Governor Chet Culver and Republican Terry Branstad debate for the third and last time today at noon in the Iowa Public Television studios. You can watch live at the Des Moines Register website, IPTV.org or on Mediacom Channel 119. Tonight Iowa Public TV will rebroadcast the debate statewide at 8 pm.
After the jump I’ll cover recent news from the gubernatorial campaign and the main points Culver and Branstad are likely to emphasize today.
STATE BUDGET/ECONOMY
During the second gubernatorial debate, Culver highlighted Iowa’s large budget surplus at the end of the 2010 fiscal year. Since then, the state’s Revenue Estimating Conference has forecast more growth in state revenues during the current budget year. Culver can add that to the long list of signs that Iowa is doing relatively well compared to most states coming out of the recession. I think Culver should also point out that state spending as a share of state personal income has been lower throughout his administration than it was during the 1990s.
Branstad will continue to claim Iowa’s spending is out of control. The day the improved revenue projections came out, Branstad’s campaign pivoted to talk about the unemployment rate. Last week Branstad launched yet another television ad bragging about how he reformed Iowa’s budget practices and left the state with a surplus, while Culver “spent nearly 2.5 billion more than he’s taken in.”
Naturally, Branstad still hasn’t explained how he would have balanced the state budget without using federal stimulus dollars or money from state reserve funds during the worst recession in 60 years. And notice how Branstad’s commercials say nothing about his plans to cut state spending–which according to him may or may not shrink the overall budget.
Culver has been demanding that Branstad give more specifics on how he would cut the budget, and he’ll certainly press that theme in the debate.
TAXES
In previous debates, Branstad and Culver have accused each other of raising taxes, and I expect more along those lines today. Culver will point out that Iowa got through the recession without raising income or sales taxes, while Branstad will blame the governor for property tax increases. Branstad will tout planned cuts in property taxes and corporate tax rates, but will he explain how he’ll pay for those? He didn’t in the last two debates.
I think it was unwise for Culver to propose a $120 million tax cut plan this week. Here are the basics:
* Culver’s plan would benefit 980,000 tax filers: All single filers who have an adjusted gross income less than $100,000 a year ($200,000 for joint filers) and have income tax liability to the state.
* The tax cut would have to be passed during the 2011 legislative session and be effective for all of calendar year 2011.
* Middle-class Iowans would claim the tax cut in the form of a nonrefundable credit ($90 for individuals, $180 for joint filers) when they file their annual taxes.
This kind of idea should be on the table as part of a comprehensive review of Iowa’s tax structure, but throwing it out as a stand-alone idea two weeks before the election looks like pandering. I get Culver’s point: Iowa can afford a middle-class tax cut because of our state’s “conservative fiscal management and growing economy.” (I’d say “responsible,” not “conservative.”) But is that the best way to deliver a tax cut? The more time defending this idea during the debate, the less time he’ll have to compare his overall record on taxes with Branstad’s.
EDUCATION
The Des Moines Register is co-sponsoring today’s debate, and education is always a big issue for that newspaper’s editorial board. Both Culver and Branstad have played up their records on education in recent commercials. Branstad started running this 15-second spot last week:
Male voice-over: Under Terry Branstad, good teachers were paid more, and families in need received tuition tax credits. Chet Culver’s budget cuts have led to extensive teacher layoffs and a huge property tax hike. Want a brighter future?
Little girl sitting on Branstad’s lap: Grandpa’s the app for that!
It takes chutzpah for Branstad to campaign on teacher pay, since raising it to the national average has been one of Culver’s big accomplishments. I would be shocked if Culver doesn’t emphasize that point in today’s debate.
Branstad’s newest tv ad also focuses on education:
Female voice-over: Iowa knows Terry Branstad cares deeply about our children. As governor, he brought cutting-edge technology to Iowa classrooms, paid the best teachers more, and increased funding for schools without raising property taxes. His plan today sets aggressive standards, rewards excellent teachers and ensures every child has access to quality preschool.
