# Taxes



Meet Austin Frerick, who may run for Congress in IA-03

“This is what I think Democrats need to be talking about,” wrote Austin Frerick yesterday, sharing the link to his latest guest column in the Des Moines Register: “To save rural Iowa, we must end Monsanto’s monopoly.”

Frerick has been warning for some time that economic concentration, especially in the agricultural sector, hurts rural Iowa. He has also highlighted lack of competition and little-known pharmaceutical company practices that keep drug costs inflated, so powerful corporations can overcharge Medicare under the guise of helping sick people.

He may soon be raising those and other issues as a Democratic candidate in Iowa’s third Congressional district.

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Iowa GOP leaders failed us on health care bill

TJ Foley, a recent graduate of Valley High School in West Des Moines, on how top Iowa Republicans failed to speak out against an “attack on the most basic principles of equality, freedom, and rural fairness.” -promoted by desmoinesdem

It’s been a rough week for Senate Republicans. Two conservative senators announced that they would oppose the reckless GOP plan to overhaul America’s health care system and drop millions from the health insurance rolls. This legislation emerged from secret negotiations and violated some of the most basic Iowa values we all hold dear.

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Air war fully engaged in key Iowa House special election

Both major parties are on the air in Iowa House district 82, where voters will choose a new state lawmaker three weeks from today. Whereas the last two special House elections happened in heavily Republican or Democratic districts, the late Curt Hanson represented a politically balanced area. The outcome on August 8 could shape the media narrative about political trends in Iowa and affect candidate recruitment for other competitive statehouse races.

Republicans were first to run negative advertising in most of the 2016 Iowa House and Senate campaigns, but Democrats defending House district 82 have already launched a brutal spot about the Republican candidate’s “tax problem.”

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Major battle shaping up for Iowa House district 82 (updated)

Curt Hanson won the most important Iowa legislative special election of the last decade. So it’s fitting that the election to replace the Iowa House Democrat, who passed away last month after a long battle with cancer, is shaping up to be our state’s most consequential special legislative race in years.

What happens here on August 8 won’t determine the outcome of Iowa’s 2018 elections but could have political repercussions beyond the three counties in House district 82.

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Iowa budget disaster likely to force special legislative session

Governor Kim Reynolds appears unlikely to be able to balance Iowa’s budget for the fiscal year that just ended without calling a special legislative session. The last time Iowa lawmakers needed to come back after adjournment to fix the budget was in 2002, when the country was in a recession that had begun the previous year.

This year’s huge revenue shortfalls are happening during a time of economic expansion, the result of overly optimistic planning and business tax breaks that turned out to be much more costly than officials predicted.

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Auditor Mary Mosiman vouches for "stable" and "responsible" budget

Sounding more like a Republican loyalist than a hard-nosed fiscal analyst, State Auditor Mary Mosiman told reporters this week that Iowa’s budget for the year beginning July 1 is “stable” and “responsible.”

Mosiman also asserted that Iowa has “practically eliminated using one-time revenue sources for ongoing expenditures,” even though Governor Kim Reynolds recently confirmed the state will need to dip into reserve funds a second time to cover a third major revenue shortfall during the current fiscal year.

While speculating on why Iowa’s revenues have fallen well below projections, Mosiman echoed excuses offered by leading Republican politicians, ignoring a new business tax break that has been a far more important factor.

Iowa’s self-styled “Taxpayers Watchdog” may come to regret staking her credibility on the wisdom of GOP budget planning.

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Jon Jacobsen will represent Iowa House district 22

Republican candidate Jon Jacobsen, an attorney and former weekly radio host, won yesterday’s special election to represent Iowa House district 22 with 1,069 votes, about 44 percent, according to final unofficial results. Carol Forristall, who filed as an independent candidate after losing at the GOP special nominating convention, placed second with 803 votes (33 percent).

Almost all of the 465 write-in votes (19 percent) were presumably for the Democratic candidate Ray Stevens, who failed to submit his nominating papers on time. The Pottawattamie County Auditor’s Office will confirm the write-in results today, Mike Brownlee reported for the Omaha World-Herald. Libertarian Bryan Jack Holder received 98 votes (4 percent) in the special election.

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IA-Gov: Ron Corbett says "exclusively Republican" push for tax reform would be "big mistake"

When Cedar Rapids Mayor Ron Corbett kicks off his Republican campaign for governor on June 20, tax reform will be a major part of his “new game plan for Iowa.”

Iowa has no shortage of Republican politicians seeking to lower taxes for those with high incomes or replace a progressive income tax structure with a flatter tax. State House and Senate leaders have promised to push for income tax cuts next year, and in her first speech as governor last month, Kim Reynolds identified “reforming Iowa’s tax structure” as her “first priority.”

But Corbett frames the case for tax reform differently from the usual GOP rhetoric about spurring investment or putting money back in people’s pockets. In a wide-ranging interview last week, the mayor repeatedly called for addressing inequities in the tax code, which now favor the wealthiest Iowans over middle-class taxpayers. He also warned it would be “a big mistake” for Reynolds to lead an “exclusively Republican” push for tax changes next year.

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IA-Gov: Ron Corbett to decide soon, previews case on taxes and education

Outgoing Cedar Rapids Mayor Ron Corbett will decide “in the next 45 days or so” whether to seek the Republican nomination for governor, he told WHO-TV’s Dave Price on May 8. After months of laying the groundwork for a possible gubernatorial campaign, Corbett launched a tour this week promoting his new political memoir, Beyond Promises. He will use those speaking engagements to see “if people can feel a connection to Ron Corbett.”

