Last night the Iowa Senate passed Senate File 2088, which would reorganize state government, after four hours of debate. All 32 Democrats in the chamber voted for the bill, along with three Republicans: Shawn Hamerlinck, Larry Noble and Pat Ward.

Click here for the full text of the bill. According to analysis by the Legislative Services Agency, Senate File 2088 would reduce state spending from the general fund by $74 million in fiscal year 2011 and $36 million the following year (here’s the link to the fiscal note on the bill). In addition, “Other funds, including local government pots of money, would save $44 million next budget year and just under $14 million the following year.” Jennifer Jacobs posted some of the key provisions and amendments at the Des Moines Register’s blog.

Unlike the 1985 state government reorganization, the current bill does not merge any state agencies. It doesn’t close any of Iowa’s four mental health institutes, but downsizes the one at Clarinda. That switch outraged legislators from southwest Iowa, because the Iowa Department of Human Services had recommended closing the Mount Pleasant Mental Health Institute in southeast Iowa instead.

Senate File 2088 requires bulk purchasing and centralized payroll and technology systems for most state agencies but exempts the three state universities from those provisions.

Rod Boshart recapped one of the more contentious episodes during last night’s debate:

The debate stalled when 11 majority Democrats joined the 18-member GOP minority in supporting an amendment to block a proposal to move the community empowerment program for early childhood education from the neutral state Department of Management to the Department of Education.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, switched his vote to be on the prevailing side then called a closed-door caucus after which senators voted 31-19 to reconsider the issue and approve the move of empowerment to the education agency by a 27-23 margin.

I wasn’t familiar with the Iowa Community Empowerment program, which is geared toward families with children under age six. Since early education programs are part of the Iowa Empowerment Board’s mission, it seems logical to bring the program to the Department of Education.

The original bill had eliminated the Property Assessment Appeal Board, but an amendment to keep that body intact passed by 46 to 4. Politically, that was a smart vote for the senators. Many Iowans are likely to see property tax increases this year, so it’s not a good time to make it more difficult for citizens to challenge their assessments.

Several Republicans have expressed doubt that the bill would guarantee the promised savings. Democrats rejected a number of Republican amendments, including one that would have increased health insurance costs for state employees and one that would have required a two-thirds vote in the legislature to approve any state bonding. (Such a threshold would have prevented last year’s passage of the I-JOBS infrastructure bonding initiative.) A complete bill history, including all amendments considered, is here.

Earlier in this session, the Iowa Senate approved Senate File 2062, a separate bill on early retirement incentives. That measure is expected to save about $57.4 million in fiscal year 2011, “including a $26.4 million savings to the state’s general fund.” That bill passed on a bipartisan 41-7 vote. The full text is here, and the bill history is here.

UPDATE: Over at Iowa Independent, Lynda Waddington reports,

Mental health advocates haven’t gotten everything they wanted in relation to new state policies governing psychiatric medications for individuals receiving state assistance. But they scored a big win Monday night when the Iowa Senate approved new language that ensures existing patients’ medications won’t be automatically switched in order to save the state money.

Read her whole story for more details and background.

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.

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.

The Republican National Committee won’t be imposing the “purity test” proposed by committeeman James Bopp of Indiana. During last week’s meetings in Honolulu, a group of state GOP chairs unanimously voted against requiring Republican candidates to agree with at least eight out of ten conservative policy stands in order to receive RNC support during the 2010 campaign.

Bopp withdrew his motion from the floor on Friday after a compromise had been reached. RNC members then unanimously passed a non-binding resolution that “only ‘urges’ party leaders to support nominees who back the party’s platform,” Politico’s Jonathan Martin reported.

Republican candidates for U.S. Senate in Illinois and Delaware would have failed Bopp’s purity test and therefore not qualified for RNC support. The resolution that passed does not penalize candidates who disagree with various “core principles” of the GOP. Still, Bopp tried to spin the compromise as a victory:

“You’ve got to determine that the candidate supports all the core principles of the Republican Party before you support them,” he said, explaining the alternate measure.

But when asked whether it was binding, Bopp was cut off by Oregon GOP Chairman Bob Tiernan, who was standing nearby the impromptu press briefing.

“That resolution passed is not binding; it’s a suggestion,” said Tiernan.

As Bopp began to again make his case for the compromise, Tiernan again interjected.

