# Taxes



State of the Union and Joni Ernst response discussion thread

President Barack Obama will deliver his State of the Union address later this evening to a joint session of Congress. Newly-elected Senator Joni Ernst of Iowa will deliver the Republican response afterwards. It’s her chance to make a first impression on many politically-minded Americans who live outside Iowa, and lots of people were reportedly searching for information about her today. This thread is for any comments related to either Obama’s or Ernst’s speech. I’ll update this post later with highlights and Iowa reaction.

Representative Steve King got bent out of shape by the news that a “DREAMer” (undocumented immigrant who was brought to this country as a child) will sit with First Lady Michelle Obama tonight.

#Obama perverts “prosecutorial discretion” by inviting a deportable to sit in place of honor at #SOTU w/1st Lady. I should sit with Alito.

It’s bad enough that King frequently refers to undocumented immigrants as “illegals.” A person should not be labeled a “deportable.” Anyway, under the Obama administration’s Deferred Action for Childhood Arrivals program, Ana Zamora is not “deportable.”

UPDATE: Bleeding Heartland has a longstanding policy of not commenting on women politicians’ attire, but Ernst’s camouflage pumps compel me to break that rule. Ernst knows her audience, and whoever designed those shoes is going to make a fortune.

SECOND UPDATE: Iowa reaction to the president’s speech is after the jump. Ernst’s comments were a barely-revised version of her stump speech from last year’s Senate campaign. Radio Iowa mentioned some highlights, including Ernst advocating for the Keystone XL pipeline. Cristina Marcos of The Hill focused on the “folksy” aspects of Ernst’s performance, including her anecdotes about working at Hardee’s as a teenager and wearing bread bags over her only pair of shoes. On social media I’ve seen lots of Iowans debating how common it used to be for children to wear bread bags over their shoes to prevent water damage. I don’t remember seeing it when I was growing up, but I was a “city girl.”

Pat Rynard sees Ernst as a likely GOP vice presidential nominee in 2016. I think that’s out of the question, because she is way too inexperienced, and the Sarah Palin experiment didn’t work out well for Republicans. Ernst can’t be the VP nominee in 2020 either, because she would have to choose between that and running for re-election to the U.S. Senate. Maybe in 2024 if Iowans re-elect her in 2020. Anyway, at the end of this post I enclosed excerpts from Rynard’s case for Ernst as a VP candidate.

The most memorable line from the president’s speech was reportedly ad-libbed.

THIRD UPDATE: Des Moines-based RAYGUN shirts is already out with a new design that reads, “IOWA! YOU SAY BREAD AISLE, WE SAY SHOE STORE.” I think mocking the anecdote is a mistake for Democrats; doing so only plays into Republican narratives about liberal elitism. Iowa Rabbi David Kaufman is right: “Anyone who cares for the poor” and “wouldn’t walk up to a homeless person and insult their clothing” should not be making fun of Ernst over her bread bag anecdote. That said, it’s fair game to point out that Ernst opposes many policies (such as Medicaid expansion or a minimum wage increase) which would help the working poor and their children.

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Highlights from Branstad's 2015 Condition of the State address

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

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

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

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

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

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

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

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

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Themes from the opening day of the Iowa legislature's 2015 session

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

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

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

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

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

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

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

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Dynamic Scoring Ends 40 Years of CBO Independence

(Thanks for this diary on an important issue that stays mostly below the radar. This resolution passed on Tuesday on a mostly party-line vote. Iowa Republicans Rod Blum, David Young, and Steve King all voted for it; Democrat Dave Loebsack voted against it. - promoted by desmoinesdem)

The House of Representatives approved a resolution changing the House Rules to require dynamic scoring for large tax and spending bills.  The resolution contains a disturbing provision that may well transform the Congressional Budget Office (CBO), long the last bastion of independent public policy analysis for the federal government, into a hapless tool of the House Leadership and a few committee chairpersons.

The resolution requires dynamic scoring for all tax and spending bills greater than 0.25% of US GDP.  US GDP stands just south of $17 trillion.  Thus, the CBO will be required to estimate the economic feedbacks for all bills with a direct impact greater than $42.5 billion.  While I remain unconvinced this is the proper way to analyze the fiscal impact of federal legislation, this provision alone would not be that onerous.  In fact, the principal advocates of dynamic scoring should be careful what they wish for.

Problems will arise due to a provision in the resolution that will inherently yield fraudulent scoring in the aggregate.  The provision requires dynamic scoring on smaller bills with fiscal impact if they are deemed important by the Chairmen of the Joint Committee on Taxation (JCT) and the House Budget Committee, both of which are now controlled by a single party.

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Final news roundup of how Harkin and Grassley voted

Senator Tom Harkin cast his final votes in Congress yesterday as the upper chamber wrapped up the lame-duck session. He and Senator Chuck Grassley were on opposite sides as Democrats confirmed a batch of presidential nominees on Monday and Tuesday. You can view all the roll calls here; the nominees were approved mostly along party lines. They included several judges and assistant secretaries of various agencies and Dr. Vivek Murthy, confirmed as surgeon general by 51 votes to 43, with only one Republican yes vote. Murthy had been the target of a relentless “smear campaign” by conservative media and the National Rifle Association, because of his comment in October 2012 that “Guns are a health care issue.”

The conservative media attacks against Murthy began in early March. Coverage of his nomination focused on his past acknowledgement that gun violence affects public health, which conservative media spun as evidence Murthy is obsessed with gun regulations. (Murthy has actually said his focus as Surgeon General will not be on gun violence, but rather obesity.)

Because of strange Senate procedural rules, hardline conservative Republican Senator Ted Cruz inadvertently made this week’s raft of confirmations possible. His constitutional point of order against the massive federal government funding bill last Friday prompted Senate Majority Leader Harry Reid to convene the chamber on Saturday. That gave Democrats more time to set up confirmation votes on nominees this Monday and Tuesday. Rebecca Kaplan of CBS News explained here that the most controversial presidential nominees to be confirmed “thanks to Ted Cruz” are Murthy, Tony Blinken for Deputy Secretary of State, and Sarah SaldaƱa, for Immigration and Customs Enforcement Director in the Department of Homeland Security. Harkin voted for and Grassley against all of those nominees.

Iowa’s senators ended up on the same side in one big vote this week: the bill extending dozens of tax breaks for corporations and individuals. Steven Dennis noted in Roll Call,

Handing out mostly corporate tax breaks and adding to the debt to do it has proven to be a popular thing for Congress. Democrats including President Barack Obama spent the better part of 2013 trying to get Republicans to agree to more revenue as part of a budget deal, but are now signing on to deficit expansion for the sake of tax breaks that will expire, again, in two weeks.

