# Gambling



What were these government officials thinking?

State Senator Dan Dawson presents Senate File 2349, regarding defense subpoenas, during floor debate on February 27. Screenshot from official video.

Randy Evans is executive director of the Iowa Freedom of Information Council and can be reached at DMRevans2810@gmail.com

What were they thinking? That is a question I ask myself a lot lately.

Those were the first words out of my mouth when the Manhattan district attorney had to postpone Donald Trump’s New York criminal trial on the alleged hush-money payments to porn star Stormy Daniels — the delay necessitated because government lawyers had dropped the ball.

I muttered those words during several days of court hearings in Georgia into Atlanta prosecutor Fani Willis’ affair with a subordinate prosecutor — the one she chose to lead the criminal case against Trump and a dozen other defendants for trying to undo that state’s 2020 presidential election results.

And those words come to mind about bills the Iowa legislature is considering that would affect criminal cases like those brought against state university athletes for their online wagers on sporting events.

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What took them so long?

Better late than never. Governor Kim Reynolds recommended on March 15 that Iowa schools close for four weeks to slow the spread of novel coronavirus (COVID-19). The same day, Republican legislative leaders announced the House and Senate will suspend operations for at least 30 days after meeting on March 16 “to consider resolutions regarding continuity of government to ensure delivery of essential services to Iowans.” Clerks and secretaries have been told they will be paid through April 21, but “March 16 will be your last day of employment.”

While several state legislatures around the country hit the pause button last week, Iowa House Speaker Pat Grassley and Senate Majority Leader Jack Whitver waited for recommendations from the governor or the Iowa Department of Public Health.

As recently as the late afternoon on March 13, Reynolds was assuring the public, “At this time, Iowa is not experiencing community spread of the virus.” Such a definitive statement was not warranted, given how few people had been tested for COVID-19.

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College admissions bribery case should kill sports betting bill

Two bills on sports betting, House File 648 and Senate File 366, made it through the legislature’s first “funnel.” John Morrissey wonders, “What assurance do any of us have that the colleges and universities can police themselves in light of today’s revelations?” -promoted by Laura Belin

The Associated Press is reporting today that 50 people, including several television celebrities, have been charged in connection with a scheme to get their children accepted to college athletic teams after offering bribes to college coaches and other collegiate insiders.

While not directly on point, this is very concerning in light of the state legislature’s apparent desire to legalize sports betting in Iowa casinos, not to mention the extremely arrogant position taken by Prairie Meadows to construct a facility before the enabling legislation was even introduced.

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Weekend open thread: Accountability

Senator Chuck Grassley hit a new low last week in running interference for the White House on the Trump/Russia investigation. After leaders of the private research firm Fusion GPS called on Congressional Republicans “to release full transcripts of our firm’s testimony” about the so-called Steele dossier, Grassley and Senator Lindsey Graham wrote to the Department of Justice and the FBI “urging an investigation into Christopher Steele.” Ranking Senate Judiciary Committee Democrat Dianne Feinstein was not consulted about the referral, which she accurately characterized as “another effort to deflect attention from what should be the committee’s top priority: determining whether there was collusion between the Trump campaign and Russia to influence the election and whether there was subsequent obstruction of justice.”

Here in Iowa, the Department of Human Services recently acknowledged that privatizing Medicaid “will save the state 80 percent less money this fiscal year than originally predicted,” Tony Leys reported for the Des Moines Register. The Branstad/Reynolds administration has claimed since 2015 that shifting care for one-sixth of Iowans to private companies would result in big savings for the state. Officials were never able to show the math underlying those estimates. Staff for Governor Kim Reynolds and the DHS now portray the miscalculation as an honest mistake, which a more “comprehensive methodology” will correct. The governor would have been wiser to pull the plug on this disaster last year.

Forthcoming Bleeding Heartland posts will address those failures in more depth. But now it’s time to hold myself accountable for the 17 Iowa politics predictions I made at the beginning of 2017. Did I improve on my showing of seven right, two half-right, and seven wrong out of my 16 predictions for 2016?

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17 Iowa politics predictions for 2017

Two weeks late and humbled by the results from previous efforts to foretell the future, I offer seventeen Iowa politics predictions for the new year.

