Governor-elect Terry Branstad has asked Nancy Richardson to remain head of the Iowa Department of Transportation “through the 2011 legislative session.” Governor Tom Vilsack appointed Richardson to head the DOT during his second term; she was one of the few department heads Governor Chet Culver kept in place. A Branstad press release with background on Richardson is after the jump. It says she “is a strong leader and we appreciate her willingness to serve in the administration as we continue our nationwide search for a new director.”

Perhaps Branstad will take several months to consider DOT candidates from around the country, but he hasn’t been using that kind of process for other appointments announced so far. Shortly after the election, he offered the Department of Inspections and Appeals director job to Rod Roberts, who hadn’t even applied for the position, let alone competed against other possible appointees in an interview.

My first thought on hearing the news about Richardson was that Branstad has already decided on a new DOT director, but for some reason that person isn’t available to start the job until the spring. (The Iowa legislature’s 2011 session begins in January; most years, legislators wrap up their work in April.) It could be someone outside Iowa who needs a few months to relocate, or someone who needs to finish a major project in her/his current job, or perhaps a sitting state legislator who doesn’t want to step down until after the session.

Alternatively, Branstad may have someone controversial in mind for the DOT position. State department heads must be confirmed by the Iowa Senate. If Branstad appoints Richardson’s replacement after the session ends, that person will be able to serve on an interim basis until the Senate considers the nomination in early 2012.

UPDATE: Branstad’s spokesman Tim Albrecht told the Des Moines Register, “We do not have anyone lined up at this time. We are still in the midst of our search, and that is not confined to the borders of Iowa. This is going to be a thorough search to find the right individual.” I wonder why Branstad wants a much more lengthy search for this position than for various other important state departments.

While she stays on the job, I hope that Richardson will help persuade Branstad not to back out of a passenger rail project that would connect Iowa City to Chicago via the Quad Cities. Richardson isn’t a visionary for alternative modes of transportation, but she supported the Culver administration’s efforts to promote passenger rail in Iowa. Branstad said he is reviewing the costs and benefits of the project. The federal government has approved $230 million in funding for the Iowa portion of the rail connection. Republican Senator Chuck Grassley has spoken favorably about the project, and Des Moines business leaders hope the Chicago-Iowa City connection will one day be extended through Des Moines and on to Council Bluffs and Omaha.

Republican governors-elect in Ohio and Wisconsin have rejected federal funding for passenger rail projects. That decision is already costing Wisconsin jobs and will cost Ohio economic development opportunities.

Longtime Iowa political operative Gentry Collins officially announced yesterday that he will run for chairman of the Republican National Committee this January. Collins filed paperwork for the race last month shortly before he resigned as the RNC’s political director. One of the three Iowa RNC members, state party chairman Matt Strawn, has already endorsed Collins.

However, RNC member Steve Scheffler told The Iowa Republican blog that he will back Wisconsin GOP chairman Reince Priebus for RNC chairman.

Not only is Scheffler supporting Priebus, but he has agreed to serve in Priebus’ “kitchen cabinet.” […]

Preibus won Scheffler’s support by being a strong defender of Iowa’s first-in-the-nation status, having a strong stance on social issues, and pledging to run a tight ship if elected to lead the RNC.

Scheffler’s support of Priebus is also a blow to Gentry Collins’ bid to be RNC chairman. Collins, an Iowan, has spent years working in Iowa politics. His inability to secure the support of all three Iowa RNC members will likely be a red flag to other members of the committee.

Scheffler would have come into contact with Collins when Collins was running Mitt Romney’s Iowa campaign in 2007. Scheffler heads the Iowa Christian Alliance, which organized house parties featuring Romney and several other Republican presidential candidates before the caucuses. (Neither Scheffler nor the Iowa Christian Alliance endorsed a candidate in that GOP field.) Scheffler was elected to represent Iowa at the RNC in July 2008, and Collins worked for John McCain’s campaign in Iowa during that year’s general election.

I haven’t seen any public comment from Iowa’s third RNC representative, Kim Lehman, regarding the upcoming race for chairman. She and Scheffler are ideologically similar, having been elected by the same faction of socially conservative delegates to the Iowa GOP state convention in 2008. In January 2009, Scheffler and Lehman publicly supported Katon Dawson for RNC chairman. He lost to current chairman Michael Steele on the sixth round of balloting.  

Governor-elect Terry Branstad announced yesterday that Brenna Findley will be his administration’s legal counsel. Findley was bound to get a good job in state government, given the national and state Republican money behind her candidacy for attorney general, and the way Branstad promoted her all year long. He also appeared in one of Findley’s television commercials, which he did not do for other down-ticket Republican candidates.

I had heard rumors Findley might be put in charge of the Iowa Department of Public Safety, since her commercials in the attorney general’s race had a strong public-safety angle. On the other hand, the Iowa Senate has to confirm heads of state departments, and some might have questioned Findley’s qualifications for that kind of position.

Findley doesn’t have much experience in the practice of law, but Branstad doesn’t need state senators to confirm his staff appointees. Before running against Attorney General Tom Miller, Findley served as Representative Steve King’s chief of staff for seven years. Earlier this year, she joined a law firm run by former U.S. Attorney Matt Whitaker and State Representative Chris Hagenow, who (like Findley) are both potential Republican candidates for higher office. Branstad’s press release announcing his choice of Findley is after the jump.