“There’s nothing mandatory or required in there,” the Oregonian noted.

“Can I answer the question, Mr. Chairman?” Bopp shot back.

Continuing, Bopp explained that he thought the RNC’s decision to, for the first time, make it party policy to urge candidates to pledge fealty to the GOP platform represented a significant step.

But Tiernan, standing just over Bopp’s shoulder, again rebutted his committee colleague.

“I’m not going to take that back and make my candidates sign it, that’s ridiculous,” Tiernan said, gesturing toward the compromise resolution in a reporter’s hand. “We don’t have a litmus test and we rejected the litmus test today.”

As Bopp continued, Tiernan again spoke up.

“There’s nothing binding in there,” said the state chairman.

“Can I finish?” a plainly annoyed Bopp asked.

“Read the words,” replied Tiernan.

“Shut up,” Bopp finally said.

Although the RNC papered over this dispute, clearly tensions remain over whether Republican leaders should insist that candidates be conservatives.

Two of Iowa’s RNC members, Steve Scheffler and Kim Lehman, supported Bopp’s purity test. Our state’s third representative on the RNC, Iowa GOP chairman Matt Strawn, didn’t comment on Bopp’s effort when it first emerged or last week, to my knowledge. I assume he agreed with other state party chairs, who according to various reports strongly opposed the idea. If that is inaccurate, I hope someone will correct me.

The Des Moines Register threw a sold-out party Saturday night to announce the route for the 2010 Register’s Annual Great Bike Ride Across Iowa. The 38th RAGBRAI will go through northern Iowa, beginning in Sioux City on the Missouri River and ending in Dubuque on the Mississippi. The other overnight stays will be in the towns of Storm Lake (Buena Vista County), Algona (Kossuth County), Clear Lake (Cerro Gordo County), Charles City (Floyd County), Waterloo (Black Hawk County), and Manchester (Delaware County).

Perry Beeman writes for the Des Moines Register,

RAGBRAI XXXVIII will treat riders to one of the shortest and flattest routes ever as it winds through northern Iowa from Sioux City to Dubuque. That combination means the 10,000 riders will navigate a 442-mile route that ranks as third-easiest historically, at least as far as hills and mileage go.

Click here to register for RAGBRAI. You can follow @ragbrai_iowa on Twitter here for updates between now and the ride.

I’ve never done RAGBRAI, and I probably never will unless my kids become cycling fanatics as they get older. But I would love to have one or more Bleeding Heartland users post updates from RAGBRAI this summer. In an election year you can count on plenty of candidate sightings and funny road/yard signs along the route.

Speaking of fanatics dedicated riders, on February 6 several hundred brave souls will complete the 32nd annual “BRR Ride,” a 24-mile loop from Perry to Rippey and back.

UPDATE: Click here for more on the full route, including pass-through towns.

This thread is for anything on your mind this weekend. After the jump I’ve posted details about lots of upcoming events in early February.

If you want to watch Senator Chuck Grassley do the “Friday Happy Dance” on WHO-TV, head on over to Dave Price’s blog.

The Polk County Democrats need more submissions of original recipes for the “Liberally Seasoned” cookbook they are compiling. By February 6, send polkdems AT gmail.com a word document including your full name and precinct, a paragraph about the dish, and a picture of the dish or yourself if possible. Categories: salads, appetizers, main dishes, vegetarian, desserts and drinks. They plan to have the cookbook ready by the Polk County Convention on March 12. For questions, call 515-285-1800.

DAWN’s List, which works to elect Democratic pro-choice women in Iowa, is seeking nominations for awards that will be given in five categories. Details are below, and nominations are due by the end of the day on February 1.

This week Matt Campbell made the official announcement he’s been planning for some time: he will seek the Democratic nomination in Iowa’s fifth Congressional district. Bret Hayworth was there for the Sioux City Journal. I agree with Campbell’s observation that four-term incumbent Steve King has “no major legislative accomplishments” (unless you count that House resolution recognizing the importance of Christmas in the Christian faith).

Campbell joins Mike Denklau, who announced his candidacy in IA-05 last October. Denklau responded to Campbell’s announcement with a press release emphasizing his background in business and finance, as well as his earlier start for this campaign.

