Bleeding Heartland - Joe Bolkcom

Last-minute Iowa legislative scramble is nothing to brag about

desmoinesdem — Fri, 24 May 2013 17:30:00 GMT

The Iowa Senate wrapped up its work for the year shortly after midnight on May 23, and Iowa House members adjourned about 11 hours later. Lawmakers in both parties have been congratulating themselves for compromising on some big issues that ended in stalemate the previous two years. Rod Boshart compiled an excellent list of what the legislature did and didn't approve during 2013.

We all can appreciate the desire to finish a big project before a holiday weekend, and since legislators stopped receiving per diem payments weeks ago, they understandably wanted to get out of town as quickly as possible. However, I found it disturbing that votes were held before most lawmakers, let alone members of the public, had time to digest final conference committee deals on education reform, an alternative to Medicaid expansion, property taxes, and the health and human services budget. Transparency isn't just a buzzword. Had journalists and advocacy groups been able to look over the last-minute compromises, people might have discovered problematic language or even simple drafting errors, which could produce unintended consequences after Governor Terry Branstad signs these bills into law.

I have a lot of questions about the final education reform bill and the plan to provide health insurance to low-income Iowans, particularly those earning between 101 percent and 138 percent of the poverty level. I also need more time to sort through the budget numbers and final changes to the standings bill. After the holiday weekend Bleeding Heartland will examine the important results of the legislative session in more detail. For now, I've posted after the jump details on who voted for and against the major bills approved this week.

UPDATE: In the May 24 edition of the On Iowa Politics podcast, statehouse reporters Mike Wiser and James Lynch discussed how the big issues came together "behind closed doors," with no public scrutiny or oversight. Lynch commented that to his knowledge, the conference committee named to resolve the impasse over Medicaid expansion never formally met, except perhaps for one organizational meeting. Lynch recounted one occasion when Iowa House Republican Dave Heaton was briefing journalists about the health care talks, and the journalists asked when that happened, since there hadn't been any public notices of conference committee meetings. According to Lynch, Heaton replied, "We're not having meetings, but we're meeting." Senate President Pam Jochum said that negotiations between Democratic State Senator Amanda Ragan and House Majority Leader Linda Upmeyer produced the "key to Iowa's health care compromise." Notably, Upmeyer didn't have a prominent role in passing the House health insurance plan, nor was she named to the conference committee assigned to merge the House and Senate proposals.

Speaking to journalists on May 22, Senate Majority Leader Mike Gronstal and Jochum weren't able to answer a specific question about compromise wording reached regarding Medicaid coverage of abortions. That was no minor issue--it was the last sticking point holding up approval of the health and human services budget. In effect, Gronstal told journalists, you can see the wording after the final bill is published.
Senate File 295, the bill including property tax cuts and an increase in the earned income tax credit, passed the Iowa Senate by 44 votes to 6 and the Iowa House by 84 votes to 13.

In the Senate, these six Democrats voted no: Joe Bolkcom, Bob Dvorsky, Rob Hogg, Janet Petersen, Dick Dearden, Herman Quirmbach

In the House, these 13 Democrats voted no: Marti Anderson, Bruce Hunter, Chuck Isenhart, Dave Jacoby, Jerry Kearns, Vicki Lensing, Mary Mascher, Pat Murphy, Jo Oldson, Sharon Steckman, Todd Taylor, Beth Wessel-Kroeschell, Cindy Winckler

House File 215, the education reform bill, passed the Iowa House by 95 votes to 0 and the Iowa Senate by 40 votes to 10. Dick Dearden was the only Senate Democrat to vote against the bill, joined by Republicans Brad Zaun, Dennis Guth, Ken Rozenboom, Jack Whitver, Randy Feenstra, Bill Dix, Jerry Behn, Mark Chelgren, Jake Chapman.

Senate File 446 contained the health and human services budget and the alternative to Medicaid expansion, which will use federal funds to cover Iowans earning up to 138 percent of the poverty level (provided the federal government grants Iowa a waiver). All 26 Senate Democrats voted for this bill, and all 24 Senate Republicans voted against it--probably more because of a dispute over Medicaid abortion funding than over the Iowa Health and Wellness Plan.

The Iowa House approved Senate File 446 by 80 votes to 17. The 17 state representatives to vote against the bill were Democrats Dan Muhlbauer, Marti Anderson, Cindy Winckler, Bruce Hunter, Beth Wessel-Kroeschell, and Phyllis Thede, and Republicans Dwayne Alons, Julian Garrett, Mark Brandenburg, Tedd Gassman, Dean Fisher, Sandy Salmon, Jason Schultz, Larry Sheets, Ralph Watts, Tom Shaw, and Greg Heartsill.

Tax bargain is "Christmas for Walmart," raw deal for most Iowans (updated)

desmoinesdem — Fri, 17 May 2013 15:30:00 GMT

Iowa House and Senate conference committee negotiators appear to have struck a grand bargain on taxes. I haven't seen any press release on the agreement yet from Senate Democrats, so I don't know whether there is consensus in the caucus for the deal. But both Senate Majority Leader Mike Gronstal and Minority Leader Bill Dix are backing the compromise, as is House Speaker Kraig Paulsen.

After the jump I've posted commentary on the deal and a memo outlining the details. The bulk of the tax cuts will go to commercial property owners, but I see no evidence that the majority of small business operators (who rent rather than own property) will benefit at all. Democrats are getting the earned income tax credit increase they've been trying to pass for years, and that's an important issue. However, the same vulnerable populations that benefit from the earned income tax credit will bear the brunt of the state and county service cuts that will likely happen as the commercial property tax reductions are phased in.

I haven't had my eye on property taxes during this year's legislative session, because I assumed no compromise would be found between the very different bills favored by Iowa House Republicans and Iowa Senate Democrats. A recent analysis by the Iowa Fiscal Partnership showed that the Democratic approach was better for commercial property owners "with less than $622,500 valuation in property," while larger businesses (such as national retailers or real estate trusts) would do better under the GOP plan. That must-read study also undercut the case for any urgency to reduce property taxes in Iowa.

Any relevant thoughts are welcome in this thread. UPDATE: Added some comments from Iowa legislators and information about a loophole that could disqualify a lot of commercial property from the tax reduction.
Senate File 295 has had a long, bumpy road through the legislature this session. A few weeks ago, House Republicans and Senate Democrats appeared to be miles away from a compromise.

Earlier this week, rumors about an imminent deal started circulating. Yesterday the Cedar Rapids Gazette posted a good summary of the deal by Rod Boshart, and the Des Moines Register posted a report by William Petroski and Jason Noble. I enclose below a four-page memo with more details.

Governor Terry Branstad said he looks forward to signing the bill, and his communications director Tim Albrecht said the governor won't use his line-item veto power to block any portion of the bill. In 2011, Branstad twice used the line-item veto to remove the earned income tax credit increase from broader bills on taxation.

Peter Fisher, research director for the Iowa Policy Project, released this statement yesterday on behalf of the Iowa Fiscal Partnership:

It's Christmas for Walmart and McDonald's, which will happily receive property-tax breaks that they don't need, while their low-wage employees receive a better Earned Income Tax Credit.
This Christmas tree will grow bigger with each passing year, leaving less room in local budgets to respond to needs. The EITC expansion is important to working families - including 37 percent of all Iowa kids - but in the balance of who benefits from this package, it is a very small ornament.
If there is any question as to who benefits, Iowans should note that the EITC boost will be $35 million when fully phased in, compared to about 10 times that for property owners.
As we noted last month, the only justification for dealing with commercial property taxes was a political one. It has never been based on either an economic or competitive need to cut commercial property taxes in Iowa. So we have a politically derived package that will meet the demonstrated need to improve the EITC but leaves open new challenges to the support of critical public services in our state.

I highly recommend reading the Iowa Fiscal Partnership's recent report on property taxes and previous writings on the earned income tax credit.

I sought comment from Jon Muller on the tax deal. He is a long time Iowa public policy anlayst who worked in Governor Tom Vilsack's administration and is now partner in Iowa School Finance Information Services. Muller pointed out that many small business owners are tenants who won't see a cent of the property tax cut the large property owners are getting. He noted,

[W]hen you increase property taxes, the landlord will be unable to pass on the tax increase to the tenant.
Property tax is a wealth tax.
It's not a rent tax. [...]
Rents will stay the same. A larger portion of rent will go to the landlord, and a smaller portion to the government. But rents will stay the same.

In Muller's view, this compromise is great for real estate trusts but not for most small business owners. Their rents are determined by market supply and demand.

Muller also pointed me toward this research from a peer-reviewed economics journal, which indicates that rents are not affected by property tax rates. Two identical houses on the same street but in different school districts may have very different property tax rates, but the rents will be the same. From the perspective of the commercial property owner, Muller said,

On one side, you will pay a low price, but pay high taxes.
On the other side, you will pay a high price, and low taxes.
Your return on investment will be identical on either side of the street.

Iowa Citizens for Community Improvement Action called on Iowa lawmakers to vote down this tax deal.

Iowa Citizens for Community Improvement Action Fund (CCI Action Fund) members blasted a tentative legislative deal to cut corporate property taxes after a confidential memo was leaked Thursday, saying the deal will severely limit the ability of state and local governments to provide basic public services without raising taxes on everyday Iowans.
The confidential conference committee report on Senate File 295 shows state government stands to lose $383.6 million in annual revenue by 2024, while local governments would lose $115.7 million by 2024.
CCI Action Fund members also say the bad deal allows current and future budget surpluses - created by spending cuts years ago - to be squandered in the form of a small income tax credit rather than being reinvested in state programs that have faced cuts.
"Iowa CCI Action Fund members support expanding the Earned Income Tax Credit for working families, but not as a horse-trade for a bad deal on income and corporate property taxes," said CCI Action Fund member Larry Ginter, an independent family farmer from Rhodes.
"If this bad deal goes through, we will either see cuts to vital public services or more taxes on family farmers and everyday people, or both. Shame on any legislator that votes for this thing. Bipartisanship should not come at the expense of good policy that puts people first."

UPDATE: Speaking to the Des Moines Register on May 17, Senate Ways and Means Committee Chair Joe Bolkcom said he hasn't decided yet whether to support the bill. Iowa House Democrat Tyler Olson said he is also undecided.

Senator Jack Hatch, a possible candidate for governor next year, hit the nail on the head in my opinion.

Sen. Jack Hatch, D-Des Moines, said he was finding it difficult to back the tax package while Democratic efforts to expand the state's Medicaid program were being ignored by Republicans.
"For me, I have to see that there is real effort on the part of the Republican leadership in the governor's office to recognize that there are 300,000 Iowans without health insurance and we are trying to get a majority of them in the circle," Hatch said. "To dismiss that at a time that we are providing significant tax breaks to big corporations and good tax breaks to moderate families as well is a consideration that I have to resolve in my mind."

Only a handful of Democratic votes would be needed in the Iowa Senate if the 24 Republicans all support the compromise.

Meanwhile, Jon Muller posted the following comment on his Facebook page Friday afternoon:

Warning: For Iowa Policy Wonks
Curious Side Effect of Taxing Apartment Buildings Like Houses......
Taxable value will fall for all the affected local governments, right? Cities, schools, counties, community colleges, etc. Right? Wrong. One type of local taxing authority will be unaffected. Tax Increment Financing Districts. The taxable value of TIFs are based on the "Growth in Assessed Value". The "Assessed Value" of multi-family buildings is not being reduced by the law. Only the "Taxable value". Clear as mud, right? Think this thing has been thoroughly thought through?

Some Iowa cities have put quite a lot of commercial property in TIF districts in an effort to stimulate economic development. Finding out they don't qualify for the property tax cut will be a rude awakening for some business owners.

CORRECTION: The property owners will still get the tax cut, even in a TIF district. But in a TIF district, property taxes collected on the "base" property value (before creation of the TIF district) go to local institutions including cities, counties, school districts, and community colleges. At the same time, taxes collected on the "increment" (increase in property valuation since the TIF was created) are reserved for an economic development authority.

According to Muller, the language in this tax deal suggests that all of the reduction in taxable value will be applied to the "base" part of the TIF area. Conceivably, local economic development authorities might be able to collect as much in property taxes as before from properties in TIF districts, while school districts, community colleges, city and county governments have to make do with less revenue.

Here is the four-page memo leaked yesterday.

Another Iowa legislative victory for Big Ag

desmoinesdem — Wed, 08 May 2013 14:49:00 GMT

Factory farm advocates failed in 2009 to circumvent the Iowa DNR's rulemaking on applying manure over frozen and snow-covered ground. Then they failed in 2010 to win passage of a bill designed to weaken Iowa's newly-adopted regulations on manure storage and application.

But this year, the Iowa Pork Producers Association succeeded in convincing state lawmakers to relax requirements for CAFO operators to be able to store their own manure properly. All they had to do was dress up their effort as an attempt to help families with aspiring young farmers.
Last month Bleeding Heartland covered House File 512, the so-called "mothball" bill for farm structures. Proponents say it would help farm families who need to downsize temporarily, until a child has grown up, finished college, and decided to come home to farm.

The big "tell" during the House debate was that proponents rejected State Representative Chuck Isenhart's amendment, which stated:

During the period of election [to be a small animal feeding operation], a manure storage structure that is part of the confinement feeding operation is not used to store manure originating from a location outside the confinement feeding operation.

If the intent of the bill were to keep vacant buildings available for family use someday, the Iowa House should have approved that amendment. But they rejected it, because CAFO operators want to have the option to dump excess manure in the vacant buildings of neighbors. Transporting and offloading manure to another farm increases the risks of spills and water pollution.

Several environmental organizations and the Iowa Farmers Union had lobbyists registered against House File 512. Only the Iowa Pork Producers Association had lobbyists registered in favor.

Iowa Citizens for Community Improvement Action was mobilizing opposition to this bill. In early April, that group claimed victory when the legislation was placed on the Iowa Senate's "unfinished business" calendar.

But unfinished business doesn't always stay unfinished at the statehouse. Last week, Senate leaders revived their version of the same bill, called Senate File 418. As described in the Senate Journal for May 1 (pdf), Senate Agriculture Committee Chair Joe Seng received unanimous consent to replace Senate File 418 with House File 512. The Senate then approved by voice vote Seng's amendment to the legislation, and passed the bill by 43 votes to 6 (Jack Hatch was absent). The six no votes came from the following Democrats:

Joe Bolkcom
Dick Dearden
Pam Jochum
Matt McCoy
Janet Petersen
Herman Quirmbach

I am surprised Rob Hogg was a yes here.

Excerpt from a May 1 press release by Iowa Citizens for Community Improvement Action:

Iowa Citizens for Community Improvement member Lori Nelson of Bayard, Iowa released the following statement Wednesday morning before the Iowa Senate debates an environmentally hazardous bill that would de-regulate basic and common-sense manure management regulations:
"Senate File 418 - the so-called "mothball" bill - is a shameful attempt by one of Iowa's largest corporate ag lobby groups and Democrats like Majority Leader Mike Gronstal and Ag Chair Joe Seng to de-regulate basic environmental protections that were designed to keep factory farm manure out of our water."
"Today we will hear false statements on the Senate floor, by Democrats and Republicans alike, that this bill is somehow meant to protect the environment because dumping overflowing toxic manure into an abandoned factory farm during bad weather is safer than spreading it on frozen or snow-covered ground. But this is a false comparison and is simply not true. There is a third option that was contemplated by legislators and regulators over five years ago that put the responsibility on the industry to solve this problem, and that is the correct approach we must continue to demand now."
"After the 2009 law banning liquid manure application on frozen and snow-covered ground, the Environmental Protection Commission and the Administrative Rules and Review Committee carved out a five year window for the factory farm industry to come into compliance with the new law, either by building extra storage capacity, reducing their herd sizes, or taking other steps to properly manage their manure over the winter months."
"The industry has had five years to fulfill their obligations, but they have refused, because they don't want to spend the money to do what's right. Now the Iowa Senate, under the leadership of Democrat Mike Gronstal, is set to give one of Iowa's most polluting industries a free pass for bad management rather than stand up for everyday people and the environment."
"We have 628 polluted waterways in this state. The amendment that will be proposed on the floor of the Senate today by Senator Seng is lipstick on a factory farm pig. There is no such thing as an emergency that would require dumping overflowing manure into an abandoned factory farm. That's not an emergency, that's bad management. Winter comes every year, and extreme weather is the new normal. The industry has had years to figure this out."
"Senators of both parties who claim that this measure is the lesser of two evils compared to spreading manure on snow are giving the factory farm industry a free pass for bad management. This is a horrible bill, it's bad policy, and legislative support for it demonstrates to every Iowan all that is wrong with state politics."

Yesterday the Iowa House took up the amended House File 512. According to the House Journal (pdf), floor manager Lee Hein moved that the representatives concur in the Senate amendment. Immediately afterwards, the House approved the bill by 85 votes to 14. Only these Democrats voted no:

Ako Abdul-Samad
Bruce Hunter
Marti Anderson
John Forbes
Lisa Heddens
Chuck Isenhart
Anesa Kajtazovic
Vicki Lensing
Mary Mascher
Kevin McCarthy
Jo Oldson
Cindy Winckler
Beth Wessel-Kroeschell
Art Staed

All House Republicans voted yes, joined by all of the other Democrats present. Dan Muhlbauer was absent but would surely have been a supporter; he supported House File 512 last month.

UPDATE: Cody McKinley, a lobbyist for the Iowa Pork Producers, told the Des Moines Register that

an amendment added to the bill by the Senate addresses CCI's concerns by allowing animal or manure storage in a mothballed facility only "on an emergency basis" and requiring farmers to inform the Department of Natural Resources of such circumstances.
"At any time, the DNR still has jurisdiction over that facility to go in and inspect and make sure they're fulfilling the full extent of the law," McKinley said.