Usually, these tax breaks – which range from the R&D tax break to breaks for NASCAR, racehorse owners and wind farms – are touted as incentives – and indeed some senators called them that Tuesday. But it’s hard to retroactively incentivize anything – a point made on the Senate floor by outgoing Finance Chairman Ron Wyden, D-Ore., who voted no and said the tax bill didn’t even have the shelf life of a carton of eggs. […] After President Barack Obama threatened to veto an emerging deal after the midterms that would have added close to half a trillion to the debt over a decade, the scaled-back bill was all Congress could muster.

The tax extenders bill passed by 76 votes to 16. Joining Iowa’s senators in the yes column were possible GOP presidential candidates Cruz, Rand Paul, and Marco Rubio. Opponents of this bill included Republican Rob Portman and Democrat Elizabeth Warren. Independent Bernie Sanders, who is exploring a presidential campaign as a Democrat, missed yesterday’s votes because he was in Iowa.

Any relevant comments are welcome in this thread. Grassley’s official statement on the tax extenders bill is after the jump.

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Iowa reaction to Obama's executive action on immigration

President Barack Obama delivered a prime-time televised address last night to explain his new executive order on immigration. The order would remove the threat of deportation for an estimated 5 million of the 11 million immigrants who came to this country illegally. After the jump I’ve posted the full text of the president’s speech, as well as reaction from some members of Iowa’s Congressional delegation and several advocacy groups. I will update this post as needed.

Last year, Iowa’s U.S. senators split when the Senate approved a comprehensive immigration reform bill, which has never come up for a vote in the U.S. House. Just before Congress adjourned for five weeks this summer, Iowa’s representatives in the House split on party lines over a border security funding bill bill designed to speed up deportations of unaccompanied children entering this country. Likewise, Tom Latham (IA-03) and Steve King (IA-04) voted for and Bruce Braley (IA-01) and Dave Loebsack (IA-02) against a separate bill that would have reversed the president’s policy (announced two years ago) to suspend deportations of some undocumented immigrants who were brought to this country as children. Click here for background on those bills.

Note: King has been all over the national media the last couple of weeks, as journalists and pundits have discussed the president’s expected action on immigration. Over the summer, King raised the prospect that Obama could be impeached over unilateral action on immigration. But as you can see from statements posted below, more recently he has not advocated impeachment. Instead, King has called on Congress to defund the federal agencies that would carry out Obama’s executive order. Unfortunately for him, that approach is “impossible.”

Both Hillary Clinton and Bill Clinton have expressed support for Obama’s executive order in the absence of Congressional action on comprehensive immigration reform.

Several Republican governors who may run for president in 2016 are considering legal action aimed at blocking the president’s executive order. Such a lawsuit could raise the standing of Texas Governor Rick Perry, Louisiana Governor Bobby Jindal, Wisconsin Governor Scott Walker, or Indiana Governor Mike Pence with Iowa conservatives who are likely to participate in the next GOP caucuses. I am seeking comment on whether Iowa Governor Terry Branstad might join this legal action.

The Obama administration is already preparing a legal defense that would include precedent from the U.S. Supreme Court’s 2012 ruling on an Arizona law relating to illegal immigration. Federal officials “have always exercised discretion” in prioritizing cases for deportation.

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Now he tells us: Branstad will support gas tax hike

Two days after being re-elected to a sixth four-year term, Governor Terry Branstad finally came out for raising the gasoline tax as part of a plan to increase transportation funding. He told journalists on November 6, “The timing is good because gas prices have dropped significantly. That makes it a little more palatable to the public.”

For years, a bipartisan group of legislators have been working on a bill to increase Iowa’s gas tax for the first time since 1989. The governor has left them hanging again and again and again. The issue is politically charged, since gas taxes disproportionately hit lower-income drivers and residents of rural Iowa. Joni Ernst switched from supporting an increase to opposing it as soon as she started preparing to run for the U.S. Senate. Legislative leaders have long made clear that a bill raising the tax would move forward only if at least half the members of Democratic and Republican caucuses in the Iowa House and Senate were ready to vote for it.

Iowa House Republican Brian Moore believes “this is the year” a gas tax increase will happen, because the issue will be on the “front burner” when lawmakers reconvene in January. Moore was vice chair of the House Transportation Committee. He and committee Chair Josh Byrnes have worked closely on this issue with Iowa Senate Democrat Tod Bowman, who leads the transportation committee in the upper chamber.

Arguably, 2015 will be a good opportunity for bipartisan cooperation, since it’s not an election year. However, I am inclined to think the gas tax increase will fail to gain broad support in either chamber. Many Iowa House Republicans are hostile to any tax increase, and what’s in it for House Democrats to stick their necks out on the issue? Meanwhile, several Iowa Senate Democrats will face tough re-election bids in 2016, and Senate minority leader Bill Dix has long been close with leaders of anti-tax interest groups. Gasoline prices have dropped to relatively low levels now, but they could bounce back up by the time lawmakers would be considering a gas tax bill in February or March.

If Branstad had campaigned on this issue, he could have claimed a popular mandate for raising the gas tax. But he didn’t, even when pressed on the issue during debates with challenger Jack Hatch.

Any relevant comments are welcome in this thread. Although the road use tax fund clearly needs more money, I would hesitate to raise the gasoline tax without strong “fix-it first” language in the bill. The lion’s share of additional revenue should go toward fixing roads and bridges that are in bad shape, not toward building new roads (or new lanes on existing roads) that we won’t be able to maintain adequately.

Latest ads for Chaz Allen in Iowa Senate district 15

To gain control of the Iowa Senate, which has had a 26-24 Democratic majority for the last four years, Republicans have to win two Democratic-held seats and retain control over all seats they currently hold. The top two targets for the GOP now appear to be Senate district 5, held by three-term Democratic incumbent Daryl Beall, and Iowa Senate district 15, covering most of Jasper County and eastern Polk County. This seat is open because longtime Democratic incumbent Dennis Black is retiring. Both Democratic candidate Chaz Allen and Republican Crystal Bruntz started running positive radio commercials the same week early voting began. Last week, Republicans started running a negative ad on Allen that is still playing on Des Moines area radio stations.

Allen now has a positive television commercial running in the Des Moines market as well as a comparative radio spot. I’ve enclosed my transcripts of both ads after the jump.