Branstad: To truly give our kids unlimited opportunities and quality jobs, we need great schools, and I’ll work hard every day to make sure we have them.
It’s not accurate for Branstad to claim property taxes didn’t go up while he was governor, but I’m more interested in the 180-degree shift on preschool. During the Republican primary campaign, Branstad mentioned preschool funding as one of three areas he would cut back to save money. Specifically, he said,
Again, this was a reckless and irresponsible thing that Governor Culver did. I do support preschool. I support Head Start. I support private preschool programs. I support financial aid for families with need. But I don’t think the public schools ought to have to take over the education of all three and four-year-olds. I agree that that primarily should be the focus of the families and we should provide financial assistance to those in need.
Branstad: But I think it’s a terrible mistake for the state to take on new obligations that we can’t afford and we can see the example of what has happened. We’ve seen massive across-the-boards, big layoffs in public school education because we’re trying to do more than we can realistically do. What we do we need to do well. We need to focus on the basics. We need to provide a good, quality K-12 education and increase the quality and the opportunity for our students instead of trying to do things that we can’t afford to do.
Now Branstad promises to make sure all Iowa kids have access to quality preschool? I’m guessing that his internal polling showed Culver was gaining some ground on this issue.
Culver has been holding “milk party” events at preschools around the state to highlight the benefits of expanding funding for an initiative begun under Governor Tom Vilsack. He points out (correctly) that without the state grants, most of the participating public schools would not be able to keep their preschool programs running. Lots of middle-income families can’t afford $500 a month or more for preschool.
The Culver campaign’s current television commercial highlights the choice between going “forward” with more investment in preschool, renewable energy and stem cell research, or going “back to the past”:
Culver: We can give our kids a head start or let Branstad close preschools across the state.
We can continue to lead the way in renewable energy or let Terry kill the Iowa Power Fund.
Press forward for new medical cures or have Branstad ban stem cell research.
We can’t go back. Iowa must forge ahead and invest in tomorrow’s schools and tomorrow’s industries to create tomorrow’s jobs. It’s your decision. Will we go forward or back to the past?
Republicans in the Iowa House and Senate have tried repeatedly to eliminate the Power Fund. Branstad should take a stand on whether he wants the program to continue.
Branstad’s campaign complains that they aren’t seeking to close public preschools, but that would be the consequence of deep cuts to the state preschool grant program.
It’s been a while since I heard Branstad say anything about stem cell research. Probably he’d rather not talk about the subject during the debate.
ENDORSEMENTS
Branstad received the Cedar Rapids Gazette’s endorsement Sunday, saying he has better plans for job creation. The Republican will be sure to mention that in the debate. The Iowa City Press-Citizen is backing Branstad too.
Culver wasn’t happy that the Gazette chose the candidate who’s been bashing the I-JOBS infrastructure initiative. Where do the Gazette editors think Cedar Rapids would be without that investment? But the governor would be better off talking about endorsements he recently received from groups like the Iowa Farmers Union. Culver could also redirect a debate question about endorsements to more outside validation of Iowa’s strong condition. The website MoneyRates just named Iowa the fifth best state for retirement. Business Facilities Magazine puts Iowa in the top ten on several metrics: first for biofuels manufacturing research and wind energy manufacturing, second for alternative energy and top wind power production, sixth for overall employment and seventh for education climate.
CORRUPTION
Last week a special prosecutor filed charges “against four people and two gambling entities alleging they made illegal campaign contributions to Gov. Chet Culver’s campaign in connection with efforts by Webster County officials to land a state gaming license.”
No one from Culver’s office or campaign were found to have done anything wrong, but Branstad’s campaign manager accused the governor of creating “a culture of corruption” that eroded the public trust. (Even worse from Culver’s perspective, the criminal charges overshadowed improving state revenue projections in news reports from that day.) I expect Branstad to push that line in the debate. Culver should be ready to respond with specific examples of “pay to play” scandals from the Branstad era. There’s no shortage of those.