You can learn more about both candidates at their campaign websites. Campbell is an attorney specializing in tax-related issues, and Denklau has professional experience in the banking world. Both have deep family roots in Iowa. To learn about the candidates’ policy priorities, read the issue pages on Campbell’s site and on Denklau’s site.

Running for Congress isn’t easy. I give full credit to these two Democrats who have stepped up to challenge King. The fifth district is unfortunately safe Republican territory for now; Rob Hubler ran hard for nearly two years and still lost to King by more than 20 points in 2008. However, we should not give any Republican incumbent a pass, especially one as offensive and ineffective as King. Last year King made the list of voices fellow Congressional Republicans said they would most like to “mute,” according to a survey by the National Journal. He tends to make the news in embarrassing ways and is proud of things that would make others feel ashamed.

Assuming Campbell and Denklau fight fair this spring and agree to support the eventual winner of the primary, it will help the Democratic Party in western Iowa to have two candidates out there mobilizing moderates as well as liberal voters. I hope both campaigns will work to register new Democratic voters before the primary, and both candidates will stay involved in Iowa politics no matter who goes on to the general election.

UPDATE: On February 2 State Representative Roger Wendt of Sioux City endorsed Denklau.

Rasmussen released a new poll of Iowa’s U.S. Senate race yesterday, and they found Chuck Grassley in safe territory, leading Roxanne Conlin 59-31, Bob Krause 59-26 and Tom Fiegen 61-25.

Conlin performs best among Democratic voters, but all three Democrats lose anywhere from 22% to 30% of their own party’s vote to Grassley. The Republican carries voters not affiliated with either party by more than 35 points against any of the Democrats.

Rasmussen surveyed 500 “likely voters” in Iowa on January 26. The poll has a margin of error of 4.5 percent.

Even taking into account Rasmussen’s “house effect” (a tendency to show more favorable results for Republican candidates), Grassley is above 50 percent and therefore in safe territory for an incumbent. He is going to be re-elected unless he starts making unforced errors. In 2006, Senator George Allen of Virginia had commanding leads over Jim Webb for quite some time before multiple gaffes allowed Webb to win. Senator Jim Bunning of Kentucky almost blew a very big lead in 2004 against Dan Mongiardo.

Despite the long odds, it’s still worth taking the fight to Grassley. Iowa Democrats have given him a pass too many times. Under pressure, he may start making mistakes on the campaign trail. Even if he doesn’t, keeping him below 60 percent would be a lot better for down-ticket Democrats than letting Grassley win with 70 percent, as happened in 2004.

Share any thoughts about the Senate race in this thread.

After deliberating for less than an hour, a Kansas jury found anti-abortion fanatic Scott Roeder guilty of first degree murder for shooting Dr. George Tiller in church last May. Roeder admitted killing Tiller and will be sentenced in March. Prosecutors are seeking a 50-year sentence with no possibility for parole. If Roeder is sentenced to life in prison, he could be eligible for parole in 25 years. During the trial,

[Sedgwick County District Judge Warren] Wilbert had barred Roeder from using a so-called necessity defense, aiming for an acquittal by arguing that the killing was necessary to prevent a greater harm – killing babies. But the judge allowed Roeder to present evidence that he sincerely believed his actions were justified to save unborn children – a defense that could have led to a conviction on the lesser offense of voluntary manslaughter.

On Thursday afternoon, however, Wilbert ruled that he would not give jurors the option of considering a voluntary manslaughter conviction, because such a defense requires that a person must be stopping the imminent use of unlawful force.

Unfortunately, Roeder succeeded in shutting down Tiller’s clinic, one of very few facilities where women could receive late-term abortions. Contrary to the propaganda you may have heard from the anti-choice movement, women seeking care from Dr. Tiller didn’t just casually decide during the second or third trimester that they didn’t feel like having children.

Kansas state law allows abortions on viable fetuses after the 21st week only if carrying the pregnancy to term would endanger the mother’s life or cause a “substantial and irreversible impairment” of a major bodily function. Courts have interpreted a “major bodily function” to include mental health.

