# Federal Budget



State Auditor's office will examine Schultz's use of HAVA funds

Chief Deputy State Auditor Warren Jenkins will investigate Iowa Secretary of State Matt Schultz’s use of Help America Vote Act funding, William Petroski reported today for the Des Moines Register. Democratic State Senator Tom Courtney requested the audit immediately after Governor Terry Branstad appointed Mary Mosiman as state auditor last month. Mosiman’s predecessor, David Vaudt, did not act on Courtney’s request for an audit last year. Schultz has used federal HAVA funding to pay for a law enforcement officer charged with investigating alleged voter fraud full-time. Courtney contends that such a use falls outside federal law, which calls for HAVA funds to cover “educating voters concerning voting procedures, voting rights and voting technology.”

Mosiman delegated the audit to Jenkins because until last month, she was working as Schultz’s deputy in charge of the Secretary of State’s elections office.

Please share any relevant comments in this thread. After the jump I’ve posted reaction from Schultz and Democratic candidate for secretary of state Brad Anderson.

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Iowa flood links and discussion thread

This year’s cool, wet spring was a blessing at first, reducing drought conditions substantially across Iowa. But now that the state has chalked up the wettest spring in 141 years of record-keeping, many communities are dealing with major flooding again. Flooding forced the closure of Highway 14 north of Marshalltown and prompted emergency sandbagging in downtown Iowa City and Cedar Rapids. You can see high water threatening downtown Cedar Rapids on Friday, and today the basement of the rebuilt city hall flooded. Water was pumped across some lanes of Highway 30. The lack of rain on Friday may have prevented the worst-case scenario in some cities.

At the downtown Des Moines Farmers Market this morning, several vendors told me they have “more water than they need” but not a devastating amount of moisture–yet. Farmers in many parts of the state haven’t been so lucky. Either rains have prevented them from planting, or floodwaters are washing away recently-planted crops.

Governor Terry Branstad was on vacation for most of the past week but has issued disaster emergency proclamations for 47 Iowa counties. He and Lieutenant Governor Kim Reynolds plan to tour flood-affected areas in eastern Iowa on Monday.

Any news or comments about the Iowa flooding are welcome in this thread.

JUNE 3 UPDATE: Dry weather over the weekend helped mitigate the flooding in Cedar Rapids and Iowa City, but Coralville Lake is not expected to crest until June 7.

Speaking to reporters in Des Moines on June 3,

Branstad resisted the notion that this year’s floods or last year’s drought conditions could be linked to climate change or that the state could do anything to prevent such events from happening.

“Weather is always going to change,” said Branstad, who’s serving his fifth term as Iowa’s governor. “I’ve been governor during droughts and floods and we just went from a drought to a flood.

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Iowa reaction to Obama's budget proposal, latest postal delivery news

President Barack Obama formally presented his draft budget for fiscal year 2014 today. Click through for details, but here are the top numbers:

The $1.058 trillion budget for fiscal year 2014 – which arrived on Capitol Hill about two months late – includes $3.77 trillion in total spending, including entitlements.

It would add $5.3 trillion in new deficit spending over 10 years and increase spending in 2014 by $160 billion compared to current law.

Statements from Representatives Dave Loebsack, Tom Latham, and Steve King are after the jump, along with press releases from several Iowa advocacy groups. I am seeking comment on the president’s budget from all the members of Iowa’s Congressional delegation and will update this post as needed. Iowa Citizens for Community Improvement called attention to the fact that Representative Bruce Braley has not explained his position on changing the Social Security cost of living adjustment to calculate benefits with a chained consumer price index. The president’s budget includes the “chained CPI” proposal, a truly terrible idea. The AARP said today it is “deeply dismayed that President Obama would propose cutting the benefits of current and future Social Security recipients, including children, widows, veterans and people with disabilities, to reduce the deficit.”

Also today, the U.S. Postal Service announced that it has delayed plans to cancel Saturday mail delivery. Comments from Loebsack and Representative Bruce Braley are at the end of this post. Both of them had strongly criticized the idea when floated in February.  

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Latham, King choose Heritage Foundation over preserving military heritage

Preserving battlefield sites from early American history would seem to be promising ground for bipartisan agreement. Don’t we all want future generations to be able to visit and learn about historically important places in this country’s pasts?

