts, some intended, some not. Virtually all of the benefit has gone directly to improve the wealth of commercial property owners, and shifted the property tax burden to homeowners in the short-medium run. In a strange twist, for those who desired that impact, even that may possibly fail the test of time.

I don’t post job listings here often, but since many Bleeding Heartland readers have substantial public policy experience and are interested in the issues at the core of the American Civil Liberties Union’s work, I wanted to spread the word that the ACLU of Iowa is hiring a policy director. The full job listing is after the jump. The non-profit organization will accept applications through June 26, with the goal of filling the position by August.

The eventual hire will be “responsible for advancing the ACLU’s broad civil liberties agenda before the state legislature, executive branch, and local governmental bodies,” leading policy projects related to “areas including but not limited to voting rights, racial justice, criminal justice reform, immigrant’s rights, free speech, reproductive freedom, women’s rights, LGBT rights and privacy rights.”

The Iowa Department of Natural Resources has told attorneys for Dakota Access the company is “no longer authorized to engage in any activities” related to a permit previously issued for a pipeline across the Big Sioux River Wildlife Management Area in northwest Iowa, Gavin Aronsen reported at Iowa Informer. The U.S. Fish and Wildlife Service informed Iowa DNR Director Chuck Gipp on May 25 that a “significant archeological site” identified within that Wildlife Management Area “may fall along the proposed path of the Dakota Access Pipeline,” more commonly known as the Bakken pipeline. Consequently, the federal agency revoked approval of that permit and asked the DNR to “stop all tree clearing or any ground-disturbing activities within the pipeline corridor pending further investigation.”

Citing the letter from the Fish and Wildlife Service as well as e-mail communication from Iowa’s State Archeologist John Doershuk, yesterday the DNR sent Dakota Access a stop work order for the eastern half of the Wildlife Management Area in Lyon County, overlapping the proposed pipeline route. Aronsen posted both letters in full. Iowa Informer is a must-follow for Bakken pipeline news.

The Bakken Pipeline Resistance Coalition is holding a day of action in Oskaloosa (Mahaska County) on Saturday, May 28. In the morning, kayaks and canoes will float along the South Skunk River near where the pipeline would cross it. Along that section of river, paddlers will pass “7-generation landowner Sylvia Rodgers Spalding’s property adjacent to the proposed pipeline route.” Authors Carolyn Raffensperger, Fred Kirschenmann, Angie Carter, and Rachel Morgan will read from the recently-published book Fracture: Essays, Poems, and Stories on Fracking in America at 3 pm at the Book Vault in Oskaloosa (105 South Market Street).

Owners of two farms in Cherokee County filed lawsuits on May 20 seeking to block the Texas-based oil company Energy Transfer Partners from seizing their land for the Dakota Access (Bakken) pipeline, William Petroski reported for the Des Moines Register. I enclose excerpts from his story below.

Like a separate lawsuit filed in Polk County last month, these legal claims are based on a 2006 Iowa law, which was designed to protect farmland from being condemned for private development. The plaintiffs argue the Iowa Utilities Board erred when it authorized a private company that is not a utility to use eminent domain.

Regardless of how district courts decide these claims, the Iowa Supreme Court will likely be the final voice on whether state law allows the use of eminent domain for this project.

Dakota Access started Bakken pipeline construction in North Dakota, South Dakota, and Illinois this week, but the Iowa Utilities Board denied the company’s request to start building here. O.Kay Henderson reported for Radio Iowa that the board’s legal counsel noted the oil company “has not filed all the necessary permits and associated verifications to begin construction.” Although the board approved the permit to build the Bakken pipeline in March, as did the Iowa Department of Natural Resources, the Army Corps of Engineers has not yet approved permits for portions of the pipeline that would cross federal land.

Brian Morelli and Rod Boshart reported for the Cedar Rapids Gazette on the Private Property Rights Coalition’s work to educate landowners along the pipeline route about the eminent domain process and “legal options if they refuse to voluntarily sign easement agreements with the oil company.” One of that group’s leaders is Keith Puntenney, who has not signed an easement for his farmland in Boone and Webster counties. Puntenney is also the Democratic challenger to State Senator Jerry Behn in Iowa Senate district 24.

More resources for landowners and citizens who oppose the pipeline project are available on the website of the Bakken Pipeline Resistance Coalition, uniting more than two dozen Iowa non-profit organizations. I expect Bakken opponents to make their presence known when U.S. Senator Heidi Heitkamp of North Dakota comes to Des Moines as the featured guest for the Iowa Democratic Party’s Hall of Fame event next month.

I have a bad feeling about this: after three years as University of Northern Iowa president, Dr. William Ruud is leaving Cedar Falls to lead Marietta College in Ohio. That college and the Iowa Board of Regents confirmed Ruud’s plans shortly after Jeff Charis-Carlson broke the news yesterday.

Moving from the top job at a well-regarded state university to a private college one-tenth the size isn’t a typical path for academic leaders. So, did Ruud jump or was he pushed?

“Footprint” of Jordan Creek Town Center development in West Des Moines, overlaid on the “East Village” neighborhood of downtown Des Moines, courtesy of Jim Thompson

Four of the oldest buildings in downtown Waterloo “have been renovated with their historic features revived,” John Molseed reported for the Waterloo-Cedar Falls Courier on May 13. A block that had been vacant since 2007 will now hold “four commercial spaces and six loft-style apartments.” The city of Waterloo and the state historic tax credit program helped secure private investment for the project.

Renovating older buildings is much better for the environment than razing them. The economic benefits of historic preservation are not always easy to measure, but converting vacant buildings to commercial or residential use generates revenue.

Downtown property is the most valuable per acre, according to data compiled by Jim Thompson, a business specialist for the Iowa Economic Development Authority’s Main Street Program. For that reason, Thompson advises anyone who will listen, “If you want to help your school districts, invest in your downtown buildings.”

His message should resonate with local officials after yet another state legislative session produced a disappointing budget for K-12 schools. With Thompson’s permission, I enclose below some materials he has created to show the impact of repurposing downtown buildings.

The 800-pound gorilla of Iowa’s health insurance market, Wellmark Blue Cross/Blue Shield, released new details today about its plans to sell policies for 2017 on the health insurance exchange created as part of the 2010 Affordable Care Act. More than half of Iowans are insured by Wellmark, mostly through employer-provided policies. The company controls about three-quarters of the state’s market for individual health insurance, but up to now, those policy-holders have not been eligible for federal subsidies. Wellmark announced last October that it would participate in Iowa’s exchange for 2017 and confirmed those plans last month, when UnitedHealthcare disclosed that it would exit “Obamacare marketplaces” across the country, including Iowa’s.

Wellmark’s Chairman and CEO John Forsyth said last year that the company decided to join the public exchange so members “can access subsidies that are critical to help reduce the cost of health insurance premiums for themselves and their families.” Many thousands of people will need those subsidies, because today Wellmark revealed that roughly 30,000 Iowans who hold individual policies compliant with the Affordable Care Act will likely see massive premiums increases of 38 to 43 percent next year.

Unfortunately, as Tony Leys reported for the Des Moines Register, Wellmark policies will be available on the public exchange only for residents of 47 Iowa counties–not statewide.