That's not nearly as useful as Isenhart's amendment, which would have barred the use of mothballed facilities to store manure from other farms. So what if a CAFO informs the DNR that they are transporting manure to a vacant building? The DNR doesn't have enough CAFO inspectors even now, as the U.S. Environmental Protection Agency thoroughly documented. DNR staff won't closely scrutinize these "emergency" storage situations and won't be able to prevent spills during transport and offloading.

Iowa Medicaid expansion news roundup (updated)

desmoinesdem — Thu, 11 Apr 2013 20:35:00 GMT

Last week Governor Terry Branstad finally introduced legislation to enact his Healthy Iowa Plan instead of the Medicaid expansion foreseen under the 2010 federal health insurance reform law. Strangely, neither the governor's office nor the Iowa House Republican caucus held a news conference or even posted a press release about House Study Bill 232. The bill arrived at the statehouse on Thursday, April 4, after many legislators had left for the weekend.

So far House and Senate Republicans appear united behind Branstad's approach, while the governor's office strives to counter the obvious case against his plan (costs more, covers less). I've posted arguments for both sides and other news links after the jump.
The Democratic-controlled Iowa Senate already approved a Medicaid expansion bill in late March, along party lines. On April 4, Republicans on the Iowa House Ways and Means Committee took up that bill and replaced the entire text with one paragraph stating the "intent of the general assembly that health care delivery in the state result in improved patient health outcomes, improved patient care, and reduced cost."

Later the same day, Branstad's bill finally arrived at the statehouse. You can read the full text of House Study Bill 232 here.

State Representative Walt Rogers will floor-manage Branstad's plan in the House. He talked to Tony Leys of the Des Moines Register about the process.

Rep. Walt Rogers, a Cedar Falls Republican who is managing the new bill, said the Republican-controlled House will consider Branstad's ideas and the Medicaid-expansion proposal put forth by Democrats controlling the Senate.
Rogers said he liked the notion of encouraging personal health responsibility, but he suggested the House would consider changes to Branstad's proposal. "I would expect us to look at it and tweak it here and there. ... I'm hoping we can make this even better," he said.
Rogers said there was no conscious attempt to time the bill's introduction so it would gain little attention.

Sure there wasn't.

Side note: Rogers is also a possible candidate for Congress next year. If he seeks the Republican nomination in the first district, whatever compromises he makes on expanding health insurance coverage could hurt him in the GOP primary. The public benefit in reducing the number of uninsured Iowans might seem obvious to most people, but hard-core Republican primary voters are more likely to oppose any expansion of health care at the government's expense.

Back to the main topic of this post: Branstad's alternative to Medicaid expansion. The immediate reaction from Senate Democratic leaders was quite negative. Senate Majority Leader Mike Gronstal told an audience in Council Bluffs that the governor's plan is "absurd."

Branstad, who has rejected federal funding in fear that it won't be sustainable, has a plan with accountability by Medicaid-eligible patients requiring them to pay $500 to $1,000 with the state matching that amount.
"These are people who can't keep their washing machines running," Gronstal said at the year's final Legislative Coffee. "The concept of them coming up with $500 to $1,000 is absurd on its face. The governor doesn't have any idea what poverty is in this state."
What's more, Gronstal said, the governor's plan would only help a portion of low-income people leaving up to 60,000 who are eligible without any coverage. That means everyone else pays up to $1,000 a year for uncompensated services like this.
"It will be rejected in the Senate," Gronstal said of the governor's plan.

Democratic Senator Mary Jo Wilhelm delivered this speech on the Senate floor on April 8 (transcript provided by the Iowa Senate):

Thank you, Madam President.
Since I talked about when I was an Iowa worker who couldn't afford health insurance, I've heard from many Iowans in the same situation.
People like this woman from southeast Iowa:
"For years I worked as a waitress, and had no insurance.
"A lot of people do not realize that if you don't have insurance, it probably takes everything you earn just to make ends meet."
That is the best argument for Medicaid expansion.
Here's a woman who made it in just one sentence.
"As a small business owner and recently divorced woman, I do not have health insurance as of the first of this year."
These are the Iowans who need our help.
Working Iowans living without health insurance.
Most other states are expanding Medicaid.
What happened to Iowa?
Well, Governor Branstad has finally released his plan. It is packed with premiums, co-pays and other "gotchas" to deny working people health insurance.
How did we get here? Well, let me tell you.
Last July, the U.S. Supreme Court said states could choose to expand Medicaid or not.
Governor Branstad immediately announced he would come up with a better plan.
A couple of days later, he changed his mind.
On July 15, in a C-SPAN interview, Governor Branstad said he was working instead to elect Mitt Romney so health care reform would be repealed.
Well, we know how that turned out.
What has Governor Branstad done since the election?
He's encouraged Iowans to walk more and eat more fruits and vegetables.
He's joked that helping working Iowans get health insurance was like letting people drink at an open bar.
He's said he wants working people who can't afford real insurance to pay for some sort of Branstad Insurance-Lite.
Last week, he released a plan that does just that.
Here's what Governor Branstad didn't do.
Governor Branstad did not come up with a plan that is better than Medicaid expansion.
The Governor's plan costs more, covers fewer people, and provides less health care.
That's why the Branstad plan is no plan at all.
Thank you, Madame President.

I can't see why the U.S. Health and Human Services Department would approve this alternative to expanding Medicaid. It doesn't cover as many people or provide the same kind of benefits. At this writing, no advocacy groups in the health care arena have registered their lobbyists in support of House Study Bill 232, in contrast to more than 50 organizations that support expanding Medicaid in Iowa. Nevertheless, so far I haven't heard any Republican lawmaker criticize the governor's plan. Senate Minority Leader Bill Dix made several unconvincing arguments on its behalf over the weekend on WHO-TV. He seems to believe that any state-specific "Iowa plan" will be superior to a federal program.

As Bleeding Heartland has discussed before, Senate Democrats addressed the governor's concern that the federal government would not meet its commitments on Medicaid funding in future years. The bill approved by the Iowa Senate would allow Iowa to opt out of the Medicaid expansion if federal funding fell through. However, Branstad is still warning that Iowa can't afford to take a chance on Medicaid. This week, he has tried to push back against a core problem with his alternative: it costs more and delivers less. I enclose a chart the governor's staff began circulating around the statehouse this week:

The Iowa Senate responded with this joint statement by the main Democratic lawmakers working on the Medicaid expansion:

Refuting the Governor's "true side-by-side comparison" on health care
Joint statement by Senators Jochum, Hatch, Ragan, and Bolkcom
"We welcome the fact that Governor Branstad is finally engaging in the health care debate.
"Yet the 'true side-by-side comparison' he issued today is a disappointment. Below is a factual rebuttal.
"At stake is health insurance for struggling working Iowans, lower health care costs for all Iowans, and the long-term strength and competitiveness of our state's health care system.
"Based on public statements and private conversations, we are confident that the Iowa House and Senate will do what is necessary to move Iowa forward in this area."
end
Refuting the Governor's "true side-by-side comparison" on health care
Governor's document can be found here: http://tinyurl.com/br5gjan
Branstad Claim: "Iowans with below 100% FPL will be served by the Healthy Iowa Plan,..."
89,000 uninsured working Iowans making less than 100% of FPL would be covered under the Governor's "Healthy Iowans Plan," under the federal waiver the governor hopes to receive.
If the Governor receives such a waiver, Iowa will pay 40% of the cost while the fed pay 60%. Under Medicaid expansion, Iowa would pay at most 10% while the feds pay at least 90% after the 7th year. There is no state share for the first three years.
Branstad Claim: "...Iowans above 100% accessing health care through the affordable health benefits exchange."
61,000 uninsured working Iowans who earn between 101 and 138 % of FPL would buy private insurance throughout the federal exchange. Each person covered in this way will cost the federal government up to $3000 more than if they were covered by Medicaid. To recover some of that extra expense, Iowa small businesses will penalized as much $19 million by the federal government.
Branstad Claim: "Rewards Quality Health Care Outcomes: Yes, in Year 1"
Everyone knows this claim is not true. The governor is talking about Accountable Care Organizations (ACO), a complex new approach to improving health care outcomes. There is only one ACO currently in Iowa, a pilot project located in Fort Dodge. There is no simply no realistic way for the Governor's untried approach to implemented next year. Establishing working ACOs will take several years to accomplish.
The Senate plan for Medicaid expansion expands "medical homes," the cost-effective coordination of a single patient's care by medical and community support providers. The study referred to by the governor is the Senate's responsible strategy of working with Iowa's health care providers so the move to ACOs will be successful.
Branstad Claim: "Member Contributions: Yes, similar to the successful and popular Hawk-I program"
The Governor's effort to rebrand insurance premiums as "member contributions" will be rejected by the federal government. Medicaid funds clearly cannot be used for premium-based insurance schemes for persons under 150 FPL.
In addition, charging struggling working people premiums for insurance results in denying them insurance. Under the Governor's plan, Iowans who pay their rent, buy food, or make car payments and therefore miss a premium payment, will lose their insurance for a year. By failing to insure these people, the Governor's plan will drive every other Iowan's health costs.
Branstad Claim: "Estimated Cost to the State of Iowa at Full Implementation: Branstad Plan - $23 million"
Governor's claim that his plan costs $23 million leaves out the following annual costs:
$43 million in property taxes from every county in Iowa, an action which will likely torpedo the new mental health reform effort
$42 million from Broadlawns Hospital
$13 million from the University of Iowa Hospitals
$42 million dollars in general fund money
Branstad Claim: "Estimated Cost to the State of Iowa at Full Implementation: Medicaid Expansion - $83.4 million"
The $89 million listed by the Governor is the estimated cost of for a FULL year of the Senate plan for Medicaid expansion in 2020, when the state share finally reaches 10%. For the first three years, the state share is 0%. After that, it increases to a maximum of 10% of 2020.
The true apples- to-apple cost of each plan in the first full year is $162 million for the governor's plan and $5 million for the Senate Democratic plan. This $5 million is for administrative costs, no matter which plan is approved.
The true apples- to-apple cost of each plan in 2020 is difficult to determine. Since the Governor's plan costs $162 million in 2014 and increases from there, the cost is certain to be more than the estimated $89 million cost of the Senate plan in 2020.

Anyone can read House Study Bill 232 and see that it's going to cost a lot more than $23 million per year.

At the governor's weekly press conference on Monday, Branstad said lawmakers should "get past the hyper-partisanship and try to come up with a practical plan that will meet the needs of this state for the long-term." His communications director Tim Albrecht accused State Senator Jack Hatch of being

a "political opportunist" hoping to launch a gubernatorial campaign on the backs of Medicaid recipients.
"Jack Hatch is angry, because he attached his health care hopes to a failed, 1960s' program like Medicaid while Gov. Branstad instead offers a modern health care plan that will make its patients healthier," said Tim Albrecht, Branstad's communications director.

The Iowa House has scheduled a public hearing on the governor's plan and the Medicaid expansion on Tuesday, April 16 at 5:30 pm. Count on fireworks at that event. I'll be curious to see which interest groups (if any) show up to defend the governor's plan. The Iowa Hospital Association continues to advocate strongly for expanding Medicaid as a boon for the Iowa economy as well as for Iowans' health. According to Des Moines Register reporter Jason Noble, some corporations are pushing for a compromise.

Representatives from hospitals and others in the medical field said they favored the funding mechanism included in the Democrats' preferred plan: an expansion of the existing Medicaid program that would draw down substantial new federal dollars.
But they also lauded the innovative changes to the way the state provides health care to the poor envisioned in the alternative plan Republican Gov. Terry Branstad rolled out last week.
An ideal compromise, they said, would accept federal dollars but move away from traditional Medicaid and toward care that aims to prevent serious illnesses and pays providers for keeping patients healthy.
"We could make major reforms to our Medicaid program in a way that is meaningful and saves costs and provides quality care to the patients," said Sabra Rosener, a lobbyist for the Iowa Health System. "But it's going to take some guts and it's going to take some real thought and getting past whether we take the federal money or not."

In my opinion, the controversy over expanding Medicaid will keep lawmakers working for weeks if not months after the 2013 legislative session was scheduled to end.

Any relevant comments are welcome in this thread.

UPDATE: On April 11, State Treasurer Michael Fitzgerald held press conferences in Des Moines, Cedar Rapids, and Davenport to discuss the competing health coverage plans. Here is the press release from the Iowa Democratic Party:

FITZGERALD: EXPANDING MEDICAID IS THE FINANCIALLY SMART MOVE FOR IOWA
Branstad Plan is a "bad financial deal" for Iowans
DES MOINES - State Treasurer Michael Fitzgerald today gave his assessment on the competing health care plans that have been introduced in the legislature. After review of the Senate proposal and the Branstad plan, he has concluded that the only financially sound course is to do what the Democrats have proposed and expand Medicaid to 150,000 Iowans.
"I view it as my responsibility to not get caught up in the rhetoric and let Iowans know when they are getting a good or bad financial deal," said Treasurer Fitzgerald. "I have sat down read through the Senate and the Governor's health care plans. Governor Branstad's plan is a bad financial deal for Iowa, while expanding Medicaid is the financially smart move for the state of Iowa."
Fitzgerald cited a fiscal impact statement that found that the Senate plan spends only $4.7 million in taxpayer dollars in FY15, while the Governor's plan would spend more than $163 million. In addition, while the Governor has said he believes the Federal government would not fulfill its commitment under Medicaid expansion, the Governor actually asks the Federal government to spend an additional $90 million in FY15 to enact his plan - $667 million under his proposal while only $577 million under the Democratic plan.
"Today, I am asking Iowans to look at these numbers, think about the people affected, and contact Governor Branstad and leaders in the legislature," said the Treasurer. "Tell them that it is time to expand Medicaid. It makes financial sense. It makes common sense. And, it is the right thing to do."

IA-Sen: Most Democratic state legislators endorse Braley

desmoinesdem — Wed, 03 Apr 2013 15:10:00 GMT

Representative Bruce Braley's campaign for U.S. Senate rolled out its largest batch of endorsements today: 71 state legislators. All 26 Iowa Senate Democrats plus 45 of the 47 Iowa House Democrats are named in the press release I've posted after the jump. For some reason, Iowa House Minority Leader Kevin McCarthy and former Iowa House Speaker Pat Murphy are not in this group. Murphy is running for the first Congressional district seat Braley is vacating.

Earlier this week, Braley's campaign announced that it raised more than $1 million during the first quarter. That is a solid number, and I'll be interested to see how the numbers break own (contributions from individuals vs PACs, for instance). Bleeding Heartland will publish a detailed roundup of Iowa Congressional fundraising after all the candidates have filed their reports with the Federal Election Commission. Those reports are due April 15.
April 3 press release from Braley for Iowa (emphasis in original):

71 Iowa Legislators Endorse Braley for Senate
DES MOINES, IA - 71 Democratic members of the Iowa legislature have announced their formal endorsement of Bruce Braley for Senate. 45 Iowa House Democrats are endorsing Braley today, as are all 26 Iowa Senate Democrats, including Iowa Senate Majority Leader Michael Gronstal and President Pam Jochum.
Braley announced in February that he had formed a committee to run for the Senate seat being vacated by retiring Sen. Tom Harkin.
Sen. Michael Gronstal (D-Pottawattamie) said, "I'm proud to endorse Bruce Braley today. Iowans are fortunate to have Bruce in their corner fighting for them in Congress, and he'll do even more in the Senate. From passing polices that strengthen the middle class to helping small businesses, Bruce works so hard to get things done for Iowa because he's never forgotten where he's come from."
Rep. Kirsten Running-Marquardt (D-Linn) said, "Today is a great day for Iowa. I proudly stand with many of my colleagues and endorse Bruce Braley. Bruce has a proven track record of fighting for the middle class, standing up for veterans and working to make college affordable. He is one of us and Iowa needs him in the US Senate."
Braley said, "I'm honored by this outpouring of support. I've launched this campaign because Iowans deserve a Senator who will work hard every day to rebuild the middle class, create economic opportunity, and use taxpayer money more wisely. The endorsements of 71 Iowa legislators today is a big boost to our campaign and I'll rely on all of them to help build our growing grassroots organization in the months ahead."
In recent weeks, momentum has continued to build behind Braley's Senate campaign. On Monday, Braley announced that he has raised $1 million for his Senate campaign since Harkin announced his retirement. In February, Rep. Dave Loebsack (IA-02) and former Rep. Leonard Boswell endorsed Braley for Senate. Last week, Iowa Attorney General Tom Miller and Treasurer Michael Fitzgerald announced their endorsement. And eight labor organizations have endorsed Braley: State Association of Letter Carriers, the Iowa Postal Workers Union, the Bricklayers and Allied Craftworkers Local 3 Iowa Union, UAW Region 4, SEIU Iowa - Local 199, AFSCME Iowa Council 61, the Iowa State Council of Machinists, and the Great Plains Laborers' District Council.
A full list of the legislators announcing their endorsement today can be found below:
HOUSE
Name County
Deb Berry Black Hawk
Anesa Kajtazovic Black Hawk
Bob Kressig Black Hawk
Sharon Steckman Cerro Gordo
Patti Ruff Clayton
Roger Thomas Clayton
Mary Wolfe Clinton
Daniel Muhlbauer Crawford
Dennis Cohoon Des Moines
Nancy Dunkel Dubuque
Charles Isenhart Dubuque
Bruce Bearinger Fayette
Todd Prichard Floyd
Daniel Kelley Jasper
Curtis Hanson Jefferson
Dave Jacoby Johnson
Vicki Lensing Johnson
Mary Mascher Johnson
Sally Stutsman Johnson
Jerry Kearns Lee
Art Stead Linn
Daniel Lundby Linn
Tyler Olson Linn
Kirsten Running-Marquardt Linn
Todd Taylor Linn
Mark Smith Marshall
Ako Abdul-Samad Polk
Marti Anderson Polk
Bruce Hunter Polk
John Forbes Polk
Ruth Ann Gaines Polk
Jo Oldson Polk
Rick Olson Polk
Joe Riding Polk
Jim Lykam Scott
Phyllis Thede Scott
Cindy Winckler Scott
Frank Wood Scott
Lisa Heddens Story
Beth Wessel-Kroeschell Story
Mary Gaskill Wapello
Scott Ourth Warren
Helen Miller Webster
Dave Dawson Woodbury
Chris Hall Woodbury
SENATE
Name County
Jeff Danielson Black Hawk
Bill Dotzler Black Hawk
Amanda Ragan Cerro Gordo
Rita Hart Clinton
Tom Courtney Des Moines
Pam Jochum Dubuque
Brian Schoenjahn Fayette
Rich Taylor Henry
Mary Jo Wilhelm Howard
Tod Bowman Jackson
Dennis Black Jasper
Joe Bolkcom Johnson
Bob Dvorsky Johnson
Robert Hogg Linn
Wally Horn Linn
Liz Mathis Linn
Steve Sodders Marshall
Chris Brase Muscatine
Dick Dearden Polk
Jack Hatch Polk
Matt McCoy Polk
Janet Petersen Polk
Michael Gronstal Pottawattamie
Joe Seng Scott
Herman Quirmbach Story
Daryl Beall Webster

Iowa Senate approves Medicaid expansion along party lines

desmoinesdem — Tue, 26 Mar 2013 17:55:00 GMT

Last night the Iowa Senate approved Senate File 296, a bill to expand Medicaid, on a strictly party-line vote of 26 to 23. You can listen to the entire Senate debate (approximately 90 minutes) at Radio Iowa. I've posted highlights from the debate after the jump, along with the full list of 52 organizations that have registered their support for Senate File 296. Some corporations and organizations have have registered their lobbyists as undecided on Senate File 296, but at this writing, not a single organization is registered against the Medicaid expansion.
Senate President Pam Jochum's opening remarks are on YouTube. She emphasized that Democrats have addressed some of Governor Terry Branstad's concerns by adding more accountability to the Medicaid program and by giving Iowa a chance to opt out of the expansion in the future if the federal government does not meet its funding commitments.