Any comments about competitive state legislative races are welcome in this thread. I’ve been listening to live-streams of radio stations in other targeted Iowa Senate districts (in the Fort Dodge, Ottumwa, and Washington areas) but haven’t caught many political commercials.  

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Iowa Income: Who Gets What?

(Thanks to daveswen for this post. Facts don't support widespread beliefs about Iowans allegedly being too dependent on federal programs. - promoted by desmoinesdem)

Depending on where you live in Iowa and who you interact with, you may have some quirky conclusions about how income gets made.  It’s common and correct to conclude that many folks get along with the help of public assistance: many in fact wouldn’t get along at all without public aid.  But most of us don’t have a clue how money gets made in this state, let alone who the recipients of public assistance are.  We go to annual estimates by the U.S. Bureau of Economic Analysis to get the numbers.

Here's how $138.34 billion in 2013 total personal income was divided up: Two-thirds ($91.3 billion) came from total earnings, which are wages and salaries, payments to proprietors, and the value of all employer-supplied benefits like medical insurance and retirement contributions.  Investment incomes (dividends, interests, and rents) made up 18 percent ($24.7 billion).  And transfers – payments by the federal government or, to a lesser extent, state government to individuals either in cash, vouchers, or direct assistance – were 16 percent of state income. 

Stated differently, 84 percent of our incomes came from market activity, and 16 percent came from governmental tranfers.  Market incomes trumped government payments to individuals by a ratio of better than 5 to 1.  

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Republicans running negative radio ads in key Iowa Senate and House races

Radio commercials appeared in several competitive Iowa Senate districts during the last week of September, coinciding with the start of early voting. This week, the Republican Party of Iowa has launched the first negative radio spots I’ve heard in state legislative races this year. After the jump I’ve enclosed the transcript of the ad attacking Chaz Allen, the Democratic candidate in the open Iowa Senate district 15. Allen’s own positive ad, which Bleeding Heartland transcribed here, is still in rotation and promotes the former Newton mayor’s record of recruiting businesses. The new Republican spot blames Allen for high property taxes that allegedly discouraged companies from coming to Newtown after “Maytag pulled out on Chaz Allen’s watch.” The ad also plays up Governor Terry Branstad’s support for Crystal Bruntz, the Republican candidate in Senate district 15. While the ad asserts that Bruntz “understands job creation,” it fails to mention anything substantive she has ever done to create jobs.

In Iowa Senate district 41, a leading pickup opportunity for Democrats, Republican State Senator Mark Chelgren’s new radio spot highlights flippant and sarcastic responses Siegel mailed in response to a survey Chelgren circulated in 2010. More details on that commercial are after the jump.

In the open Senate district 39, another seat targeted by both parties, a Bleeding Heartland reader tells me that the new Republican radio spot attacks Democratic nominee Kevin Kinney over his support for “Common Core” educational standards. I have not heard the ad yet and would appreciate any further details. It seems like an odd angle for an attack, but I guess Kinney’s background as a deputy sheriff and family farmer didn’t give them easy targets. Politics-watchers generally believe that education is a campaign issue favoring Democrats. As far as I can tell, fear-mongering over Common Core only resonates with social conservatives who would already be voting for Kinney’s opponent, Michael Moore.

I have not yet heard details on radio spots attacking State Senators Daryl Beall or Rita Hart, the Democratic incumbents in Senate districts 5 and 49, respectively. Nor have I heard of any attack ads against three-term Democratic incumbent Amanda Ragan in Senate district 27, although anecdotally, Republicans have supposedly given up on taking back that seat. I always appreciate tips from Bleeding Heartland readers, so please let me know if you’ve heard radio ads in the Fort Dodge, Clinton, or Mason City area.

In the open Iowa House district 55 (northeast Iowa), Republican Daniel Branhagen started running a commercial this week calling his Democratic opponent Rick Edwards a big spender. I haven’t heard attack ads against any Iowa House Democrats yet on Des Moines area radio stations.

Any comments about the state legislative races are welcome in this thread.

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IA-Gov: Final Branstad-Hatch debate liveblog and discussion thread

Governor Terry Branstad and State Senator Jack Hatch debate for the third and final time tonight, starting at 7:00 pm. The candidates are meeting in Sioux City’s Orpheum Theater. KTIV will live-stream here. I’ll be liveblogging after the jump and will also update later with reaction to the debate. C-SPAN does not appear to be televising.

Any comments about the governor’s race are welcome in this thread. It’s been a discouraging couple of months for Democrats, as Hatch had to pull his television advertising in late September for lack of funds. Meanwhile, Branstad’s campaign has been advertising statewide almost continuously since early June. For a lot of this year, polling indicated that there was an opening for a challenger to make a case against Branstad. The governor’s re-elect numbers were below 50 percent in many polls, despite decent approval ratings–indicating that quite a few Iowans who liked Branstad questioned whether he deserved another term. I liked Hatch’s commercial that hammered on the theme of Branstad being around too long, but he wasn’t able to follow up with other spots to raise his profile and highlight the incumbent’s failures. Most recent polls have shown Branstad ahead of Hatch by 15 to 20 points. I wish money were not so influential in our campaigns and elections.  

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Weekend open thread, with lots of IA-Sen links

Whose idea was it to hold so many Iowa candidate debates on Saturday nights this year? At 7 pm this evening, Bruce Braley and Joni Ernst face off in the second of three scheduled debates. (C-SPAN will televise nationwide, and KWQC TV will televise in the Quad Cities area.) Immediately after that, KWQC will broadcast the second and final debate between Representative Dave Loebsack and Mariannette Miller-Meeks in the second Congressional district race. (That debate will be taped earlier in the day.)

I won’t be able to watch either showdown live because of a family wedding, but I will catch up later with some links and recap, as well as highlights from the new Selzer poll for the Des Moines Register and Bloomberg.

This is an open thread: all topics welcome. A bunch of links related to the IA-Sen race are after the jump. I still see the debate as equally risky for Braley and Ernst, for different reasons.

UPDATE: The new Des Moines Register/Bloomberg poll by Selzer & Co has Braley and Ernst nearly tied. Ernst is ahead by a statistically insignificant 47 percent to 46 percent. I do not believe Ernst lost a lot of ground during the last two weeks. I believe she was never as far ahead as the last Selzer poll indicated. Other polls in the field around the same time showed a much closer race. In particular, I do not believe that in two weeks, Braley went from a 25-point deficit among men to a 16-point deficit now.

SECOND UPDATE: The full debate video is on the KWQC website.