Asked how he could compete financially against Kim Reynolds, who will be the incumbent governor, Corbett responded,

Yeah, people have asked me that, “You know, you’re going to have a big uphill battle ahead of you, a big challenge ahead of you.” But you know, what in life isn’t, you know, sometimes a big climb? And I’ve taken on big challenges. Again, when–and I talk about this in the book, when I take on an incumbent speaker of the House or an incumbent state representative, I don’t do it because I want to take on that particular person. I just have ideas that I want to talk about and get implemented.

Assuming Corbett does run for governor, tax and education policy will be central to his message, so let’s take a closer look at his ideas.

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Rod Blum, David Young lie to cover for reversal on health care bill

All three Iowa Republicans helped the American Health Care Act clear the U.S. House on May 4 with only one vote to spare. Representative Steve King (IA-04) has long called for repealing the 2010 health care reform law “root and branch” and came around to supporting the GOP replacement proposal in March. So nothing about his vote was surprising, aside from his awkward description of how former Representative Michele Bachmann’s “finger joined mine today to push my vote button to dismantle” Obamacare.

Unlike King, Representatives Rod Blum (IA-01) and David Young (IA-03) made a big show of opposing the AHCA in March. Blum pledged to insist on lower costs for consumers and helping “people who need the help.” Young repeatedly promised to protect people with pre-existing conditions while making sure the bill wouldn’t bring back caps on health benefits.

Feigning concern about the legislative process, Blum said in March, “I believe Congress should slow down and discuss in an open and transparent manner” how to address the “unsustainably high cost of healthcare in America.” Similarly, Young warned, “The ACA [Affordable Care Act] was rushed through Congress and to President Obama’s desk which resulted in a failed law that does not work for everyone [….] It is a fundamental principle that repeal, reforms and fixes to healthcare are done in the right way, for the right reasons, and in the right amount of time it takes to ensure we avoid the mistakes of the past. We need to be thoughtful and deliberate and get this right […].”

Over the past week, Blum studiously avoided comment as GOP leaders sought ways to give members cover for caving. Young’s staff told hundreds of callers he was still against the bill, even as late as Wednesday morning. The same day, he signed on as co-sponsor of an amendment that “comes nowhere close to meeting Republican commitments to people with pre-existing conditions.”

Self-styled deficit hawk Blum and “affordable for every patient” Young proceeded to vote for the bill without waiting for a Congressional Budget Office score to tell them “how many people it covers or how much it would cost.” It wasn’t the first time Young reversed his position on a matter of principle to please his party leaders.

In their comments on the House vote, Young and Blum tried to take credit for imaginary improvements in the AHCA. Their claims can’t withstand scrutiny.

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John Norris: Why he may run for governor and what he would bring to the table

With the exhausting battles of the 2017 legislative session behind us, Iowa Democrats can turn their attention to the most pressing task ahead. Next year’s gubernatorial election will likely determine whether Republicans retain unchecked power to impose their will on Iowans, or whether some balance returns to the statehouse.

A record number of Democrats may run for governor in 2018. Today Bleeding Heartland begins a series of in-depth looks at the possible contenders.

John Norris moved back to Iowa with his wife Jackie Norris and their three sons last year, after nearly six years in Washington and two in Rome, Italy. He has been touching base with potential supporters for several weeks and expects to decide sometime in May whether to become a candidate for governor. His “concern about the direction the state’s going” is not in question. Rather, Norris is gauging the response he gets from activists and community leaders he has known for many years, and whether he can raise the resources “to make this a go.”

In a lengthy interview earlier this month, Norris discussed the changes he sees in Iowa, the issues he’s most passionate about, and why he has “something significantly different to offer” from others in the field, who largely agree on public policy. The native of Red Oak in Montgomery County (which happens to be Senator Joni Ernst’s home town too) also shared his perspective on why Democrats have lost ground among Iowa’s rural and small-town voters, and what they can do to reverse that trend.

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Where did the Iowa I love go? A student's perspective

TJ Foley is a senior at Valley High School in West Des Moines. He will pursue a degree in international relations next fall. -promoted by desmoinesdem

To be quite honest, I thought I was done writing about politics in Iowa. As a high school senior, son of a teacher, and lifelong Iowan I am increasingly disillusioned with the direction of this state. This year the Iowa GOP and their special interest friends steamrolled over ordinary Iowans, gutting collective bargaining for public employees, eviscerating workers’ compensation protections, and slashing the wages of thousands of Iowan families, to name a few. Due to their actions, I no longer recognize my home of nearly 18 years. The Iowa I love values workers and teachers more than the narrow priorities of elite special interests like the American Legislative Exchange Council (ALEC) and the Koch Brothers. But the Iowa I love and the Iowa we all currently have are no longer the same.

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Will Governor Branstad's legacy be yours as well?

Matt Chapman shares comments he delivered at today’s Iowa House public hearing on Republican budget proposals. -promoted by desmoinesdem

So here we are again in public comments for the seventh time this year, discussing laws that are disproportionately pro-wealthy and anti-worker. These laws are also mostly split along party lines. And I have to hand it to your strategist, as the most damaging laws against workers, many who voted Republican in 2016, were gotten out of the way earlier in the session. And at the end of the session, we have the most divisive legislation brought to the fore in an attempt to appease the very voters you enraged with the destruction of Chapter 20, the union-busting bill.

This will be the governor’s legacy. Will it be yours as well? Let’s compare him to Governor Robert Ray.