Amanda Marcotte wrote before Tiller was murdered,

The argument for attacking Tiller is that he performs late term abortions, which are supposedly worse than early term ones, even though anti-choicers claim that a fertilized egg is the same thing as a 5-year-old child, so that shows that their targeting of late term providers is cynical politicking on its face.  But if you actually bother to look at why women get late term abortions, the targeting Dr. Tiller becomes even more horrifying.  Generally speaking, you’re talking about women who really wanted to have a baby, but who can’t have this one, because something is wrong with her health or that of the fetus.  Because of the sensitive nature of the situation, Dr. Tiller’s office offers a great deal of counseling services to their patients, who are often suffering trauma because of what’s happening to them.  In addition to counseling, there are baptism and funerary services, as well as photographing and footprinting, for people who want to say goodbye to the baby that they expected to have but couldn’t.  The levels of hate projected at Dr. Tiller are directly proportional to the levels of care he shows for women during this rough period of their lives.

Although Roeder will spend a long time in prison, it’s hard to feel justice has been served when he accomplished his goal.

State Senator Brad Zaun announced today that his campaign started running this television ad:

Five Republicans are competing in the primary to face Leonard Boswell in Iowa’s third Congressional district. Zaun is the first to go up on television. The ad hits very safe themes, with Zaun promising to “restore trust” and “common sense conservative values.” He also calls for ending deficits and “corporate bailouts” and notes that he will listen and believes the Constitution “means something.” I will update this post if I receive more details on the ad buy. I heard it is running on the CBS affiliate in Des Moines, but I don’t know yet about cable networks.

I haven’t seen any fundraising numbers from Zaun’s campaign. Jim Gibbons, who is backed by some very large Republican donors, raised about $207,000 during the last six weeks of 2009. He hired a campaign manager last month.

Dave Funk, darling of the Tea Party crowd, raised about $39,500 last year and started 2010 with about $16,500 on hand. He has hired several campaign staffers.

Craig Robinson of The Iowa Republican said Mark Rees has given his own campaign $50,000. Rees is campaigning as a relatively moderate Republican, and I’m curious to see whether he can get traction in a crowded field. He hired a campaign manager earlier this month.

The Senate voted to confirm Ben Bernanke as chairman of the Federal Reserve today, but it was hardly a ringing endorsement:

The 70 to 30 vote was the thinnest approval ever extended to a chairman in the central bank’s 96-year history.

The confirmation was a victory for President Obama, who had called Mr. Bernanke an architect of the recovery, but also signaled the extent to which the Fed, once little known to the public, has become the object of populist outrage over high unemployment and Wall Street bailouts.

In several hours of debate, senators said the Fed had abetted, then ignored, the housing and credit bubbles and allowed banks to keep dangerously low capital reserves and to make reckless lending decisions that ruined consumers. Some even blamed Mr. Bernanke for the falling dollar and questioned his commitment to free enterprise.

In contrast, Mr. Bernanke’s supporters were muted. Like a mantra, they said that the Fed had made mistakes but that Mr. Bernanke had helped save the economy from a far worse recession.

Eleven Democrats, 18 Republicans and independent Bernie Sanders voted against confirming Bernanke (roll call here).

Senators of both parties who opposed Bernanke said his monetary policy and poor oversight contributed to the financial meltdown of 2008. Various Democrats who voted against Bernanke said he had been too beholden to Wall Street interests.

I still think it was a mistake for Obama to nominate Bernanke for another term, but let’s hope the Fed chairman our mild-mannered economic overlord improves on the job.

UPDATE: MIT economist Simon Johnson argues that Bernanke’s reappointment was “a colossal failure of governance.” Worth a read.

SECOND UPDATE: Bleeding Heartland user ragbrai08 notes that seven senators voted for cloture (allowing the Senate to proceed to consider Bernanke’s nomination) before voting against confirming him. Here is the roll call on the cloture vote. The senators who voted for cloture but against Bernanke are Democrats Tom Harkin, Barbara Boxer (CA), Byron Dorgan (ND), Al Franken (MN), Ted Kaufman (DE), and Sheldon Whitehouse (RI), along with Republican George LeMieux (FL).

Republican Kent Sorenson’s narrow victory over State Representative Mark Davitt in Iowa House district 74 was perhaps the biggest upset in the state in 2008. The Democratic-leaning district includes much of Warren County, including Indianola and the Simpson College campus. Sorenson decided to run against Staci Appel in Iowa Senate district 37 instead of running for re-election to the House.