THIRD UPDATE: I wish every undecided voter in Iowa had seen this debate. Having finally watched the full video myself, I understand why shills for Ernst kept reaching for their security blankets on Saturday night. Talk about a disastrous performance. She repeatedly fell back on rote talking points that didn’t answer the question. On several occasions it was apparent that she did not understand the policy implications of her own words. I particularly loved how she insisted that the bipartisan Senate-passed immigration reform bill was “amnesty,” even though Braley had already explained why it was different from amnesty. She talked about securing the border, even though Braley had already explained that we would have 20,000 more border control agents if that immigration reform bill had become law. Toward the end of that exchange, though, I was pleasantly surprised to hear Ernst say she would not vote to repeal President Barack Obama’s DACA program (Deferred Action for Childhood Arrivals). A lot of conservatives were presumably surprised too, but not in a pleasant way.

At the end of this post I’ve linked to several pieces summarizing the debate highlights.

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Quick hits on the race in IA-03

Here’s a new thread for any comments on the race between David Young and Staci Appel in Iowa’s third Congressional district. Some stories that caught my eye in the last few days:

The Democratic Congressional Campaign Committee shared with Roll Call partial results from a Greenberg Quinlan Rosner Research poll taken on October 1 and 2, which showed Appel ahead of Young by 49 percent to 42 percent, with 9 percent undecided. That’s a bigger lead for Appel than in the previous DCCC poll, despite weeks of Republican attacks on the phony “passports for terrorists” issue.

Speaking of which, I agree with Kathie Obradovich’s take (excerpted below) on the way the candidates handled “passports for terrorists” during their second debate.

Young’s campaign released a memo yesterday hailing some $800,000 in third-quarter fundraising and an internal poll allegedly showing Young ahead. I’ve enclosed that memo and the Appel campaign’s response at the end of this post. The polling firm Tarrance Group used strange methodology. Whereas the survey toplines showed Young leading by 43 percent to 41 percent, with other candidates taking 6 percent and 10 percent undecided, the Tarrance Group claimed Young was ahead by 47 percent to 43 percent based on “projected turnout.”

I look forward to digging into the details of the third-quarter FEC reports, which should be released by October 15. I would expect GOP donors to flock to Senator Chuck Grassley’s longtime top aide. But I don’t understand why Young would cancel television advertising time if his campaign was bringing in so much money in the third quarter. Even if he used some of the money to pay off debts incurred during the second quarter, he should have had plenty left over for a full-court press on television.

The DCCC has increased its television advertising buy in the Omaha market, which covers roughly 20 percent of the population in IA-03. To my knowledge, neither Young nor the National Republican Congressional Committee has aired tv ads in Omaha lately.

The DCCC has been running radio ads bashing “DC David Young” for supporting tax breaks for the wealthy, even as he backs cuts to education funding (such as eliminating the U.S. Department of Education). A similar television spot has been on the air for a while. Although education funding and tax policy are important issues, I suspect most voters tune out cookie-cutter negative political advertising.

Conservative blogger Shane Vander Hart thinks Young has problems with the GOP base because of some comments on abortion, his qualified support for a minimum wage increase, and legal residency for some undocumented immigrants. News flash: IA-03 is a swing district. Young has to communicate some level of moderation on at least a few issues. Vander Hart’s comments make me wonder whether hard-core conservatives will go for Libertarian candidate Ed Wright as a protest vote.

I’ve enclosed below excerpts from Young’s comments to the Des Moines Register’s editorial board about how to handle an estimated 11 million undocumented immigrants living in the U.S.

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IA-Sen: First Braley/Ernst debate liveblog and discussion thread

In a few minutes Representative Bruce Braley and State Senator Joni Ernst will start their first debate at Simpson College in Indianola. You can watch the debate on KCCI-TV in the Des Moines viewing area and on C-SPAN across the country (in central Iowa that’s channel 95).

I previewed what I see as the biggest potential pitfalls for each candidate here. I’ll be liveblogging after the jump and will also update later with some reaction to the debate.

UPDATE: KCCI has posted the debate video online. I cleaned up some typos and filled in gaps in the liveblog below.

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IA-Gov: Second Branstad-Hatch debate live-blog and discussion thread

Governor Terry Branstad and Democratic State Senator Jack Hatch are holding their second debate tonight in Burlington. The discussion will focus on economic issues. C-SPAN is televising the debate (channel 95 in the Des Moines area). I’ll be live-blogging after the jump. I expect to hear a lot of bogus statistics from Branstad about jobs he allegedly created. Reality: no economist or labor market analyst tracks the fake statistic the Branstad administration made up (“gross over the month job gains”). That’s just a fiction to allow Branstad to claim he’s on track to create 200,000 jobs. Also, median incomes in Iowa have not grown significantly.

Any comments about the debate or the governor’s race in general are welcome in this thread.  

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IA-03: First Staci Appel/David Young debate discussion thread (updated)

Democrat Staci Appel and Republican David Young are holding their first debate in the third Congressional district race. Iowa Public Television will live-stream the Council Bluffs debate on the “Iowa Press” page. You can also watch on C-SPAN 2, which is channel 87 for Mediacom subscribers in Des Moines. I will be live-blogging the debate after the jump.

P.S.-I’ve also enclosed below the Democratic Congressional Campaign Committee’s latest television commercial against Young. The format seems a little stale, and I wonder how many people even remember Young’s magic-themed ads before the Republican primary.

UPDATE: I didn’t realize the Appel campaign is also running a new ad. Scroll to the end to see that video and transcript.

FRIDAY UPDATE: Iowa Public Television has the debate video up on the “Iowa Press” page and will broadcast this debate tonight at 7 pm and Sunday morning.

I’ve added lots more below, including post-debate spin and Young’s second television commercial of the general election campaign, which started running on September 12. Young is presenting himself as a reasonable, moderate, experienced problem-solver. The theme of the Democratic communication is that Young spent the debate hiding from more radical positions he took as a Republican primary candidate for U.S. Senate and later for IA-03. That’s accurate, but the reality is that Young does not present as a wild-eyed extremist. Voters may conclude that he was just pandering to wingnuts during the primary campaign.

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IA-03: David Young wants to "bring a dose of Iowa reality to Washington"

Republican Congressional candidate David Young has launched his first television commercial of the general election campaign. I’ve posted the video and transcript to “Good Meal” after the jump. Echoing his opponent Staci Appel’s promise to “bring Iowa common sense to Washington,” Young’s new ad vows to “bring a dose of Iowa reality to Washington.” Speaking to the camera, Young separates himself from beltway insiders who are mismanaging the government: “I get it, and you get it. Why can’t they?”