Iowa’s U.S. Senators Tom Harkin and Chuck Grassley were among a large bipartisan majority that voted to advance a bill to extend unemployment benefits, the Bush tax cuts and various special tax breaks and credits. The Senate passed the cloture motion by a vote of 83 to 15. Just 10 members of the Democratic caucus and five Republicans voted against cloture for various reasons. A handful of senators who voted for cloture may vote against the bill itself, but the bill will pass easily.

The Los Angeles Times summarized key points in the Senate’s version of the deal President Barack Obama negotiated with Republican leaders in Congress:

The package extends the Bush tax cuts for two years on families at all income levels, including the wealthiest 2% who have incomes above $250,000 a year. Obama once campaigned against tax cuts for those earners.

The package also continues unemployment insurance through 2011 for up to 7 million Americans who otherwise would see their extended jobless aid expire.

One key change for most taxpayers will be a 2-percentage-point reduction in payroll tax worth up to $2,000. It replaces the so-called Making Work Pay tax cut for 95% of Americans, a break that expires Dec. 31.

The package also reinstates the estate tax that lapsed this year under a quirk of law. It establishes a 35% rate on inheritances above $5 million for singles and $10 million for families. […]

[T]he Senate added $10 billion in energy assistance, including nearly $5 billion in ethanol and coal credits that environmentalists oppose. But it also included an extension of grants for renewable energy developers, which supporters credit with having doubled solar plant production in 2010.

The package also includes a long, $55-billion list of specialty tax breaks that tend to be extended each year – help for Puerto Rican rum makers, racetrack developers and Los Angeles film producers.

I don’t have time to list all the shameful aspects of this deal tonight, but I discuss seven big problems after the jump. UPDATE: I recommend Rortybomb’s post on “who got what” in this package.

U.S. District Court Judge Henry Hudson ruled today that the individual mandate to purchase health insurance is unconstitutional. The mandate, scheduled to go into effect in 2014, is a key provision in the Patient Protection and Affordability Act, which President Barack Obama signed in March. The mandate creates a guaranteed increased market for private insurers in exchange for new regulations, such as ending discrimination based on pre-existing conditions. Most of the two dozen lawsuits filed against the federal health insurance reform law have challenged the individual mandate. Judges dismissed several of those cases earlier this year, but Virginia Attorney General Ken Cuccinelli found a somewhat sympathetic ear in Judge Hudson, who wrote, “No specifically constitutional authority exists to mandate the purchase of health insurance. […] Salutatory goals and creative drafting have never been sufficient to offset an absence of enumerated powers.”

Hudson arguably should have recused himself from this case, since he owns a significant share in the Republican consulting firm Campaign Solutions, Inc. That firm has worked against health care reform and for various Republicans, including Cuccinelli. But in fairness to Hudson, he rejected the plaintiff’s call to strike down the entire health insurance reform law, or to issue an injunction against implementing that law. In any event, legal challenges to the mandate are bound to work their way up to the U.S. Supreme Court one way or another. (The Justice Department will appeal Hudson’s ruling.)

Senator Chuck Grassley’s office released this statement:

As Ranking Member of the Senate Committee on Finance, in 2008 and 2009, Senator Grassley participated in the bipartisan effort for health care reform that could secure support across the political spectrum.  In September 2009, that effort was thwarted by Democratic leaders in Washington.  From 2007 through 2009, there was a rigorous debate over the individual mandate.  President Obama staunchly opposed it as a candidate for President.  The concerns he raised then became more clear as the reform debate unfolded, including enforcement.  Health insurance companies lobbied for the mandate, which drives billions of tax dollars in new subsidies directly to them.

Senator Grassley’s comment:

“The nonpartisan Congressional Research Service called requiring people to buy a good or service or be penalized a ‘novel issue,’ and now a federal court has ruled it unconstitutional.  The ruling is likely to be appealed, but it’s a clear signal that the constitutionality of the law, which was moved through Congress with a lot of controversy and partisanship, isn’t as certain as its supporters have argued.”

Hmmm, something seems to be missing from that statement. Oh, now I remember: Grassley supported an individual health insurance mandate in 1993 and 2007, and said in June 2009 that “there is a bipartisan consensus [in Congress] to have individual mandates.”

Senator Tom Harkin, a key author of the health insurance reform law, didn’t think much of the judge’s reasoning:

“On the merits, the Virginia Attorney General’s suit is clearly wrong.  When people seek medical care without health insurance and don’t pay for it, they aren’t ‘opting out’ of the health care market.  Instead, it adds more than $1,000 per year to the premiums of American families who act responsibly by having coverage.  This clearly affects interstate commerce and is thus within Congress’ power to regulate.  

“Two federal courts in Michigan and Virginia have already dismissed similar cases, and the Virginia court should have followed their lead.  I’m confident that the appellate courts and the Supreme Court will find the Affordable Care Act constitutional and in doing so, ensure that Americans keep crucial new protections against the unfair practices of insurance companies.”

I will update this post as other Iowa politicians comment on Hudson’s ruling.