Today more than half the Republicans in the U.S. House, including Tom Latham (IA-03) and Steve King (IA-04), voted against a bill designed to preserve Revolutionary War and War of 1812 battlefields. As Pete Kasperowicz reported for The Hill, the vote reflected a call to arms from conservative Heritage Foundation.

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Steve King comments on possible IA-Sen race

Appearing on Iowa Public Television’s “Iowa Press” program today, Representative Steve King (IA-04) acknowledged that the open U.S. Senate race will be a “slight uphill battle” for any Republican, but asserted that he can see a “path to victory” if he decides to run.

I am still 100 percent convinced that King will opt out of the Senate race eventually, citing personal reasons (not political reality). Nevertheless, his comments on the Senate race are worth reading closely, so I’ve enclosed them below. You can watch the whole interview or read the full transcript here.

King claimed to be unable to think of any positions he has taken that are “out of step with Iowans.” Near the end of this post, I’ve suggested two issues that would become central features in Bruce Braley’s case against King.

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Obama hell-bent on cutting Social Security (updated)

President Barack Obama is taking another stab at the “grand bargain” he wants to strike with Congressional Republicans. Yet again, he wants to cut Social Security benefits for low- and middle-income seniors in exchange for token tax increases on the wealthiest Americans. He is offering this deal despite evidence that Social Security benefits are a growing percentage of retired Americans’ total income.

Obama’s biggest fans need to stop deluding themselves about “eleven-dimensional chess” and acknowledge that for whatever reason, the president wants Social Security cuts to be part of his legacy.

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IA-Sen: I'm telling you, Steve King is not running

Representative Steve King told reporters in Des Moines today that the chances he will run for the U.S. Senate in 2014 are “a little more than 50-50.” He dropped similar hints last month and has indicated to the Sioux City Journal’s Bret Hayworth that he’s leaning toward running as well.

I don’t care how many times King insists that he is carefully analyzing the pros and cons of a U.S. Senate bid. He’s neither dumb enough nor brave enough to leave the safe confines of Iowa’s fourth Congressional district.

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Weekend open thread: Not learning from experience edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

Governor Terry Branstad didn’t draw the right lessons from Indiana’s experience when he proposed his Healthy Iowa Plan as an alternative to expanding Medicaid. Below I’ve posted excerpts from Laura Hermer’s recent commentary on the Healthy Indiana Plan.

Iowa’s top economic development official, Debi Durham, still can’t answer basic questions about why the state offered more than $100 million in tax incentives to a company that was going to build a fertilizer plant in Iowa anyway. Follow me after the jump for Durham’s non-responsive response on the Orascom deal during this week’s “Iowa Press” program.

Speaking of which, the Branstad administration is stonewalling Iowa Watchdog reporter Sheena Dooley’s efforts to obtain more information about the Orascom deal.

UPDATE: For the hundredth time, family budgets are not comparable to the federal budget. Plus, Michael Tomasky summarizes three basic principles of fiscal policy that should be conventional wisdom already: “Modest deficits are perfectly sustainable. Budget cutting, far from being ‘responsible,’ hurts the economy. And balanced budgets don’t create jobs-it’s the other way around.”

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How Harkin and Grassley voted on the Senate budget and amendments

The U.S. Senate approved a budget for fiscal year 2014 at 4:38 am on Saturday after voting on amendments for most of the night. The budget passed by 50 votes to 49 (roll call). Iowa’s Senator Chuck Grassley and the rest of the Senate Republicans voted no, joined by four Democrats representing red states. The rest of the Democrats, including Senator Tom Harkin, voted for the budget.

As is often the case, Senate votes on various amendments were more interesting than the final party-line vote on the budget. Follow me after the jump for details on how Grassley and Harkin voted on some of those amendments. I’ve also enclosed statements from Grassley and Harkin.

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FAA closing Dubuque air traffic control; Waterloo, Sioux City spared for now

The Federal Aviation Administration announced yesterday that beginning on April 7, it will close 149 air traffic control towers across the country. The Dubuque Regional Airport tower is the only Iowa facility on the list (pdf). An airport official told the Dubuque Telegraph Herald that service in and out of the airport will continue. I haven’t seen any reports confirming which facility will route air traffic in and out of Dubuque after April 7.