Campaigning against Washington is standard practice, but this rhetoric is real chutzpah coming from a guy who has spent most of his adult life as a Congressional staffer based in the capital. The fundraising e-mail that accompanied today’s ad release glossed over Young’s professional background, asserting, “Washington needs David,” and urging supporters to “Help send David to Washington,” as if Young hadn’t spent the better part of two decades there.

Any comments about the race in IA-03 are welcome in this thread.

P.S.- While many voters would probably agree with Young’s claim that the federal government “overspends” and “overtaxes,” Young is smart enough to know better. Fact is, the federal tax burden on most American households is at historically low levels, whether you look at federal income taxes only or total federal taxes. By the same token, total federal government spending as a share of U.S. gross domestic product has “fallen dramatically” since the Great Recession ended, and the federal government “outside Social Security and Medicare is already significantly below its historical average size.”  

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IA-03: Second Staci Appel ad stresses independence, bipartisan work

Democratic Congressional candidate Staci Appel’s campaign started running its second television commercial today.  “Independence” focuses on the candidate’s work in the Iowa Senate from 2007 through 2010. I’ve posted the video and my transcript after the jump. As in her first commercial, the announcer refers to the candidate as “Staci”–ever since Hillary Clinton’s 2008 presidential campaign, this approach seems to be a trend with women candidates.

The script includes key words that resonate with conservatives and moderates (“business,” “finance,” “balance budgets”) as well as with progressives (expanding pre-K, raising the minimum wage, approving pay equity). That makes sense in a swing district like Iowa’s third. Appel mentioned the same set of issues in her soapbox appearance at the Iowa State Fair. I’ve posted excerpts from the news coverage after the jump.

Groups backing Republican candidate David Young are sure to portray Appel as a liberal Nancy Pelosi clone, so it makes sense to pre-empt that message with an ad about bipartisanship. To my knowledge, neither Young nor the National Republican Congressional Committee have run television ads in IA-03 since the primary. The NRCC ran a web ad bashing Appel, while U.S. Senator Chuck Grassley recorded a radio spot supporting Young.

In related news, Appel’s press release announcing today’s new tv spot took a swipe at Young for backing a “flat tax” at the Iowa State Fair (video here). At the end of this post I’ve enclosed excerpts from the Des Moines Register’s coverage of Young’s soapbox speech.

Appel is one of eight great women candidates for U.S. House, according to a feature in the latest edition of Elle magazine. The piece described Appel as a “mother of six and fierce pro-choice advocate,” who wants to bring “less bickering” and more “Iowa-mom common sense” to Washington.

IA-03 contained 153,285 registered Democrats, 164,984 Republicans, and 156,626 no-party voters as of August 1.

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New data bolster supporters of raising Iowa's gas tax

The average cost of owning a car is lower in Iowa than in any other state, the Cedar Rapids Gazette’s B.A. Morelli reported on August 16, citing an analysis by Bankrate.com. Car insurance costs an average of $630 per year in Iowa, the lowest in the 50 states. Vehicle repairs cost Iowa drivers an average of $315 per year, also the lowest number for any state. The average cost of gasoline for Iowa drivers worked out to $998 a year, taking into account not only the price of gas but also vehicle miles traveled and fuel efficiency rates. That’s “middle of the pack,” Morelli noted.

Iowa’s gasoline tax has not been increased since 1989, reaching a historic low in real terms. Meanwhile, Iowa road and bridge conditions continue to deteriorate. Three years ago, our state ranked third-worst in the country for structurally deficient bridges. The latest data indicate we are second-worst in that category, with more than 20 percent of the state’s bridges in need of repairs or replacement.

Democratic gubernatorial candidate Jack Hatch supports raising the gas tax, while Governor Terry Branstad has said he favors other ways to finance road and bridge work. The candidates clashed over that issue during last week’s debate. Branstad has left himself some wiggle room by not pledging to veto a gas tax increase.

The current leaders of the Iowa House and Senate Transportation Committees strongly support raising the gas tax to pay for road work. Bills to increase the tax by a total of 10 cents per gallon over several years passed committees in both chambers in recent years, but advocates were unable to recruit enough bipartisan support to pass them in the full Iowa House or Senate in either of the past two legislative sessions. Iowa House Transportation Committee Chair Josh Byrnes has promised to keep working on this issue, and State Representative Brian Moore, the vice chair of that committee, said this spring that a gas tax hike is “in the works” for 2015. He has emphasized that weight limits on structurally deficient bridges are bad for businesses like the livestock transportation company he owns.

Republicans Byrnes and Moore both represent Iowa House districts that may be targeted this fall, as does Iowa Senate Transportation Committee Chair Tod Bowman, a Democrat. Prospects for raising the gas tax will depend in part on whether key advocates are re-elected in November. Regardless of which parties control the Iowa House and Senate after the midterm elections, a gas tax increase would have to be a bipartisan effort.

Democratic and Republican critics of increasing the gasoline tax have pointed out that consumption taxes tend to be regressive, hitting lower-income people harder. A gas tax hike would also disproportionately affect rural residents, who may need to travel further to work or shop. The Washington-based Institute on Taxation and Economic Policy has recommended reforms to address those concerns. I’ve posted the short summary after the jump; you can read more in depth on their ideas for “building a better gas tax” here. I would add that any increase to Iowa’s gas tax should be accompanied by “fix-it first” language, so that new road construction doesn’t swallow the most of the revenue that should be earmarked for repairs. Fixing roads and bridges gives taxpayers more bang for their buck and creates more jobs than building new roads or putting new lanes on existing roads, which (while sometimes needed) increase future maintenance costs.

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IA-Gov: First Branstad-Hatch debate discussion thread (updated)

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

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

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

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

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A smoke-free Cedar Rapids casino is not a public health initiative

The Iowa Racing and Gaming Commission sent a strong message last week to backers of a casino project in Cedar Rapids: don’t bother trying to get a license for at least the next three years.

Rational actors would have started working on Plan B for prime downtown real estate as soon as commissioners voted down the application for a Cedar Rapids casino in April. But Mayor Ron Corbett and some other movers and shakers are determined to chase the gambling dream, through legislative or judicial means. Instead of taking the hint from the Racing and Gaming commissioners, Corbett is ratcheting up his strategy for gaining legislative approval for a new casino. He’s smart and experienced enough to know that state lawmakers need a better excuse for acting than “we don’t like what the commission did.” So, he’s now dressing the casino project up as a public health initiative. Lawmakers shouldn’t fall for or hide behind this ruse.