UPDATE: From Representative Steve King, a leading Republican advocate of repealing the health insurance reform:

“With Judge Hanson’s decision, a federal court has now ruled in accordance with what I have always said – Obamacare’s requirement that Americans purchase health insurance or pay a fine is unconstitutional. Obamacare’s ‘individual mandate’ always restd on the absurd premise that the Commerce Clause empowered the federal government to regulate Americans’ decisions not to engage in commercial activity… With the ‘individual mandate’ that lies at the heart of the legislation ruled unconstitutional, the badly-flawed Obamacare law is now completely dysfunctional, further accelerating the need for Congress to repeal it.”

Governor-elect Terry Branstad hasn’t commented on this lawsuit, but he announced today that Brenna Findley will be his legal counsel. Findley was King’s chief of staff for seven years before running unsuccessfully for Iowa attorney general. She made challenging health insurance reform (specifically the individual mandate) a major issue in her campaign. Branstad promoted her candidacy at virtually every campaign stop and appeared in one of Findley’s television commercials.  

The Board of Regents unanimously approved requests last week for 95 sabbaticals in the coming year, to be taken by faculty at the University of Iowa, Iowa State University and the University of Northern Iowa. That number was way down from the 167 sabbaticals approved a few years ago. But Republicans, including the next Iowa House Speaker Kraig Paulsen, had called for a moratorium on sabbaticals to save money.

House Republicans have estimated that eliminating sabbaticals at the regents universities for a year would save taxpayers $6 million. However, “According to the regents, the 95 sabbaticals carry a $422,000 cost for replacement teachers, and last year’s sabbaticals generated $5.2 million in grants.”

Oops. The Republican savings estimate is off by more than a factor of ten. How did that happen? The Iowa City Press-Citizen explains:

[Iowa House Republicans’] projected savings apparently includes salaries that professors will earn whether they are on sabbatical or not.

Great fact-checking there on the House Republican staff. You’ve been circulating this $6 million figure for months, based on a false assumption that if universities stopped granting faculty sabbaticals, they could stop paying those professors’ salaries.

In a rational world, politicians wouldn’t try to micromanage affairs at the state universities, and would recognize their mistake in exaggerating the cost of sabbaticals. But Republicans have found an issue with a lot of symbolic punch. Like Paulsen says, “Why should the taxpayers of Iowa be paying to basically give these folks a year off from teaching?” Good universities have controls to ensure that faculty have research and publications to show for their sabbatical time, but the breaks from teaching can easily be portrayed as a big paid vacation for elitist eggheads.

Steve Kettering, who will be minority whip in the Iowa Senate, told the Press-Citizen that the regents’ vote on sabbaticals “is a thumb in their eye […] It just furthers the distance the people of Iowa feel about their universities. There is just a difference between the lives Iowans lead and the lives of the people in the university sector.” Kettering said legislators may respond either through reducing appropriations to the regents universities, or by passing a law to stop sabbaticals. I don’t think Republicans would be deterred by a Legislative Services Agency analysis showing the cost savings in the range of a few hundred thousand dollars, rather than the $6 million Republicans dream of.

Under Democratic control, the Iowa Senate probably would not pass a specific law halting sabbaticals, and senators would resist deep cuts to the regents universities’ budgets. However, if the Republican-controlled House appropriates far less to the universities, citing the regents’ failure to control costs, the final budget deal struck between the state senators and representatives could end up reducing appropriations by a lot more than the true cost of sabbaticals. The three state universities’ operating request for fiscal year 2012 is about $639 million.

A related concern is that yet again, we learn that a Republican proposal to save millions of taxpayer dollars isn’t supported by facts. Paulsen has made big promises about cutting hundreds of millions of dollars from the state budget in the current year and beyond, in order to pay for GOP tax-cutting plans. Where will that money come from? Laying off some state employees and axing a few Democratic initiatives, like the Power Fund and voluntary preschool for four-year-olds, won’t add up to enough in savings. Significant cuts to higher education may be on the way, and the Board of Regents could become the scapegoat.

LATE UPDATE: University of Iowa President Sally Mason and P. Barry Butler, the university’s interim executive vice president and provost, published a guest column in the December 28 Des Moines Register defending “career development assignments.” Excerpts are after the jump.

Most of Iowa is dealing with blizzard conditions today and tonight. Not much has accumulated in the Des Moines area yet, but the wind is howling. My kids are hoping for enough snow to build a snowman or go sledding tomorrow. Unfortunately, the high temperature may be in the single digits Fahrenheit, so we will probably spend most of the next 36 hours cooped up inside.

How do you stay occupied when you’re snowed in? The kids have been busy with legos and board games for most of the afternoon, and we started a new big jigsaw puzzle today too. If I get some time to myself later, I’ll work on Ken Ken or some other logic problem.

This is an open thread. What’s on your mind, Bleeding Heartlanders?

Earlier this year, the Democratic-controlled Iowa legislature passed one of the loosest “shall issue” gun permit laws in the country. The bill appeared to have died in the legislature’s “funnel”, but Democratic leaders revived it, and the final version passed both chambers by wide margins. Democrats presumably thought supporting the top legislative priority of the National Rifle Assocation would save many of their vulnerable incumbents. But even though the NRA endorsed Governor Chet Culver and many Democratic lawmakers, Republicans made huge gains in Iowa last month.

Now the NRA plans “a major push for expanded gun rights in Iowa,” Jennifer Jacobs reported in today’s Des Moines Register. The organization’s priorities for the 2011 legislative session are listed after the jump.

