# IPERS



The GOP abandoned Iowa’s strong public education heritage

Ras Smith has represented part of Waterloo in the Iowa House since 2017 and is seeking the Democratic nomination for governor.

School is back in session across the state, but with soaring cases of the Delta variant of COVID-19 and school districts stripped of local control, our educators, students, and parents are suffering. Long before the pandemic, though, Governor Kim Reynolds and the Iowa GOP turned their backs on schools in Iowa.

Education is central to our heritage. Iowa’s state quarter reads “Foundation in Education.” When I had the opportunity to visit with former Senator Tom Harkin this spring, he reminded me that Iowa’s forbearers prioritized establishing a schoolhouse in every township, and they prioritized paying for it. That’s the Iowa I know and love.

Our schools are the backbones of our communities. But right now, there’s a major disconnect between politicians and our classrooms. From not empowering local school districts to make decisions about how to keep students safe during the pandemic, to propping up for-profit charter schools with no oversight, to banning curriculum, Governor Reynolds has led Iowa astray. And it hasn’t gone unnoticed.

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Iowa Senate district 20: Brad Zaun knows he's in trouble

Brad Zaun’s fifth campaign for the state legislature will be his toughest yet.

Like affluent suburban areas around the country, Iowa Senate district 20 has been trending away from Republicans. Democrats in the northwest suburbs of Des Moines did well in the 2019 local elections and more recently surpassed the GOP in voter registrations.

Zaun has adapted to the new environment with messaging that doesn’t mention his party affiliation, his votes for many controversial laws, his numerous attempts to ban abortion, or his early support for Donald Trump’s candidacy.

On the contrary, he is campaigning as an “independent voice” and leader on improving education and mental health services.

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Kevin Warth offers unique perspective for Iowa Senate district 44

Tyler Mills is a Democratic activist in southeast Iowa who is consulting for Kevin Warth, one of three Democrats seeking the nomination in Senate district 44. -promoted by Laura Belin

Kevin Warth’s voice is desperately needed within the Democratic caucus in the Iowa Senate. Agriculture has always been the backbone of our state’s economy, and that isn’t going to change.

One of the key issues we are facing as a state is finding a way to make our young people willing to stay in the communities they grew up in–or at the very least, maintaining an interest in the overall benefit of those communities.

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Representative Bobby Kaufmann lives in a glass House

A GOP lawmaker’s outrage rings hollow when we’ve repeatedly seen Iowa Republicans push policies they never campaigned on. -promoted by Laura Belin

On the Iowa House State Government Committee’s agenda for January 22, a presentation by Iowa Public Employees Retirement System (IPERS) CEO Donna Mueller and a special announcement by the committee’s Republican chair Bobby Kaufmann was scheduled for 11:00 am.

Kaufmann had stated at a forum in December, “There will be zero IPERS bills, period. End of story. End of discussion. No tweaks, no changes.” James Q. Lynch from the Cedar Rapids Gazette reported that Kaufmann also plainly stated in his newsletter, “I said it before the election and I will say it again: There will unequivocally not be changes to IPERS.”

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"The most important election of a lifetime"

Bruce Lear on the stakes in this midterm: “Public education as we know it hangs in the balance,” which has never been the case before in Iowa. -promoted by desmoinesdem

In January 1976, I trudged through the Pella, Iowa snow to go to my very first presidential caucus because it was the “most important election of our lifetime.” I caucused with about eleven over-eager college students in the basement of the student union. We were a small but determined group. After all, it was a Democratic caucus in Pella, in January.

By the way, I caucused for Fred Harris, a little-known and soon-forgotten senator from Oklahoma. His only claim to fame was he drove around in a recreational vehicle and never used hotels. Instead, he stayed at supporters’ houses and in exchange, gave them a card good for one night in the White House. None were redeemed.

That’s how my involvement with the “most important election of our lifetime” began. For the next 30-plus years, every two years that phrase roared to life on radio, TV, and in countless mailings soon deposited in the circular file to be forgotten until the next most important election of our lifetime.

It got old. It got cliché–until now.

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IA-Gov: Notes on the final Hubbell-Reynolds debate

Governor Kim Reynolds and Democratic challenger Fred Hubbell debated for the third and last time today in Davenport. Too bad not many viewers are likely to tune in at 8:00 am on a Sunday morning, because the discussion was yet another study in contrasts. For those who prefer a written recap, I enclose below my detailed notes. Click here and here for Bleeding Heartland’s analysis of the first two Hubbell-Reynolds debates.

As during the second debate, journalists kept the candidates on topic and within the time limit, so kudos to moderator David Nelson of KWQC-TV6 and panelists Erin Murphy of Lee Enterprises, Forrest Saunders of KCRG-TV9, and Jenna Jackson of KWQC-TV6.

Both candidates recycled many talking points from their first two meetings. My impression was that Reynolds performed about equally well in all three debates, while Hubbell improved each time. For instance, after Reynolds noted that Iowa had moved up in mental health rankings three years in a row and was now rated sixth in the country for mental health, Hubbell pointed out that the study the governor cited covered the years 2013 through 2015. That was before the Branstad/Reynolds administration closed some mental health institutions and privatized Medicaid, which has led to worse care for thousands of Iowans.