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Iowa water quality and confirmation bias

Thanks to Democratic activist Paul Deaton, “a low wage worker, husband, father and gardener trying to sustain a life in a turbulent world,” for cross-posting these ideas from his blog. -promoted by desmoinesdem

Progressives, farmers and environmentalists heard there is movement in the Iowa legislature to fund water quality and ears perked up — a natural impulse to interpret new events as supporting something we already believe or are working on, also known as confirmation bias.

56 percent of Iowans support increasing the state sales tax three-eighths of a cent to pay for water quality projects and outdoor recreation, according to a Selzer and Company poll reported by the Des Moines Register on Feb 12.

On March 14, State Representative Bobby Kaufmann (R-Wilton) introduced such a bill: the WISE (Water, Infrastructure and Soil for our Economy) bill, House File 597.

After a three year implementation the tax would generate $180 million to fund Iowa’s Natural Resources and Outdoor Recreation Trust Fund, which was created by a 2010 amendment to Iowa’s constitution. It sounds pretty good. However, we shouldn’t let our confirmation bias help Republican efforts to tax the poor, cut the general fund, and support the failed Nutrient Reduction Strategy.

Representative Chip Baltimore (R-Boone) and House Agriculture Committee Chair Lee Hein (R-Monticello) had previously introduced a water quality bill (House Study bill 135) addressing structural issues related to the use of water quality funds. Baltimore favored spending funds on watershed programs such as the governor’s Nutrient Reduction Strategy. Kaufmann’s bill mandates 60 percent of funding be directed to “a research-based water quality initiative (that) includes but not limited to a practice described in the Iowa nutrient reduction strategy.”

When Governor Terry Branstad created the Nutrient Reduction Strategy, in response to a federal requirement to address water quality, it was the least he could do. It was a way of tinkering around the edges of a water quality program, leveraging wide-spread concern about the need to act without changing the underlying structure of the system that creates excessive nitrate and phosphate loads in our water.

Branstad’s approach sucked up media attention and political will while doing little to address the root cause of the water quality problem.

“I welcome any legislative effort regardless of party that looks to protect the environment,” a progressive voter posted on Facebook. “While I agree that it is not fair that we have to take on the burden of trying to clean up after the farmers, I also know that they are a stubborn lot that hold great political power in Iowa. Therefore we need to be pragmatic and take whatever we can get while the Republicans are in charge.”

A lot of people would agree with this sentiment.

It’s clear solutions proposed in the Nutrient Reduction Strategy could work. They won’t work until either the strategy is compulsory, or there is funding to support broad participation.

“Republicans sometimes get accused of not being pro-environment, of not being pro-water quality,” Kaufmann said. “Well, this is our way of taking that bull by the horns and putting forth a good, tax-neutral water quality bill that puts guarantees in it that we can make sure dollars go to water quality.”

Despite Kaufmann’s work on the bill there are issues with the WISE approach to water quality.

Sales tax is regressive, which means it would be applied uniformly to all situations, regardless of the payer. Some might argue that everyone uses water so why shouldn’t everyone pay through sales tax? It is a straw man argument. A sales tax takes a larger percentage of income from low-income earners than from people causing this problem.

What’s worse than the regressive nature of sales tax is the Republican position any new tax must be revenue neutral. That means cutting the state budget. Where will the legislature find an additional $180 million in budget cuts after a year with three successive revenue shortfalls?

“Kaufmann admits there (are) still some questions about how the bill would affect other state programs,” Rob Swoboda reported in Wallaces Farmer. “But, he says, the only way the Republican-led legislature will pass a water-quality funding plan would be if the plan is revenue-neutral.”

Proposed budget cuts should be defined before advocating for the WISE bill.

There is no need to hold the agricultural community harmless in the pursuit of clean water. In 2013, when developing the Iowa Fertilizer Plant (a.k.a. Orascom) in Wever, Governor Branstad said, “the plant would create 2,500 temporary construction jobs and 165 permanent jobs and save farmers $740 million annually by cutting the price of fertilizer.” Whether or not there was a windfall in fertilizer savings farmers can afford to put skin in the water quality game.

“Where public money is needed (to fund water quality initiatives), consider an obvious source: the sale of farm fertilizer,” former state senator David Osterberg wrote in a May 25, 2016 column in the Des Moines Register. “If an urban person buys fertilizer for the lawn, there is a sales tax on the purchase. Farmers are exempt from the normal sales tax on fertilizer and a lot of other things. There is no reason for this exemption. Put the sales tax on fertilizer, earmark it to water-quality strategies and you have, conservatively, about $130 million a year to work with.”

While a majority of voters agree something must be done to improve water quality, political capital shouldn’t be diverted to supporting failed Republican policies just because they sound good or appear to support what we all believe.

Top image: Century farm in Johnson County. Photo by Paul Deaton.

IA-Gov: Jon Neiderbach's pitch to Democratic voters

“I respectfully ask for the vote of every Iowan who is fed up with politics and government as usual.” So reads the tag line on Jon Neiderbach’s campaign website. Neiderbach was the second Democrat to join a field that may eventually include six or more candidates for governor.

Speaking to a packed room of activists in Des Moines recently, the 2014 nominee for state auditor described himself as a “policy wonk” but also “a community advocate” who has spent most of his political life “on the outside. As an advocate, as an organizer, as somebody who isn’t happy with the status quo.”