The ban on gays in the military appears likely to live on despite broad public support for letting gays serve openly and a Pentagon review showing repeal would pose a “low risk” to the armed forces. Democrats in Congress attached a Don’t Ask, Don’t Tell repeal provision to the 2011 defense authorization bill. But on December 9 the U.S. Senate rejected a cloture motion to proceed with considering that bill on a mostly party-line vote of 57-40. Iowa’s Tom Harkin was among 56 Democrats who voted to proceed with the bill; newly-elected Senator Joe Manchin of West Virginia gave a convoluted excuse for voting no, while just-defeated Senator Blanche Lincoln of Arkansas did not vote. Chuck Grassley was among all but three Republicans who voted no; two didn’t vote and Senator Susan Collins of Maine voted yes. Three Republicans who have claimed to support repealing the Don’t Ask, Don’t Tell policy upheld yesterday’s filibuster: Lisa Murkowski of Alaska, Scott Brown of Massachusetts and John Ensign of Nevada.

Negotiations between Senate Majority Leader Harry Reid and Collins of Maine appear to have broken down over how Reid would allow amendments to be offered to the bill, and/or the length of time he would permit for debate. Collins and Senator Joe Lieberman say they will offer a stand-alone bill to repeal Don’t Ask, Don’t Tell, but whether that bill could clear the Senate before the end of the year is a big question mark. Even if it does, the House may not have time to vote on it before the new Congress takes office.

President Barack Obama publicly opposes Don’t Ask, Don’t Tell, but he has so far declined to order a moratorium on discharges under the policy. That means federal courts will have the final say on whether the ban survives. A federal judge declared Don’t Ask, Don’t Tell unconstitutional earlier this year, and the U.S. Ninth Circuit Court of Appeals will take up the case next year.

In other Senate news yesterday, Republicans showed they were serious when they promised to block every single piece of legislation until the Bush tax cuts were all extended. The GOP caucus unanimously blocked consideration of a bill “that would provide medical benefits and compensation for emergency workers who were first on the scene of the September 11, 2001, terrorist attacks.” The vote was 57 Democrats in favor, including Harkin, and 42 Republicans opposed, including Grassley. According to the New York Times, “Republicans have been raising concerns about how to pay for the $7.4 billion measure,” which is laughable, because they have no problem voting for trillions of dollars in unpaid-for tax cuts.  Republican priorities disgust me, but they do know how to stay united, unlike Democrats.

Incidentally, Grassley said in a statement yesterday that he was able to get a full extension of ethanol and biodiesel tax credits included into the tax deal Obama negotiated with Republicans. Sounds like he will definitely support the package on the Senate floor (no concern from the phony deficit hawk about finding a way to offset the $858 billion price tag). Harkin hasn’t committed to voting yes or no on the tax cut deal. Grassley believes a short-term extension of unemployment benefits might have been possible even without a deal on the tax cuts. That would fall way short of what’s needed to help unemployed people and stimulate the economy. I am frustrated that no Congressional leaders in either party are serious about getting help to the “99ers” who have exhausted all their unemployment benefits.

Matt Strawn announced yesterday that he will seek another two-year term as chairman of the Republican Party of Iowa. The party’s State Central Committee will formally elect a chair in January, but no serious opposition to Strawn will emerge. He has the support of Governor-elect Terry Branstad, incoming Iowa House Speaker Kraig Paulsen, and Senator Chuck Grassley.

Strawn earned another term by guiding Iowa Republicans to major gains in the state. The political climate was generally favorable to the GOP, of course, especially in the Midwest, and the huge campaign war chests of Branstad and Senator Chuck Grassley gave Republicans a financial advantage. Still, Strawn helped lay the groundwork. Iowa Republicans had never focused on GOTV outside of their famed 72-hour operation just before election day. This year early voting among Republicans in the state was up 83 percent compared to 2006. According to Strawn, that success made it possible for the Republicans’ election-day GOTV to focus on state legislative races. Republicans exceeded expectations by winning six Democratic-held state Senate seats and racking up a net gain of 16 in the Iowa House.

Another reason for Republicans to stick with Strawn is that he can be a neutral figure in the run-up to the Iowa caucuses. To my knowledge, Strawn didn’t publicly support any of the 2008 presidential candidates who might run again next year. He and his wife Erin have donated to various Republican candidates, including members of Congress outside Iowa during the last few cycles, but I couldn’t find any record of contributions from them to presidential candidates. CLARIFICATION: Strawn was previously Iowa caucus director for John McCain, but he wasn’t associated with any Republicans who might challenge Barack Obama in the upcoming election cycle.

The state GOP can’t afford to have many candidates copy McCain’s strategy of mostly skipping Iowa, because the “straw poll” event set for August before each presidential caucus year is a major fundraiser for the party.

Speaking of which, I was intrigued to see Bob Vander Plaats say this recently:

Advisers differ on how late [Mike Huckabee] could jump in, but Vander Plaats said he’d advise Huckabee to wait until extremely late – after the August Iowa GOP straw poll – to survey the lay of the land and make up his mind.

“He could come in as an energized, fire in the belly, Fred Thompson,” he said, referring to the former Tennessee senator’s much-anticipated run in 2008 – a late entry that fizzled when Thompson seemed to have little stomach for the rigors of the trail.