The cuts are related to the “sequester” of federal budget funds, which began last month. Originally the FAA had planned to close more air traffic control towers, including those in Waterloo and Sioux City. However, a press release stated that the agency decided “to keep 24 federal contract towers open that had been previously proposed for closure because doing so would have a negative impact on the national interest.” Another salient fact is that Dubuque “hires privately contracted employees,” whereas “Waterloo and Sioux City employees are unionized FAA workers.”

I’ve posted the whole statement from the FAA after the jump, as well as Representative Bruce Braley’s comment. The first Congressional district includes Dubuque and Waterloo. Braley voted against a continuing spending resolution on Thursday, in part because it did not reverse the “sequester” cuts.

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House approves Paul Ryan's budget: How the Iowans voted

Yesterday the U.S. House approved a fiscal year 2014 budget prepared by House Budget Committee Chairman Paul Ryan. The bill also sets budget levels for fiscal years 2015 through 2023. Bleeding Heartland covered Iowa reaction to the latest Ryan budget here. After the jump I have details on yesterday’s vote and statements released by members of the Iowa delegation.

Despite the spin from some Congressional Republicans and Governor Terry Branstad, it’s important to remember that Ryan’s budget is not balanced and will not be balanced even 10 years from now. Both the non-partisan Tax Policy Center and the Center on Budget and Policy Priorities have noted that Ryan does not say how he would offset trillions in lost revenue from income tax cuts he proposes. In addition, the Ryan budget “understates defense spending by $100 billion over the next ten years” and assumes that the 2010 health care reform law will be repealed, which obviously won’t happen. The Ryan plan isn’t about eliminating the federal deficit, it’s a plan to end Medicare as a single-payer program and change the role of the federal government in the lives of low-income Americans.

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Branstad running out of excuses not to expand Medicaid (updated)

Iowa Senate Democrats offered Governor Terry Branstad a compromise this week to address his concerns that the federal government will not keep its promises to fund the Medicaid expansion provided under the 2010 health care reform law. Follow me after the jump for details on their latest offer and a cost comparison of Medicaid expansion and Branstad’s “Healthy Iowa Plan.”

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Iowa reaction to Paul Ryan's new budget

U.S. House Budget Committee Chair Paul Ryan presented his new federal budget blueprint today. As before, he would end Medicare as a single-payer system for all Americans under age 55, slash spending on programs for the poor such as food stamps and Medicaid, and cut taxes for some, though the details there are fuzzy. He would not cut the defense budget or Social Security. Ryan says his budget would be balanced in 10 years, but he relies on some assumptions that won’t happen, such as repeal of the 2010 health care reform law.

I’ve enclosed Iowa political reaction to the Ryan budget below and will update this post as needed.

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Weekend open thread: Jobs and prosperity

What’s on your mind this weekend, Bleeding Heartland readers? The Bureau of Labor Statistics released a better than expected jobs report on Friday, but not all the numbers were encouraging. States have continued to cut jobs even after the end of the “Great Recession,” and the “sequester” federal budget cuts will lead to more public-sector job losses later this year. Disappearing state government jobs are a drag on the national economy.

Surprise, surprise: the Iowa Chamber Alliance thinks shoveling more taxpayer dollars to large corporations is the best way to create jobs. The Iowa Policy Project disagrees and points out that Iowa is already writing large subsidy checks to some companies that paid no income tax in 2012. UPDATE: Forgot to mention that Iowa just agreed to give the Principal Financial Group $22.5 million in tax credits for its $285 million renovation plan in downtown Des Moines. Why should Iowa taxpayers underwrite office remodeling for a profitable company? That’s part of the cost of doing business.

Conservatives who think high tax rates can’t coexist with economic prosperity should explain why “the average Canadian household is now richer than an average American household for the first time ever.” My guess is the answer is related to Canada’s efficient, single-payer health care system (no medical bankruptcies or huge out of pocket costs because of health problems).

Senator Tom Harkin has introduced a bill to raise the minimum wage from $7.25 to $10.10 over three years before “before indexing it to keep up with the rising cost of living.” Indexing the minimum wage to inflation should have happened a long time ago.

This is an open thread.