The basic principles driving Neiderbach’s candidacy appear on his Facebook page:

In 2018 let’s elect a Governor who believes Iowa needs to Stand Tall for our values and Aim High with our ambitions. A Governor who understands Iowans are FED UP with politics controlled by the wealthy and government that is unresponsive to the needs and concerns of our working families. A Governor who rejects big contributions so as to be beholden only to the voters, and who will fight harder and do more to shake up Iowa politics and government than anyone else you can vote for in 2018. I respectfully ask for your support and for your vote.

Neiderbach elaborated on those themes in an early version of his stump speech, which I enclose below. I also transcribed a short interview, in which Neiderbach shared his approach to finding common ground with some political adversaries, as well as thoughts on lingering divisions within the Iowa Democratic Party between those who favored Hillary Clinton or Bernie Sanders.

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Using Iowa's property taxes to solve a non-existent problem

Johnson County Supervisor Kurt Friese weighs in on how the Republican voter ID bill, House File 516, will affect county budgets, and by extension property taxpayers. The bill is pending in the state House, after GOP senators passed a different version from the bill approved earlier in the lower chamber. -promoted by desmoinesdem

Voter fraud in Iowa, and more specifically voter impersonation, is so statistically insignificant that it is essentially non-existent. It has zero impact on the outcome of our elections. None. Nada. Zip. Bupkis.

Requiring voters to show ID at their polling place accomplishes exactly nothing to protect the integrity of the election. There is one thing it does accomplish, however: lower voter turnout, especially among minorities and the elderly. That is among the reasons why the Supreme Court blocked North Carolina’s version of the law ahead of last fall’s general election, and why it would likely do so with the Iowa proposal.

Before it comes to that, though, House File 516 will raise your property taxes in order to solve a non-existent problem.

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Expect more downward revisions in Iowa revenue estimates

Jon Muller examines factors contributing to Iowa’s budget crunch. What do you want first: the bad news or the “quite disturbing” news? -promoted by desmoinesdem

The Iowa Revenue Estimating Conference (REC) reduced its FY 2017 estimate for General Fund Revenues by $106 million. That’s on top of the $96 million downward revision in December 2016. Since the original estimate used for FY 2017 appropriations (December 2015), cumulative downward revisions total $243 million on a $7.3 billion budget.

This has led to all the gnashing of teeth that comes every time revenues begin to slow. The REC has never been particularly prescient when it comes to predicting the turn in receipts, either on the way down or the way up. I have some insight into this phenomenon because I used to be a revenue estimator for the Iowa General Assembly, and wasn’t any better than they are now. Indeed, economic models in general are not very good at predicting turns in the business cycle until after they happen. They are very good at generating consensus forecasts that tend to magically predict the next year will look a lot like the current year, at least during stable periods.

What’s new this time around is, according to policy makers expressing concern about the downgrade, is the reduction in revenues during what is considered a reasonably healthy economy. In my view, the stress on the General Fund is actually due to two primary factors. The economy is perhaps not quite as robust as consensus opinion suggests. Secondly, it appears the cost of House File 2433 passed during the 2016 legislative session, a bill providing a sales tax exemption for items consumed in manufacturing processes, was dramatically understated.

I suspect those looking to blame the sluggishness on a downturn in the farm sector will be disappointed as farm income growth begins to turn positive. Those who believed hundreds of millions of dollars of tax cuts and credits would spur state revenue growth should be equally disappointed. It’s just not happening.

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Rod Blum comes out against Republican health care plan Updated: So does David Young

A little more than two weeks after House Republicans released their alternative to the Affordable Care Act, U.S. Representative Rod Blum (IA-01) announced on Twitter that he will not support the American Health Care Act. According to Blum, the bill “doesn’t do enough to lower premiums for hardworking Americans. I’m a ‘no’ on current version – need to drive down actual costs!” Speaking to The Hill the same day, he added, “We need real competition driving prices down. We don’t need the government telling us what should be in an insurance policy. The government has a role to play. We need to help people who need the help.” Blum had previously said directly and through staff that he was studying the bill.

Like all other House Republicans, Blum has voted multiple times for “Obamacare” repeal bills that would have done nothing “to lower premiums for hardworking Americans,” let alone “drive down actual costs.” However, the stakes are higher now that a GOP-controlled Senate and Republican president might enact new health care legislation. I don’t know what kind of plan Blum is envisioning, but there is no magic wand Congress can wave to “help people who need the help” without the government setting minimum standards for health coverage and regulating the market in other ways.

Blum belongs to the House Freedom Caucus. Although that group has not taken an official stand against the AHCA, some of its prominent members are on various “whip counts” of Republicans opposing the bill. Since no Democrats are backing a plan that would leave millions uninsured and drive up costs for millions more, House leaders can’t spare more than 21 GOP members in any floor vote on their health care bill. Some Congress-watchers have already counted more defectors than that.

Representative Steve King (IA-04) was among the first House Republicans to come out against the AHCA. He supports “rip it out by the roots” repeal of “Obamacare” instead. I doubt the amendments unveiled this week to satisfy House conservatives will change his mind. UPDATE: A staffer told the Des Moines Register’s Jason Noble on March 22 that King is “undecided–leaning no” on the bill. SECOND UPDATE: White House spokesperson Sean Spicer announced that King will support the bill. Seeking confirmation. A member of the House whip team told Jonathan Martin of the New York Times that King “went from no to yes in the WH [White House] today after assurances about Senate tweaks.” UPDATE: King released a video statement explaining his decision to support the AHCA. He’s still committed to repealing Obamacare. He hopes Republicans will strip “essential health benefits” out of the bill, paving the way for other measures he wants, like health savings accounts and selling insurance across state lines. He said he told President Donald Trump in a White House meeting today that he worked very hard for total repeal of the Affordable Care Act, but that legislation won’t be brought up this year, because leaders don’t think they can get the votes. He said he had a “firm commitment” from Senate Majority Leader Mitch McConnell for a manger’s amendment to strip out “mandates” and “essential health benefits” from the House bill. King views this bill as the “best chance” for the “closest thing” to total repeal of Obamacare in the current political environment. He later tweeted that he and Trump had negotiated “the best possible improvement on ObamaCare Repeal.”