Strange advice, since the 2007 Iowa GOP straw poll was Huckabee’s breakout event, thanks in large part to a helping hand from Americans for Fair Taxation. I’m struggling to think of any example of a presidential candidate doing well in the Iowa caucuses thanks to a late start on organizing. It sounds like Vander Plaats is trying to undermine the state party’s premiere fundraising event. Perhaps he thinks downgrading the straw poll will help elevate the significance of whatever his new organization (The Family Leader) has planned. Or, maybe he believes state party leaders were involved in helping recruit Terry Branstad back into politics at a time when Vander Plaats seemed to have the GOP gubernatorial nomination locked up. I’ve always wondered how much Strawn encouraged the business leaders who lobbied Branstad to run for governor in the summer of 2009.

Share any relevant thoughts in this thread.

Governor-elect Terry Branstad announced today that ophthalmologist Dr. Mariannette Miller-Meeks will run the Iowa Department of Public Health in his administration. A press release noted that Miller-Meeks “has served as the first woman President of the Iowa Medical Society and was the first [woman] on the faculty in the Department of Ophthalmology at the University of Iowa and councilor for Iowa to the American Academy of Ophthalmology.” Miller-Meeks was the Republican nominee in Iowa’s second Congressional district in 2008 and 2010. She worked hard during both campaigns but lost to Dave Loebsack in Iowa’s most Democratic-leaning Congressional district.

Also on December 9, Branstad announced that he will tap Chuck Palmer to head the Department of Human Services in his administration. Palmer did that job during Branstad’s previous time as governor from 1989 to 1999. Most recently he has been president of Iowans for Social and Economic Development, “an asset development organization with the mission of creating opportunities for low and moderate income Iowans to increase income and achieve financial stability.”

Branstad has pledged to reduce the size of state government by 15 percent, and keeping that promise would likely require significant cuts in the departments Miller-Meeks and Palmer will be running. The current budget (fiscal year 2011) allocated $935.5 million from the general fund to health and human services. That’s 17.7 percent of the general fund budget alone, or 15.9 percent of total state expenditures, including federal stimulus money and reserve funds as well as general fund spending. More than $200 million in federal stimulus money supported Iowa’s Medicaid budget in the current budget year, but similar support won’t be forthcoming in future years now that Republicans have a majority in the U.S. House of Representatives.

Branstad administration press releases on Miller-Meeks and Palmer are after the jump.

The House of Representatives approved the DREAM Act on December 8 by a vote of 216 to 198. The bill would give some undocumented immigrants brought to the U.S. as children a path to citizenship. Eligible people could obtain “conditional” status for six years provided they have no criminal record, have lived in the country for at least five years, and have graduated from high school or received a GED. To maintain legal status, people would have to pass a criminal background check and demonstrate that they have either attended college or served in the military for at least two years. Although 38 House Democrats opposed the DREAM Act yesterday, all three Iowa Democrats (Bruce Braley, Dave Loebsack and Leonard Boswell) voted for it. Only eight House Republicans crossed party lines to support this bill, and those did not include Tom Latham or Steve King. In recent weeks, King has slammed the DREAM Act as a “multi-billion dollar amnesty nightmare.”

The White House supports the DREAM Act, and the administration has mostly exempted students even as deportations of undocumented immigrants increased since President Barack Obama took office. However, Obama didn’t insist on passage of the DREAM Act as part of his tax cut deal with Congressional Republican leaders. The Senate is expected to vote on the House version of this bill next week. Although some Republicans support the DREAM Act, including Senator Richard Lugar of Indiana, I would be surprised if it passes during the lame duck session.

Incidentally, former Arkansas Governor Mike Huckabee has supported legislation like the DREAM Act in the last, but last week he said he opposed current bill before Congress. He must be aware that if he runs for president again, he’ll need to win over GOP primary voters and caucus-goers who overwhelmingly oppose what conservatives call “amnesty.”

Also on December 8, the House voted on the Seniors Protection Act. According to a statement from Braley’s office, that bill “would have provided a one-time $250 payment to seniors on Social Security, Supplemental Security Income (SSI), railroad retirement, and veterans disability compensation or pension benefits due to the lack of a cost-of-living adjustment for 2011 (COLA).” The bill received 254 votes in favor and 153 votes against but still failed, because it was brought to the House floor under a suspension of the rules, which requires a two-thirds vote to pass. The Iowa delegation again split on party lines.

Meanwhile, the offices of Representatives Braley, Loebsack and Boswell still have not responded to my requests for comment on Obama’s tax deal with Republicans. On December 9 the House Democratic caucus reportedly voted against bringing the deal to the floor, but that was a non-binding resolution. The bill could still pass with a minority of Democratic votes and a majority of Republicans. On the Senate side, Republican Chuck Grassley says the deal is better than doing nothing. Democrat Tom Harkin says he is working behind the scenes to improve the deal and is inclined to vote no without some changes. However, even as he criticized Obama’s negotiating strategy, Harkin didn’t rule out supporting the deal until he sees the final package.

UPDATE: Braley released this noncommittal statement on December 9:

“As the tax cut package takes shape, I want to reiterate my support for a tax cut extension for every American family on incomes up to $250,000.  I continue to fight for an extension of unemployment benefits, especially during the holiday season.  I remain extremely concerned that extending Bush’s tax cuts to the wealthiest 2% of Americans will explode the deficit.”