Here's my partial transcript of Jochum's opening remarks:

Senate File 296 has many provisions that the governor's office and the Senate agree on. For example, we agree to focus on wellness and prevention. We agree to move away from fee for service. We agree to pay health providers to keep people healthy and change our health care system to a system of wellness rather than a system of sickness. We agree. We agree.
Senate File 296 includes the governor's innovation grant language. We, like the governor, believe in an integrated system, and we agree that moving to outcome-based Medicaid is the way to go. [...]
So here's a brief summary of the bill before us. It allows working Iowans between the ages of 19 and 64 to enroll in the Medicaid program if their incomes are below 138 percent of the federal poverty level. [...] This is what it means. These are Iowans who, if they are single, are earning 15,800 dollars [annually]. Or if you are a family of four, you are living on 32,400 dollars a year or less. That's who we're talking about. They aren't people who are trying to game the system. They are our neighbors and friends, and they have a face.

Democratic Senator Chris Brase spoke from his experience working as a paramedic with people who resist going to the hospital. You can view Brase's floor remarks on YouTube. Here's my partial transcript, beginning around the 0:50 mark:

As most of you are aware, my full-time job is I'm a firefighter/paramedic for the city of Muscatine. We talk about the working poor, we talk about the uninsured.
From my vision, these are my patients. Patients that I get called into their homes because their medical condition got to the point that it's a crisis, and the only option that they have is the emergency room.
And I hear time and time again, people telling me they don't want to go to the emergency room. They can't afford it. "I don't have insurance."
And I have to look at them and respect that they do have that concern [...] But I also know through my diagnostics that we do, the treatments that we do, these people need to go [to the hospital]. They need to go be seen because of worse conditions.
Hopefully we can get them to an ER, they can get treated where there's not a long-term disability, or a long-term cost to them.
This is not the way to treat our citizens of Iowa. We have an opportunity to help all these people get basic health insurance, to get ongoing care, to be able to see a physician on a regular basis without traveling 50 or 60 miles or waiting eight to ten weeks for an appointment.

As I mentioned above, all 23 Republicans who were present last night voted against expanding Medicaid. O.Kay Henderson posted highlights from their remarks at Radio Iowa.

Senator Jack Whitver, a Republican from Ankeny, said he shares the governor's fear that the federal government will fail to fulfill its promise to pay the bills.
"We need a solution that is best for Iowa and the care of our citizens," Whitver said, "not a one-size-fits-all federal entitlement program that is unsustainable and is bankrupting both the federal government and many states."

Whitver ignores the fact that Branstad's Healthy Iowa Plan would involve substantial federal funding too. And I wish some Republican would explain why they're not concerned about the more than $6 billion Iowa already receives from the federal government every year for various programs.

Several Republicans, including Mark Segebart and David Johnson, urged senators not to vote to expand Medicaid until more details are available about Branstad's plan. Senate Majority Leader Mike Gronstal's response was excellent.

Senate Democratic Leader Mike Gronstal of Council Bluffs said legislators have been waiting nine months for Branstad to produce details.
"The governor will leave out 65,000 Iowans - we do have one detail," Gronstal said. "I'm pretty sure if that's where we end up, that will not be our finest hour."

Another detail we already know should be a deal-breaker too: unlike Medicaid, Branstad's Healthy Iowa Plan will not cover mental health care.

Any relevant comments are welcome in this thread. Here's the latest list of 52 organizations registered in support of Senate File 296.

AARP Iowa
AFSCME IA Council 61
Alliance for Residential Treatment Services
Alzheimers Association Greater Iowa Chapter
American Cancer Society Cancer Action Network
Brain Injury Alliance of Iowa
CHAIN
Child and Family Policy Center
Community Health Charities of Iowa
Des Moines University
Epilepsy Foundation
Eyerly Ball CMH Services
Family Planning Council of Iowa
Genesis Health System
HCI Care Services
Hospice and Palliative Care Association
Iowa Alliance in Home Care
Iowa Alliance of Community Mental Health Centers
Iowa Annual Conference of United Methodist Church
Iowa Association for Marriage and Family Therapy
Iowa Association of Area Agencies on Aging
Iowa Association of Community Providers
Iowa Behavioral Health Association (IBHA)
Iowa CareGivers Association
Iowa Catholic Conference
Iowa Chronic Care Consortium
Iowa Citizens for Community Improvement Action Fund
Iowa Federation of Labor, AFL-CIO
Iowa Hospital Association
Iowa Medical Group Management Association
Iowa Mental Health Counselors Association
Iowa Nurses Association
Iowa Primary Care Association
Iowa Psychiatric Society
Iowa Psychological Association
Iowa State Association of Counties
Iowa State Association of County Supervisors
League of United Latin American Citizens LULAC
League of Women Voters of Iowa
Leukemia & Lymphoma Society
Linn County Board of Supervisors
March of Dimes Iowa Chapter
Mercy Health Network
National Association of Social Workers, Iowa Chapter
National Multiple Sclerosis Society-Upper Midwest Chapter
Orchard Place
Planned Parenthood of the Heartland
Polk County - Board of Supervisors
Polk County Medical Society
South Central Iowa Federation of Labor AFL-CIO
Urban County Coalition
Visiting Nurse Services of Iowa

Weekend open thread: Not learning from experience edition

desmoinesdem — Sun, 24 Mar 2013 16:20:00 GMT

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

Governor Terry Branstad didn't draw the right lessons from Indiana's experience when he proposed his Healthy Iowa Plan as an alternative to expanding Medicaid. Below I've posted excerpts from Laura Hermer's recent commentary on the Healthy Indiana Plan.

Iowa's top economic development official, Debi Durham, still can't answer basic questions about why the state offered more than $100 million in tax incentives to a company that was going to build a fertilizer plant in Iowa anyway. Follow me after the jump for Durham's non-responsive response on the Orascom deal during this week's "Iowa Press" program.

Speaking of which, the Branstad administration is stonewalling Iowa Watchdog reporter Sheena Dooley's efforts to obtain more information about the Orascom deal.

UPDATE: For the hundredth time, family budgets are not comparable to the federal budget. Plus, Michael Tomasky summarizes three basic principles of fiscal policy that should be conventional wisdom already: "Modest deficits are perfectly sustainable. Budget cutting, far from being 'responsible,' hurts the economy. And balanced budgets don't create jobs-it's the other way around."
From Laura Hermer's op-ed column in the Des Moines Register on March 22:

Branstad is basing his proposal on the Cadillac-priced Healthy Indiana Plan (HIP).
Under HIP, Indiana, with federal help, subsidizes several different private, high-deductible health insurance plans for certain low-income Indianans who otherwise didn't qualify for Medicaid. Rather than pay physicians cheap Medicaid rates, the plans reimburse them at higher Medicare rates.
According to Indiana's original proposal, HIP would cover "up to 150,000" uninsured Indianans while "promoting personal responsibility, using private market solutions, achieving better health outcomes, and promoting price transparency" in the process.
Unfortunately, other than in its use of "private market solutions," there is little indication that HIP has met its objectives. The number of Indianans covered under HIP has fallen far short of the mark. Only 39,000 Indianans have coverage through HIP. Yet, over 430,000 Indianans meeting income and age eligibility for HIP remain uninsured.
Indiana spends a lot more to cover its residents using the Healthy Indiana Plan than it would if it used Medicaid. In its original proposal, Indiana anticipated that HIP would cost slightly less than Medicaid per recipient. This estimate was woefully mistaken. [...]
Physicians get a better deal under the program, as they are paid higher rates for health care than what they would get if a HIP recipient had Medicaid. Physicians ought to be paid reasonable rates for their work, and higher rates encourage more physicians to participate. But participating insurers also get a better deal. They are permitted to use up to 15 percent of their premiums on administration and profit. In comparison, traditional Medicaid programs spend, on average, only 3 percent to 5 percent on administrative costs.
Profit for insurers - paid from taxpayer dollars - adds nothing to the care provided and means less money available for coverage.
Public hospitals have been losers in this process. In order to pay for HIP coverage for 39,000 Indianans, the state took more than $50 million from funds that it uses to help reimburse safety net hospitals for uncompensated care. This constituted approximately 40 percent of the state's uncompensated care funds - funds that allow public hospitals to provide free and reduced-rate care for the uninsured.
If Healthy Indiana Plan covered a substantial portion of Indiana's uninsured people this might be a prudent trade-off. However, HIP covers only a tiny fraction of Indiana's uninsured population. Hundreds of thousands of Indianans are left without coverage but still in need of care. Safety net hospitals now have fewer resources to care for them.
There is no evidence that HIP recipients are getting better quality of care than Medicaid recipients. However, the care they are receiving costs more money, puts more money into the hands of private, for-profit insurers, and leaves less money for reimbursing uncompensated care for uninsured Indianans.

Excerpt from Iowa Economic Development Authority Director Debi Durham's appearance on Iowa Press, March 22. Click here to watch the video or read the full transcript.

Borg: You alluded to it a minute ago and that is Senator Joe Bolkcom and the fertilizer plant in southeast Iowa. There has been specific criticism, as I said in the introduction, of state incentives given to an Egyptian-based company that is called Orascom to get a fertilizer plant to be built in Lee County, that is down in extreme southeast Iowa, and state Senator Joe Bolkcom, a democrat from Iowa City, said this on Iowa Press.
Iowa Press - March 1, 2013 - Senator Joe Bolkcom: Lee County has been particularly hurt by the recession, these are important jobs to bring to the state. But I think in the case of Orascom and the negotiations here we put way more money on the table than we needed to. There are federal incentives worth more than $300 million that were not taken into consideration in my judgment.
Iowa Press - March 1, 2013 - Borg: Just particularly critical of that particular incentive.
Iowa Press - March 1, 2013 - Senator Joe Bolkcom: I'm particularly critical of this economic, this specific economic deal and think that we have given away the farm on it.
Henderson: Ms. Durham, were you snookered as some of the senators allege?
Durham: I was not. And actually when you see the entire case before you, you would agree that it was not. We were in competition with Illinois and competition just beyond incentives, as the Senator alludes to. We were in competition because actually they had a preferred site and from a logistics point of view was actually more preferred as far as the cost of operation. So no, I do not believe we were snookered and it's like I said to the Senator, you know, I negotiated that deal, I stand behind that deal, I did -- and if you look at it by their own code we were allowed to do 10% into that deal from an investment tax credit. I don't set the legislation and the parameters of the legislation. We negotiate every deal and there's less -- 8% into that. So we stayed within in the code.
Borg: This is political grandstanding then by Joe Bolkcom?
Durham: I think it was political theatre what we saw. First of all, legislators have every right to hold me accountable for how I'm using the tools in which they give. Now, what they also didn't tell you was this, that prior to that deal ever being made I called Senator Bolkcom along with the leadership on both sides of the aisle, in fact I called about 35 legislators to say, here's the deal, here's what is happening, I want you to understand the parameters in which this deal was struck. Furthermore, after the deal was announced we sent a release out to every legislature and the media with all the details of the deal, full transparency around this. So I do believe what occurred at that committee was more about political theatre than it really was whether this was a good deal or not.
Lynch: There is some question whether you set the bar too high by offering $100 million in tax credits and whether there's going to be enough to attract other economic development prospects, I think the $70 million in tax credits to CF Industries located in Sioux City and now there's talk about another fertilizer plant, a Turkish company, up in Mitchell County and the state's offer is apparently $35 million. Do you have enough tax credits to buy these prospects to get them to come here?
Durham: Well, first of all, let's take a step back. The tax credits allocation was $185 million that was backed down during the recession to $120 million. Right now the economy is opening up. Now, we're at a tipping point because you will not see this activity last forever. At the time it was brought down no one anticipated we'd be seeing the size of projects we're seeing, billion dollar projects was unheard of. So what we're saying is restore the cap but keep the cap because if you think about it, in 2006, 2007 and 2008 we didn't even have a cap on our credits. The Department of Revenue will tell you though that 42.5 percent of the tax credits that are allocated in a deal never, ever get claimed for a variety of reasons. So when you look at it in its totality is one deal particularly more rich than another? Absolutely. And that is a fair criticism. But what I said is look at our entire portfolio of nearly $6 billion and if you look at how, for instance, for $6 billion we have eligible, these companies are eligible for $400 and some million of tax credits. We negotiated, totality, $130 some million and if you apply the revenues numbers of 42 point some percent will never get claimed I'm saying we're getting these deals for a bargain.

Like her boss, Governor Branstad, Durham evades the real issue: why did you offer a corporation so much money when Iowa already had a $300 million advantage over Illinois? Durham and her staff didn't do basic due diligence and by her own admission took what corporate executives said at face value.

Check out this Iowa Watchdog story by Sheena Dooley. Excerpt:

Iowa Watchdog requested access to all emails sent or received by Branstad from June 2012 through March that contained the words "Orascom," "Debi Durham" or "Lee County." Attorney Larry Johnson responded to the request saying there were "no documents responsive to this request."
He directed further questions to Tim Albrecht, Branstad's spokesman. Albrecht did not return calls seeking comment.

Really, the governor neither sent nor received any e-mails about a deal involving the largest tax incentive package in Iowa history?

Branstad running out of excuses not to expand Medicaid (updated)

desmoinesdem — Fri, 15 Mar 2013 14:55:00 GMT

Iowa Senate Democrats offered Governor Terry Branstad a compromise this week to address his concerns that the federal government will not keep its promises to fund the Medicaid expansion provided under the 2010 health care reform law. Follow me after the jump for details on their latest offer and a cost comparison of Medicaid expansion and Branstad's "Healthy Iowa Plan."
Senate President Pam Jochum, Human Resources Committee Chair Amanda Ragan, Ways and Means Committee Chair Joe Bolkcom, and Health and Human Services Budget Subcommittee Chair Jack Hatch met with Branstad's staff on March 13 to make their latest offer on Medicaid expansion. Ragan, Jochum, and Hatch discussed the terms at a press conference on March 14. You can read the full transcript from the press conference or watch video footage here.

Ragan praised Branstad's focus on "wellness and prevention" and noted that Democrats have included "innovation grant language" and other proposals favored by the governor in Senate File 71, their Medicaid expansion bill. She said, "We believe in the integrated care system, and we agree with him in moving with outcome-based Medicare is the way to go." (One of Iowa Republicans' key talking points is that Medicaid doesn't offer "outcome-based solutions.")

Jochum told reporters yesterday,

Following the lead of other Republican governors in other states, we have offered to re-evaluate Iowa's participation in Medicaid expansion if the federal government does not keep its promise.
In other words if it would renege on its commitment of paying 100 percent of the cost for the next three years and then of course it's on a sliding scale that by 2020 it's 90 percent participation by the federal government and 10 percent participation by the state government.
The language we suggested would protect Iowa taxpayers from any risk, and it would address the Governor's concerns.
In short, if the federal government's sky falls, WE will be off the hook as a state.
I want to mention, and we should all remember, that the federal government has never, never failed to meet its obligations to Medicaid in nearly its 50 years of existence.

When it was his turn to speak, Hatch focused on the additional costs Branstad's plan would incur, compared to the Medicaid expansion. He referred to the document I enclose below. Not only would the governor's plan cover fewer Iowans at greater cost to state and county governments, it would also require an additional federal budget appropriation.