Representative David Young (IA-03) has repeatedly said he is studying the bill and the Congressional Budget Office analysis of its impact. Young’s staff have told constituents this week that he is still undecided. I consider him likely to vote yes if the bill comes to the floor–which may never happen, if leaders conclude they don’t have the votes. For what it’s worth, The Hill’s whip count put Young in the “leaning/likely no” camp because he said on March 15, “I want to make sure it is something that works in the end for all Americans, and that it would pass if it gets over to the Senate.” Several GOP senators have said the AHCA will not pass the upper chamber. UPDATE: Young announced in a March 22 statement, “While the American Health Care Act, legislation to repeal and replace Obamacare, is a very good start, it does not yet get it right and therefore I cannot support it in its’ [sic] present form.” I’ve added his whole press release below.

Neither of Iowa’s U.S. senators have clarified how they would vote on the Republican bill. Senator Chuck Grassley has made conflicting statements, telling House members the bill must be changed so that insurance premiums don’t skyrocket for older people not yet eligible for Medicare. On the other hand, Grassley has said Republicans can’t afford to miss what could be their only opportunity to keep six years of promises. Senator Joni Ernst said at town-hall meetings in Cedar Rapids and Des Moines on March 17 that she is studying the AHCA’s potential impact on Iowans and insurance premiums. I hate to break it to her: no alternative plan will magically make cheap insurance widely available while maintaining guaranteed coverage for people for pre-existing conditions and letting children stay on their parents insurance through age 26.

UPDATE: Forgot to mention that the Iowa Hospital Association estimates between 200,000 and 250,000 Iowans would lose their insurance coverage under the Republican plan. More on that story below.

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Three questions about how Iowa got into this budget mess

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.

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An open letter to Congressman David Young

Tom Witosky follows up on recent correspondence with his U.S. House representative. -promoted by desmoinesdem

March 13, 2017
Dear Congressman Young,

I am writing this open letter to you because the time is fast approaching when your words will be put to the test with your vote on the proposed American Health Care Act.

Make no mistake, the Republican majorities’ decision to amend key portions of the Affordable Care Act will change coverage for millions of us who have obtained insurance through federal or state exchanges.

In your Feb. 21 letter to me, you outlined your concerns about the current law and what you believed needed to be corrected with new legislation. Those concerns included:

“We need a healthcare law that works for all Iowans, the facts are that the current healthcare law works for some but it does not work for others.”

Analysis of this proposal by a variety of experts and expert groups – conservative and liberal — indicates strongly that the House proposal does nothing to provide a law “that works for all Iowans.”

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Why my conservative values make me vote for Democrats

A guest commentary by a committed activist who served on the Iowa Democratic Party Platform and Rules Committees and currently serves on a county central committee. -promoted by desmoinesdem

I believe in obeying the Constitution. The 14th Amendment says that debts of the USA shall not be questioned. Steve King–and most Republicans–voted to not raise the debt ceiling which would have put the government in default. That vote led to the downgrading of the government’s credit rating. The 14th amendment also guarantees equal protection under the law. But Republicans don’t think the Constitution applies to same sex couples who wish to marry. George W. Bush violated the constitutional rights of Americans by spying on them without a warrant. Democrats objected; Republicans didn’t. President Barack Obama nominated a replacement for the late Justice Scalia. Republicans senators refuse to do their duty and vote to confirm—or not—that nominee.

I don’t believe judges should legislate from the bench, but I do believe they must strike down laws that violate the Constitution. Republicans applauded the U.S. Supreme Court for striking down the Washington D.C. handgun law, but went nuts when the Iowa Supreme Court unanimously struck down the law banning gay marriage. Republicans agreed when activist justices on the U.S. Supreme Court created a new right for corporations to spend unlimited secret money to try to buy our elections with misleading TV ads; Democrats want that decision overturned.

Originalists, who claim that the Constitution must be interpreted as the Founding Fathers meant it, are contradicted by the Founding Fathers themselves.

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3,000 University of Iowa students will pay the price for Republican budget policies

See important update below: Jon Muller questions whether the University of Iowa “committed an act of scholarship fraud.”

Three weeks after Governor Terry Branstad signed into law large mid-year budget cuts for Iowa’s state universities, some 3,015 incoming or current students at the University of Iowa learned that they will be picking up part of the tab.

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If Todd Prichard runs for governor, his stump speech will sound like this

State Representative Todd Prichard spoke to a packed room at last night’s Northwest Des Moines Democrats meeting. Now in his third term representing Floyd and Chickasaw counties in the Iowa House, Prichard is ranking member on the Agriculture Committee and also serves on Natural Resources, Veterans, and Ways and Means, as well as on an Appropriations subcommittee. Pat Rynard recently profiled the army veteran and former prosecutor who may run for governor in 2018.

I’ve transcribed most of Prichard’s remarks from the Des Moines gathering below and uploaded the audio file, for those who want to listen. He speaks directly and fluidly without coming across as rehearsed or too polished, a common problem for politicians.