Scott Ourth announced plans to run for this seat in October and was already pounding the pavement months before that. I’d heard he was working hard, and I noticed that he reported strong fundraising in his filing with the Iowa Ethics and Campaign Disclosure Board. I didn’t realize until today that Ourth raised the bar for Democrats running for the Iowa House:

Ourth, a 50-year-old Democrat from Ackworth, claimed $37,359 in campaign contributions for 2009. The earnings, listed on a Jan. 19 disclosure form, trumped Rep. Tyler Olson’s 2005 record for the most money raised by a first-time Democratic candidate in the year prior to election year, according to Pat Murphy, speaker of the Iowa House of Representatives.

“No first-time candidate for the Iowa House from our party has ever gained this much financial support this early in the campaign cycle,” Murphy said in a prepared statement. “Mr. Ourth works very hard. His fundraising report definitely bears that out.” […]

More than 200 people donated by Jan. 1, including slightly more than 20 political action committees.

Ourth spent nearly $4,500, leaving him with approximately $32,800 on hand. Most of his expenses consisted of office equipment – he plans to use his home for a campaign headquarters, he said – and event invitations, according to his disclosure form.

The article goes on to say that at least one Republican plans to run in House district 74, but I haven’t heard any names floated. We’ll find out before the March filing deadline. Iowa House Republican leaders raised a lot of money last year, so they will be in a position to help out the eventual candidate here. But if I were in their position I would think hard before investing a lot in this district. Whoever jumps in for the GOP will start out way behind Ourth in retail campaigning as well as fundraising. Republicans have better opportunities to win some Democratic-held seats in other parts of the state, and some of their challengers will also need more money to be competitive.

House district 74 is likely to remain the best pickup opportunity for Democrats this year, but assuming Rod Roberts stays in the governor’s race, I like our chances in House district 51 too. (There are still a lot of Democrats in the Carroll area.) Picking up one or two Republican-held seats would make it much more difficult for the GOP to take back the Iowa House, where Democrats now have a 56-44 majority.

Any comments about state legislative races are welcome in this thread.

The Des Moines Register’s William Petroski reports today that the Obama administration declined requests for federal money to support Amtrak routes between Chicago and Iowa City and between Chicago and Dubuque.

A list of grants issued Wednesday night by the White House shows that Iowa will receive only $18 million in federal railroad passenger money. This includes $1 million to study a proposed passenger train that would run daily between Chicago and Omaha, including stops in the Quad Cities, Iowa City and Des Moines.

The remaining $17 million will be used to install four remote- controlled powered crossovers on the BNSF Railway tracks in the Ottumwa area. This will reduce travel times and improve on-time performance on Amtrak’s existing California Zephyr train that runs across southern Iowa, federal officials said.

Iowa and Illinois officials had sought $256 million in federal funds for the Chicago to Iowa City route, which would go through the Quad Cities, and $139 million for the Chicago to Dubuque route.

Dubuque and the Quad Cities may get passenger rail despite today’s disappointing news:

Even without the federal money, Illinois officials expect to begin Amtrak service between Chicago and Dubuque and Chicago and the Quad Cities, possibly within two years, officials said. That’s because Illinois Gov. Pat Quinn signed a $31 billion capital construction package last year to ensure the rail expansion.

But the federal grants would have bolstered both projects and would have assured the extension of the train service to Iowa City, and possibly eventually to Des Moines, officials said.

A feasibility study from 2008 showed promising numbers for an Amtrak route connecting Iowa City to the Quad Cities. A huge number of University of Iowa students are from the Chicago area, and many people living in that region of Iowa travel to Chicago for business or entertainment.

In comments to the Des Moines Reigster, Davenport Mayor Bill Gluba predicted yesterday that the Chicago to Iowa City train would receive some federal funding by 2013, even if the current grant request was denied. I hope he turns out to be right.

UPDATE: Governor Chet Culver’s response to this news is after the jump.

Representative Bruce Braley advocated a four-point “Blueprint for Recovery” in Politico yesterday. The House Populist Caucus, which Braley formed last year, has endorsed these proposals to “require Wall Street to pay for economic development on Main Street and to pay down our nation’s deficit.”

Compensation. We need to change the culture of limitless bonuses by passing the Wall Street Bonus Tax Act (H.R. 4426). America’s middle-class families saw their savings wiped out by Wall Street’s gambling addictions and then watched as their tax dollars went to save troubled banks. The targeted tax would apply only to executives at banks that received Troubled Asset Relief Program funding who took bonuses in excess of $50,000. The Bonus Tax Act would generate billions of dollars of new revenue that would be directed exclusively to reward small businesses that are investing in new jobs.