Any thoughts about the governor’s race are welcome in this thread.
UPDATE: Shortly after the debate, Culver’s campaign put out a press release with a long list of Branstad-era scandals:
ILLEGAL CAMPAIGN CONTRIBUTIONS
Dr. Azneer, President of Des Moines University, made campaign contributions and then reimbursed himself from DMU funds. The Des Moines Register reported in January 1993 that “In an unusual public presentation on Thursday, the Iowa Campaign Finance Disclosure Commission will learn how osteopathic university president Leonard Azneer was reimbursed by the school for contributions he made to political candidates. Des Moines lawyer David Belin said the case has implications that go beyond Iowa. ‘When the information comes out, it will be a microcosm of major problems that this nation faces in the whole area of political campaign contributions,’ said Belin, who will publicly document Azneer’s political contributions and reimbursements at 9 a.m. Thursday to the state commission. In an unusual public presentation on Thursday, the Iowa Campaign Finance Disclosure Commission will learn how osteopathic university president Leonard Azneer was reimbursed by the school for contributions he made to political candidates.” [Des Moines Register, 1/12/1993]
Dr. Azneer gave $7,850 to Branstad. The Des Moines Register reported in January 1993 that “Between 1986 and 1991, for example, he [Azneer] donated at least $7,850 to Gov. Terry Branstad’s re-election effort. Branstad is a Republican.” [Des Moines Register, 1/12/1993]
Dr. Azneer was charged by the Polk County Attorney. The Des Moines Register reported in March 1994 that “Azneer also has been charged by the Polk County attorney’s office with violating the state’s campaign contribution laws. In a pre-trial ruling in January, however, Polk County Judge Scott Rosenberg said prosecutors must prove Azneer knew he was breaking the law. That ruling is being appealed, Assistant Polk County Attorney Fred Gay said Wednesday.” [Des Moines Register, 3/17/1994]
Steve Goldin was convicted of money laundering, charged with bribery. The Cedar Rapids Gazette reported in October 1994 that “Goldin, 50, of Lisbon, pleaded guilty Tuesday to a federal charge of money laundering stemming from illegal business dealings with Cedar Rapids public works departments. He also faces 15 state charges, including 11 counts of bribing city department managers to induce them to buy products from his companies, Intertrade Chemical Inc. and Cedar Rapids Seed Co.” [Cedar Rapids Gazette, 10/13/1994]
Branstad refused to return contribution from Steve Goldin. The Cedar Rapids Gazette reported in November 1994 that “Brammer called last month for Branstad to give back $3,100 his campaign received from Goldin. Federal authorities have established a ‘Registry Fund of the Court’ to accept returned Goldin contributions , but Branstad has indicated he will not return the money from Goldin. [Cedar Rapids Gazette, 11/23/1994 ]
Branstad said there is no way his campaign could know the activities of all of his donors. The Cedar Rapids Gazette reported in October 1994 that “Gov. Terry Branstad, whose campaign has received $3,100 in political contributions from Goldin since 1990, said he was happy to see the corruption uncovered and the alleged perpetrators brought to justice, but he was not inclined to send any money to the account set up by Serbousek. ‘We did not know that he was involved in any wrongdoing, and I don’t think it is appropriate to return campaign contributions,’ Branstad said. ‘We have 25,000 people who have contributed to our campaign, and we have no way of knowing the activity of those individuals.'” [Cedar Rapids Gazette, 10/15/1994]
Curt Beason Contributed $250 to Branstad on 5/21/2010. [Iowa Ethics and Campaign Disclosure Board]
Curt Beason Was A Host of a Branstad Fundraiser on May 4, 2010. [Branstad Fundraiser Invitation]PAY FOR PLAY
Businessman Held Fundraiser for Branstad Within Month of Getting $25 Million State Contract. The Des Moines Register reported in November 1992 that, “Within a month of receiving a contract worth $25 million of Iowa tax money, an influential Republican businessman held a political fundraiser for Republican Gov. Terry Branstad. Clark McLeod, owner of McLeod Telecommunications Group, and Tom Collins, a Cedar Rapids lawyer, co-hosted a $75-per-person event to help pay for Branstad’s “ongoing political activities.” The fund-raiser was held recently at McLeod’s home on the fashionable southeast side of Cedar Rapids. Last month, state officials approved a 10-year maintenance contract to McLeod’s company by Kiewit Network Technologies.” [Des Moines Register, 11/16/92]
20 DIFFERENT SCANDALS IN 12 AGENCIES
· Terry Branstad has a long record of mis-management and ethical violations when he was Governor, this is just a sampling of 20 different scandals across 12 different agencies:
· Governor’s Office (1983-1994): Branstad and staff illegally use state resources for political fundraising, opposition research, legislative candidate recruitment, and campaign strategy planning.
