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government spending

Republican hypocrisy watch: Pawlenty and Culver edition (updated)

by: desmoinesdem

Tue Aug 03, 2010 at 08:11:04 AM CDT

Minnesota Governor Tim Pawlenty toured eastern Iowa over the weekend to raise money for several Iowa House Republican leaders and state Senate candidate Bill Dix. It was his fourth Iowa trip during the past year. Since Pawlenty is laying the groundwork for a future presidential bid, journalists covering his latest visit focused on what he is doing for Iowa Republicans, as well as his views on foreign policy, government spending and the economy.

I'm more interested in the way Iowa Republicans embraced Pawlenty. Naturally, they liked his message about retaking the state legislature, and GOP House leaders can really use the campaign cash. But it's surreal to watch Republicans promise their serious consideration for Pawlenty as a presidential candidate when you compare his record with the case conservatives make against Iowa Governor Chet Culver.

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Exploring Paul McKinley's fantasy world (part 2, w/poll)

by: desmoinesdem

Mon Jul 19, 2010 at 13:14:15 PM CDT

Last week I highlighted the half-truths and misleading arguments that underpin Iowa Senate minority leader Paul McKinley's case against Democratic governance in Iowa. I wasn't planning to revisit the Republican leader's fantasy world until I read the July 16 edition of his weekly e-mail blast. McKinley claims to offer five "big ideas" to "make Iowa again a state where jobs and prosperity can flourish."

His premise is absurd when you consider that CNBC just ranked Iowa in the top 10 states for doing business (again), and number one in terms of the cost of doing business. Many of McKinley's specific claims don't stand up to scrutiny either, so follow me after the jump. There's also a poll at the end of this post.

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Bring on the clash of the auditors

by: desmoinesdem

Wed May 12, 2010 at 09:59:03 AM CDT

Was anyone else disappointed that the "major endorsement" Terry Branstad's campaign hyped yesterday turned out to be State Auditor David Vaudt? He's not exactly a celebrity, and his stamp of approval only reinforces that Branstad is the Republican establishment candidate. I guess the big deal is that Vaudt normally does not endorse in competitive Republican primaries, but when I think "major endorsement," I think game-changer, and Vaudt doesn't fit the bill.

At yesterday's press conference, Vaudt cited several of Branstad's accomplishments as well as his proposals for the future. For example, he praised the 1985 government reorganization. It takes guts for Branstad to keep bragging about "cutting out half the state agencies" when Iowa's general fund budget increased by 166 percent during his tenure, and the number of state employees increased by about 15 percent (from 53,342 in 1983 to 61,400 in 1999).

Vaudt also credited Branstad with implementing budget reforms to use generally accepted accounting principles, establishing the rainy day fund, spending no more than 99 percent of expected revenues, and leaving Iowa with a $900 million surplus in 1999 (which happened to be near the peak of an economic cycle). As State Representative Chris Rants has noted, Governor Branstad wanted to spend more:

Republicans were unwilling to go along with Branstad's desire to spend more money - a fact he forgets when he talks about how much money was left in the reserves when he left office as it was only there because the legislature wouldn't agree to his spending plans.

Vaudt praised Branstad for promising to reduce the cost of state government by 15 percent. We still haven't seen specifics about how Branstad will achieve that. The 2011 budget was adopted in March; it's past time for Branstad to tell us which services or programs he would eliminate to put us on track to reduce the size of government by 15 percent. Cutting funds for preschool programs, family-planning services and Area Education Agencies administrators won't be nearly enough to keep his promises on spending.

Vaudt's endorsement invites questions about Richard Johnson, who was state auditor during most of Branstad's time as governor. Johnson famously endorsed Fred Grandy during the 1994 Republican primary and now co-chairs Bob Vander Plaats' gubernatorial campaign. Asked about Johnson yesterday, Branstad said,

"First of all let me say, I've learned a lot.  Dick Johnson made some valid criticisms back in the 80's when the Democrats were in control of both houses of the legislature.  As a result we put together the Committee to Reform State Spending in 1991 and passed the spending reforms.  I didn't just accept the legislature saying, 'That's all we can do.'  I brought them back twice in 1992 until we got all the spending reforms."