“I continue to fight to cut taxes for Iowa’s families and I am working to ensure our future generations are not saddled with extreme debt.  I look forward to reading the legislative language produced on the bill before making a final decision on these important issues.”

SECOND UPDATE: Steve King talked to the Sioux City Journal’s Bret Hayworth:

King said he dislikes that the tax cuts are only extended for two years. He said he wouldn’t go to the mat to extend the tax cuts permanently, but that they should be at a minimum extended five years so people sitting on capital to invest will know their tax liabilities for a longer period.

Further, King doesn’t like the unemployment benefits extension, since he said that only encourages people to not work and continue to receive those dollars.

THIRD UPDATE: Loebsack’s office says he “has consistently supported extending the middle-class tax cuts. He is also pleased to see that an extension of emergency unemployment benefits and additional tax cuts for hard-working families are included, along with potential extensions of renewable energy tax credits.  He is actively working to improve the proposal as it develops in order to ensure that the best interests of Iowans are being served.”  

Incoming Iowa House Speaker Kraig Paulsen discussed plans for shrinking state government in a December 8 speech. Rod Boshart has the story:

“You should us expect us to make some tough choices,” Paulsen told a Des Moines Partnership lunch crowd. “I think you’re going to see us just wholesale eliminate a couple difference programs and a couple different offices and we’re going to start with those that have marginal or no benefit.

The incoming House leader said voters sent a clear signal that government at all levels is growing too big too fast, regulating too much, and spending and taxing too much – issues the reconfigured House plans to address next session.[…]

The Power Fund has been administered by the Iowa Office of Energy Independence in conjunction with the Iowa Power Fund Board, two entities that were created when the program was enacted in the 2007 legislative session.

Paulsen also said he would prefer to replace the Grow Iowa Values Fund, started by former Gov. Tom Vilsack, with “things that would grow the economy” under the new public-private partnership envisioned by Governor-elect Terry Branstad [….]

Paulsen’s premise is incorrect. Iowa’s state government has not been growing during the past decade; on the contrary, general fund spending has fallen as a share of the economy and of personal income. But that’s a subject for another day.

House Republicans have advocated cutting the Power Fund for some time, and doing so would theoretically save $25 million per budget year. According to Boshart, the Values Fund received $45 million in fiscal year 2010 and $38 million for fiscal year 2011. I don’t believe the real savings will be nearly so large, because too many business interests have benefited from Values Fund and Power Fund grants. Lobbyists will work to ensure that significant funding for business support remains under a different department or program.

In addition, the Iowa Senate, which is under Democratic control, may insist that the state continue to invest significant resources in renewable energy. Senate Majority Leader Mike Gronstal said last month,

If [R]epublicans have another approach that will help keep us at the forefront of renewable energy in this state and clean energy and green energy we’re completely open to looking at that. It doesn’t have to be called a power fund, it doesn’t have to be called I-jobs.

I will say this: cutting the Power Fund is more realistic than some other big savings proposed by House Republicans in the past. I expect Paulsen will be disappointed by the Legislative Services Agency’s analysis of how much can truly be saved by privatizing the state vehicle fleet or denying benefits to undocumented immigrants. The Iowa Senate will block efforts to eliminate the preschool program, although some money may be saved by means-testing that program, as Governor-elect Terry Branstad has advocated. Last year’s government reorganization already improved efficiencies in state purchasing.

One old Republican idea I haven’t heard Paulsen mention lately is implementing “the Principal Plan” to impose salary cuts on non-union state employees. House Republicans have called for requiring the governor to negotiate pay reductions on a sliding scale, from 2 percent for employees earning less than $40,000 per year up to a 10 percent salary reduction for those earning more than $100,000. This pdf file shows the projected savings in the different categories.

Share any thoughts about the state budget in this thread.

John Lennon was murdered outside his apartment building in New York City 30 years ago today. Tributes can be found all over the internet; I was moved by noweasels’ account of that night.

I have loved Beatles music as long I can remember. Although I’ve always been more of a “Paul” person, some of John’s songs are among my favorites, especially in the early Beatles catalog.

Governor-elect Terry Branstad announced today that former State Representative Rod Roberts will head the Iowa Department of Inspections and Appeals in the next administration. Roberts gave up his seat after six five terms in the Iowa House to run for governor. He won about 9 percent of the vote in the Republican primary. I believe his candidacy helped Branstad by attracting social conservatives who might otherwise have consolidated behind Bob Vander Plaats.

Branstad and other Republicans have criticized Dean Lerner, the head of the inspections and appeals department in Chet Culver’s administration. They claim state inspectors have been too tough on businesses, particularly nursing home owners. The nursing home industry already gets most of what it wants from state legislators, and will cheer Roberts’ appointment. I am skeptical that Branstad plans to improve on his dismal record of nursing home regulation.

UPDATE: Clark Kauffman reported in the Des Moines Register on December 9,

Roberts, 53, told The Des Moines Register Wednesday that he didn’t apply for the job. Instead, he said Branstad contacted him shortly after the election and offered him the job. […]

Roberts said his 10 years of experience as a lawmaker will help him lead the agency, although he acknowledged he faces a steep learning curve because he has no staff management or regulatory experience.