Hatch explained the cost differences as follows:

His structure of financing his proposal is a huge obligation of state dollars of $163 million dollars a year. He is asking that we remain under the old 60/40 plan, and that the state taxpayers incorporate and invest $163 million dollars to fund Medicaid expansion. That doesn't do as well, provides fewer services to fewer people and costs us $163 million dollars a year.
It's important to know that this is a hit on Iowa taxpayers.
It's a hit we don't have to take because the Senate plan fully [accepts] the federal investment in Medicaid Expansion, and if you look at the bottom of your sheet we gave you there is a very significant irony in his plan.
He asks for $224 million dollars in federal dollars to match the $163 million that he is proposing. The difference is that under Medicaid expansion through the budget reconciliation plan of 2010 the federal governments contribution to states is already obligated and is already part of the deficit reduction figures that we're hearing about in Washington.
Under the Governor's plan he's actually asking the federal government to appropriate new money $224 million dollars that is not covered under the reconciliation plan.
So he is actually adding to the federal debt and the very program and the very criticism that he says he wants to avoid. It's a strange phenomenon. One in which we realize that his people have to work a little harder in understanding the law.
Now there is another part of this plan that he's cobbled together state and local money that is also disturbing to a lot of us and should be disturbing to Republicans who have worked so hard on mental health.
Mental health redesign the past three years has focused not only on a regional basis but how the state and the local counties fund mental health services in his plan you will notice that he is asking for $44 million dollars in mental health property taxes to fund part of the state's share.
Which means he has to go out to each of the 99 counties get an agreement with all of the supervisors to literally scoop that money back to pay for the Medicaid services under his plan, which would lower the available local money for counties to fund other mental health services that we have been working so hard to protect.
His plan doesn't make sense at all on the local level at the state level and purposely it is a plan that will take Iowa tax payers away from the state and possibly away from taxpayers who could who know why there giving taxes to state and expect us to spend it reasonably.
In the end his proposal is unaffordable, unsustainable, and unworkable.

Neither Branstad nor the top two Republicans in the Iowa House are ready to accept reality, judging from this report by Radio Iowa's O.Kay Henderson.

A spokesman for the governor says Branstad is "pleased to see Senate Democrats are presenting an alternative approach." Branstad communications director Tim Albrecht says while it's a "first step," this is no "grand bargain" that resolves the impasse.
Republicans like House Speaker Kraig Paulsen of Hiawatha are siding with the governor who is developing a different plan that would give about 80,000 Iowans a state subsidy to buy private insurance.
"The current Medicaid system is not a particularly efficient way to provide health care to any Iowans," Paulsen says, "let alone low cost, you know, or low income Iowans."
House Republican Leader Linda Upmeyer of Clear Lake disputes the idea putting more low income Iowans on Medicaid will reduce hospital charity care costs.
"To the extent that we can find an Iowa program that works for Iowans, creates quality, integrated care - that's a far preferable way to go," Upmeyer says.

The Iowa Hospital Association and many other advocacy groups involved in health care strenuously disagree with Upmeyer's assertion. You can review the lobbyist declarations on the Senate's Medicaid expansion bill here.

Unless the U.S. Health and Human Services Department makes clear quickly that it would not grant a waiver for Branstad's alternative, the Medicaid dispute is likely to send this year's legislative session well into overtime.

UPDATE: On March 17, the conservative Sioux City Journal's editorial board became the latest major Iowa newspaper to endorse the Medicaid expansion.

To turn down this substantial federal commitment of support for insuring more residents of Iowa when so many other states have said "yes," based only on the perhaps-misplaced fear of a shift in costs some day in the future, isn't in the best interests of Iowa.
Like the IowaCare Medicaid waiver program it would replace, Branstad's proposed alternative to Medicaid expansion, the Healthy Iowa Plan, would cover fewer Iowans and provide less coverage than the Medicaid expansion but would cost the state more money, we fear.
Besides, it's unclear if the Legislature will pass Branstad's plan or if it would get federal approval as a Medicaid waiver. [...]
Medicaid expansion is strongly supported by hospitals--key economic local pillars--in Iowa.

Branstad goes on offense over fertilizer plant deal

desmoinesdem — Wed, 13 Mar 2013 16:15:00 GMT

Governor Terry Branstad traveled to Fort Madison yesterday to discuss a fertilizer plant project involving the largest tax incentive package in Iowa history. Previewing a likely theme of his re-election campaign next year, Branstad spun questions over his administration's handling of the Orascom deal into an attack on Iowa Senate Democrats and the Koch brothers.
Brian Crozier of KBUR Radio reported the story for Radio Iowa. Click through to find audio clips from Branstad's remarks to supporters of the project.

"I'm here to make it clear that the chief executive of this state is on your side and we will fight for these jobs and I want to make it clear that when we make a promise to Lee County - or to any county in Iowa for that matter - it's a promise we're going to keep, no matter what they might say in Des Moines in any committee meeting," Branstad said.
Branstad accused Senator Joe Bolkcom, a Democrat from Iowa City, of trying to "bully" the governor's economic development chief during a February 27th committee meeting. Branstad's voice rose as he defended the project.
"We're going what's right and what's good for Lee County and for Iowa and it's time to quit this politics,"Branstad said. "Iowans deserve better."
In addition, Branstad accused Senator Rich Taylor, a Democrat from Mount Pleasant, of siding against his own constituents.
"For Senator Taylor to join the critics opposing the construction of this plant rather than supporting new jobs in Lee County is politics of the worst kind," Branstad said. "He needs to quit following Senator Bolkcom and, instead, needs to start listening to the constituents in this county that need these jobs desperately."

Branstad also sought to blame the ultra-conservative Koch brothers for recent negative publicity about a federal lawsuit alleging fraud by an Orascom subsidiary. Donnelle Eller reported for the Des Moines Register,

In a fiery meeting with reporters in Lee County, where Orascom Construction Industries plans to build a controversial fertilizer plant, the governor said "the Koch brothers" were behind recent negative reports about the project, including a federal lawsuit alleging fraud against a company subsidiary "that's 6 years old."
"I understand the Koch brothers don't want the competition and they're behind a lot of the negatives that are being thrown out there," Branstad said following a meeting with residents, and economic development and government leaders in Fort Madison about the project.
When asked if he had evidence, Branstad said: "They're feeding certain people information" then added, "I don't have anything against them. They want to keep out competition. We want competition. We want good jobs in Iowa, whether it's from them or Iowa Fertilizer, CF Industries or John Deere."
Wichita-based Koch Industries is a major U.S. supplier of anhydrous ammonia, the main product the Iowa Fertilizer plant will produce. Brothers Charles and David Koch, who lead the company, also are large Republican contributors.

Bolkcom has repeatedly said the state of Iowa and Lee County taxpayers got "taken to the cleaners" when more than $200 million in incentives were offered to the Egyptian corporation Orascom. Branstad's economic development director, Debi Durham, has admitted that she believed what Orascom executives told her, despite strong evidence that the company never would have built a plant in Illinois.

Last month, Bolkcom made several speeches about this issue on the Iowa Senate floor. He said, "Both Democratic and Republican members of the Senate have expressed their concerns to me about the Orascam deal and the Governor's decisions in this matter." He again explained Iowa's "$300 million advantage" over possible sites in Illinois, even without any state tax credits or local property tax exemptions. He laid out what was "on the table" for Orascom:

Lee County has anted up, agreeing to not charge property taxes on the ORASCOM fertilizer plant for the next 20 years. That's amounts to about a 133 million dollars that ORASCOM won't have to pay, thanks to Lee County's taxpayers.
Then the state package includes:
A sales tax refund during construction;
A loan and a forgivable loan from the Iowa economic development authority;
A grant from the Iowa DOT which I think we just saw last week that is 5 million dollars,
Some job training money,
Some research and development tax credits.
All those are total about 12 million dollars.
And then the big thing happens. The governor tosses in another 100 million dollars in investment tax credits over the next four years.
Here's the balance sheet so far this deal, the worst economic development deal in Iowa history.
We start with the 300 million ORASCOM saved through the disaster bonds, only available here in Iowa.
Lee County's residents pony up for 133 million dollars to ORASCOM.
The state of Iowa caps it all off with a 112 million dollars.
The total federal, local and state subsidy of ORASCOM's fertilizer plant, that is going to bring 165 jobs to the state, is almost $550 million dollars, more than a third of the cost of building the plant

On February 20, Bolkcom emphasized that Senate Democrats are not against the fertilizer plant:

Welcome to day three of the story of the Iowa's worst economic deal ever.
Before I make my point this morning, I want to make something perfectly clear. That is that the jobs are coming from the fertilizer plant down in lee county are welcomed. This plant is welcomed.
We are open for business. Iowa has a very good business climate. That is one of the reasons this company has chosen Iowa.
So I just want to make it clear that I'm totally supportive, as is I I think every member of the Senate, to see these jobs coming to Iowa.

Politically, it makes sense for Branstad to fight the straw man (Senate Democrats who supposedly are against jobs for Lee County). The best defense is a good offense. Answering substantive questions about his administration's failure to do due diligence before making this deal would be more difficult.

Branstad told a group of officials from the Sioux City area a few weeks ago, "Our real challenge is Sen. Bolkcom, he's the one who said all the nasty things on the fertilizer plant." Bolkcom responded,

Wrong. Wrong. Wrong.
Governor, your "real challenge" is that you and your administration gave ORASCOM $112 million in state funds, then pressured Lee County to toss in a $133 million in property taxes cuts over a 20 year period when we did not need to.
Your real challenge is that you wasted a quarter billion dollars in state and local taxpayer money.
Governor Branstad, until you figure out that you made that mistake, and fix it, your administration risks throwing more money at sharp corporate lawyers from around the world.

While we're at it, maybe Branstad can explain why Iowa can afford to give a profitable corporation more than $100 million for a project that would create 165 permanent jobs, but we can't afford to expand Medicaid, which would create more than 2,300 jobs in this state.

Bolkcom responded to Branstad's latest comments today on the Iowa Senate floor:

Yesterday, Governor Branstad had a lot to say about the ORASCOM, the worst Iowa economic development deal ever.
Unfortunately, if the news reports are accurate, much of what the Governor said was inaccurate. Among the many and interesting things the governor said, I only want to address two points this morning.
One, the governor accused me of complaining about Lee County getting jobs.
Wrong, Governor. I have consistently supported the fertilizer plant and the jobs in Lee County. It is the waste of more than 100 million dollars in state and local incentives that I oppose.
Two, Governor Branstad also said I opposed using the bonds to build the plant, either because doing so would have been "stupid" or because I wanted all the bonds for Iowa City.
Wrong and wrong, Governor. I'm all for the using bonds for the plant . Anytime the federal government wants to give Iowa money, I'm for it. And if you want to visit me about Medicaid expansion sometime.
Here's my point about the bonds, governor, something that anyone in this chamber could surely have told you.
The flood disaster bonds gave Iowa a $300 million dollar advantage over Illinois from the start.
Your mistake, governor, was giving away more than a 100 million in state tax dollars in state and local tax dollars after ORASCOM got the bonding.
That's what makes the ORASCOM deal the worst economic development deal in state history.
Here is the most important thing we learned yesterday.
Governor Branstad still doesn't understand what went wrong with the ORASCOM deal.
That should concern each and every Iowan.
Because until Governor Branstad understands what went wrong with ORASCOM, we are all at risk of watching Governor Branstad suddenly announce a new economic deal, one that will be even worse than the one we just experienced with the "worst economic development deal in Iowa history."

Share any relevant thoughts in this thread.

UPDATE: Several other Iowa Senate Democrats responded to Branstad's comments this morning. Senator Rob Hogg commented,

"I don't know what's gotten into Governor Branstad...For him, who's not there, to create this false, revisionist history and tell the people of Iowa about it is very misleading and it calls into question, you know, what else is he saying that's not true?"

Republican Senator Brad Zaun "jumped to his feet on the Senate floor and objected to Hogg's remarks as an inappropriate personal attack on Branstad."

Democratic Senator Bill Dotzler focused on Branstad's failure to negotiate a better deal for Iowans.

"I play a lot of Texas hold-em and when you are negotiating with cards and trying to win the pot, you say that you have more than you do ... I believe that the governor got fooled. I have to really hand it to (Orascom executives). They played Iowa," Dotzler said.

Senate Majority Leader Mike Gronstal added,

"The governor mischaracterized the concerns that Democrats raised about this deal as somehow being against the deal. That was never the concern of Democrats," Gronstal said. "The concern was the governor got bluffed out of an extra $100 million."
Gronstal said he met personally with Branstad last week and offered to let the governor's economic development director appear again before a senate committee to answer more questions about the project.
"I think he's decided rather than defend a decision that appears to be weak, he's going to go on offense," Gronstal said, "so I understand that game in politics and everybody in this institution does."

Branstad administration's fertilizer plant deal looks even worse

desmoinesdem — Fri, 15 Feb 2013 17:08:00 GMT

The Egyptian company that received the largest tax incentive package in Iowa history has a subsidiary accused of defrauding the federal government out of $332 million, Ryan Foley reported yesterday in a must-read story for the Associated Press. Excerpts from Foley's article are after the jump, but I strongly recommend reading the whole piece.

Iowa Economic Development Authority Director Debi Durham admitted that the federal lawsuit over improper contracts "did not come up in our due diligence," which is no surprise. Durham's negotiating strategy seems to have been not to question anything Orascom executives told Iowa officials. Although Governor Terry Branstad has claimed Iowa landed the fertilizer plant deal "by the skin of our teeth," evidence suggests Orascom would have invested in Iowa even without generous state and local tax incentives.
From Ryan J. Foley's Associated Press report of February 14, Iowa unaware of company's fraud suit:

Orascom didn't tell Iowa officials - and were not required to - that it is contesting a lawsuit filed by the federal government in 2004 alleging its subsidiary, Virginia-based Contrack International, was part of a joint venture that improperly won $332 million in U.S.-financed construction contracts in Egypt, officials said.
The state's vetting also did not uncover the lawsuit, which seeks to recover funds spent by the U.S. Agency for International Development, Authority Director Debi Durham told the AP.
"It did not come up in our due diligence," she said. "But you're talking about a global corporation that has numerous subsidiaries. I'm not sure how anyone would have found that."
Orascom had disclosed the lawsuit previously, saying it owns 40 percent of a venture being sued by the United States, according to copies of its annual reports reviewed by AP. Orascom says it has "strong substantive reasons" to deny the allegations, and that any resolution shouldn't significantly impact its financial statements.
Former county supervisor Larry Kruse, who helped negotiate the deal, said county officials were also unaware of the lawsuit. [...]
The lawsuit alleges Contrack and two other companies collaborated to win USAID-financed contracts to build Egyptian infrastructure for which they should have been ineligible. They formed a secret, joint venture to conceal that one of the partners was an Egyptian company, the lawsuit alleges, because only U.S. contractors were eligible.
Sawiris, the Orascom CEO who recently appeared with Branstad at the plant's groundbreaking, was designated as Contrack's representative on the venture's executive committee, records show. He has not been personally accused of wrongdoing. Some employees working on the Iowa project are employed by Contrack.
[Democratic State Senator Joe] Bolkcom said state officials conducted an "amateur hour" negotiation with Orascom, and should look into the lawsuit's allegations.

Iowa Democratic Party press release, February 14:

Branstad Administration Asleep at the Switch over Orascom Deal
Branstad Administration did not know company that received $100 million in taxpayer support was under investigation for fraud
DES MOINES -- Iowa Democratic Party Chair Rep. Tyler Olson today called on the Branstad Administration to explain how it didn't know that a subsidiary of Orascom - the recipient of one of the largest state incentive packages in Iowa history - was under investigation by the US Government for fraud.
"It is unbelievable the Branstad Administration did not fully vet Orascom and gave over $100 million in taxpayer money without knowing this information," said Iowa Democratic Party Chair Tyler Olson. "Iowans demand that any time state dollars are given to a company the government does its due diligence. Someone did not find this information and now Iowans are left to wonder what else we don't know about the Governor's deal."
Governor Branstad announced last year that his administration was going to give foreign-based Orascom more than $100 million in state aid to build a new fertilizer plant in Iowa. The $200 million total incentive package was one of the largest corporate aid packages in Iowa history.
The Associated Press revealed today that no one with the Iowa Economic Development Authority knew an Orascom subsidiary was under investigation for defrauding the federal government.

UPDATE: Jennifer Hemmingsen of the Cedar Rapids Gazette wrote a good commentary on this lapse.

The lawsuit is ongoing, and Orascom denies the allegations. The Iowa Fertilizer Company wasn't required to disclose the lawsuit and so they didn't. You can even argue it doesn't matter, that these two small pieces of a vast multinational corporation probably have little to do with each other. But it's troubling the Iowa leaders who signed off on the tax deal didn't know the lawsuit existed at all.
Economic Development Authority Director Debi Durham's explanation doesn't inspire a lot of confidence:
"It did not come up in our due diligence," she told the AP. "But you're talking about a global corporation that has numerous subsidiaries. I'm not sure how anyone would have found that."
The AP did - by taking a look at Orascom's annual report. That sounds like Due Diligence 101.

No kidding.

Memo to Debi Durham: Trust, but verify

desmoinesdem — Wed, 30 Jan 2013 12:55:00 GMT

Iowa Economic Development Authority Director Debi Durham went to the statehouse yesterday to advocate for more tax credits to use as business incentives during the next fiscal year. She inadvertently revealed that in the negotiating department, she could benefit from wisdom that President Ronald Reagan borrowed from a Russian proverb.
According to Dar Danielson's report for Radio Iowa, Durham is asking state legislators "to raise the cap on economic development tax credits from $120-million to $185-million." The Iowa Economic Development Authority uses those tax credits to encourage corporations to invest in Iowa or expand their existing operations here.

Democratic State Senator Bill Dotzler chairs the Iowa Senate Economic Development budget subcommittee. During yesterday's hearing he challenged Durham on a deal finalized last September. A multinational corporation received more than $100 million in state tax incentives and $130 million in local tax incentives in exchange for promising to build a new fertilizer plant in Lee County. Senate Democrats have argued persuasively that the Orascom company would have built its facility in Iowa anyway.

Danielson reported on part of Dotzler's exchange with Durham.

"There are those who would say that maybe the governor's willingness to try to get to 200,000 jobs that we're overbuying on a deal," Dotzler said to Durham. Durham answered quickly, "Governors never negotiate deals. I did this deal, I own this deal and I did what I thought we had to do based on the evidence."
She said she trusted the fertilizer company CEO's when he told her the plant would go somewhere else without the incentives. But Dotzler wondered if the plant would have been built here anyway.
"Should we raise these caps and are you gonna continue to make those kind of deals where we're giving too much out?," Dotzler asked. Durham said it was fair to look at the fertilizer deal, but she said incentives have to be viewed in a broader picture.
"Let's look at all the deals combined. And you look what little investment we're getting for the kind of return we're having on our books," Durham said.