At one point, Prichard commented that Republicans didn’t spend a million dollars trying to defeat him last year, as the GOP and conservative groups did against several Iowa Senate Democratic incumbents. Republicans tested some negative messages against him with a telephone poll in August, but apparently didn’t sense fertile ground. Prichard’s opponent Stacie Stokes received little help from her party, compared to some other GOP candidates for Iowa House seats, including a challenger in a nearby district.

Based on the speech I heard on Tuesday, I would guess that if Prichard runs for governor, Republicans may regret not spending a million dollars against him in 2016.

One more point before I get to the transcript: Prichard is living proof that retiring lawmakers should not be allowed to hand-pick their own successors. When State Representative Brian Quirk resigned to take another job soon after winning re-election in 2012, he wanted his former high school football coach Tom Sauser to take his place. As a Bleeding Heartland reader who’s active in Floyd County described here, Prichard decided to run for the House seat shortly before the special nominating convention and barely won the nomination.

Prichard had a chance to start his political career because several days elapsed between his learning about Quirk’s preferred successor and the House district 52 nominating convention. Too often, Iowa Democratic legislators announce plans to retire only a day or two before candidates must submit papers to the Secretary of State’s Office. If Quirk had retired right before the March 2012 filing deadline, as three House Democrats did last year, his friend with the inside track would have been the only Democrat able to replace him. Nothing against retired teachers, but Sauser was not a potential future leader of the party, as Prichard is becoming.

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IA-Gov: Ron Corbett's think tank running online ad campaign

When Ron Corbett announced in December that he will not seek a third term as Cedar Rapids mayor and will consider running for governor, he promised a “big surprise” at the end of his final “state of the city” address on February 22.

Corbett has long been positioning himself to run for governor. Since creating the conservative think tank Engage Iowa in late 2015, he has given dozens of speeches around the state, most often to Rotary clubs or members of local Iowa Farm Bureau chapters and Chambers of Commerce.

After Governor Terry Branstad confirmed plans to resign in order to become U.S. ambassador to China, many Iowa politics watchers speculated that Corbett would decide against seeking higher office next year. Instead of competing for the GOP nomination in an open primary, he would have to run against a well-funded sitting governor, Kim Reynolds.

To those who don’t share my view that Corbett will take on the challenge of running against a Republican incumbent, I ask: why is Engage Iowa spending money to promote Corbett’s name and catchy conservative slogans online?

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Give the Guy a Chance!

Gary Kroeger explains why he’s not watching and waiting before speaking out against President Donald Trump. -promoted by desmoinesdem

Several times in the past few days people have said to me: “Give the guy a chance.”

They are annoyed that I jumped out of the box to criticize President Trump only one day after his inauguration. They have pointed out that I am usually more open-minded, and that I did, in fact, say that I would wait and watch before making judgments.

And I didn’t. Nope. When huge crowds gathered around the world to stand up for women’s rights because they felt diminished and threatened by the sexist, objectifying comments of an admitted “celebrity” predator, who became President of the United States of America, I felt the obligation to join the discordant chorus.

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Will ISU's president ever fully cover the cost of his personal medical travel?

Six weeks after Iowa State University released the Internal Audit report on ISU Flight Service and University Owned Aircraft, I’ve made surprisingly little headway toward filling in the gaps.

Not for lack of trying.

The Iowa Board of Regents and ISU have withheld information that should have been included in a “comprehensive audit” purporting to cover every flight President Steven Leath has taken on a university airplane.

For today, I will focus on one issue: ISU staff’s refusal to tell me whether Leath has reimbursed the ISU Foundation for the full cost of flights to Rochester, Minnesota in July 2015. The matter raises questions about the foundation’s compliance with federal tax code and the accuracy of ISU’s official narrative.

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17 Iowa politics predictions for 2017

Two weeks late and humbled by the results from previous efforts to foretell the future, I offer seventeen Iowa politics predictions for the new year.

I struggled to compile this list, in part because it’s harder to come up with things to predict during a non-election year. I didn’t want to stack the deck with obvious statements, such as “the GOP-controlled Iowa House and Senate will shred collective bargaining rights.” The most consequential new laws coming down the pike under unified Republican control of state government are utterly predictable. I needed time to look up some cases pending before the Iowa Supreme Court. Also, I kept changing my mind about whether to go for number 17. (No guts, no glory.)

I want to mention one prediction that isn’t on this list, because I don’t expect it to happen this year or next. I am convinced that if the GOP holds the governor’s office and both chambers of the Iowa legislature in 2018, they will do away with non-partisan redistricting before the 2020 census. I don’t care what anyone says about our system being a model for the country or too well-established for politicians to discard. Everywhere Republicans have had a trifecta during the last decade, they have gerrymandered. Iowa will be no exception. So if Democrats don’t want to be stuck with permanent minority status in the state legislature, we must win the governor’s race next year. You heard it here first.

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Branstad's budget puts Kim Reynolds on a collision course with Big Ag

Governor Terry Branstad has rarely found himself at odds with any powerful farm lobby group. In 1995 he signed a law banning agricultural zoning, which fueled explosive growth of confined animal feeding operations across Iowa. Since returning to the governor’s office in 2011, he has named several agribusiness representatives to the the Environmental Protection Commission. He signed the probably unconstitutional “ag gag” bill targeting whistleblowers who might report alleged animal abuse. He moved to protect farmers from state inspections for electrical work. He joined a poorly-conceived and ultimately unsuccessful lawsuit seeking to block a California law on egg production standards. He has consistently rejected calls to regulate farm runoff that contributes to water pollution, instead supporting an all-voluntary nutrient reduction strategy heavily influenced by the Iowa Farm Bureau.