Speculation. We need to stop excessive and risky speculation on Wall Street by passing the Let Wall Street Pay for the Restoration of Main Street Act (H.R. 4191). This legislation would reinstate a tiny transaction fee on speculative stock transactions by Wall Street traders, creating $150 billion annually in new revenue that would be dedicated to job creation and reducing the deficit.

Job creation. A “jobless recovery” is not a recovery for the middle class. With a national unemployment rate hovering around 10 percent, it’s clear America’s middle-class families are still struggling to make ends meet.

That’s why we need to take the following two-pronged approach to creating good-paying jobs that can’t be outsourced: We need to pass the National Infrastructure Development Bank Act (H.R. 2521), which would establish a wholly owned government corporation to prioritize infrastructure improvement projects that would create good-paying jobs. We also need to pass the Buy American Improvement Act (H.R. 4351) to eliminate loopholes in existing domestic sourcing laws and ensure that taxpayer money is used to purchase American-made products and support American jobs whenever possible.

Click here for more details on the Wall Street transaction fees the Populist Caucus supports. The idea is worthwhile, but I am skeptical that the current economic team in the Obama administration would get behind it.

I’m not clear on why a new government corporation on infrastructure projects needs to be created (as opposed to just appropriating more funds for existing agencies to spend on high-speed rail, affordable housing or other infrastructure needs). I asked Braley’s office for comment on that part of the blueprint and received this reply:

The Populist Caucus believes we need a National Infrastructure Bank (NIB) now to invest in merit-based infrastructure projects-both traditional and technological-by leveraging private capital. In recent years, the private sector has raised more than $100 billion in dedicated infrastructure funds, but most of that money is being invested overseas.  We need an NIB to attract those funds into a U.S. market for infrastructure development.

It’s notable that the Populist Caucus is not backing broader populist measures, such as tax hikes for corporations and the top 1 percent of individual earners. Then again, Braley’s caucus prepared and approved this “blueprint” before Oregon residents approved two tax-raising ballot initiatives this week.

I won’t be liveblogging President Obama’s State of the Union address tonight, but here’s a thread for the Bleeding Heartland community to chat away. If you’re looking for a liveblog, I recommend Congress Matters or Open Left, where the threads don’t get crowded as quickly as at Daily Kos. The Des Moines Register set up a live chat here with “politics reporter Tom Beaumont and featured bloggers Connor Anderson, John Deeth, Graham Gillette, Steffen Schmidt and Art Smith.”

Alternatively, here’s a State of the Union drinking game (another variant is here).

Political Wire already posted excerpts from Obama’s speech. There are no surprises anymore.

Governor Bob McDonnell of Virginia will give the Republican response, but I think everyone is more interested to see whether there’s an outburst during the speech similar to Joe “You Lie!” Wilson’s last year.

I’ll update this thread later with some reactions to the speech.

Off-topic: Social historian Howard Zinn died today at the age of 87. Here’s a quotable quote from him: “If the gods had intended for people to vote, they would have given us candidates.”

LATE UPDATE: I caught part of the speech. I had the sinking feeling that Congress will act on everything Obama advocates that I oppose (new oil drilling, nuclear power plants, more money for “clean coal”), but won’t do the things I support (ending Don’t Ask Don’t Tell). He wasn’t specific enough about how Congress should move forward on health care reform. I did like his line about how Democrats still have the largest majorities either party has had in decades, and Americans elected them to solve problems, not “run for the hills.”

The full text of Obama’s speech (as prepared) is after the jump.

Steven Pearlstein wrote the speech Obama would give “in a more honest world.”

Reacting to the Republican response delivered by Virginia Governor Bob McDonnell, Steve Singiser pointed out a fundamental contradiction in the GOP stance on health care: on the one hand, they say we shouldn’t let the government take over health care, and on the other hand, they promise not to let the Democrats cut Medicare.