First off, I don't think Terry Branstad will like that "Governors never negotiate deals" talking point. He's about to launch a re-election campaign based on his alleged job creation prowess, which is one part fuzzy math and one part "I know how the business world works." When announcing the fertilizer plant deal, he gave the impression that he was very involved in the negotiations.

I'm more intrigued by Durham's comment that she "trusted the fertilizer company CEO" when he told her he would take the project elsewhere if Iowa authorities did not put up tax incentives totaling nearly $1 million per permanent job to be created.

Really?

Durham has enough experience in the business world to know that this kind of deal requires due diligence.

Iowa Senate Ways and Means Committee Chair Joe Bolkcom learned from staff in Durham's own department,

Orascom was approved for $1.2 billion in Midwestern Disaster Area (MDA) bonds by the Iowa Finance Authority on April 13, 2012. MDA bonds were created to help businesses recover from the historic 2008 floods that devastated parts of the Iowa and the Midwest. Every site under consideration in Iowa qualified for the bonds; the competing Illinois sites did not. [...]
The bonds allow private companies to borrow at tax-exempt rates, meaning they save 1 to 2 percent on their borrowing costs. Assuming the bonds produce a net savings of $300 million to Orascom, the corporation would receive a total of $550 million in taxpayer subsidies from federal, state and local governments. This means that 165 permanent jobs created will cost approximately $3.3 million per job.
Midwestern Disaster Area (MDA) bonds were created to help businesses recover from the historic 2008 floods that devastated parts of the Iowa and the Midwest. These bonds were created after the floods of 2008. They were modeled after bonds created after 9/11 (Liberty Zone bonds) and after Hurricane Katrina (Gulf Opportunity bonds). They expire at the end of the calendar year.
MDA bonds allow private companies to borrow at tax-exempt rates. The bonds are purchased by anyone from insurance companies, pension funds, investment funds, to private individuals. The interest earned on the bonds is exempt from federal taxes (not Iowa state taxes).
MDA bonds are only available in counties that received a FEMA Disaster Declaration after the 2008 floods. Lee County, where the Orascom plant is to be located, received this Disaster Declaration in 2008. The Illinois sites under consideration were Peoria (Peoria County) and Pekin (Tazewell County). Neither was eligible for federal Midwest Disaster Area bonds.

Governor Branstad may sincerely believe that Iowa got the fertilizer plant "by the skin of our teeth" against Illinois. But the governor's economic development team should have realized that Orascom was never going to build east of the Mississippi. Bolkcom distributed these maps last September:

All of that information was available to Durham last summer, if she had researched whether Orascom was truly in a position to walk away from Iowa. I don't admire much about Ronald Reagan, but he had good taste in Russian proverbs. "Trust, but verify" was one of his favorite expressions.

Branstad is so pleased with Durham's performance that he has repeatedly given her $30,000 bonuses to raise her salary well above the ceiling established by state law. Legislators should think hard before giving her 50 percent more tax credits to offer large corporations next year.

FEBRUARY UPDATE: More signs that Durham and her staff failed to do basic due diligence before signing off on this deal.

Who's who in the Iowa Senate for 2013

desmoinesdem — Mon, 14 Jan 2013 19:18:54 GMT

The Iowa legislature's 2013 session opened today. After the jump I've posted details on the Iowa Senate majority and minority leadership teams, along with all chairs, vice chairs, and members of standing Senate committees. Where relevant, I've noted changes since last year. Click here for a similar post on the new Iowa House.

Democrats hold a 26 to 24 majority in the upper chamber. The huge experience gap between the Iowa Senate caucuses is striking. Only seven of the 24 Republicans have served as lawmakers in either the House or Senate for more than four years, whereas 19 of the 26 Democrats have more than four years of legislative service. Click here for details on the tenure of all 50 Iowa senators.
Iowa Senate Democratic leadership team

Majority Leader Mike Gronstal was first elected to the Iowa House in 1982 and won his first Senate election in 1984. He was just re-elected in Senate district 8, covering most of Council Bluffs in Pottawattamie County.

Senate President Pam Jochum is the first Democratic woman to hold this position. She was first elected to the Iowa Senate in 2008, after serving for 16 years in the Iowa House. She was just re-elected in Senate district 50, covering Dubuque. Bleeding Heartland posted more background on Jochum here; Radio Iowa published a nice profile and interview here. Some things about Iowa politics may be depressing, but Pam Jochum as Senate president ain't one of them.

President Pro Tempore Steve Sodders was first elected to the legislature in 2008 and was just re-elected in Senate district 36, covering Marshall and Tama counties and part of Black Hawk County. During the last legislative session, Jeff Danielson was Senate president pro-tem, and Sodders was one of the assistant majority leaders.

Majority Whip Joe Bolkcom was first elected in 1998 from a district covering most of Iowa City in Johnson County. He holds over until 2014 in the new Senate district 43.

Assistant majority leaders:

Bill Dotzler was first elected in 2002 from a district covering a large area in Waterloo in Black Hawk County. He is up for re-election in 2014 in Senate district 31, covering a similar area.

Wally Horn was first elected in 1982 from Cedar Rapids in Linn County. He is up for re-election in 2014 in Senate district 35, covering a large area of Cedar Rapids.

Amanda Ragan was first elected in 2002 from a Senate district covering Floyd and Mitchell counties and part of Cerro Gordo, including Mason City. She is up for re-election in 2014 in Senate district 27, which still includes Mason City and most of Cerro Gordo but now covers Franklin County and most of Butler County.

Matt McCoy has represented parts of Des Moines in the Iowa Senate since 1997. He is up for re-election in 2014 in Senate district 21, covering much of the south side of Des Moines and part of West Des Moines in Polk County.

Iowa Senate Republican leadership team

Bill Dix was first elected to the Iowa Senate in 2010. He had previously served in the Iowa House for 10 years, then run unsuccessfully for Congress. Dix tried but failed to become minority leader in the fall of 2011. Last year Jerry Behn was minority leader, but he agreed to step aside after Republicans failed to win the Senate majority in the 2012 elections. Dix has longstanding ties to the advocacy group Iowans for Tax Relief. Last month, he hired that group's former leader, Ed Failor Jr., to the Senate Republican staff. Dix is up for re-election in 2014 in Iowa Senate district 25.

Minority Whip Rick Bertrand was first elected to the Iowa Senate in 2010. To my knowledge, he is the only Iowa legislator ever to file a defamation lawsuit over a campaign commercial. Bertrand is up for re-election in 2014 in Senate district 7, covering most of Sioux City. Last year Brad Zaun was minority whip, but he agreed to step aside after the November elections.

Assistant minority leaders:

Joni Ernst was first elected to the Iowa Senate in 2010, having previously served as Montgomery County auditor. She was just re-elected in 2012 in Senate district 12, covering Montgomery, Mills, Fremont, Page, Taylor, and Ringgold counties. She is one of the two new assistant minority leaders, replacing Merlin Bartz, who lost his re-election bid, and Pat Ward, who died in October 2012.

Randy Feenstra is the other new assistant minority leader. He was first elected in 2008 and just re-elected in Senate district 2, covering Sioux, O'Brien, and Cherokee counties.

David Johnson was first elected in 2002 from a district covering Osceola, Dickinson, Clay and O'Brien Counties, plus part of Sioux. He is up for re-election in 2014 in Senate district 1, covering Lyon, Osceola, Dickinson, Clay and Palo Alto counties.

Tim Kapucian was first elected in 2008 from a district covering Benton and Grundy counties, most of Tama and part of Iowa County. He was just re-elected in Senate district 38, covering all of Benton, Iowa and Poweshiek counties.

Roby Smith was first elected in 2010 from a district centered in Bettendorf and Davenport in Scott County. He is up for re-election in 2014 in Senate district 47, covering a similar area.

Iowa Senate Standing Commitees

Agriculture

Chair: Joe Seng was first elected in 2002 from a district covering much of Davenport in Scott County. He is up for re-election in 2014 in Senate district 45, covering a similar area. Many Democrats will be hoping for a credible primary challenger, given Seng's support for bad legislation like the "ag gag" bill, his previous efforts to undermine water quality protections, and his challenge against incumbent Representative Dave Loebsack last year in Iowa's second Congressional district.

Vice Chair: Rich Taylor was just elected to the Senate for the first time in 2012 from Senate district 42, covering Lee and Henry Counties and parts of Jefferson and Washington. Last year Gene Fraise was the vice chair of this committee, but he retired.

Ranking member: Dan Zumbach was just elected for the first time in 2012 from Senate district 48, covering Delaware County and parts of Buchanan, Jones and Linn Counties. He is a farmer with strong support from the Iowa Farm Bureau. Last year David Johnson (see above) was the ranking member of this committee.

Other members: Dennis Black (D), Tod Bowman (D), Daryl Beall (D), Chris Brase (D), Rita Hart (D), Steve Sodders (D), Sandy Greiner (R), Dennis Guth (R), Hubert Houser (R), Tim Kapucian (R)

Appropriations

Chair: Bob Dvorsky was first elected in 1994 and currently represents parts of Johnson and Linn Counties, including Coralville. He is up for re-election in 2014 in Senate district 37, covering Coralville and a large area in Johnson County as well as Cedar County. He is married to outgoing Iowa Democratic Party Chair Sue Dvorsky.

Vice Chair: Jeff Danielson was first elected in 2004 and was just re-elected in 2012 in Senate district 30, covering Cedar Falls, part of Waterloo and some rural areas in Black Hawk County. Last year Matt McCoy (see above) was vice chair of this committee.

Ranking member: Jack Whitver was first elected in a 2011 special election. He is up for re-election in 2014 in Senate district 19, covering Ankeny and other parts of northern Polk County. Last year Bill Dix, now Senate minority leader, was the ranking member on this committee.

Other members: Dennis Black (D), Joe Bolkcom (D), Tom Courtney (D), Bill Dotzler (D), Jack Hatch (D), Rob Hogg (D), Liz Mathis (D), Matt McCoy (D), Janet Petersen (D), Amanda Ragan (D), Brian Schoenjahn (D), Nancy Boettger (R), Joni Ernst (R), Dennis Guth (R), Tim Kapucian (R), Ken Rozenboom (R), Mark Segebart (R), Roby Smith (R)

Commerce

Chair: Matt McCoy (see above).

Vice Chair: Janet Petersen was just elected to the Iowa Senate for the first time in 2012, after serving for 12 years in the Iowa House. She represents Senate district 18, covering parts of northern and eastern Des Moines in Polk County. Last year Tom Rielly was the vice chair of this committee, but he retired.

Ranking member: Bill Anderson was first elected to the Iowa Senate in 2010. He is up for re-election in 2014 in Senate district 3, covering much of Woodbury County (including southern neighborhoods in Sioux City) and most of Plymouth County.

Other members: Daryl Beall (D), Joe Bolkcom (D), Jack Hatch (D), Liz Mathis (D), Brian Schoenjahn (D), Joe Seng (D), Mary Jo Wilhelm (D), Rick Bertrand (R), Mike Breitbach (R), Jake Chapman (R), Charles Schneider (R), Amy Sinclair (R)

Economic Growth

Chair: Steve Sodders (see above)

Vice Chair: Tod Bowman was first elected to the Senate in 2010 and is up for re-election in 2014 in Senate district 29, covering Jackson County, part of Jones County, and most of Dubuque County outside the city of Dubuque. Last year Bill Dotzler (see above) was the vice chair of this committee.

Ranking member: Jake Chapman was just elected for the first time in 2012 in Senate district 10, covering most of Dallas County, a little bit of Polk and Cass counties, and all of Adair and Guthrie Counties. Last year Sandy Greiner was the ranking member on this committee.

Other members: Jeff Danielson (D), Bill Dotzler (D), Rita Hart (D), Jack Hatch (D), Liz Mathis (D), Rich Taylor (D), Mary Jo Wilhelm (D), Jerry Behn (R), Mark Chelgren (R), Hubert Houser (R), Charles Schneider (R), Jack Whitver (R)

Education

Chair: Herman Quirmbach was first elected in 2002 and is up for re-election in 2014 in Senate district 23, covering Ames and some rural areas in Story County.

Vice Chair: Brian Schoenjahn was first elected in 2004 and just re-elected in 2012 in Senate district 32, covering Bremer County and parts of Fayette, Buchanan and Black Hawk.

Ranking member: Joni Ernst (see above) Last year Shawn Hamerlinck was the ranking member on this committee, but he lost his re-election bid in Senate district 46 to Chris Brase.

Other members: Tod Bowman (D), Daryl Beall (D), Bob Dvorsky (D), Rob Hogg (D), Rita Hart (D), Liz Mathis (D), Mary Jo Wilhelm (D), Jerry Behn (R), Nancy Boettger (R), David Johnson (R), Amy Sinclair (R), Brad Zaun (R)

Ethics

This committee has three members from each party in accordance with Iowa law.

Chair: Wally Horn (see above) Last year then Senate President Jack Kibbie co-chaired this committee, but he retired.

Vice Chair: Dick Dearden was first elected to the Iowa Senate in 1992 and was just re-elected in Senate district 16, covering much of the east side of Des Moines and Pleasant Hill in Polk County.

Ranking member: Sandy Greiner served in the Iowa House from 1993-2000 and from 2003-2008, and spent two years in the Iowa Senate in 2001 and 2002. She came out of political retirement to defeat Democratic State Senator Becky Schmitz in 2010 from the old district 45. She is up for re-election in 2014 in Senate district 39, covering part of Johnson County, most of Washington County and all of Keokuk County. Greiner is also board president of the American Future Fund, a 501(c)4 organization that has spent heavily in elections in Iowa and around the country. Last year Paul McKinley was the top Republican on this committee, but he retired.

Other members: Joe Seng (D), Jerry Behn (R), Jack Whitver (R)

Government Oversight

Chair: Janet Petersen (see above) Last year Tom Courtney chaired this committee.

Vice Chair: Brian Schoenjahn (see above) Last year Steve Sodders was vice chair of this committee.

Ranking member: Kent Sorenson (see above)

Other members: Matt McCoy (D), Sandy Greiner (R)

Human Resources

Chair: Amanda Ragan (see above)

Vice Chair: Mary Jo Wilhelm was first elected in 2008 and was just re-elected in Senate district 26, covering Worth, Floyd, Chickasaw, Mitchell, and Howard Counties, and parts of Cerro Gordo and Winneshiek.

Ranking member: David Johnson (see above) Last year Jim Seymour was vice chair of this committee, but he retired.

Other members: Joe Bolkcom (D), Bill Dotzler (D), Jack Hatch (D), Pam Jochum (D), Liz Mathis (D), Herman Quirmbach (D), Joni Ernst (R), Nancy Boettger (R), Mark Segebart (R), Jack Whitver (R)

Judiciary

Chair: Rob Hogg was first elected in 2006 and is up for re-election in 2014 in Senate district 33, covering part of Cedar Rapids in Linn County. Last year Gene Fraise chaired this committee, but he retired.

Vice Chair: Tom Courtney was first elected to the Iowa Senate in 2000 and was just re-elected in Senate district 44, covering Des Moines and Louisa Counties, plus a large area in Muscatine County. Last year Rob Hogg was vice chair of this committee.

Ranking member: Charles Schneider was just elected to the Iowa Senate for the first in the December 2012 special election to represent district 22, covering several suburbs in Polk and Dallas Counties. Last year Nancy Boettger was ranking member on this committee.

Other members: Bob Dvorsky (D), Wally Horn (D), Janet Petersen (D), Herman Quirmbach (D), Steve Sodders (D), Rich Taylor (D), Nancy Boettger (R), Kent Sorenson (R), Jack Whitver (R), Brad Zaun (R)

Labor and Business Relations

Chair: Wally Horn (see above)

Vice Chair: Dick Dearden (see above) Last year Pam Jochum, now Senate president, was vice chair of this committee.

Ranking member: Hubert Houser was first elected in a 2001 special election. He is up for re-election in 2014 in Senate district 11, covering most of Pottawattamie County outside Council Bluffs, most of Cass County, and all of Union and Adams counties. Last year Pat Ward was the ranking member on this committee, but she passed away in October 2012.

Other members: Chris Brase (D), Joe Seng (D), Bill Dotzler (D), Steve Sodders (D), Jack Hatch (D), Bill Anderson (R), Jake Chapman (R), Bill Dix (R)

Local Government

Chair: Mary Jo Wilhelm (see above)

Vice Chair: Chris Brase was just elected for the first time in 2012 in Senate district 46, covering parts of Muscatine and Scott Counties. Last year Daryl Beall was vice chair of this committee.

Ranking member: Amy Sinclair was just elected for the first time in 2012 in Senate district 14, covering all of Wayne, Lucas, Clarke, and Decatur Counties, most of Marion County, and a small area in Jasper County. Last year Merlin Bartz was the ranking member on this committee, but Wilhelm defeated him in Senate district 26.

Other members: Bob Dvorsky (D), Rita Hart (D), Herman Quirmbach (D), Brian Schoenjahn (D), Rich Taylor (D), Mark Chelgren (R), Dennis Guth (R), Brad Zaun (R)

Natural Resources and Environment

Chair: Dick Dearden was first elected to the Iowa Senate in 1992 and was just re-elected in Senate district 16, covering much of the east side of Des Moines and Pleasant Hill in Polk County.

Vice Chair: Dennis Black has served in the Senate since 1995 and now represents most of Jasper County and part of southeast Polk County. He is up for re-election in 2014 in Senate district 15, also covering most of Jasper and a large area in eastern Polk County.

Ranking member: Sandy Greiner (see above) Last year Jim Hahn was the ranking member on this committee, but he lost the GOP primary to Shawn Hamerlinck in Senate district 46.

Other members: Joe Bolkcom (D), Chris Brase (D), Rob Hogg (D), Amanda Ragan (D), Brian Schoenjahn (D), Joe Seng (D), Mike Breitbach (R), David Johnson (R), Ken Rozenboom (R), Dan Zumbach (R)

Rules and Administration

Chair: Mike Gronstal (see above)

Vice Chair: Pam Jochum (see above) Last year then Senate President Jack Kibbie was vice chair of this committee, but he retired.