Loebsack votes with House Republicans on government funding resolution

Yesterday the U.S. House approved a bill to fund the federal government through the remainder of the current fiscal year. Dave Loebsack (IA-02) was one of 53 House Democrats to vote for the spending bill, along with most of the Republican caucus. Follow me after the jump for details and the latest sleight of hand by the Democratic Congressional Campaign Committee.

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Latest Obama cabinet appointments: Energy and EPA

President Barack Obama announced two new cabinet appointments yesterday: Ernest Moniz as secretary of Energy and Gina McCarthy as Environmental Protection Agency administrator. Bleeding Heartland posted background on Moniz and McCarthy here; I’ve added more information after the jump.

McCarthy has served as the EPA’s top air quality official since 2009. Because she is well-qualified for the position and committed to making the country’s air cleaner, environmentalists are excited about this choice. I hope that Obama is not merely “promoting a climate change champion” to soften the blow when he approves the KeystoneXL pipeline. The State Department’s draft report on KeystoneXL whitewashed the impact that project would have on the environment.  

Also yesterday, Obama formally nominated Sylvia Matthews Burwell to be the new director of the Office of Management and Budget. The White House announcement notes, “She served as Deputy Director of the OMB from 1998 to 2001, as well as Deputy Chief of Staff to the President and Chief of Staff to the Secretary of the Treasury during the Clinton administration.” UPDATE: I should have added that Burwell is a former president of the Gates Foundation’s Global Development Program, and that her most recent job was running the Wal-Mart Foundation.

The president has not yet announced his picks to run the departments of Labor, Transportation, or Commerce.

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Sequester could shut down Waterloo, Dubuque, Sioux City air traffic control (corrected)

U.S. Transportation Secretary Ray LaHood warned yesterday that air traffic control across the country may be severely disrupted if the “sequester” goes into effect. Budget cuts may prompt the Federal Aviation Administration to shut down air traffic control towers at three Iowa airports as early as April.

CORRECTION: Closing the air traffic control towers would not necessarily shut down all traffic at the affected airports. On the other hand, “many corporations won’t fly into airports that don’t have an active tower.”

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IA-Sen: Loebsack endorses Braley (updated with Boswell)

The Iowa Democratic establishment continues to consolidate around Representative Bruce Braley for the open U.S. Senate seat. Representative Dave Loebsack (IA-02) posted on his Facebook page this morning,

Bruce, I’m in.

I’m proud to endorse Bruce Braley. We need someone in the U.S. Senate who’ll continue Tom Harkin’s legacy of fighting to strengthen the middle class and speaking out for those who don’t have a voice. I’m pleased to stand with him.

Looking forward to seeing you tonight at the Red, White, and Blue dinner!

We need someone who will continue Harkin’s legacy of speaking some unpopular truths, such as pointing out that a constitutional amendment to balance the federal budget “would require massive cuts to Social Security, Medicare and many other crucial programs” the middle class rely on. Sadly, we won’t hear that message from either Braley or Loebsack in the years to come.

UPDATE: Added the Braley for Iowa press release below.

SECOND UPDATE: Former Representative Leonard Boswell chimed in with his endorsement on January 18. I’ve posted it below. He praised Braley as “a tireless advocate for Iowa’s veterans.” That was a strong theme in Braley’s latest re-election campaign.

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State of the Union and Rubio response discussion thread

President Barack Obama delivers another State of the Union address tonight, and U.S. Senator Marco Rubio of Florida is set to give the Republican response. I will miss most of the president’s speech but plan to watch the replay later and will update this post with highlights. Meanwhile, feel free to comment on any topics raised during the speeches in this thread.

UPDATE: Highlights from the speeches and reaction from the Iowans in Congress are after the jump.

I find it depressing that when I came home to catch up on the news, the blogosphere and twitterverse were obsessing over Rubio taking a drink of water during his remarks. So sue him, he’s not the most camera-savvy politician in Washington (yet). Who cares?

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Senate approves debt ceiling suspension: How the Iowans voted

Yesterday the U.S. Senate approved by 64 votes to 34 a bill that would suspend the country’s debt ceiling until mid-May and withhold the salaries of senators unless the Senate approves a budget by April 15. Iowa’s Senator Tom Harkin supported the bill, as did all but one Democrat. Senator Chuck Grassley opposed the bill, like most other Senate Republicans. Details on the bill and on the amendments considered yesterday are after the jump.