Despite all of the above, the governor’s two-year budget blueprint contains an obscure proposal that will draw intense opposition from Big Ag. By this time next year, the fallout could cause political problems for Branstad’s soon-to-be-successor, Lieutenant Governor Kim Reynolds–especially if Cedar Rapids Mayor Ron Corbett challenges her for the 2018 GOP nomination.

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GOP leaders gloss over divisive priorities on Iowa legislature's opening day

The Iowa House and Senate convened for the 2017 legislative session yesterday. If all goes according to schedule under Republican control of both chambers for the first time since 2004, lawmakers will complete their work by late April or early May.

Listening to the platitudes in opening day speeches by GOP leaders, you’d never guess what some of their top priorities are for this year.

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Rich Leopold becomes first Iowa Democratic candidate for governor

Vowing to be an outsider who can bring a “different kind of government” to Iowa, Rich Leopold just announced in a Facebook live appearance that he will run for governor as a Democrat in 2018. I enclose below his news release and a statement of “four cornerstones” that will guide his candidacy, along with a transcript of his comments on video. Leopold’s campaign website is here and his Facebook page is here.

A first-time candidate for office, Leopold stands apart from the “lobbyists, special interests, and the insider’s club that for far too long has run our government” and “is free from the generations of deal-making and permanent campaigning that has poisoned the capitol,” his “cornerstones” document declares.

Leopold has government experience at the local, state, and federal level. He served as Iowa Department of Natural Resources director during Chet Culver’s administration from 2007 to 2010, when he took a job with the Midwest Region of the U.S. Fish and Wildlife Service. He later worked for the Dickinson County Conservation Board and since 2013 has been with the Polk County Conservation Board, where he is now director. (Disclosure: I joined the board of directors of the Iowa Environmental Council when Leopold was that non-profit’s executive director, shortly before he left to lead the DNR.)

Leopold also chairs the new Grow Iowa PAC, which raised about $10,000 last year and donated to eighteen Democratic candidates or committees.

No other Democrats have confirmed plans to run for governor, but outgoing Iowa Democratic Party chair Andy McGuire is widely expected to announce her candidacy early this year. If either wins the June 2018 primary, Leopold or McGuire would be the first Iowa nominee for governor since Roxanne Conlin in 1982 not to have held elected office.

Many politics-watchers expect at least one member of the Iowa House or Senate to seek the nomination as well, perhaps State Senator Liz Mathis or State Representative Todd Prichard.

UPDATE: State Senator Chaz Allen is also rumored to be considering the gubernatorial race. He or Prichard would have to give up their seats in the legislature in order to run for governor. Mathis was just re-elected to a four-year term, so could run for governor without leaving the Iowa Senate.

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A year's worth of guest posts, plus tips for guest authors

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.

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Senate should demand full disclosure of Branstad donors before his confirmation

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.

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The 16 Bleeding Heartland posts I worked hardest on in 2016

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.

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Jalapeno Pepper, Hot Sauce and Gasoline Tart

Howard County Democratic Party chair Laura Hubka is ready to fight. Who’s with her? -promoted by desmoinesdem

Does everyone else feel like they are in a dream? Not a nice cream filled donut dream but a jalapeno pepper, hot sauce and gasoline filled tart, a terrifying joke of a dream. One where you feel like you know all the players and the places but something is just off. Totally ridiculous and confusing. Its like we all went to bed after way too much to drink and are having a really bad nightmare. Up is down, down is up.

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IA-Gov: Ron Corbett may challenge Kim Reynolds for the GOP nomination

Despite early efforts to consolidate the Republican establishment around Governor Terry Branstad’s successor, Ron Corbett announced this morning on Simon Conway’s AM 600 Radio show that he will not run for re-election as Cedar Rapids mayor in 2017 and will consider running for governor in 2018. By that time, Lieutenant Governor Kim Reynolds will be the incumbent, assuming the U.S. Senate confirms Branstad as ambassador to China, as expected.

Corbett has been laying the groundwork for a gubernatorial bid for some time. Since creating a new conservative think tank late last year, he’s been rolling out policy proposals and speaking at numerous Rotary clubs and other groups around the state.

The Republican Party of Iowa will back Reynolds against any GOP primary challenger in 2018, state party chair Jeff Kaufmann has warned. (CORRECTION: See update below.) But Corbett has presumably found enough support among potential major donors to proceed with considering a gubernatorial bid. I look forward to covering that primary and will update this post following a press conference Corbett has planned for this morning. Corbett would need to raise millions to run an effective statewide campaign, especially since the Republican Governors Association might get involved to protect Reynolds.

Related side note: There’s no love lost between Corbett and Branstad, dating from the time during the 1990s when Corbett served as Iowa House speaker. As soon as Branstad was back in the governor’s office in 2011, he issued an executive order on project labor agreements that caused problems for a big Cedar Rapids project. Branstad didn’t accommodate Corbett’s efforts to negotiate, and Corbett and Cedar Rapids leaders eventually backed down to avoid costly litigation.

UPDATE: Adding to this post after the jump.

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Iowa public employees will lose ability to bargain over health insurance

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.