Ranking member: Bill Dix (see above) Last year then Senate Minority Leader Jerry Behn was ranking member on this committee.

Other members: Tom Courtney (D), Dick Dearden (D), Bob Dvorsky (D), Amanda Ragan (D), Steve Sodders (D), Rick Bertrand (R), Joni Ernst (R), Ken Rozenboom (R)

State Government

Chair: Jeff Danielson (see above)

Vice Chair: Pam Jochum (see above)

Ranking member: Kent Sorenson was first elected to the Iowa Senate in 2010. He is up for re-election 2014 in Senate district 13, covering most of Warren and Madison counties.

Other members: Dick Dearden (D), Tod Bowman (D), Tom Courtney (D), Janet Petersen (D), Wally Horn (D), Matt McCoy (D), Steve Sodders (D), Bill Anderson (R), Jake Chapman (R), Randy Feenstra (R), Roby Smith (R), Jack Whitver (R)

Transportation

Chair: Tod Bowman was first elected to the Senate in 2010 and is up for re-election in 2014 in Senate district 29, covering Jackson, most of Dubuque County (but not the city of Dubuque) and a large area in Jones County. Last year Tom Rielly chaired this committee, but he retired.

Vice Chair: Daryl Beall was first elected in 2002 from the old district 25, covering most of Webster County, including Fort Dodge, Greene and Calhoun Counties. He is up for re-election in 2014 in Senate district 5, covering Humboldt, Pocahontas and Calhoun counties and most of Webster County, including Fort Dodge. Last year Bowman was vice chair of this committee.

Ranking member: Tim Kapucian (see above)

Other members: Chris Brase (D), Jeff Danielson (D), Dick Dearden (D), Bob Dvorsky (D), Tom Hancock (D), Matt McCoy (D), Rich Taylor (D), Jerry Behn (R), Mike Breitbach (R), Randy Feenstra (R), Dan Zumbach (R)

Ways & Means

Chair: Joe Bolkcom (see above)

Vice Chair: Joe Seng (see above)

Ranking member: Randy Feenstra (see above)

Other members: Dennis Black (D), Bill Dotzler (D), Rob Hogg (D), Pam Jochum (D), Janet Petersen (D), Matt McCoy (D), Herman Quirmbach (D), Jerry Behn (R), Rick Bertrand (R), Jake Chapman (R), Charles Schneider (R), Roby Smith (R)

Veterans Affairs

Chair: Daryl Beall (see above)

Vice Chair: Jeff Danielson (see above)

Ranking member: Ken Rozenboom was just elected for the first time in 2012 in Senate district 40, covering Mahaska, Monroe, and Appanoose Counties, and parts of Marion and Wapello Counties. Last year James Seymour was the ranking member on this committee, but he retired.

Other members: Dennis Black (D), Wally Horn (D), Rita Hart (D), Amanda Ragan (D), Steve Sodders (D), Mark Chelgren (R), Joni Ernst (R), Charles Schneider (R)

Budget Subcommittees

Administration and Regulation

Chair: Liz Mathis was first elected in a 2011 special election and was just re-elected in Senate district 34, covering surburban areas in Linn County. Last year Pam Jochum chaired this subcommittee.

Vice Chair: Jeff Danielson (see above)

Ranking member: Dennis Guth was just elected for the first time in 2012 in Senate district 4, covering Emmet, Kossuth, Winnebago, Hancock, and Wright Counties. Last year Merlin Bartz was ranking member on this subcommittee, but he lost his re-election bid.

Other members: Chris Brase (D), Joni Ernst (R)

Agriculture/Natural Resources

Chair: Dennis Black (see above)

Vice Chair: Dick Dearden (see above)

Ranking member: Ken Rozenboom (see above) Last year Hubert Houser was the ranking member on this subcommittee.

Other members: Mary Jo Wilhelm (D), Sandy Greiner (R)

Economic Development

Chair: Bill Dotzler (see above)

Vice Chair: Rita Hart was just elected for the first time in 2012 in Senate district 49, covering all of Clinton County and part of Scott County. Last year Joe Seng was the vice chair on this subcommittee.

Ranking member: Nancy Boettger was first elected to the Senate in 1994 and is up for re-election in 2014 in Senate district 9, covering all of Shelby, Harrison, Monona, and Ida Counties, and part of Crawford and Woodbury Counties.

Other members: Joe Seng (D), Charles Schneider (R)

Education

Chair: Brian Schoenjahn (see above)

Vice Chair: Wally Horn (see above) Last year Herman Quirmbach was vice chair of this subcommittee.

Ranking member: Roby Smith (see above) Last year Bill Dix was the ranking member on this subcommittee.

Other members: Herman Quirmbach (D), Amy Sinclair (R)

Health and Human Services

Chair: Jack Hatch was first elected in 2002 from district 33, covering much of central Des Moines in Polk County. He is up for re-election in 2014 in Senate district 17, covering a similar area.

Vice Chair: Amanda Ragan (see above)

Ranking member: Mark Segebart was first elected in 2012 in Senate district 6, covering Buena Vista, Sac, Carroll, and Audubon Counties, and part of Crawford County. Last year David Johnson was the ranking member on this subcommittee.

Other members: Joe Bolkcom (D), David Johnson (R)

Justice Systems

Chair: Tom Courtney was first elected to the Iowa Senate in 2000. He was just re-elected in Senate district 44, covering Des Moines and Louisa Counties, plus a large area in Muscatine County. Last year Tom Hancock chaired this subcommittee, but he retired.

Vice Chair: Rob Hogg (see above)

Ranking member: Jake Chapman (see above) Last year James Seymour was ranking member on this subcommittee, but he retired.

Other members: Rich Taylor (D), Brad Zaun (R)

Transportation, Infrastructure, and Capitals

Chair: Matt McCoy (see above)

Vice Chair: Daryl Beall (see above)

Ranking member: Tim Kapucian (see above)

Other members: Tod Bowman (D), Rick Bertrand (R)

Administrative Rules Review Committee

Five Iowa House and five Iowa Senate members serve on this committee. The Senate's five representatives on this committee are Tom Courtney (D), Pam Jochum (D), Wally Horn (D), Roby Smith (R), and Mark Chelgren (R). This year's House members are listed at the end of this post.

More proof smoking bans save lives

desmoinesdem — Fri, 14 Dec 2012 23:09:58 GMT

How about a little good news on a lousy day? A new study confirms previous research, which showed public smoking bans reduce hospitalizations for heart attacks and other life-threatening problems. The Iowa Smokefree Air Act, which went into effect in July 2008, has likely prevented many premature deaths.

UPDATE: The smoking ban was controversial while it was debated in 2008. Below I've listed all of the state legislators who had the courage to send that bill to Governor Chet Culver's desk.
The new study appears in the latest issue of Health Affairs, a peer-reviewed journal. Here's the abstract of "Smoking Bans Linked To Lower Hospitalizations For Heart Attacks And Lung Disease Among Medicare Beneficiaries," by Mark W. Vander Weg, Gary E. Rosenthal, and Mary Vaughan Sarrazin.

Policies limiting exposure to cigarette smoke have been associated with reduced hospitalizations for heart attacks, but little is known about the impact of smoking bans on other health conditions and whether findings from individual communities generalize to other areas. We investigated the association between smoking bans targeting workplaces, restaurants, and bars passed throughout the United States during 1991-2008 and hospital admissions for smoking-related illnesses-acute myocardial infarction and chronic obstructive pulmonary disease-among Medicare beneficiaries age sixty-five or older. Risk-adjusted hospital admission rates for acute myocardial infarction fell 20-21 percent thirty-six months following implementation of new restaurant, bar, and workplace smoking bans. Admission rates for chronic obstructive pulmonary disease fell 11 percent where workplace smoking bans were in place and 15 percent where bar smoking bans were present. By contrast, very little effect was found for hospitalization for gastrointestinal hemorrhage and hip fracture-two conditions largely unrelated to smoking and examined as points of comparison. These findings provide further support for the public health benefits of laws that limit exposure to tobacco smoke.

That's a big drop in hospitalizations for heart attacks and serious lung ailments in communities with public smoking bans. In Iowa, the smoking rate dropped noticeably even in the first year after the Smokefree Air Act passed, and has continued to decline since. That trend benefits both people who quit smoking and those who no longer are exposed to their loved ones' or co-workers' secondhand smoke.

Lead author Mark Vander Weg is an associate professor in the University of Iowa Carver College of Medicine. He spoke to the Iowa City Press-Citizen:

Hospitalization for heart attack rates is on the decline in general, Vander Weg said, which could be a result of advancing medical care resulting in better identification and treatment of coronary artery disease. It also could be because fewer people are smoking, he said. COPD, on the other hand, has been increasing across the country, Vander Weg said.
Within the first three months of smoking bans being enacted, the increase in COPD admission rates was 5 percent lower in communities with bans than those without. After three years, that difference had grown to 17 percent.
Communities that had smoking bans in all three possible locations - bars, restaurants and offices - saw greater relative reductions than counties that banned smoking only in a single setting, the study found.
Areas with bans in two or three settings saw decreases in heart attack admissions of between 14 percent and 16 percent, while those with a single ban did not see as significant of decreases, Vander Weg said.
"The bottom line for that is that the more bans that there were, the greater reduction that we saw, at least in heart attacks," he said.
The admissions were only for patients age 65 and older because the study relied on Medicare data. Although research has shown that smoking is declining nationwide, it's declining at a lower rate among people age 65 and older.

The Iowa Department of Public Health has posted rules and frequently asked questions related to the Smokefree Air Act.

Because of the many health risks associated with secondhand smoke, Bleeding Heartland strongly supported the Iowa Smokefree Air Act and the Iowa Department of Public Health's decision to enforce that ban in all restaurants. I had no sympathy for smokers who whined about "Big Brother Democrats and Turncoat Republicans" and called the public smoking ban "Soviet" or "fascist."

Former Governor Chet Culver deserves credit for supporting this bill through the legislative process and signing it into law. The lawmakers who had the guts to vote for this controversial bill should feel proud too.

Here is the full list of 54 House members who voted yes on the final version of House File 2212 in 2008. I've put an asterisk next to those who still serve in the Iowa legislature. Note that while Democrats provided most of the yes votes, the bill would not have passed without some support from House Republicans.

Democrats:
Ako Abdul-Samad*
Paul Bell
Deborah Berry*
Polly Bukta
Dennis Cohoon*
Swati Dandekar
Mark Davitt
Ro Foege
Wayne Ford
Marcella Frevert
Mary Gaskill*
Elesha Gayman
Lisa Heddens*
Bruce Hunter*
Dave Jacoby*
Pam Jochum* (now in Iowa Senate)
Doris Kelley
Bob Kressig*
Mark Kuhn
Vicki Lensing*
Mary Mascher*
Kevin McCarthy*
Helen Miller*
Jo Oldson*
Donovan Olson
Rick Olson*
Tyler Olson*
Eric Palmer
Janet Petersen* (now in Iowa Senate)
Mike Reasoner
Nathan Reichert
Paul Shomshor
Mark Smith*
Art Staed (defeated in 2008 but just re-elected)
Kurt Swaim
Dick Taylor
Todd Taylor*
Roger Wendt
Beth Wessel-Kroeschell*
Mark Whitaker
Wes Whitead
Cindy Winckler*
Phil Wise
Ray Zirkelbach
Pat Murphy*

Republicans:
Rich Anderson
Clel Baudler*
Dan Clute
Libby Jacobs
Michael May
Henry Rayhons*
Bill Schickel
Walt Tomenga
Tami Wiencek

Special credit goes to Iowa senators who resisted House Democrats' attempt to weaken the bill and got a fairly strong smoking ban through the conference committee. Here's the full list of the 28 state senators who voted for the final version of the Iowa Smokefree Air Act. Again, most of the yes votes came from Democrats, but at least one Republican vote was needed for final passage. I put asterisks next to the names of those who still serve.

Democrats:
Staci Appel
Daryl Beall*
Joe Bolkcom*
Michael Connolly
Tom Courtney*
Jeff Danielson*
Dick Dearden*
Bob Dvorsky*
Gene Fraise
Mike Gronstal*
Jack Hatch*
Rob Hogg*
Wally Horn*
Jack Kibbie
Matt McCoy*
Rich Olive
Herman Quirmbach*
Amanda Ragan*
Tom Rielly
Becky Schmitz
Brian Schoenjahn*
Joe Seng*
Roger Stewart
Steve Warnstadt
Frank Wood (defeated in 2008, just elected to Iowa House)

Republicans:
Mary Lundby
Larry Noble
Pat Ward

One major loophole remains in Iowa's public smoking ban: casino floors are exempt. Democrat state senator Bill Heckroth voted for an earlier version of the smoking ban but against the final bill, I think because of the casino exemption. An Iowa Smoke-Free Gaming group is trying to rescind that loophole, but they face long odds, given the gambling industry's influence at the statehouse.

Iowa Senate Democrats announce committee chairs

desmoinesdem — Thu, 13 Dec 2012 16:20:00 GMT

One day after a special election confirmed there will be 26 Democrats and 24 Republicans in the Iowa Senate next year, Senate Democrats released updated committee assignments. After the jump I've posted the full list of committee chairs as well as the leadership team chosen a few weeks ago. Most committees have the same leaders as in 2012, but where relevant I've noted changes.
Iowa Senate Democratic leadership team

Senate President Pam Jochum represented part of Dubuque in the Iowa House from 1993 through 2008 before winning her first term in the Senate that year. She was just re-elected in Senate district 50.

President Pro Tempore Steve Sodders was first elected to the legislature in 2008 and was just re-elected in Senate district 36, covering Marshall and Tama counties and part of Black Hawk County.

Majority Whip Joe Bolkcom was first elected in 1998 from a district covering most of Iowa City in Johnson County. He is up for re-election in 2014 in Senate district 43.

Assistant majority leaders:

Wally Horn was first elected in 1978 from Cedar Rapids in Linn County. He is up for re-election in 2014 in Senate district 35.

Bill Dotzler was first elected in 2002 from a district covering a large area in Waterloo in Black Hawk County. He is up for re-election in 2014 in Senate district 31.

Leaders of standing committees

Agriculture

Joe Seng was first elected in 2002 from district 43, covering Davenport in Scott County. He is up for re-election in 2014 in Senate district 45.

Appropriations

Bob Dvorsky was first elected in a 1994 special election and currently represents parts of Johnson and Linn Counties, including Coralville. He is up for re-election in 2014 in Senate district 37, covering Coralville and a large area in Johnson County as well as Cedar County.

Commerce

Matt McCoy (see bio above)

Economic Growth

Steve Sodders (see bio above)

Education

Herman Quirmbach was first elected to the Iowa Senate in 2002 from a district covering Ames and immediate surroundings in Story County, as well as a portion of eastern Boone County. He is up for re-election in 2014 in Senate district 23, covering Ames and some rural areas in Story County.

Ethics

Co-chair: Wally Horn (see bio above) Last year Jack Kibbie co-chaired this committee, but he retired.

Human Resources

Amanda Ragan (see bio above)

Judiciary

Rob Hogg was first elected to the Iowa Senate in 2006 from a district covering northeast and southeast Cedar Rapids in Linn County. He is up for re-election in 2014 in Senate district 33, covering a slightly different area in Cedar Rapids. Last year Hogg was vice chair of this committee; the previous chair, Gene Fraise, retired.

Labor and Business Relations

Wally Horn (see bio above)

Local Government

Mary Jo Wilhelm was first elected to the Iowa Senate in 2008 and just re-elected in Senate district 26, covering Worth, Mitchell, Howard, and Chickasaw counties, plus parts of Winneshiek and Cerro Gordo counties.

Natural Resources and Environment

Dick Dearden was first elected to the Iowa Senate in 1992 and was just re-elected in Senate district 16, covering much of the east side of Des Moines and Pleasant Hill in Polk County.

Rules and Administration

Mike Gronstal (see bio above)

State Government

Jeff Danielson was first elected in 2004 from district 10, covering Cedar Falls, part of Waterloo and some rural areas in Black Hawk County. He was just re-elected in Senate district 30, covering a similar area.

Transportation

Tod Bowman was first elected to the Iowa Senate in 2010 and is up for re-election in 2014 in Senate district 29, covering Jackson County, most of Dubuque County (but not the city of Dubuque) and a large area in Jones County. Last year Bowman was vice chair of this committee. The previous chair, Tom Rielly, retired.

Ways & Means

Joe Bolkcom (see bio above)

Veterans Affairs

Daryl Beall was first elected in 2002 from the old district 25, covering most of Webster County, including Fort Dodge, Greene and Calhoun Counties. He is up for re-election in 2014 in Senate district 5, covering Humboldt, Pocahontas and Calhoun counties and most of Webster County, including Fort Dodge.

Leaders of budget subcommittees

Administration and Regulation

Liz Mathis was first elected in a 2011 special election in Senate district 18 and just re-elected in Senate district 34, covering suburban areas in Linn County. Last year Jochum chairs this subcommittee, but she is now Senate president.

Agriculture/Natural Resources

Dennis Black has served in the Senate since 1995 and now represents most of Jasper County and part of southeast Polk County. He is up for re-election in 2014 in Senate district 15, also covering most of Jasper and a large area in eastern Polk County.

Economic Development

Bill Dotzler (see bio above)

Education

Brian Schoenjahn was first elected to the Iowa Senate in 2004 and was just re-elected in Senate district 32, covering Bremer County and parts of Fayette, Buchanan and Black Hawk.

Health and Human Services

Jack Hatch was first elected in 2002 from district 33, covering much of central Des Moines in Polk County. He is up for re-election in 2014 in Senate district 17, covering a similar area.

Justice Systems

Tom Courtney was first elected to the Iowa Senate in 2000. He was just re-elected in Senate district 44, covering Des Moines and Louisa Counties, plus a large area in Muscatine County. Last year Tom Hancock chaired this subcommittee, but he retired.