The House approved this bill last week, with three of Iowa’s four representatives voting yes.

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House approves debt limit suspension: How the Iowans voted

The U.S. House voted today to suspend the country’s debt ceiling until May 18 and withhold pay from U.S. senators if the upper chamber does not approve a budget by April 15. House Republican leaders didn’t have enough votes in the GOP caucus to pass the bill, but dozens of Democrats crossed over to delay a potential default by several months. Three of Iowa’s four House members supported the “No Budget, No Pay” act; details and comments are below.

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Another Obama cabinet discussion thread

President Barack Obama announced today that his Chief of Staff Jack Lew is his pick to replace Timothy Geithner as Treasury secretary. I have low expectations, since Lew has been a “central player in two failed attempts at a grand bargain on deficit reduction with House Republicans.” The “grand bargain” would have paired token tax hikes on the wealthy with significant benefit cuts for middle-class and low-income Americans. Republican Senator Jeff Sessions of Alabama did not rule out filibustering Lew’s nomination.

I was surprised to hear that Hilda Solis is leaving as Labor secretary. She was one of Obama’s better cabinet picks, but White House officials have undermined her on several issues, notably efforts to regulate child labor at agricultural facilities. Brad Plumer posted a good summary of Solis’ record.

According to the White House, the following cabinet members will stay on for now: Attorney General Eric Holder, Health and Human Services Secretary Kathleen Sebelius, and Veterans Affairs Secretary Eric Shinseki. I’m concerned that Transportation Secretary Ray LaHood was not on that list.

Any comments about Obama’s cabinet and/or the “embarrassing as hell” lack of diversity in the president’s “inner circle” are welcome in this thread.

UPDATE: I did not realize that the Commerce secretary position has been vacant for almost six months.

Mid-week open thread: Trillion-dollar coin edition (updated)

As the next showdown over raising the debt ceiling approaches, a new scenario has emerged as a possible way to avoid both default and budget concessions to Congressional Republicans. Some analysts believe the government could mint one platinum coin, assigning a denomination of a trillion dollars, and deposit that coin in the treasury to “pay down” a trillion dollars of our national debt. Not everyone agrees that minting the coin is a realistic option, though. I’ve posted some links and analysis after the jump.

For the record, I don’t believe President Barack Obama would seriously consider minting a trillion-dollar coin. In fact, the only past presidents I could imagine pulling a stunt like that would be FDR, LBJ, and Richard Nixon. What do you think, Bleeding Heartland readers? Incidentally, today would have been Tricky Dick’s 100th birthday.

This is an open thread, so all topics are welcome.

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More details on the farm bill extension Congress just approved

The U.S. Senate and the House Agriculture Committee approved versions of a new five-year farm bill last summer, but discontent within the House Republican caucus kept Speaker John Boehner from bringing the bill up for a vote in the full chamber. Iowa Republican Tom Latham signed a discharge petition seeking to force a vote, while Steve King promised to work toward passing the bill during the lame-duck session.  But Boehner never put the five-year farm bill on the House calendar.

With time running out before U.S. law reverted to the 1949 bill provisions, House and Senate Agriculture Committee leaders agreed last week to push for a one-year extension of farm programs. But that bill never came up for a vote either. Instead, negotiators added a nine-month partial extension of farm programs to the “fiscal cliff” tax agreement. Since Tuesday I’ve been looking into the details of what Congress approved on farm policy. It’s not pretty.

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Hurricane Sandy aid punted to next Congress

U.S. House Speaker John Boehner is getting slammed by members of both parties today after the House adjourned without considering a Hurricane Sandy disaster relief bill. The U.S. Senate approved about $60 billion in Sandy aid last week. Details on how Iowa’s senators voted on that package are after the jump, along with links on Boehner’s choice not bring the bill up during the lame-duck session.

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Year-end Congressional scramble discussion thread (updated)

Members of Congress are in Washington today trying to make last-minute deals to avoid supposedly dire consequences on January 1. So far it appears likely that some kind of one-year extension of current farm policies will pass in order to avoid a huge price spike for milk and problems for agricultural producers. UPDATE: A nine-month farm bill extension was added to the fiscal cliff bill.