Roberts also said he would not have any conflicts of interests – despite ties that he and his wife have to facilities that are inspected and regulated by the employees he will supervise.

Roberts has served on the boards that govern the New Hope Village care center in Carroll and its charitable foundation.

His wife, Patricia Roberts, is director of development for the foundation that provides financial support for St. Anthony Regional Hospital and Nursing Home in Carroll.

Kathie Obradovich argues that Roberts should “pledge to have no part in any regulation of operations where he has personal ties and relationships. Staff members should handle it.”

Also on December 8, Branstad named Teresa Wahlert as his choice to head Iowa Workforce Development. She is a past president of the Greater Des Moines Partnership and a member Iowa Business Hall of Fame who informally advised Branstad’s gubernatorial campaign.

Finally, Branstad announced that Courtney Kay-Decker will head the Iowa Department of Revenue. Kay-Decker is a Davenport attorney who was a member of the Iowa State Tax Review Board from 2000 to 2007.

Press releases with background on the three latest Branstad appointees are after the jump. I expect the Iowa Senate to confirm them all.

Meanwhile, outgoing Governor Culver was in Washington recently. Culver told the trade publication North American Windpower that he met with members of Congress to advocate for legislation to promote renewable energy. Presumably some job-hunting was going on as well.

For the near term, Culver will focus on completing the five weeks he has remaining as Iowa governor. After that, he will begin weighing his options. He wants to stay involved with either a wind energy company or a public interest group, adding that he would rather focus his energy on the task at hand rather than dwelling on the November defeat.

Culver chaired the Governors’ Wind Energy Coalition and lobbied Congress for a strong renewable electricity standard while the federal climate change bill was being debated. I don’t expect any progress on promoting renewable energy at the federal level, especially now that Republicans will control the House of Representatives. The tenative tax cut deal President Barack Obama struck with Republican leaders includes extending biofuels subsidies but not tax credits for wind or solar power.

Elizabeth Edwards has died of breast cancer at the age of 61. Her cancer was diagnosed in the fall of 2004, and recurrence was found in March 2007. Click here for the New York Times obituary.

Many Iowans got to know Elizabeth well during John Edwards' two presidential campaigns. I saw her speak many times but met her only once, at a crowded fundraiser in a private home during the summer of 2007. My kids were with me in a stuffy, overcrowded basement, and Elizabeth spent a surprisingly long time entertaining my bored four-year-old. I remember thinking it was above and beyond whatever time she needed to spend to acknowledge everyone while "working the room." She was good with kids. I feel sorry that the last few years of her life were so difficult for her and her family, as if fighting cancer weren’t stressful enough.

My thoughts tonight are mostly with her surviving children, especially Emma Claire and Jack. When I was about their age, I lost my mother to cancer. Elizabeth's death will always affect their lives, although other family members may ease the blow if they step up to the plate in the coming years. I feel for Cate, who as a teenager had to cope with her only sibling's death, and now will need to help her two younger siblings deal with a major bereavement.  

The Edwards family has asked that memorial contributions go to the Wade Edwards Learning Lab, a non-profit they set up in memory of their son Wade, who died in a 1996 car accident. I never knew before tonight that a few weeks before Wade died, he received an award at the White House for writing this essay.

Elizabeth Edwards posted a "farewell" message on Facebook this week, and I've reproduced it after the jump, along with reaction from various Iowa political figures.

P.S.– Elizabeth reportedly advised her husband to vote against the resolution authorizing the use of military force in Iraq in October 2002. If he’d had the guts to listen to her advice, he may have become the Democratic nominee in 2004, as a more electable alternative to the main anti-war candidate in the field, Howard Dean. Elizabeth also said in the summer of 2007 that she thought same-sex marriage should be legal, although her husband disagreed.

UPDATE: The Edwards family created a new website where people can share memories of Elizabeth, whether they knew her well or only met her once.  

Governor-elect Terry Branstad announced three appointments on December 7. He will retain Brigadier General Tim Orr as Adjutant General of the Iowa National Guard, a post Orr has held since March 2009. Story County Treasurer Dave Jamison, who unsuccessfully ran for state treasurer, will head the Iowa Finance Authority in the Branstad administration. Retired Iowa Army National Guard Brigadier General Jodi Tymeson will lead the state Department of Veterans Affairs. Tymeson retired from the Iowa House this year, having represented district 73 for five terms.

Press releases containing background information on all three appointees are after the jump. None of them should have trouble being confirmed by the Iowa Senate. I noticed the Branstad administration’s bio of Tymeson didn’t mention her most recent role as co-chair of Bob Vander Plaats’ gubernatorial campaign.

Branstad has asked all state department heads to send him their resignations by December 15. He will replace most, if not all, of Governor Chet Culver’s appointees.

Branstad named three new staffers today. His liaison to the Iowa House and Senate will be Todd Schulz, who has handled government relations for Newton-based Iowa Telecom. The governor’s executive scheduler will be Alicia Freed, a former staffer for Senator Chuck Grassley who most recently worked as project manager for RuffaloCODY LLC in Cedar Rapids. Jimmy Centers, who was northeast Iowa field coordinator for Branstad’s gubernatorial campaign, will be deputy communications director. I wouldn’t be surprised if Centers got a promotion before too long, because Branstad’s communications director Tim Albrecht may go work for one of the Republican presidential campaigns in 2011.