· Governor’s Office (1983): Branstad ignores DCI request for more time to background check appointees to first Racing Commission. One Commissioner has to resign within days after allegations of bid rigging and employing illegal immigrants in his business.
· Iowa Development Commission (1984): Director Jack Bailey admits a jobs report was altered at the request of the Governor’s Office in order to make it appear Branstad had created more jobs.
· Governor’s Office (1984): Auditor Johnson and Attorney General Miller conclude that Branstad illegally used the state plane for political purposes.
· Department of Transportation (1984) – Parts manager accused of stealing about $10,000 worth of items from DOT central warehouse.
· Beer and Liquor Control Department (1984): Deputy Director and Properties Manager had an affair and made various inappropriate expenditures with Department funds. Despite Inspector General’s recommendation that they be fired, they receive only 30 day suspensions.
· Iowa Development Commission (1985): Director Jack Bailey uses a state luxury Buick twice as often for personal use than for state business.
· State Historical Department (1985): It is discovered that the Department Accountant kept two sets of books, misused public donations for personal use, and illegally misappropriated federal funds. This scandal does not appear to have been made public at any time.
· 1987-1990- Monty Branstad’s FmHA loan forgiven after a call to FmHA by former Chief of Staff Doug Gross. Other farmers are aggressively pursued for repayment. Monty’s is the largest loan ever forgiven at the time.
· Office for State-Federal Relations (1988) – Office Director Phil Smith, with Branstad’s knowledge, used state resources to raise money for the Republican Governors Association.
· Department for the Blind (1989): Second Ranking Official at the Department for the Blind is discovered to have embezzled $103,000.
· Iowa Department of Economic Development (1990): DED makes $400,000 in state business loans to two drug dealers.
· Board of Parole (1990): Matthew Gill paroled after serving 28 months of a 50 year sentence for murder. Gill’s friend, Frank Starr donated $2,750 to Branstad’s campaign during Gill’s imprisonment, none afterwards.
· Governor’s Office and Department of Public Safety (1992): Governor’s Office accused of ordering DCI agents to back off strict regulation of riverboat gambling industry.
· Iowa Veterans Home (1991) – Budget cuts put resident care at risk and some staff speculate the cuts are causing resident deaths.
· Iowa Veterans Home (1993) – Branstad’s privatization of food service at the Iowa Veterans Home leads to a spike in food safety violations and complaints about the quality of the food.
· Governor’s Office (1994) – Ethics Complaint filed against Branstad spokesman Dick Vohs for acting as campaign spokesperson while on state payroll.
· Governor’s Office (1994) – Doug Gross’ influence in lobbying for prison in Clarinda is investigated. A report by Auditor Johnson and Treasurer Fitzgerald finds that clients of Gross’ law firm have received over $160 million in state contracts over five years.
· Department of Elder Affairs (1995) – Long-term care ombudsman muzzled and position eliminated until overruled by the federal government.
· Department of Education (1995-1996) – Branstad gives Department of Education Director Al Ramirez a $24,500 payment to leave after only 1 ½ years on the job. While the fee was ostensibly for consulting for the new director, Ramirez never did serve as a consultant.