Lots of plans are floating around to deal with the so-called “fiscal cliff”: Bush income tax cuts (last extended for two years in December 2010) are set to expire, along with lower payroll tax and estate tax rates. Meanwhile, various budget cuts are due to go into effect in January, including a “sequester” of federal spending on defense and other programs but also lower Medicare payments to doctors. At this point, I would be surprised if we don’t go over the cliff, and I agree with Senator Tom Harkin that no deal is better than a bad deal.

I will update this post throughout the day and evening with news on Congressional voting. After the jump I’ve enclosed some links on the latest proposals floating around the Capitol. Tremendous hypocrisy is on display. If deficit hawks believed their own propaganda, they would embrace higher taxes and lower spending to solve this supposedly dire threat to the U.S. economy. UPDATE: More news is below.

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Iowa Congressional voting roundup: Defense bill and budget cuts

Iowa’s five representatives all voted no intended to vote no as the U.S. House approved the conference committee report on the 2013 National Defense Authorization Act today. UPDATE: Steve King meant to vote no but mistakenly voted yes. Details below.

The Iowans split on party lines over a bill designed to replace the “sequester” scheduled for early next year with deep spending cuts in non-defense domestic programs.

Meanwhile, Republican leaders retreated from a planned vote on House Speaker John Boehner’s “Plan B” to avert the so-called “fiscal cliff” at the end of the calendar year.

Follow me after the jump for details on all of the above.

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Steve King gains new platform for battling USDA

U.S. House Agriculture Committee Chair Frank Lucas announced today that Representative Steve King (IA-04 in the new Congress) will chair the Subcommittee on Department Operations, Oversight, and Nutrition. King has been one of the loudest critics of the U.S. Department of Agriculture in recent years. His new position will give him a more visible platform to battle policies championed by U.S. Secretary of Agriculture Tom Vilsack–the husband of King’s most recent Congressional challenger, Christie Vilsack.

King opposed the USDA’s settlement in the Pigford case, which involved longstanding government discrimination against African-American farmers. He also objected to the hiring of a claimant in the Pigford settlement to a prominent USDA position. Though King has tried and failed to block spending on the Pigford settlement, chairing a subcommittee may allow him to investigate what he describes as “fraud” in USDA payments to African-Americans.

Regarding the USDA’s nutrition programs, King wants to spend less on the Supplemental Nutrition Assistance Program (commonly known as food stamps) than the Obama administration. He wants to overhaul the USDA’s new school lunch standards and has sponsored a bill to overturn restrictions on calories and portion sizes for children in public schools. In King’s view, “nutrition Nannies” at the USDA, led by Vilsack, have “put every kid on a diet.” Vilsack announced earlier this month that school districts will have more time to adapt to the new rules, but he defended the standards as an important weapon against the childhood obesity epidemic. I expect King to hold hearings on this issue in early 2013.

After the jump I’ve posted King’s press release about his new position. He vowed to make sure tax dollars are spent wisely in USDA programs.

Following the 2010 elections, King was expected to become chairman of the House Judiciary Committee’s subcommittee on immigration issues, but House leaders feared he was too much of a lightning rod for that job.

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Obama willing to trade big Social Security cuts for token tax hikes

After reportedly ruling out an increase in the Medicare eligibility age, President Barack Obama has offered House Speaker John Boehner a new deal to avoid a combination of spending cuts and tax increases scheduled to go into effect at year-end.

Obama’s latest offer involves painful Social Security cuts for the poor and middle class but tax increases only for people who won’t notice the difference, because they make more than $400,000 per year. This kind of bargain is exactly what Senator Tom Harkin has been warning against when he’s said “no deal is better than a bad deal.”  

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Health care exchange and Medicaid expansion news roundup

Last week Iowa Governor Terry Branstad confirmed that Iowa will pursue a “partnership” health insurance exchange next year, rather than setting up its own insurance exchange for implementing the 2010 health care reform law, or letting the federal government set up an exchange for Iowa.

In addition, the governor again signaled that he is against the now-optional Medicaid expansion for states, because he believes it would become too expensive for Iowa in the future.

Links and recent news about health care reform in Iowa are after the jump.

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