Transportation, Infrastructure, and Capitals

Matt McCoy (see bio above)

Government Oversight

Janet Petersen served in the Iowa House for 12 years and was just elected to the Iowa Senate for the first time from Senate district 18, covering parts of northern and eastern Des Moines. Last year Tom Courtney chaired this subcommittee.

Huge experience gap between Iowa Senate Democrats and Republicans

desmoinesdem — Mon, 26 Nov 2012 12:55:00 GMT

Democrats will hold a slim majority in the next Iowa Senate: most likely 26-24 or 27-23, depending on the outcome of one recount and one special election in December. But the experience gap between the two parties' caucuses is wider than I've ever seen, and perhaps unprecedented.

Only five Republicans who will serve in the next Iowa Senate have more than four years experience in the legislature's upper chamber. Most of the old hands aren't on the GOP leadership team. By comparison, eighteen Senate Democrats have held that office for more than four years. Thirteen of those have served in the upper chamber for at least a decade.

Many newcomers to the Iowa Senate have helped oversee public-sector budgets and programs as county supervisors, mayors, or members of city councils and school boards. Nevertheless, new legislators have a steep learning curve because state government is more complex than local government, and Iowa House and Senate members consider a wider range of issues during a typical legislative session. Whereas eleven Senate Democrats previously served in the Iowa House, only three sitting Republicans came to the Senate with that background. If the GOP had gained control of the upper chamber in this year's elections, they would have been forced to put quite a few rookies in charge of standing committees.

After the jump I've posted details on the tenure of all incoming Iowa Senate members, indicating members of each party's leadership team and past service in the Iowa House.
Senate Republicans

First elected in 1994: Nancy Boettger

First elected in 1996: Jerry Behn

First elected in a 2001 special election: Hubert Houser

First elected in 2002: Assistant Minority Leader David Johnson

First elected in 2004: Brad Zaun

First elected in 2008: Assistant Minority Leader Randy Feenstra, Assistant Minority Leader Tim Kapucian

First elected in 2010: Minority Leader Bill Dix (ten years service in Iowa House), Minority Whip Rick Bertrand, Assistant Minority Leader Roby Smith, Bill Anderson, Mark Chelgren, Kent Sorenson (two years service in Iowa House), Sandy Greiner (two years service in Iowa Senate, fourteen years in Iowa House)

First elected in a 2010 special election: Assistant Minority Leader Joni Ernst

First elected in 2011 special election: Jack Whitver

First elected in 2012: Dennis Guth, Mark Segebart, Jake Chapman, Amy Sinclair, Ken Rozenboom, Dan Zumbach, Mike Breitbach (if his small lead holds in Senate district 28)

LATE UPDATE: First elected in a 2012 special election: Charles Schneider

Senate Democrats

First elected in 1982: Wally Horn (10 years previous service in Iowa House)

First elected in 1984: Majority Leader Mike Gronstal (two years in Iowa House)

First elected in 1994 special election: Bob Dvorsky (eight years in Iowa House)

First elected in 1994: Dennis Black (twelve years in Iowa House), Dick Dearden

First elected in 1996: Assistant Majority Leader Matt McCoy (four years in Iowa House)

First elected in 1998: Majority Whip Joe Bolkcom

First elected in a 2002 special election: Assistant Majority Leader Amanda Ragan

First elected in 2002: Assistant Majority Leader Bill Dotzler (six years in Iowa House), Daryl Beall, Herman Quirmbach, Jack Hatch (ten years in Iowa House), Joe Seng (two years in Iowa House), Tom Courtney

First elected in 2004: Jeff Danielson, Brian Schoenjahn

First elected in 2006: Rob Hogg (four years in Iowa House)

First elected in 2008: Senate President Pam Jochum (sixteen years in Iowa House), Senate President Pro Tempore Steve Sodders, Mary Jo Wilhelm

First elected in 2010: Tod Bowman

First elected in a 2011 special election: Liz Mathis

First elected in 2012: Janet Petersen (twelve years in Iowa House), Chris Brase, Rita Hart, Rich Taylor

Gronstal, Jochum to lead Iowa Senate Democrats

desmoinesdem — Mon, 19 Nov 2012 13:39:16 GMT

Iowa Senate Democrats caucused at the state capitol yesterday to choose their leaders for the next legislative session. As expected, Mike Gronstal remains Senate majority leader. The big change will be Pam Jochum of Dubuque as Senate president to replace Jack Kibbie, who retired last year.

After the jump I've enclosed background on Jochum and details on the rest of the Iowa Senate leadership team. Republicans elected leaders of their Senate caucus last week. Both parties will announce committee assignments before the end of the year.
Majority Leader Gronstal was first elected to the Iowa House in 1982 and won his first Senate election in 1984. He was just re-elected in Senate district 8, covering most of Council Bluffs in Pottawattamie County.

Jochum is the first Democratic woman chosen as Iowa Senate president. She represented part of Dubuque in the Iowa House from 1993 through 2008 before winning her first term in the Senate that year. Last year she chaired the Administration & Regulation Budget Subcommittee of the Senate Appropriations Committee and was vice chair of the Labor & Business Relations Committee. Jochum has been among the more progressive House and Senate Democrats. For instance, she voted against the "ag gag" bill designed to stifle whistleblowers. She was among the leading voices against the bad legislation that would promote nuclear power at the expense of Iowa consumers. Jochum was floor manager for a major tax reform bill in 2011, which would have raised the refundable earned income tax credit for more than 200,000 taxpayers making less than $45,000 per year.

Former legislator Ed Fallon noted in an e-mail to supporters last night,

[Pam's] top priority for as long as I can remember has been campaign finance reform. No other [Iowa] lawmaker (and few anywhere in the country) understand this issue as thoroughly as Pam. And never has Iowa elected a leader in either chamber who is so strongly committed to curbing the abuse of money in politics.
The Iowa Senate has seen weak presidents in recent years. There's no reason that needs to be the case. In the Iowa House, the Speaker and Majority Leader share power equally. That's how it should work in the Senate as well.

Fallon called on Senate Democrats to pass "meaningful" campaign finance reform quickly during the 2013 legislative session. Although Gronstal supported tougher campaign finance disclosure requirements for Iowa, he has shown zero interest in in passing limits on individual campaign contributions, let alone an optional public financing system like those used in Maine and Arizona.

Jochum has strongly supported the "VOICE" (Voter-Owned Iowa Clean Elections) legislation in the past. If she can get the majority leader behind real campaign finance reform, more power to her.

Speaking to reporters yesterday, Gronstal and Jochum indicated that promoting job creation and economic growth will be the top priorities for Senate Democrats moving forward. A Senate press release pointed to education legislation as part of that equation:

"Democratic Senators will continue to focus on improving the economy," Gronstal said. "That's got to include helping Iowa workers gain the skills need to fill jobs that are already available here in Iowa." [...]
"As President, I'll do my best to help the Iowa Senate effectively respond to the most pressing issues Iowans face: growing our economy and expanding educational opportunities," Jochum said.

Senate Democrats chose a new President Pro Tempore yesterday: Steve Sodders. He was first elected to the legislature in 2008 and was just re-elected in Senate district 36, covering Marshall and Tama counties and part of Black Hawk County. For the last two years, Sodders has chaired the Senate Economic Growth Committee and served as assistant majority leader. Jeff Danielson, who just won his third term in the Iowa Senate, had served as pro tem from 2007 through 2012.

Senate Democrats elected Joe Bolkcom majority whip yesterday. He previously chaired the Senate Ways and Means Committee and served as an assistant majority leader.

The Senate caucus will have four assistant majority leaders during the next session: Wally Horn, Amanda Ragan, Matt McCoy, and Bill Dotzler. Horn, Ragan, and Dotzler were all assistant leaders last session as well. Horn chaired the Labor and Business Relations Committee. Ragan chaired the Human Resources Committee. Dotzler chaired the Economic Development Committee. McCoy chaired the Commerce Committee in 2012, following the resignation of Swati Dandekar.

The following members of the Democratic leadership team will be up for re-election in 2014: Bolkcom (district 43, Iowa City), Horn (district 35, part of Cedar Rapids), Ragan (district 27, most of Cerro Gordo County, Franklin County, and Butler County), McCoy (district 21, parts of Des Moines and West Des Moines), and Dotzler (district 31, much of Waterloo). Only Ragan's seat appears likely to be competitive.

Fertilizer company plans $1.7 billion expansion in Woodbury County

desmoinesdem — Fri, 02 Nov 2012 12:35:00 GMT

After landing significant state and local tax incentives, a large corporation confirmed plans yesterday to expand its fertilizer plant in Port Neal (Woodbury County). Officials hailed the "single largest capital investment" in Iowa history, eclipsing the $1.4 billion fertilizer plant project announced in September for Lee County.

More details and reaction to the CF Industries project are after the jump.
Like the Lee County project, the deal announced yesterday involves a mixture of state and local tax incentives. In exchange for expanding the Port Neal facility, CF Industries will receive $1.5 million in direct state assistance, $22 million in state tax credits, possibly $48 million in additional state tax credits over the next four years, and a $161 million property tax abatement in Woodbury County, "spread out over 20 years." More details on the state tax credits awarded are in a press release from the governor's office, which I've enclosed below.

At a press conference in Sioux City yesterday, Governor Terry Branstad called this project "a huge boost to our state's economy." Officials estimated that the construction will create 2,000 temporary jobs, plus 100 well-paying permanent jobs at the plant, and perhaps 700 indirect jobs because of the additional local economic activity.

State Representative Chris Hall, a Sioux City Democrat who is ranking member of the Iowa House Economic Development Appropriations Committee, also hailed the "great news for the people of Sioux City" and praised the High Quality Jobs Program, which is funding the $1.5 million in direct assistance to CF Industries. I've enclosed the whole statement released by Hall below.

U.S. Representative Steve King noted in a written statement. "Steve Wilson, CEO of CF industries saw how the worst of the flooding was handled last year and it gave him confidence that they could build here." The full text of King's statement is at the end of this post.

Iowa Senate Ways and Means Committee Chair Joe Bolkcom has said Iowa got "taken to the cleaners" on the Lee County deal, and he told the Sioux City Journal's Dave Dreeszen yesterday,

"The governor continues to show he is inept at negotiating with taxpayer provided subsides. Handing over more than $170 million in taxpayer money to two very profitable fertilizer corporations that were going to invest in Iowa anyway is a waste of millions," Bolkcom said in an email. "The natural incentives in Iowa of low natural gas prices and proximity to Iowa farmers made this a done deal. Iowa taxpayers can't afford any more of these poorly-negotiated deals."

The Iowa Senate Democrats posted this comment on Facebook:

Facts:
Last week, according to Gov. Branstad, Iowa needed to improve its business climate. (http://www.desmoinesregister.com/article/20121024/NEWS10/310240066/Branstad-proposes-flat-tax-option)
This week, Gov. Branstad held a press conference to announce that Iowa's business climate has attracted the single largest-ever capital investment project in state history. (http://siouxcityjournal.com/news/local/state-and-regional/cf-industries-plans-billion-expansion-at-port-neal/article_21c32a1c-c3e6-5586-9ced-47d86fb126f7.html)
It will shock very few of you to find out that no changes were made to Iowa law as it pertains to the business climate in the past seven days.

Statement from Governor Terry Branstad:

Governor Branstad and Lt. Governor Reynolds Celebrate another Economic Development Win for Iowa
November 1, 2012
$1.7 BILLION PROJECT NOW THE SINGLE LARGEST CAPITAL INVESTMENT IN IOWA HISTORY
(SIOUX CITY) - The Iowa Economic Development Authority (IEDA) Board held a special, telephonic meeting to take action to award direct financial assistance and tax credits to CF Industries, Inc., for an expansion of its existing fertilizer manufacturing operation in Woodbury County.
The Port Neal project will add new state-of-the-art ammonia and granular urea production units to meet customer demand. The project will supplement existing production of ammonia and urea ammonia nitrate (UAN).
The project will have a total capital investment of $1.7 billion and will create 100 new jobs with a qualifying wage of $20.12.
"This is another great announcement for Iowa, and we are proud that CF Industries has chosen us for its $1.7 billion expansion," said Governor Terry E. Branstad. "Our state is clearly well-positioned to take advantage of the growing domestic fertilizer industry. Not only does that mean significant investment that will continue to grow our economy, but also the creation of high-paying jobs for Iowans."
Today, the IEDA Board awarded the project $1.5 million in direct assistance and tax credits in the total amount of $22 million. The tax credit award is made up of $13 million in sales tax refunds paid during construction and $9 million in investment tax credits (ITC). The board will also consider future amendments to the award to allocate an additional $12 million in ITC in each of the next four fiscal years (FY13-FY16) for a potential total ITC award of $57 million.
"It is so rewarding to watch existing companies continue to make investments in Iowa. With today's announcement that a company with current operations in Iowa will make a capital investment of nearly $2 billion, it is obvious that we are on the right track to reaching our goals of creating jobs and increasing wealth for Iowans," said Lt. Governor Kim Reynolds. "Just since January 2011, the IEDA has projects under contract that will result in $5.23 billion of capital investment in our state."
CF Industries is a global leader in fertilizer manufacturing and distribution, the second largest nitrogen fertilizer producer in the world and the third largest phosphate fertilizer producer among public companies. CF Industries owns and operates world-scale nitrogen and phosphate plants and serves agricultural and industrial customers through its best-in-class distribution system.
"CF Industries is proud of its long history of serving Iowa farmers and we are pleased to increase our manufacturing presence in Iowa in a major way," commented Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc.
In 2010, CF Industries acquired Terra Industries Inc., positioning the company as a nitrogen bellwether in the global fertilizer industry and the premier nitrogen and phosphate fertilizer manufacturer in North America. In addition to its Port Neal facility, the company operates terminals at Spencer and Garner.

Statement from State Representative Chris Hall, a Sioux City Democrat who is ranking member of the Iowa House Economic Development Appropriations Committee:

"This is great news for the people of Sioux City. One hundred new jobs will have a major impact on our local economy and set the stage for future economic growth. Last year, I was proud to lead efforts with Governor Branstad to make sure the High Quality Jobs Program became law. By creating the new incentives fund, $1.5 million dollars in financial incentives helped secure this project for Sioux City. I'm pleased it is making a difference here and communities across Iowa."

Statement from U.S. Representative Steve King (emphasis in original):

King Reacts to CF Industries Announcement
Sioux City, IA- Congressman Steve King released the following statement today in response to Governor Branstad's announcement that CF Industries will be investing $1.7 billion to expand its Port Neal facility in Woodbury County. The project will be the largest capital investment in state history and will bring 100 high paying permanent jobs and between 1,500-2,000 construction jobs to the area.
"The expansion that will take place right here in Sioux City will be extremely beneficial to the heart of the heartland," said King. "I am delighted that CF Industries is making this investment in our community. Steve Wilson, CEO of CF industries saw how the worst of the flooding was handled last year and it gave him confidence that they could build here.
This is an example of how agriculture can drive industrial development. I have always known that all new wealth comes from the land- and from the field to the farm, and from the farm to the cities. This is an example of what I've been describing for years, and it's the best example in the history of Iowa."

UPDATE: Excerpt from Iowa Citizens for Community Improvement Action Fund's November 2 press release:

Governor Terry Branstad offered a false choice to Iowans this week when he claimed that his economic development agency wouldn't have had to give CF Industries $71.5 million in public money to build a fertilizer plant in Sioux City if the state of Iowa had lower corporate and commercial property tax rates. The news comes weeks after Branstad offered a similar deal to a foreign fertilizer corporation who wanted to set up shop in Lee County.
"This is our money he's talking about," said Adam Mason, the statewide policy organizing director at Iowa Citizens for Community Improvement Action Fund (CCI Action).
"Branstad's argument that these giant handouts to big business wouldn't be necessary if we had even lower tax rates for corporations is a deceptively false choice and a disservice to everyday, hardworking Iowans. Whether handouts disguised as 'economic incentives' or more tax cuts for corporations, either way Branstad is spending public dollars to subsidize corporate profits, and it ain't right."
"This money should be invested in our communities - to fully fund the Department of Natural Resources, Workforce Development, and our public universities - not given away wholesale to line the pockets of big corporations who would have located in Iowa anyway."
Iowa CCI Action Fund members say Governor Branstad is trying to have it both ways. Throughout his administration he has cut spending on vital services and attacked public employees on one hand, saying we don't have the money to fully-fund state government, while on the other hand doling out tens of millions of dollars to big corporations.
"To add insult to injury, the state of Iowa is sitting on a nearly $1 billion budget surplus, and Branstad wants to give that away in tax breaks for the richest 1 percent and big-moneyed corporate interest groups rather than lower tuition at Iowa's universities or fully-fund environmental protections and wage-theft enforcement," Mason added.
CCI Action Fund members' tax agenda is to close corporate tax loopholes on out of state corporations doing business in Iowa - otherwise known as "combined corporate reporting" - a practice that will increase the competitiveness of local businesses that can add up to $100 million in new revenue every year.

Exclusive: Iowa DNR shuts down public comments on fertilizer plant deal

desmoinesdem — Fri, 19 Oct 2012 15:40:00 GMT

The Iowa Department of Natural Resources has denied a request to extend the public comment period on the air permit for a large fertilizer plant to be constructed in southeast Iowa. Wallace Taylor, a Cedar Rapids attorney representing Lee County citizens who oppose the project, asked for a 60-day extension to the October 19 deadline for submitting comments. He cited the complexity of the Iowa Fertilizer Company's permit application, which involves "unique processes, numerous sources and pollutants, and 23 separate draft permits."

Taylor gave me permission to publish the relevant e-mail correspondence with DNR Director Chuck Gipp below. He added that he had "never seen the DNR deny a request to extend a comment period before, especially in a case like this."