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Rob Hogg, Amanda Ragan to lead Iowa Senate Democrats

Iowa Senate Democrats unanimously chose Rob Hogg today to serve as Senate minority leader during the upcoming legislative session. Amanda Ragan will be the new minority whip, and the incoming assistant leaders will be Bill Dotzler, Liz Mathis, Rita Hart, Joe Bolkcom, Matt McCoy, and Herman Quirmbach.

Six Democratic senators lost their re-election bids this month, including Mike Gronstal, who had served as either minority or majority leader of the caucus since 1997. Pam Jochum, who was Senate president for the past four years, will not be on the new leadership team. Ragan, Dotzler, and McCoy were among last year’s assistant majority leaders, while Bolkcom served as majority whip.

Erin Murphy reported for the Quad-City Times,

Hogg said Senate Democrats will speak on behalf of Iowans “who need state government to work” and attempt to prevent Republicans from implementing policies that could damage the state’s economy or adversely affect its residents.

“I’m hopeful we can stop Republicans from going down a knee-jerk, partisan pathway,” Hogg said.

I see no realistic chance to stop Republicans from using their large majorities in both chambers to head down that partisan pathway. Among their likely top priorities: cutting taxes so that most of the benefits go to corporations and higher-income individuals, gutting Iowa’s 42-year-old collective bargaining law, restricting abortion rights, ending state funds for Planned Parenthood’s non-abortion services, adopting the gun lobby’s wish list (“stand your ground,” “constitutional carry,” and/or open carry), and making it harder for Iowans to vote. Republicans will almost certainly need to reduce funding for education and a variety of social net programs, such as Medicaid and child care assistance, to pay for those tax cuts.

All Democrats can accomplish these next two years is to warn ahead of time how such policies will hurt the majority of Iowans, and to “document the atrocities” after Governor Terry Branstad signs the various harmful bills into law.

I enclose below a news release with more comments from Hogg. O.Kay Henderson’s profile of Gronstal for Radio Iowa is worth reading.

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Few changes in Iowa House Republican leadership team

Iowa House Republicans came out of this campaign in better shape than they could have hoped six months ago. The party successfully defended every incumbent and every GOP-held open seat, including one with a significant Democratic registration advantage. Even better, Republicans defeated State Representative Patti Ruff and picked off one of the four Democratic-held open seats, despite a big tax problem for the GOP candidate there. During the last presidential election year, Republicans suffered a net loss of seven Iowa House seats and were lucky to avoid losing more. In contrast, the caucus came out of last Tuesday with a two-seat gain and a 59-41 majority, just one seat shy of their advantage in the chamber after the 2010 landslide.

Happy endings provide little incentive to shake things up. To no one’s surprise, House Republicans re-elected most of their leadership team during yesterday’s caucus meeting in Des Moines. Linda Upmeyer will continue as speaker, her position stronger now than last year, since several representatives who were rumored to be at odds with her have now retired. Chris Hagenow stays on as majority leader and Matt Windschitl as House speaker pro-tem.

The biggest change is Zach Nunn moving up from one of the assistant majority leader positions to majority whip. Media reports don’t indicate whether last year’s majority whip Joel Fry sought the position again or stepped down from the leadership team voluntarily.

Similarly, Walt Rogers is no longer an assistant majority leader, having held one of those positions from early 2013 through last year’s legislative session.

If any readers can shed light on whether Fry and Rogers wanted out or were pushed out of leadership, please post a comment here or contact me confidentially at the e-mail address near the bottom right of this page. UPDATE: Two sources indicate that Fry is likely to lead the Human Resources Committee, since its previous chair Linda Miller retired this year. Under House rules, assistant leaders don’t chair committees. Still seeking insight on the next move for Rogers.

Two of the just-selected assistant majority leaders played the same role last year: Jarad Klein and John Wills. The other two, Mike Sexton and Megan Jones, join House leadership for the first time. UPDATE: According to one source, Jones and Klein ran against Nunn for majority whip.

Like her counterpart in the upper chamber, incoming Iowa Senate Majority Leader Bill Dix, Upmeyer didn’t lay out specific policy plans when speaking to reporters yesterday. We’ll find out later which taxes Republicans plan to cut, how badly they will decimate collective bargaining rights for public employees, and whether they will do anything to make medical cannabis more widely available to Iowans suffering from severe health conditions.

Upmeyer seemed to rule out raising the sales tax by 3/8 of a cent to fill the the Natural Resources and Outdoor Recreation Trust Fund. That fund has been empty since 63 percent of Iowans approved a constitutional amendment to create it in 2010. Cedar Rapids Mayor Ron Corbett is one of very few elected Republican officials to be on record backing a sales tax hike to fund conservation efforts.

After campaigning on lies, Iowa Senate Republicans still won't lay out agenda

All but one of the 29 Republicans who will serve in the Iowa Senate for the next two years elected their leaders on Friday, changing little from the group that led the minority caucus during the last legislative session.

Bill Dix moves from Senate minority leader to majority leader.

Jack Whitver moves from minority whip to Senate president.

Jerry Behn, who preceded Dix as minority leader but hasn’t been in leadership since 2012, will become Senate president pro tem. He’s the longest-serving current Republican senator.

My own state senator, Charles Schneider, moves from an assistant minority leader position to majority whip.

Dan Zumbach and Randy Feenstra will be assistant majority leaders, having been assistant minority leaders during the last legislative session. The other two assistant majority leaders are new to leadership: Michael Breitbach and Amy Sinclair, the only woman in the 29-member incoming GOP caucus.

After the caucus meeting, Dix spoke only in general terms about the new majority’s plans.

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