Branstad went on to say that, after Republicans got control of the Iowa House in the 1992 elections, they passed the 99% spending limitation, and he strictly enforced that limit the rest of the time he was in office.

Whatever reforms Branstad enacted in 1992 weren't enough to satisfy Johnson two years later. Johnson also called out Branstad for misleading claims about reducing the size of government. Chet Culver's campaign released several news clips yesterday about Johnson and Branstad, including this one:

The Cedar Rapids Gazette reported that "Where Branstad claims a 16 percent reduction in the number of management employees in state government, for example, Johnson contends the reality is that jobs weren't eliminated. Titles were changed. 'The people and the payroll are still there.'" (Cedar Rapids Gazette, 6/4/1994)

I posted the Culver campaign's release after the jump for those who want to stroll down memory lane about Branstad's record on fiscal issues.

Speaking of Branstad's accountability problem, the Des Moines Register reports today that he spoke out publicly for a racetrack in Cedar Rapids in 1984. Branstad recently criticized Governor Chet Culver for advocating approval of four new applications for casino licenses. He claims that unlike Culver, he never directly contacted members of the Racing and Gaming Commission to urge approval of the Cedar Rapids racetrack. I highly doubt that the commissioners were unaware of then-Governor Branstad's opinion. Most governors make their views known to state commissions via backdoor channels.  

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Terry Branstad's family values

by: desmoinesdem

Mon Feb 01, 2010 at 10:28:52 AM CST

Anyone following the Iowa governor's race must read Todd Dorman's recent interview with Republican front-runner Terry Branstad. The Branstad so many Iowans remember from his four terms as governor shines through.

Branstad is at his most incoherent when speaking about gay marriage, but his answer to an open-ended question about the state budget was also revealing. The whole interview is worth your time. I discuss a few of my favorite excerpts after the jump.

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Catch-up thread on Culver's budget blueprint

by: desmoinesdem

Mon Feb 01, 2010 at 06:15:00 AM CST

Governor Chet Culver submitted his draft budget to the Iowa legislature last Wednesday, but with the State of the Union and other news of the day, I didn't have time to write up the story.

The complete budget document can be downloaded at the governor's official website, and you can view Culver's press conference on the budget here.

For more links, reactions and commentaries, follow me after the jump.

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Comparing Branstad and Culver: budgets and floods

by: desmoinesdem

Wed Jul 22, 2009 at 08:46:02 AM CDT

I stand by my prediction that former Governor Terry Branstad will not seek his old job again, but I can't resist responding to these comments by Republican blogger Constitution Daily:

Now back to Branstad, his credentials as a governor are amazingly good. He governed during the farm crisis and floods of 1993, all while balancing a budget and even having a surplus. [...]

Branstad against Culver will be a great campaign. Culver has shown no leadership skills even within his own Party. The flood will be a defining issue. Branstad led us through that with ease where Culver still has us wading through the muck. Culver has no excuses and no one to shift blame to. This is a big advantage for Branstad.

Also with Culver, the budget is massively in the red. Whether or not you agree, the perception is that Branstad always had a balanced budget and didn't grow government. That is what people want and dream of returning to. Can you imagine the debates between the two? How would Branstad not come out smelling like a rose not just on rhetoric but actual experience?

If Constitution Daily is old enough to have been politically aware during Branstad's tenure, he is suffering from serious memory loss. I'll explain why after the jump.

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Iowa taking full advantage of stimulus unemployment funds

by: desmoinesdem

Thu Jul 09, 2009 at 18:31:37 PM CDT

When Congress was debating the stimulus bill earlier this year, Mark Zandi, the chief economist for Moody's, compared various forms of government spending and tax cuts in terms of economic stimulus "bang for the buck." He concluded (pdf file) that various forms of government spending did more to stimulate the economy than various kinds of tax cuts.

The best kinds of spending in terms of stimulative effect were food stamps and extending unemployment benefits. Every extra dollar the federal government spends on food stamps generates approximately $1.73 in economic activity, and every dollar the federal government spends to extend unemployment benefits generates approximately $1.63 in economic activity. People who need these services are likely to spend additional money quickly, helping preserve jobs in the retail sector.