Governor Terry Branstad and state economic development officials offered the Egyptian firm Orascom the largest incentive package in Iowa history to build the fertilizer plant in Lee County. Iowa Senate Ways and Means Committee Chair Joe Bolkcom has argued that taxpayers "got taken to the cleaners" on the deal, since Orascom would have built its factory in Iowa even without incentives totaling more than $1 million per permanent job created. An Illinois economic development official told the Quad-City Times that the state of Illinois "never put an offer [to Orascom] on the table. We recognized early on that Iowa's bid was excessive, and we were not going to engage in a bidding war."

-----Original Message-----
From: wtaylorlaw (wtaylorlaw@aol.com)
To: Chuck.Gipp (Chuck.Gipp@dnr.iowa.gov)
Cc: William.Ehm (William.Ehm@dnr.iowa.gov)
Sent: Thu, Oct 18, 2012 9:06 am
Subject: Re: Iowa Fertilizer Company PSD air permit
Mr. Gipp:
With all due respect, I did include a reason for the extension. I cited the complexity and uniqueness of this permit application and the processes being evaluated. I also noted that the DNR and the applicant have had several months to work through the issues in the permit application and that it is not fair to require members of the public, who are not expert in this area, to understand the process, to obtain expert opinions, review all the permit materials, and prepare comments in 30 days. I frankly don't know what sort of reason beyond that that you are looking for.
Wally Taylor
-----Original Message-----
From: Gipp, Chuck [DNR] [DNR] (Chuck.Gipp@dnr.iowa.gov)
To: 'wtaylorlaw@aol.com' (wtaylorlaw@aol.com)
Cc: Ehm, William [DNR] [DNR] (William.Ehm@dnr.iowa.gov)
Sent: Thu, Oct 18, 2012 8:51 am
Subject: RE: Iowa Fertilizer Company PSD air permit
Mr. Taylor,
The comment period will not be extended. Most requests for extensions include a reason for the extension. Your request does not. Also, you are inaccurate in stating that Iowa Fertilizer Company is requesting an extension. It was The National Fertilizer Institute that made the request which has since been withdrawn.
Chuck Gipp, Director
Iowa Department of Natural Resources
O - 515 281 3388
502 E. 9th Street, Des Moines, IA 50319-0034
www.iowadnr.gov
From: wtaylorlaw@aol.com [mailto:wtaylorlaw@aol.com]
Sent: Thursday, October 18, 2012 8:03 AM
To: wtaylorlaw@aol.com; Gipp, Chuck [DNR]; Ehm, William [DNR]
Subject: Re: Iowa Fertilizer Company PSD air permit
Chuck and Bill:
Can you let me know if the comment period will be extended, and if not, why not?
Wally Taylor
-----Original Message-----
From: wtaylorlaw (wtaylorlaw@aol.com)
To: chuck.gipp (chuck.gipp@dnr.iowa.gov); william.ehm (william.ehm@dnr.iowa.gov)
Sent: Thu, Oct 11, 2012 3:13 pm
Subject: Iowa Fertilizer Company PSD air permit
Chuck and Bill:
I am representing citizens in Lee County regarding the PSD air permit for the Iowa Fertilizer Company plant. The comment period on the draft permits ends on October 19, 2012. We have just begun to review the permit documents but it is clear that this is a complex application. There are some unique processes, numerous sources and pollutants, and 23 separate draft permits. It is virtually impossible to review and comment on all of this by October 19.
It is also worth mentioning that the company, its consultants, and DNR staff have had several months to work on this before the notice for public comment was issued. Based on all of these facts, we respectfully request that the comment period be extended for an additional 60 days.
I understand that Iowa Fertilizer Company has also requested an extension of the comment period, so they should not have any objection to our request.
Thank you for your attention to this request.
Wally Taylor
Wallace L. Taylor
Attorney at Law
118 3rd Ave. S.E., Suite 326
Cedar Rapids, Iowa 52401
319-366-2428;(Fax)319-366-3886
e-mail: wtaylorlaw@aol.com

Iowa senator: Fertilizer plant "worst economic development deal in state history"

desmoinesdem — Mon, 24 Sep 2012 21:50:00 GMT

Iowa Senate Ways and Means Committee Chair Joe Bolkcom asserted today that state and local tax dollars were "wasted" on a deal to lure a company to build a fertilizer plant in Lee County, because the Orascom corporation already had huge financial incentives to build in Iowa.
As chair of the Iowa Senate Ways and Means Committee, Bolkcom has led efforts to evaluate the effectiveness of state tax credits as business incentives. Over the past decade, tax credits have become increasingly expensive, and legislators should question whether the state is getting enough "bang for the buck" on these deals.

In a September 19 guest editorial for the Des Moines Register, Bolkcom argued, "This fertilizer plant deal stinks." He compared the project to Branstad's previous "so-called economic development deals that are great for big corporations but do nothing for middle-class families and small businesses."

Today Bolkcom explained why the Egyptian company Orascom would have built its $1.4 billion fertilizer plant in Iowa even without large tax exemptions from state and county government.

I've enclosed a YouTube from Bolkcom's press conference below. This Iowa Senate statement gives background on why access to disaster bonding "was an unbeatable advantage for Iowa" in the negotiations with Orascom, "if the Governor had only realized it."

"It was clear by mid-April that that the Illinois sites were never really in the running," said Bolkcom. "We should have cut commercial property taxes for every Iowa business instead of giving a multinational corporation $250 million when we didn't have to."
In discussions with Iowa Department of Economic Development officials, Bolkcom, the chair of the Senate Ways and Means Committee, learned that Orascom was approved for $1.2 billion in Midwestern Disaster Area (MDA) bonds by the Iowa Finance Authority on April 13, 2012. MDA bonds were created to help businesses recover from the historic 2008 floods that devastated parts of the Iowa and the Midwest. Every site under consideration in Iowa qualified for the bonds; the competing Illinois sites did not .
"This is the worst economic development deal in state history," said Bolkcom. "Illinois could never compete with the federal subsidies worth as much as $300 million that Orascom Construction Industries would gain for siting the plant in Lee County, a federally declared flood disaster area."
The bonds allow private companies to borrow at tax-exempt rates, meaning they save 1 to 2 percent on their borrowing costs. Assuming the bonds produce a net savings of $300 million to Orascom, the corporation would receive a total of $550 million in taxpayer subsidies from federal, state and local governments. This means that 165 permanent jobs created will cost approximately $3.3 million per job.
Midwestern Disaster Area (MDA) bonds were created to help businesses recover from the historic 2008 floods that devastated parts of the Iowa and the Midwest. These bonds were created after the floods of 2008. They were modeled after bonds created after 9/11 (Liberty Zone bonds) and after Hurricane Katrina (Gulf Opportunity bonds). They expire at the end of the calendar year.
MDA bonds allow private companies to borrow at tax-exempt rates. The bonds are purchased by anyone from insurance companies, pension funds, investment funds, to private individuals. The interest earned on the bonds is exempt from federal taxes (not Iowa state taxes).
MDA bonds are only available in counties that received a FEMA Disaster Declaration after the 2008 floods. Lee County, where the Orascam plant is to be located, received this Disaster Declaration in 2008. The Illinois sites under consideration were Peoria (Peoria County) and Pekin (Tazewell County). Neither was eligible for federal Midwest Disaster Area bonds.
Orascam, also known as the Iowa Fertilizer Company, applied and was approved for $1.2 billion in MDA bonds by the Iowa Finance Authority on April 13, 2012.
Information from officials at the Iowa Finance Authority indicates that the spread would likely range from 1 percent to 2 percent. For a $1.19 billion bond issue to be repaid in equal annual installments over a 20-year period, the savings in interest would amount to between $153 million and $297 million, depending on what the interest rate differential turned out to be.

Bolkcom distributed these maps at the press conference to illustrate Iowa's competitive advantage over Illinois:

Radio Iowa's O.Kay Henderson reported on the Branstad administration's reaction today.

A spokesman for Branstad says Bolkcom "clearly does not understand the fundamentals of job creation." Tim Albrecht (ALL-brehkt), the governor's communications director, says Bolkcom's "outright hostility to job creators" has blocked "meaningful property tax relief for Iowa's businesses."
Albrecht also said Branstad "will never apologize for fighting for every single job in this state, especially in southeast Iowa, which has some of the state's highest unemployment rates."

In high school debate, we would have called that a "non-response." Bolkcom supports a different approach to lowering commercial property taxes, which Senate Democrats say would help small businesses more than a competing Republican plan. But today's news isn't about property taxes in general, it's about one sweetheart deal for one corporation.

Albrecht was trying to draw attention away from the question Bolkcom raised: whether the governor needed to "fight for every single job" Orascom promised at a cost of more than $1 million per permanent job created. Clearly it is not possible for taxpayers to provide that level of support for every potential job-creating project. Albrecht did not address Bolkcom's main point: state government and Lee County wasted money on a company that would have built in Iowa anyway.

"Illinois could never compete with the federal subsidies worth as much as $300 million that Orascom Construction Industries would gain for siting the plant in Lee County, a federally declared flood disaster area," the Iowa City Democrat contended.
"I believe this plant was coming to Iowa and we got taken to the cleaners," he told reporters.

Any relevant thoughts are welcome in this thread.

Battle lines forming over Iowa state employee health benefits

desmoinesdem — Thu, 05 Jul 2012 15:10:00 GMT

Governor Terry Branstad confirmed earlier this week that employee contributions to health insurance premiums will be a major battleground during the next round of contract negotiations with unions representing state workers.
At his weekly press conference on July 2, Branstad announced that he will start paying 20 percent of his health insurance premiums.

"Hard working Iowa taxpayers are accustomed to paying a significant amount for their health costs whether they're working for a private sector business or a non-profit or, of course, if they're self-employed they're paying 100 percent," Branstad says. "And for far too long the tax dollars of these hard working Iowans have gone to pay the entire cost for most of our state employees' health care."
About 94 percent of state employees get all their health insurance premiums covered by the state under the current state employment contract. According to Branstad, the state would save more than $100 million if all workers paid 20 percent of their premiums, but Branstad says there is no consequence for workers who do not volunteer to pay part of their health care premiums and no threat of worker layoffs if the state doesn't cut costs in this way. [...]
Branstad has asked other statewide elected officials to give up part of their salary to cover 20 percent of their health care premiums, but he's not asking the 150 members of the Iowa legislature to do it.
"That's up to them," Branstad says.
Branstad will give up $224 from his pay each month to cover the premium for himself and his wife. Lieutenant Governor Kim Reynolds has agreed to give up $153 of her monthly salary to cover 20 percent of the cost of her health insurance plan.
"I'm excited to take the first step, along with Governor Branstad, towards state employees contributing to the cost of their health care," Reynolds says.

According to Radio Iowa's O.Kay Henderson, three Republican statewide elected officials have already agreed to follow Branstad's example on health insurance premiums: Secretary of Agriculture Bill Northey, State Auditor Dave Vaudt, and Secretary of State Matt Schultz.

I have no doubt that Branstad's idea will be popular with Iowans, who may wonder why public employees should get health insurance "for nothing." But even considering their generous health insurance benefits, Iowa's public employees are far from overpaid. Andrew Cannon of the Iowa Policy Project explains:

While it is true that public employees contribute less on average to their health insurance plans than private-sector workers, they have negotiated the benefit as part of overall compensation packages that, all political hyperbole and "conventional wisdom" aside, typically leave public employees behind their private-sector counterparts. As IPP research has demonstrated, public workers tend to be paid considerably less than similarly educated workers in the private sector. Generally better health insurance benefits do not compensate for the deficiency, so a gap remains.
After controlling for experience, education, and other demographic factors, public-sector employees still receive 6 percent to 8 percent lower overall compensation - that is, pay, health, dental, life and disability insurance, and retirement benefits - than private workers.

This pdf file contains a more detailed report by Cannon comparing wage and benefits packages for public sector and private sector employees in Iowa.

Keep in mind that Branstad paid virtually no state income taxes last year on income that exceeded $190,000. Contributing to his health insurance policy won't break the bank for him. The same can't be said for the average Iowa public employee. AFSCME is the largest labor union representing state employees, and its leaders released this statement responding to Branstad's proposal:

"It's outrageous that Terry Branstad thinks it's okay to bully hard working state employees. It's not fair to compare himself to a mail clerk or a custodial worker with the State of Iowa," said AFSCME Iowa Council 61 President Danny Homan.
According to a Des Moines Register article from today, Branstad claims he will now pay $224 a month. According to a February 2011 Associated Press article, Branstad receives a $130,000 salary and a $50,000 pension. This new health care contribution represents 2.1% of his $130,000 salary. If you include his $50,000 pension, his new health care contribution represents 1.5% of his State of Iowa related income.
For a newly hired State of Iowa mail clerk or custodial worker with a $24,169.60 starting salary, Branstad's plan would result in a pay cut ranging from 5% to 18%. For a newly hired State of Iowa correctional officer, motor vehicle enforcement officer, or airport firefighter, Branstad's plan would cut their pay from 3% to 12%.
"For 18 months, Terry Branstad has been taking the same health care benefits as state employees and our members, while attacking our members at the same time. Yet he hasn't paid a dime. For eighteen months Branstad has been doing the same thing he attacked us for. Now, four months before the election, he is pulling a political stunt by volunteering to pay for what he has already received for eighteen months," said Homan.
"Terry Branstad needs to stop playing political games. Health care is something our members take seriously. Many of our members work in environments where their personal safety is on the line: correctional workers can be injured or infected by inmate attacks and DOT workers can be hit by reckless drivers. Our members have also repeatedly given up pay increases and made sacrifices for many years and Branstad refuses to acknowledge that," said Homan.
"If Terry Branstad wants to have a serious discussion about the cost of health care we will have one with him at the appropriate time: at the bargaining table this Fall. Under Iowa's collective bargaining law, the Governor does not get to personally bargain this with each individual state employee," added Homan.

Those contract negotiations will be as contentious as they come. Branstad will feel emboldened by the results from the Wisconsin recall election this summer. But I don't expect labor unions to give in easily. Their bad blood with this governor goes back more than two decades, when AFSCME went all the way to the Iowa Supreme Court to force the Branstad administration to abide by the existing wage contract. Last year, Homan became a plaintiff in the successful court challenge to Branstad's line-item vetoes relating to Iowa Workforce Development offices.

Although the politics of this issue may play well for Branstad, the governor doesn't have a great track record on predicting what the state can and can't pay public workers. In late 2010, Branstad and his staffers insisted that Iowa could not afford to give public employees about a 3 percent raise two years in a row, as outgoing Governor Chet Culver had agreed to do. After failing to convince AFSCME to reopen negotiations, Branstad eventually gave up trying to block the union pay raises from going into effect and gave non-union state employees a similar raise.

Despite the allegedly "unaffordable" union contracts Culver negotiated, Iowa finished the 2012 fiscal year with a larger than expected surplus, thanks to revenues that exceeded projections. It turns out that spending $100 million per year on small raises for employees who took a hit during the recession wasn't disastrous after all. (AFSCME members took a pay cut in the form of furloughs to avoid layoffs during the 2010 fiscal year.)

Final note: I hope the governor is feeling better today after a choking episode landed him in a California emergency room yesterday. The feeling of choking is terrifying for anyone. For an uninsured American living on the edge, a trip to the ER means a hospital bill that might exceed the monthly rent or mortgage payment. Like State Senator Joe Bolkcom, I hope the governor will reconsider his determination to leave more than 100,000 Iowans without health insurance coverage through Medicaid.

UPDATE: Iowa Policy Project Assistant Director Mike Owen points out that Branstad might be exaggerating how much money the state would save if the next round of public employee contracts included employee payments toward health insurance:

He is ignoring the fact that, unlike his pay and that of state legislators, state employees' benefits in place are a result of bargaining - a point acknowledged far too little, but thankfully was cited this week by the Muscatine Journal's Steve Jameson. State employees agreed on the pay levels they receive in the context of other benefitsthey al so receive.
Oddly, when the Governor says state workers should pay $1,000 toward their health insurance, he is peddling it all as savings to the state. Actually, we should expect salaries to go up to compensate for lost benefits.

Jameson also commented,

It isn't like the state just started paying the health care costs of its workers. This has been a benefit that has been provided to state employees for decades. It was negotiated at a time when state workers made less in real wages than their private sector equivalents.
It would be great to see everyone in elected government office take Branstad up on this challenge and pledge to pay for 20% toward their premiums. But if I'm an unelected state worker I'd be laughing in Branstad's face. Who in their right mind would give up a benefit they have been given unless or until they were forced to give it up?
Maybe if the state were really struggling financially, it'd be easier to applaud Branstad's efforts - but the state just reported taking in a record amount of tax receipts in the month of May. The $794.5 million deposited in the state treasury broke a previous record of $791.1 million in net receipts reported in May 2007, according to the Legislative Services Agency. The state is on track to blow away its projected revenue budget for the year.

SECOND UPDATE: Branstad's executive order allowing state employees to contribute to their own health care costs is here (pdf).

THIRD UPDATE: In an editorial supporting state employee contributions for health insurance premiums as part of the next negotiated contract, the Des Moines Register's editorial board noted that it's not clear where these voluntary contributions will go.

How will the state workers' monthly contribution - ranging from about $90 to $360 - be used? Workers are told their premium payment "remains in your department and is used to offset personnel cost."
What does that mean when agencies have set their budgets for a fiscal year that began on July 1? If workers at the Department of Inspections and Appeals agree to pay 20 percent of the cost of their insurance, will director Rod Roberts hire more nursing home inspectors?
That is hard to believe. The "Voluntary Premium Contribution Program" is the idea of a governor who has talked repeatedly about the need to cut state services and personnel. Branstad says there are too many of the workers he is now asking for a donation toward their health insurance. The agency directors he appointed will decide how to spend the premium money their employees pay.
Considering the premium can amount to the loss of hundreds of dollars a month in income, some state employees might decide they can put that money to better use to truly serve Iowans. They could donate it to food banks, offsetting a cut the governor made to a legislative appropriation earlier this year. They might give it to an agency serving children whose state funding has been reduced or to a group advocating for bike trails.