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Report highlights immigrants' impact on Iowa economy

A detailed analysis by the Iowa Policy Project shows that immigrants contribute substantially “to Iowa’s economy both as workers and employers,” and could contribute more “if immigration reform were to make work authorization or a path to citizenship possible” for some undocumented Iowa residents. You can read the full report by Heather Gibney and Peter Fisher here (pdf). I’ve enclosed excerpts from the executive summary after the jump.

One key finding is that contrary to the image fostered by some politicians, undocumented immigrants are not a drain on state or federal budgets. They generate significant revenue for public assistance programs, from which they cannot benefit. Representative Steve King (R, IA-04) is notorious for his demagoguery against “illegals,” but sadly many other Iowa Republican elected officials, including Governor Terry Branstad, have promoted myths about undocumented immigrants taking state benefits.

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The IRS and Chuck Grassley - "Ain't no there, there."

(Latest fake scandal pumped up by conservative media. - promoted by desmoinesdem)

The DSM Register had an article today on the IRS scrutiny of Sen. Chuck Grassley. To be fair to the Register, conservatives are trying to make it appear that the IRS is on a witch hunt for members of Congress, and so while there’s no news here, the Register is covering it because the conservatives are trying to make it a story.

The real witch hunt here is fed by conservative’s disconnection with reality. Here’s the short version of the facts: The IRS was sent a complaint that an organization might be offering Grassley something as a benefit. The IRS investigator looked at it and rightly asked her supervisor if this was something that could justify an audit. The supervisor said no, the only thing that would justify an audit would be if Grassley accepted and then didn’t report it. End of story. No further action by the IRS.

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Weekend open thread: Iowa Democratic Party convention edition

What’s on your mind this weekend, Bleeding Heartland readers? The Iowa Democratic Party’s state convention got overshadowed by the circus-like spectacle Republicans put on in Urbandale yesterday. We’re talking about David Young’s surprising nomination in IA-03 here. This is an open thread for all other topics.

After the jump I’ve posted several links about the Democratic convention and the full text (as prepared) of Maryland Governor Martin O’Malley’s speech. He seems to have made a good impression, as he did at the Harkin Steak Fry in 2012. O’Malley won’t challenge Hillary Clinton for the presidential nomination; he was loyal Clinton surrogate during the 2008 primaries, even after Barack Obama crushed her in his state. If Clinton decides against running for president again, O’Malley could have a lot of upside potential in Iowa. He’s much more familiar with this state than your average east-coast governor, having worked as a field organizer for Gary Hart’s 1984 Iowa caucus campaign. John Deeth wrote up O’Malley’s appearance for gubernatorial nominee Jack Hatch and running mate Monica Vernon in Iowa City.

UPDATE: Added below a short version of what would be the progressive case against O’Malley if he competes in the Iowa caucuses.

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IA-Gov: "Stache-less" Jack Hatch and Monica Vernon news roundup

Democratic gubernatorial candidate Jack Hatch announced today that Cedar Rapids City Council member Monica Vernon will be his running mate. In addition to following the Iowa tradition of female lieutenant governors, Vernon balances the ticket geographically and ideologically. An elected official in Iowa’s second-largest city for seven years, she has been campaigning around northeast Iowa since last summer as a Democratic candidate for Congress. She carried Linn County and finished a strong second to Pat Murphy district-wide on June 3.

Some Democrats are grumbling that Vernon is a longtime Republican who joined our party just five years ago. But frankly, Hatch isn’t running in a Democratic primary. He needs to appeal to a statewide electorate including thousands who have become disaffected from the GOP, just like Vernon did. Anyway, she is arguably more progressive than Governor Chet Culver’s running mate, lifelong Democrat Patty Judge. Despite the complaining, there shouldn’t be any major snags when the Iowa Democratic Party’s statewide convention officially nominates Vernon for lieutenant governor this Saturday.

After the jump I’ve posted background on Vernon and other recent news from the Hatch campaign, including his first television commercial for the general election and highlights from his weekend appearance on Iowa Public Television’s “Iowa Press” program.

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IA-Gov: Republican Governors Association hits Hatch as Branstad launches positive ad

The Republican Governors Association jumped out the day after the primary election with a television commercial attacking State Senator Jack Hatch, the Democratic nominee against Governor Terry Branstad. I’ve posted the video and transcript after the jump, along with the Branstad campaign’s opening tv ad, touting Iowa’s “comeback” under his leadership.

It’s standard procedure for incumbents generally, and Branstad in particular, to try to define challengers before they’ve had a chance to introduce themselves to most voters. That said, this spot is also a sign that the RGA may be more concerned about Iowa than they’re letting on. I wonder whether their internal polling is showing a shrinking lead for Branstad over Hatch, as we’ve seen in several polls released in the last two months. Hatch plans to start running a biographical television commercial later this month, but he can’t match Branstad and Republican-aligned forces in money spent on advertising.

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Branstad staffer Adam Gregg will run for Iowa attorney general

No Republican stepped up to run against Iowa Attorney General Tom Miller in time to appear on the primary election ballot, but yesterday Adam Gregg announced that he will seek the GOP nomination for attorney general at the state party convention later this month. Gregg worked in private practice for the Des Moines-based Brown Winick law firm before joining Governor Terry Branstad’s staff as a legislative liaison in 2012. (He’s quitting that job to run for office.) His press release touted his work to help pass “the largest tax cut in Iowa’s history, historic education reform, and a state based, Iowa alternative to Obamacare.” The tax cut refers to the property tax reform approved during the 2013 legislative session. The Iowa Health and Wellness Plan is more accurately described as an alternative to Medicaid expansion rather than an alternative to “Obamacare.” Iowa is still implementing the 2010 Affordable Care Act.

Gregg promised “to fight everyday for Iowa families, Iowa farmers, and our constitutional freedoms,” to “be an advocate for open government,” and to “hold Washington, DC accountable when the federal government oversteps its bounds.” Around the country, many Republican state attorneys general have used the job to grandstand against federal policies they don’t like for ideological reasons. Sounds like Gregg will be emulating that model.

I don’t give him much chance of beating Tom Miller. Four years ago, Brenna Findley got in the race early and ran a strong and well-financed campaign, only to come up well short amid a huge Republican landslide. Running a statewide campaign will raise Gregg’s profile, though, and possibly open doors to future political jobs. The Des Moines rumor mill expects Miller to retire rather than seek another term in 2018. In that case, Gregg could join Findley as prominent candidates in a much more winnable race.