Meanwhile, Branstad spoke about his property tax plans while addressing the Iowa Taxpayers Association’s annual meeting in West Des Moines today.

In proposing to cut commercial property tax rates by 35 percent to 40 percent for new businesses and phase down rates for existing businesses in a like manner over four or five years, Branstad said part of the lost revenues for local entities could be offset by increased business activity that would generate new property tax receipts. He also suggested that cities and counties should be less aggressive in offering tax increment financing and abatements that create disparities among new and existing businesses.

The price tag for lowering the commercial property tax burden would depend on the growth the proposed relief could generate, he said. Branstad said his plan would be to provide state funding to hold local governments “harmless” but not give them a windfall in the process – similar to when the state phased out the property tax on machinery and equipment in the 1990s when he previously served as governor.

“We want to make this adjustment in a fair way,” Branstad said, conceding that the cost could be as much as $500 million over four years.

The Iowa Taxpayers Association supports Branstad’s property tax plans, but Republican legislative leaders have warned getting the proposal through the legislature will be difficult. Yesterday Democratic Senate Majority Leader Mike Gronstal described the phase-out of the property tax on machinery and equipment as “pretty close to the biggest unfunded mandate in the history of the state.” The executive directors of the National League of Cities and the Iowa League of Cities both expressed concern about Branstad’s proposal:

No other state in the nation is considering similar cuts to commercial property taxes, said Donald Borut, executive director of the National League of Cities, a national advocate for municipalities. Resulting cuts to key city services such as police protection and road improvements ultimately could push businesses away, he said.

“The objective” to lower commercial property tax “is a laudable one, but the cost to municipalities could be draconian,” Borut said. “If there is some way to guarantee in blood that the municipalities would be held harmless, it’s one thing, but I don’t know how one can do that. Even with the best intentions, the pressures would be enormous.”

UPDATE: James Q. Lynch has more on local government officials worrying about Branstad’s property tax proposals. In that piece, Cedar Rapids Mayor Ron Corbett raises some good points:

Cedar Rapids is more dependent on property taxes than many communities, Corbett said. It has no gaming revenue and it local option sales tax is dedicated to flood recovery.

On a personal level, he’d like to see property tax relief targeted to benefit local businesses.

“Is there some different classification within commercial property tax base so you’re not giving Wal-mart a tax break at the same level as small business” he said.

Iowa Senate Democratic leaders announced committee assignments on December 6. After the jump I’ve posted details on the leadership team and committee chairs. Asterisks are next to the names of all Democrats who were elected to four-year terms in 2008 and therefore will be up for re-election in 2012. Redistricting will force some Democrats who were just elected this year to be on the ballot again in two years, but until the new map is approved, we won’t know where the extra elections will take place.

Democrats currently hold 26 of the 50 Iowa Senate seats. Republicans hold 23 seats, and a special election will be held in Senate district 48 in January. Senate Republican leader Paul McKinley announced committee assignments on December 7. Scroll all the way down for the list of GOP leadership and ranking members in the upper chamber.

President Barack Obama announced the “framework” for his unilateral surrender betrayal of core principles deal with Republicans on extending the Bush tax cuts today. It’s worse than I expected, which is saying something. Republicans get tax cuts for all income levels extended for two full years (we’re supposed to believe Obama will stand up for letting them expire during a presidential election year). They agreed to extend some unemployment benefits, but only for 13 months. Although long-term unemployment is at historically high levels, the “99-ers” (people who have exhausted 99 weeks of unemployment benefits) will get nothing out of this framework. To sweeten the deal for Republicans, the estate tax will be reduced to 35 percent, and it will apply only to estates exceeding $5 million in assets. That’s very costly and not at all stimulative. To provide more disposable income for working people, the payroll tax on employees will be cut by two percentage points for a year. That’s good as long as it doesn’t become an excuse later to cut Social Security benefits. UPDATE: David Dayen reports that a senior administration official told him the payroll tax cut “would be paid for out of general revenue through a credit, and so would not impact Social Security and Medicare finances in any way.”

It astounds me that Obama could think he will gain politically from this bargain. How many videos like this one are floating around? October 30, 2008: “Why would we keep driving down this dead-end street? […] At a moment like this, the last thing we can afford is four more years of the tired old economic theory that says we should give more and more to billionaires and corporations and hope that prosperity trickles down on everybody else.”

After the jump I’ve posted some Iowa politicians’ reactions to the deal. I’ll update as more statements become available.

UPDATE: Late on Tuesday afternoon, the offices of Representatives Bruce Braley (D, IA-01), Dave Loebsack (D, IA-02) and Leonard Boswell (D, IA-03) have not responded to my requests for comment on the tax deal. How hard is it to express an opinion about the major decision of the lame-duck session? U.S. Senate conservadem Mary Landrieu of all people came out guns blazing today against the “moral corruptness” of the deal.

Iowa’s three-member Revenue Estimating Conference again raised projections for state revenues during the current fiscal year and fiscal year 2012, following another month of growing state tax collections in November. The news hasn’t deterred Republican leaders from planning mid-year budget cuts, and legislators from both parties acknowledged the end of federal stimulus funds will make the next budget year difficult. Details and proposals are after the jump.