For those who prefer to watch the replay, KCRG-TV posted the video in a single file, which is the most user-friendly option. You can also find the debate on KWQC-TV (with closed captioning) and WOWT-TV’s websites, but you will have to watch a series of clips, with advertisements before each segment.

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Back to school with the family

Bruce Lear calls on members of the “public education family” to “unite to defend what we love.” -promoted by desmoinesdems

The back to school ads have started. Even with heat indexes of 100, those ads send chills down the spine of educators. Those chills are a cocktail of optimism, excitement, worry, and dread, with a garnish of hope and a twist of anger.

As the new school year begins, it’s important to have the public education family around the kitchen table for a meeting. That family includes teachers, professional support staff, administrators, school board members, and parents. Like all families, there is always the weird uncle or cousin you want to hide in the attic, but with November looming, the public education family needs all its members to be speaking in one voice.

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Five takeaways from the Iowa legislature's opening day in 2018

The Iowa House and Senate convened Monday with the usual big promises and platitudes about working together to build a better future for Iowans.

Behind the optimistic rhetoric, all signs point to another contentious legislative session. The opening day speeches by Republican and Democratic leaders, enclosed in full below, revealed almost no common ground about the focus of lawmakers’ work and no indication that the most important bills will incorporate Democratic ideas. My takeaways:

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Recognizing Bleeding Heartland's talented 2017 guest authors

Bleeding Heartland published 140 guest posts by 81 authors in 2016, a record since the blog’s creation in 2007.

I’m happy to report that the bar has been raised: 83 authors contributed 164 guest posts to this website during 2017. Their work covered an incredible range of local, statewide, and national topics.

Some contributors drew on their professional expertise and research, writing in a detached and analytical style. Others produced passionate and intensely personal commentaries, sometimes drawing on painful memories or family history.

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Learning from the past

Former teacher Bruce Lear, a retired regional director for the Iowa State Education Association, looks at one of the major events of the 2017 legislative session for insight on what to expect from Republican lawmakers next year. -promoted by desmoinesdem

Teddy Roosevelt said, “The more you know about the past, the better prepared you are for the future.” One piece of recent history that needs to be revisited, as the next legislative session begins, is the dismantling of Chapter 20, the collective bargaining bill. Oh, I can hear it now, “Stop whining about what happened and make the best of it.” The problem with that rationale is we still don’t know the full impact of what was done to us.

So, before we examine the possible impacts, indulge me and let’s revisit the ugly beginning of the 2017 session that culminated in Governor Terry Branstad signing the bill on the cold morning of February 17.

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Keep up with threats to Iowa's public pension funds

Republican lawmakers are considering big changes to the Iowa Public Employees’ Retirement System (IPERS). The Reason Foundation, a libertarian think tank funded through the Koch brothers network, has been studying the matter at the invitation of GOP State Senator Charles Schneider. That group recommends converting IPERS from a defined-benefit plan (with guaranteed payments for public employees) to a defined-contribution plan like a 401(k). Under that scenario, some 350,000 IPERS members would have to pay investment fees and could receive lower returns when they retire.

Similar changes could affect Iowans who pay into the Municipal Fire & Police Retirement System, Peace Officers’ Retirement System, or Judicial Retirement System.

Democratic lawmakers and staff have created a new e-mail list for Iowans wanting to stay informed about threats to public pension funds. This list will function much like the Iowa Statehouse Progressive Network, created at the beginning of this year’s legislative session, but with updates and action alerts related to state retirement issues.

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Alternate Process. Alternate Facts. Alternate Democracy.

Tyler Higgs is an activist, concerned constituent, and candidate for school board in Waukee. Click here for background on the Iowa Public Employees’ Retirement System (IPERS) and here for more on the conservative group a GOP senator brought in to “study” the pension fund. -promoted by desmoinesdem

It was standing room only on July 25 in the cramped Senate hearing room, where State Senator Charles Schneider of West Des Moines (Senate district 22) bucked Iowa law to schedule a last-minute mock hearing to discuss the fate of Iowa’s teachers and public employees. Will they have a respectable hard-earned retirement, or will they subsist on cat food?

You would think a question of this importance would be discussed in a non-partisan committee meeting, open to input — pro and con — from the public. Not in this scenario.

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Selling the lottery is still a dumb idea (updated)

The state budget is complicated. There are all kinds of ways to make the numbers add up, and you’ll never find consensus on the right approach. Increased expenditures on infrastructure look like overspending to some and a wise long-term investment to others. Tax cuts for business look like economic stimulus to some and unjustified corporate giveaways to others. Inevitably, most strategies for balancing the budget have their pluses and minuses.

Once in a while, though, a plan for plugging a budget hole emerges that is just bad on every level. Selling the Iowa Lottery is that kind of plan.

It’s bad policy because Iowa would be drastically reducing future revenue streams from the lottery in exchange for one lump-sum payment on the order of $200 million.