With this in mind, you might imagine that the states would take full advantage of money allocated to unemployment benefits in the American Reinvestment and Recovery Act. But you would be wrong, according to this article by Olga Pierce from ProPublica:

So far, only about half of the $7 billion included in the stimulus package [for expanding unemployment insurance] has been claimed by states. [...]

Four states have explicitly rejected the funding, but many others have so far failed to pass legislation qualifying them for incentive payments. [...]

Under the stimulus bill [2], states can qualify for the extra funding by extending unemployment insurance to new categories of workers. To receive a third of the funding, they must begin using something called an alternative base period, which would allow more low-wage workers to receive unemployment benefits. [...]

To get the other two-thirds of the cash, they must adopt at least two other changes from a list that includes covering part-time workers and offering $15 extra per week for each dependent.

If states meet the requirements, they qualify for a federal lump sum payment that will cover the cost of expansion for at least three years, or longer in many cases. It was on those grounds - that after the federal funding runs out states will have to find another way to cover the cost - that Louisiana Gov. Bobby Jindal [3], Mississippi Gov. Haley Barbour [4] and others [5] that said they would reject the funding.

Bleeding-heart liberal that I am, I believe basic fairness justifies extending unemployment benefits to more part-time and low-wage workers. But even if you don't care about fairness, Zandi's analysis shows that extending unemployment benefits will get money circulating in the economy.

Click here for a map and a chart showing how much federal unemployment money each state has claimed.  

As of mid-June, 17 states had claimed none of the stimulus funding for unemployment benefits, and another 12 states and the District of Columbia had claimed only part of that money. In some of those states, Democrats are in charge. Progressives who have ridiculed Republican governors for rejecting stimulus money for unemployment benefits should also hold Democrats accountable on this score.

Fortunately, Iowa is among 21 states that have fully used these stimulus funds as Congress intended. Thousands of Iowans struggling to get by will benefit from the $70.8 million the stimulus bill appropriated to our state for unemployment benefits. Democrats in the state legislature and Governor Chet Culver deserve credit for enacting the necessary legislative changes to collect this funding.

Many of the states that have left stimulus money on the table have significantly higher unemployment rates than Iowa, by the way.

Speaking of boosting the economy, Zandi's report showed that infrastructure projects were the third-most stimulative form of government spending. Every extra dollar spent on infrastructure generates an estimated $1.59 in economic activity. Remember that next time Iowa Republicans bring out their misleading talking points about the the I-JOBS program. Also remember that Iowa has used the stimulus bill's transportation funding wisely compared to many other states, according to a recent review by Smart Growth America.

In contrast, most kinds of tax cuts Republicans advocate generate less than one dollar of economic activity for every dollar they cost the government. As a gesture to Republicans, Democrats replaced some spending in the stimulus bill with $70 billion allocated to fixing the alternative minimum tax, even though Zandi's analysis found that a dollar spent on fixing the alternative minimum tax generates only about 49 cents in economic activity.

It's too bad the Obama administration made a number of concessions to Republicans on the stimulus bill. Like Bob Herbert wrote a few months ago, when the GOP talks about the economy, nobody should listen.

Discuss :: (0 Comments)

Newt Gingrich's pitch to small donors

by: desmoinesdem

Fri Apr 24, 2009 at 11:50:11 AM CDT

Last week Jane Hamsher wrote a good piece at FireDogLake about Newt Gingrich's big spending on private planes. She noted that Gingrich's organization American Solutions paid $3,360,346 to Moby Dick Airways, which charters private planes, during 2008 alone. American Solutions raised a total of $25,489,668 last year, and donations below $200 made up $7,343,986 of that amount.

Hamsher asked a good question:

On their contributions page, it says "American Solutions is here to serve as your voice in the political process." Did the people who gave this money think they were donating so Newt and Company could jet around on private planes?

I'm pretty sure they didn't, because last night I received a fundraising call from American Solutions. As I always do when I am a respondent for any political survey, I grabbed a pen and took notes, which you'll find after the jump.

There's More... :: (2 Comments, 636 words in story)
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