IA-03: David Young's coherent campaign message

From the earliest days of David Young’s campaign for U.S. Senate to the earliest weeks of his bid to represent Iowa’s third district in the U.S. House, I’ve been skeptical that many rank and file Republicans would vote for a career Congressional staffer in a competitive primary. I still view Young as an underdog going into next Tuesday’s vote. However, he has been working hard in the IA-03 counties and has put together a stronger campaign than most first-time candidates could manage.

Follow me after the jump for an overview of Young’s campaign themes, including videos and transcripts of the two television commercials he has run so far.  

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Weekend open thread: End of 2014 legislative session edition

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

The Iowa legislature got out of town on May 2, 110 calendar days after the 2014 session began. That’s ten days after lawmakers’ per diem payments ran out but earlier than in any year since 2010, when Democrats held majorities in both chambers. After the jump I’ve posted closing remarks delivered by the top Iowa Senate Democrats (Majority Leader Mike Gronstal and President Pam Jochum) and the top Iowa House Republicans (Speaker Kraig Paulsen and Majority Leader Linda Upmeyer). A series of posts next week will focus on some of the more significant legislative results from the session, as well as important bills that never did pass.

I’ve also enclosed Gronstal’s prepared remarks on the final Iowa Senate vote of the session: granting subpeona power to the Government Oversight Committee to continue investigating various scandals in Governor Terry Branstad’s administration. Gronstal emphasized that the resolution is “narrowly drafted” and “not a criminal investigation. The goal is not to convict people. The only goal is to find out what went wrong [in state government] and how to fix it.” The resolution passed by voice vote just before the Senate adjourned on Friday morning. Iowa Senate Minority Leader Bill Dix blasted what he called a “dangerous” and “underhanded partisan move.” He claimed the “disruption of separation of powers” will invite “a state constitutional crisis,” and that the Oversight Committee’s investigation is politically motivated.

Finally, in non-legislative news, Patrick Caldwell reported for Mother Jones this week on a remarkably shady deal involving Danny Carroll in 1996. At the time, Carroll was a real estate agent in the Grinnell area and an Iowa House Republican. He currently chairs the Republican Party of Iowa–though probably not for much longer. After reading Caldwell’s piece, I want to know why anyone supposedly committed to Christian values would participate in a scheme to take advantage of an elderly widow with debts.  

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IA-Sen: Braley learns painful lesson in 21st century campaigning (updated)

Every candidate for public office has to learn basic rules of campaigning, such as, “Every mic is a live mic.” In other words, always assume you may be overheard when you stand next to a microphone, even if you think it’s not turned on.

In the age of camera phones and YouTube, candidates may be speaking into a live mic even when there’s no microphone to be seen. Representative Bruce Braley, the Democratic candidate for U.S. Senate in Iowa, learned that lesson the hard way today.  

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Iowa legislative news roundup: dead and alive after the second funnel

The Iowa legislature’s second “funnel” deadline passed late last week. To remain eligible for debate during the remainder of this year’s session, most legislation needed to have passed one chamber as well as a committee in the other chamber. There are a few exceptions to the rule, namely appropriations bills and some tax measures. Rod Boshart listed the most significant “dead” and “alive” bills for the Cedar Rapids Gazette. The Iowa House Republican staff compiled a more comprehensive list of “second funnel survivors,” including bill summaries. The Iowa Senate Democratic staff highlighted the most important bills passed by the Senate that died in the House.

After the jump I’ve enclosed more links and some analysis on bills that died as well as those still under consideration. From my perspective, the most surprising casualty of the funnel was a bill to extend the statute of limitations for sex crimes against children (see the “safety and crime” section below).

Any comments on pending legislation in the Iowa House or Senate are welcome in this thread.  

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Can Josh Byrnes escape a GOP primary challenge in Iowa House district 51?

Since last summer, many Iowa politics watchers have had Republican State Representative Josh Byrnes on retirement watch. However, he announced this week that he will seek a third term in Iowa House district 51. After the jump I’ve posted a district map and Byrnes’ re-election statement.

Democratic candidate Laura Hubka has been actively campaigning for months. She’s facing a relatively strong incumbent in this district, which covers Howard, Mitchell, Worth, and part of Winneshiek Counties along Iowa’s northern border. Byrnes was comfortably re-elected in 2012 even as President Barack Obama won more than 55 percent of the vote in House district 51. The latest totals from the Secretary of State’s office indicate that the district contains 5,765 registered Democrats, 6,470 Republicans, and 8,643 no-party voters.

Although I have not heard of any Republican planning to challenge Byrnes, three factors make me suspect he will not get a free pass in the GOP primary.

1. Byrnes is the leading Iowa House proponent of raising the gasoline tax, a popular view among some rural constituencies but not in the Republican base. He even taunted the advocacy group Iowans for Tax Relief after this year’s subcommittee hearing, where the gas tax bill advanced.

2. While many Iowa House Republicans are quietly satisfied to see a constitutional amendment on marriage die in the funnel for two years running, to my knowledge Byrnes is still the only person in his caucus who openly supports same-sex marriage rights.

3. Last year Byrnes was one of just two GOP legislators to support the Democratic position on expanding Medicaid in Iowa. (The other one, Brian Moore, represents the most Democratic-leaning Iowa House district Republicans now control.)

It will be a St. Patrick’s Day miracle if no anti-tax zealot, social conservative, or “Liberty” activist steps up to challenge Byrnes by the March 14 filing deadline.  

UPDATE: Amazingly, no other Republican filed papers to seek the GOP nomination in House district 51.

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Des Moines residents vote today on franchise tax (updated)

Voters in Des Moines will decide today whether to allow the city to collect a “franchise tax” on utility bills. The money would be used to repay tens of millions of dollars collected in “franchise fees” between 2004, when a class-action lawsuit was filed challenging the fee as an illegal tax, and 2009, when the Iowa legislature approved and Governor Chet Culver signed a law allowing cities to charge franchise fees. The Iowa Supreme Court ruled in March 2012 that the city would have to refund the franchise fees collected between 2004 and 2009. The Iowa legislature approved language that would have allowed the city of Des Moines to collect a franchise fee for seven years, but Governor Terry Branstad vetoed that line item.  

Des Moines city leaders then considered three options for repaying the estimated $42 million: cutting city staff or services (which already took a hit during the “Great Recession”), raising property taxes, or raising the franchise fee on utility bills. City leaders opted for the franchise tax, but it will only happen if Des Moines voters approve today’s referendum.