Roxanne Conlin’s campaign for U.S. Senate released partial fundraising numbers today, and they are impressive:

Total cash raised (Nov. 2 – Dec. 31):

$603,575.44

Cash on hand:

$502,832.84

Total individual donors:  1,649 (1,395 Iowans/85% Iowans)

Online supporters signed up:  Over 31,000

Donations $100 and under: 1,332

Donations $250 and under: 1,433

All of Conlin’s campaign contributions came from individual supporters, because she has pledged not to accept contributions from federal lobbyists or PACs. (I wouldn’t have advised her to take that stance, because there are PACs and lobbyists fighting for good things as well as those working against the public interest.) In any event, she has shown that she can raise enough money to staff and run a statewide campaign. Conlin is about a third of the way through a 99-county tour she began earlier this month.

I haven’t seen year-end fundraising numbers from Senator Chuck Grassley yet. At the end of the third quarter of 2009, he had more than $4.4 million cash on hand, so clearly he will still be way ahead in the money race. During the third quarter, when Grassley played a high-profile role in health care reform negotiations, he raised $864,622 total, of which $364,295 came from political action committees.

In other words, Conlin raised more from individual donors in two months than Grassley raised from individuals during the third quarter. That’s a strong pace, and it suggests a lot of Iowans are motivated to take the fight to Grassley. Conlin has already raised nearly five times as much as Democrat Art Small spent during his entire 2004 campaign against Iowa’s senior senator.

I don’t have new fundraising numbers from the other Democrats running against Grassley. Bob Krause raised $7,430 during the third quarter, ending with $3,493 on hand. Tom Fiegen raised $3,781 during the third quarter, ending with $519 on hand. I like many of the statements I’ve heard from Krause and Fiegen, but they have yet to show that they will be able to run a statewide campaign, and therefore appear to be extreme underdogs leading up to the Democratic primary in June. Neither Krause nor Fiegen seems likely to drop out of this race, however. On the contrary, Fiegen called on Conlin to quit the race last month, saying Republican attacks on her would divert attention from Grassley and the “needs of working families.” Yesterday Krause criticized one of Conlin’s tax credit proposals.

Grassley will be very tough to beat. His approval rating has fallen but is still above 50 percent, and he has set a goal of raising $9 million for this race. Even if Democrats don’t manage to defeat Grassley, giving him a spirited challenge is well worth the effort. Driving up turnout among Democrats whom Grassley has alienated can only help our candidates down-ticket.

UPDATE: Rasmussen conducted a one-day poll of this race on January 26. Grassley leads Conlin 59 to 31, Krause 59 to 26 and Fiegen 61 to 25 (margin of error 4.5 percent).

Senator Chuck Grassley said today he will vote against giving Ben Bernanke another term as chairman of the Federal Reserve. According to the Des Moines Register,

“I’ll vote no because of concerns of inflation and a pattern of resistance to accountability,” Grassley said. […]

Grassley dismissed the argument that defeating Bernanke would throw the financial markets off course. […]

“The Fed takes action once a month that affects the stock market,” Grassley added. “And we’re still going to have a Fed chairman. So, what’s the big deal?”

I find it odd that Grassley is concerned primarily about inflation in the current economic environment, and as Bleeding Heartland user PrairieBreezeCheese pointed out, even 1970s-like inflation is very different from the “hyper-inflation” Grassley warned about yesterday. Senator Jeff Merkley of Oregon, the only Democrat on the Senate Banking Committee to vote against confirming Bernanke last month, has laid out a stronger case against giving him another term. I am also in rare agreement with Republican Senator Jim Bunning of Kentucky, who has called for all senators to have a chance to review some unpublished Federal Reserve documents before voting on Bernanke’s nomination.

I’ve seen many different “whip counts” on Bernanke. It appears he will have little trouble gaining the support of at least 50 senators, and I doubt his nomination will be filibustered, because some Democrats who plan to vote against confirming him will vote for cloture.

Iowa Senators Tom Harkin and Chuck Grassley voted no on Tuesday as the Senate rejected an amendment to “establish a Bipartisan Task Force for Responsible Fiscal Action, to assure the long-term fiscal stability and economic security of the Federal Government of the United States, and to expand future prosperity and growth for all Americans.”

President Barack Obama supported creating that commission, which is the brainchild of Senate Budget Committee Chairman Kent Conrad. The goal is to find some way to get big Social Security and Medicare cuts through Congress. Don’t get me started on why a Democratic president and a bunch of Democratic senators are so keen on cutting the most successful programs Democrats have ever enacted.