It’s plus-bad politics in the short term because the public will have no trouble understanding that this is a raw deal for taxpayers.

It’s double-plus-bad politics in the long term because it would play right into Republican talking points about Democrats being unable to manage public money and beholden to special interests. In fact, State Auditor David Vaudt (a likely GOP candidate for governor in 2010) has already spoken out against the idea.

Yet if a recent Des Moines Register column by David Yepsen is accurate, selling the Iowa Lottery to private investors is a done deal. Here’s an excerpt from his column:

So we need to start calling this for what it is: It’s a sweetheart, giveaway deal. It goes to a bunch of wealthy Democratic campaign contributors. It’s done to make a quick repair to a budget screw-up.

Democratic legislative leaders, who’ve taken hundreds of thousands of dollars from these gambling interests over the years, are now being asked by those donors and supporters for a return on that investment.

Organizers of the move say they’ll pay the state at least $200 million, plus give the state 22 percent of the gross receipts, in return for running the lottery for 49 years.

However, big investors aren’t going to plunk down $200 million, plus give up a fourth of the gross receipts each year, without expecting a profit. The only way to find that profit is to find ways to get Iowans to gamble more.

That could mean a return to TouchPlay. It also could mean that Iowa pioneers cell-phone or BlackBerry gambling. The promoters say we won’t do those things. Fair enough, then expect a blizzard of gambling advertising to get us all to scratch more lottery tickets or buy more numbers games.

This idea is just flat-out poor public policy. Iowa netted $57 million a year last year from lottery profits. Assuming that figure stays the same for the next 49 years, Iowa will give up $2.8 billion during that time to pocket $200 million now. If the gamblers pay a 22 percent gross-receipts tax to the state on top of their $200 million payment, Iowa’s lost revenue would be $2 billion, give or take a few million.

Don’t two generations of Iowa schoolkids need that $2 billion more than a bunch of gambling businesses and the out-of-state hedge-fund operators who’ll bankroll this thing?

If the lottery sale goes forward, expect to see variants of those points in Republican-funded attack ads against Governor Chet Culver and our incumbent legislators in 2010.

Culver and statehouse leaders can say political contributions from gambling interests and their advocates had nothing to do with this decision, but don’t expect that story to stick. Not when people in the gambling business are among Culver’s largest individual donors and have given generously to the Democratic House and Senate campaign funds.

Speaking of GOP talking points, Iowa Republicans haven’t been known for their brilliant political strategy lately, but I give credit to them for the very clever proposal they floated at a press conference on Thursday: sell the Iowa Lottery to the state public employee pension system.

Responding to a column published this morning by The Des Moines Register’s David Yepsen, Senate Minority Leader Paul McKinley, R-Chariton, said it appears some backroom deals have been made and Gov. Chet Culver and Democratic leaders are intent on selling the lottery to private investors.  Instead, the state should consider selling it to the Iowa Public Employees’ Retirement System, known as IPERS, McKinley said.

“This is only a scheme to get some very short-term financial gain for some long-term budget pain,” McKinley said. “There are other options that we should pursue, and one of those options that we’re pursuing is that the IPERS board look into buying the lottery.” […]

House Minority Leader Kraig Paulsen, R-Hiawatha, said Republicans don’t think the lottery should be sold, but if it is, the deal should not be limited to big Democratic donors. Dan Kehl, an Iowa casino operator who is heading a consortium that hopes to lease the Lottery, donated $25,000 to Culver in 2007.

“If we are looking at that, we need to ensure everyone gets the opportunity to bid on it, and if the rate of return is 17 percent, that sounds like a good deal for IPERS and they need to look at that,” Paulsen said. […]

IPERS manages a multibillion-dollar investment portfolio that finances the retirement benefits more than 300,000 Iowans. Since July it has lost more than $4 billion in the stock market.

Republican legislators have set themselves up very well now. They are on record opposing the sale of the Iowa Lottery, but they are also reminding people that the state budget could reap short-term proceeds from selling the lottery without rewarding a handful of large Democratic donors. Think about how many Iowans have a family member in the IPERS system.

If Democratic leaders are smart, they will announce that selling the Iowa Lottery is off the table.

UPDATE: I’m pleased to report that on January 24 Culver’s chief of staff Charlie Krogmeier said, “There is no plan to sell or lease the lottery. Period.”

SECOND UPDATE: The Cedar Rapids Gazette has more from Krogmeier:

“The idea that the Iowa Lottery might be leased is getting more attention from pundits and partisans than it deserves. There is no plan to sell or lease the lottery – period,” he said. […]

Krogmeier said he was concerned the lottery issue was erroneously being cast as the governor’s plan when the extent of Culver’s involvement has been agreeing to one meeting with a private group that pitched a lottery lease proposal.

“This has become nothing more than a silly political game that some in the Republican Party want to play, and at a time when Iowans want a balanced budget and deserve bipartisan results,” he said. “This much is certain: when the governor releases his budget proposal in a few days, it will not include a line item reflecting a lease of the lottery.”

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