Bleeding Heartland user Jon Muller made this case for a yes vote:

There’s an election in Des Moines to approve a Franchise Tax today.  I encourage voters to approve the measure.  It’s a very simple choice for any homeowner.  You can pay a modest tax on your utility bill for 7 years, $2.50 on a $100 monthly bill.  Or, if the measure does not pass, you will pay 41 cents per thousand of taxable valuation for 20 years.  On a $150,000 house, you’re looking at $32 a year for 20 years.

This was the easiest Yes vote I have ever cast.  Not even a line call.  This isn’t about past mistakes, which many of us agree could have avoided this entire situation.  It’s only about how you prefer your taxes be raised, how much they will be raised, and for how long.  More than 40% of the property in Des Moines isn’t even subject to property taxes, but virtually all of the property in Des Moines consumes electricity.  A Yes vote means we spread the burden across more taxpayers, at a lower rate, for less time.

Simple.

An analysis by the city determined that raising property taxes “would cost a typical homeowner about $444 over the next 20 years,” while the proposed franchise fee increase “would cost a electric customer about $273 over the next seven years.”

UPDATE: Unofficial results from the Polk County auditor’s office indicate that “yes” passed easily by 8,095 votes to 1,422 (85 percent to 15 percent).

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A Plea to Liberals to Reconsider Position on Minimum Wage

(Bleeding Heartland welcomes guest diaries on policy or politics.   - promoted by desmoinesdem)

We liberals have been fighting the wrong battle with the Minimum Wage.  I am not sure whether liberals understand the economics of the minimum wage and choose to ignore them, or whether we just don’t understand basic principles of economics.  I can’t do much about the former, but I can at least shed some light on what actually happens when we raise the minimum wage.

We liberals all share a fundamental belief that government has the power and the resources to improve the standard of living of the poor and the middle class in this country.  Because we have the power and the resources, we have an obligation to take action to do so.  But we should also do no harm in the process, especially to those whose lives we are trying to improve.  The Earned Income Tax Credit is a more efficient way to accomplish our objectives, at a lower cost to society as a whole, with fewer unintended consequences that end up hurting poor people.

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Iowa legislature funnel week discussion thread

This week marks the Iowa legislature’s first “funnel” deadline of the 2014 session. With the exception of appropriations bills, most legislation that has not cleared at least one committee in at least one chamber is dead for the year. Only occasionally do House or Senate leaders revive bills that didn’t get through the funnel.

Rod Boshart published a comprehensive list of bills that are still pending in either the Iowa House or Senate, as well as proposals that didn’t make it this year. Notably, the ideas Governor Terry Branstad outlined in his Condition of the State speech last month are still alive, as are the top priorities House and Senate leaders mentioned on the opening day of this year’s session.

Any comments about the legislature’s work is welcome in this thread. Reading Boshart’s lists, I felt a mixture of relief and disappointment. So many bad ideas died in the funnel, but so did a lot of proposals I would strongly support.

My dismay is probably nothing compared to what socially conservative Republicans are feeling. For the second year in a row, no bills aimed at “protecting” traditional marriage made it through the funnel. Every proposed anti-abortion bill died too, except for the ban on “telemedicine” abortions (which failed to move last year but passed the Iowa House last week). You would think that with a 53-47 Republican majority, the Iowa House would move more of these abortion bills through committee at least.

Iowa's budget process leaves a lot to be desired

A new report by the Center on Budget and Policy Priorities shows that Iowa and many other states fail to incorporate enough long-term fiscal planning in the budget process. Click here to read the executive summary of the thoroughly researched piece by Elizabeth McNichol, Vincent Palacios, and Nicholas Johnson. Click here to download the full report (pdf).

After the jump I’ve posted the two-page fact sheet on Iowa, which scored only 4.5 out of a possible 10 and ranked 37th among the states. I’ve also enclosed a sidebar explaining the ten criteria they used to evaluate state fiscal planning. Table 1 toward the bottom of this page shows that Iowa received full marks under three categories: consensus revenue estimates, legislative fiscal offices, and budget status reports. Iowa received half-credit in three more categories: multi-year fiscal notes, pension oversight, and well-designed rainy-day funds. Iowa received zero marks in four categories: multi-year forecasting, a projection of future costs to deliver the “quantity and quality of services to residents that it is delivering in the current budget period,” pension funding and debt level reviews, and oversight of tax expenditures.

For years, the Iowa Policy Project and the Iowa Fiscal Partnership have been sounding the alarm on how Iowa needs to start calculating the costs of various tax breaks and tax credits.

While you’re at it, read the Iowa Fiscal Partnership’s recent background piece on why “Iowa lawmakers must recognize the long-term impact of tax cuts on spending choices. Past choices will force future legislatures to lower investments on critical services on which economic growth depends.”

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Reaction to Branstad's 2014 Condition of the State address

Immediately following Governor Terry Branstad’s Condition of the State address to Iowa legislators yesterday, Senate Majority Leader Mike Gronstal told Iowa Public Television that he “didn’t hear anything I disagreed with.” Not every Iowan who closely follows state government shared his reaction. State Senator Jack Hatch, the leading Democratic challenger to Branstad, slammed the governor’s “very shallow agenda” of “low expectations.”

After the jump I’ve posted more detailed comments from Hatch and a few other Iowa Democrats, as well as statements released by several non-profit organizations, which called attention to important problems Branstad ignored or glossed over.  

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Highlights from Branstad's 2014 Condition of the State address

Governor Terry Branstad delivered his annual “Condition of the State” address to Iowa lawmakers this morning. By Branstad’s standards, it was not a partisan speech. He drew several standing ovations from legislators in both parties, and it’s easy to imagine the Democratic-controlled Iowa Senate embracing most of the policies he advocated. In fact, immediately after the speech, Senate Majority Leader Mike Gronstal told Iowa Public Television’s Dean Borg that he “didn’t hear anything” he disagreed with. Gronstal did get in a quick jab at the governor, though, pointing out that Branstad hailed “predictability” for the state budget, which is what statehouse Democrats are seeking for school districts. During the last two years, House Republicans and Branstad have refused to comply with Iowa law requiring the legislature to set allowable growth levels for K-12 school districts a year in advance.

Highlights from the governor’s speech are after the jump. Click here to read the full text, as prepared. Any relevant comments are welcome in this thread.

Stylistic note: for a guy who’s been in politics as long as Branstad has, he keeps his eyes glued to his script a lot. Experienced public speakers typically make more eye contact with the audience.  

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