Anyway, Conrad’s idea was for the commission to work out a comprehensive deficit reduction strategy, which Congress would be not be empowered to amend before voting on it. Two decades ago, a similar procedure was developed for recommending military base closings to Congress.

Conrad’s amendment, offered to a bill that raises the U.S. debt ceiling, failed on a bipartisan 53-46 vote. 36 Democrats, 16 Republicans and Joe Lieberman voted for creating the deficit reduction commission, while 22 Democrats, 23 Republicans and Bernie Sanders voted no (roll call here). Bloomberg News reported,

Conrad’s idea was attacked from the left and right, with groups such as the Washington-based anti-tax Americans for Tax Reform saying it would mean higher taxes while the AFL-CIO and NAACP said it would lead to cuts in federal benefits.

It was also opposed by lawmakers who lead congressional committees with authority over tax and spending programs. Among them are Senate Finance Committee Chairman Max Baucus of Montana, Appropriations Chairman Daniel Inouye of Hawaii, Commerce Committee Chairman Jay Rockefeller of West Virginia and Tom Harkin of Iowa, head of the health-care panel.

Senate Republican Conference Chair Lamar Alexander told Politico that Obama needs to “produce a Democratic majority in favor of” this idea if he wants more Republicans to vote for it.

During tonight’s State of the Union address, Obama is expected to announce plans to create his own deficit reduction commission. Bloomberg noted yesterday that “Such a panel’s recommendations ordinarily could be ignored by lawmakers, although Conrad, North Dakota Democrat, is trying to negotiate an agreement to guarantee a vote.”

Too bad the wrong North Dakota Democrat is retiring from the Senate.

Any relevant comments are welcome in this thread.

On Oprah Magazine’s new list of “100 Things That Are Getting Better”:

Legalizing gay marriage in 2009 + producing artisanal charcuterie (try La Quercia’s organic prosciutto) + University of Iowa football landing among the top 25 college teams for the fifth time this decade + ranking second on MainStreet.com‘s Happiness Index = one seriously happening Hawkeye State.

That’s an odd set of data points, but then, the whole list is rather eclectic. Iowa ranks just behind “Our reputation around the world,” “The Beatles” and “Undersea exploration” and just ahead of “Surgery,” “Wind power” and “Dental visits.”

I didn’t realize Oprah was on record supporting marriage equality, but good for her. I don’t eat prosciutto, but I’ve heard good things about La Quercia. (Oprah neglected to acknowledge Iowa’s outstanding artisan cheeses.)

Iowa ranked second on MainStreet.com’s Happiness Index because of the 50 states plus Washington, DC, we had the fourth-lowest rate of non-mortgage debt as a percentage of annual income, the fifth-lowest unemployment rate, and the sixteenth-lowest foreclosure rate. Only Nebraska scored better overall.

Now, nobody tell Oprah about our lousy water quality.  

Senator Tom Harkin told the Des Moines Register and Radio Iowa today that he will vote against confirming Ben Bernanke to another term as chairman of the Federal Reserve. Radio Iowa quoted him as saying he’s “tired of being held hostage by Wall Street”:

“I just think Mr. Bernanke is going to continue the policy of The Fed of taking care of the big financial institutions and to heck with Main Street,” Harkin says.

Harkin faults Bernanke for the handling of the Wall Street bailout. “Mr. Bernanke gave away trillions of dollars of taxpayers’ money to AIG at almost zero percent interest rate, and then they turned around and they held their counterparties – French, Germans, Swiss and many others – harmless. They didn’t have to take a hair cut at all,” Harkin says, “They got paid off in full and yet we (taxpayers) lost trillions.” […]

“I’ve had it with being told that some bank is too big to fail and I’ve had it with being told that someone, some person is so important that we have to have that person in this position.  That’s nonsense,” Harkin says.

Looks like someone didn’t get the memo about “our mild-mannered economic overlord” saving the country. Good for Harkin.

Meanwhile, Senator Chuck Grassley told the Des Moines Register, “I think I made a decision [on Bernanke] […] But I don’t think I’ll announce it.” Grassley went on to criticize the Fed for doing too little to fight inflation, suggesting we could be on a path to hyper-inflation like we had in 1979.

With unemployment at a 26-year high, I’m surprised Grassley is so concerned about hyper-inflation. Economists, correct me if I’m wrong, but isn’t deflation a greater risk right now?