I struggled to compile this list, in part because it’s harder to come up with things to predict during a non-election year. I didn’t want to stack the deck with obvious statements, such as “the GOP-controlled Iowa House and Senate will shred collective bargaining rights.” The most consequential new laws coming down the pike under unified Republican control of state government are utterly predictable. I needed time to look up some cases pending before the Iowa Supreme Court. Also, I kept changing my mind about whether to go for number 17. (No guts, no glory.)

I want to mention one prediction that isn’t on this list, because I don’t expect it to happen this year or next. I am convinced that if the GOP holds the governor’s office and both chambers of the Iowa legislature in 2018, they will do away with non-partisan redistricting before the 2020 census. I don’t care what anyone says about our system being a model for the country or too well-established for politicians to discard. Everywhere Republicans have had a trifecta during the last decade, they have gerrymandered. Iowa will be no exception. So if Democrats don’t want to be stuck with permanent minority status in the state legislature, we must win the governor’s race next year. You heard it here first.

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Prairie Meadows IRS problem: Business decisions could end tax exemption

Tom Witosky retired from the Des Moines Register in 2012 after 33 years of award-winning reporting on politics, sports and business. He is the co-author of Equal Before the Law: How Iowa Led Americans to Marriage Equality published by University of Iowa Press. -promoted by desmoinesdem

If it waddles like a duck and quacks like a duck, it’s a duck — even if it looks like a horse and a slot machine.

That adage appears to be the bottom line for U.S. Internal Revenue Service officials, who, after close to 20 years of allowing Prairie Meadows Racetrack and Casino to operate as a non-profit under U.S. Chapter 501(c)(4), now want a share of the $2.2 billion largesse the so-called “racino” generates annually.

Here is a piece of advice about the ongoing controversy: Nothing is going to change for several years unless there is a settlement that won’t change much of anything.

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Thoughts on Terry Branstad's longevity and legacy

Terry Branstad front photo photo_front_gov_zpsobbhiahu.png

December 14 marked 7,642 days that Terry Branstad has been governor of Iowa, making him the longest-serving governor in U.S. history, according to Eric Ostermeier of the Smart Politics website. Because most states have term limits for governors, “The odds of anyone passing [Branstad] in the 21st Century are next to none,” Ostermeier told Catherine Lucey of the Associated Press.

Speaking about his legacy, Branstad has emphasized the diversification of Iowa’s economy, even though a governor has far less influence over such trends than Branstad seems to believe. Some have cited “fiscal conservatism” as a hallmark of Branstad’s leadership. I strongly disagree. The man who has been governor for nearly half of my lifetime is stingy about spending money on education and some other critical public services. He opposes bonding initiatives commonly used in other states to fund infrastructure projects (“you don’t borrow your way to prosperity”). But he is happy to provide tens of millions or hundreds of millions of dollars in tax breaks to corporations that don’t need the help, without any regard for the future impact of those tax expenditures on the state budget. Many of Iowa’s “giveaways” in the name of economic development will never pay for themselves.

Branstad’s governing style has changed Iowa in important ways. He has altered Iowans’ expectations for their governor. He has expanded executive power at the expense of both the legislative branch and local governments. And particularly during the last five years, he has given corporate interests and business leaders more control over state policy. More thoughts on those points are after the jump, along with excerpts from some of the many profiles and interviews published as today’s landmark approached.

P.S.- Speaking of Branstad doing what business elites want him to do, Iowa Public Television’s “Governor Branstad: Behind the Scenes” program, which aired on December 11, included a telling snippet that I’ve transcribed below. During a brief chat at the Iowa State Fair, Iowa Board of Regents President Bruce Rastetter asked Branstad to call Bruce Harreld, at that time one of the candidates to be president of the University of Iowa. That Rastetter asked Branstad to reassure Harreld was first reported right after the Board of Regents hired the new president, but I didn’t know they had the conversation in public near a television camera.

P.P.S.-Now that Branstad has made the history books, I remain convinced that he will not serve out his sixth term. Sometime between November 2016 and July 2017, he will resign in order to allow Lieutenant Governor Kim Reynolds to run for governor in 2018 as the incumbent. Although Branstad clearly loves his job, he is highly motivated to make Reynolds the next governor. She lacks a strong base of support in the Republican Party, because she was relatively inexperienced and largely unknown when tapped to be Branstad’s running mate in 2010. Even assuming she is the incumbent, Reynolds strikes me as more likely to lose than to win a statewide gubernatorial primary. Remaining in Branstad’s shadow would give Reynolds little chance of topping a field that will probably include Cedar Rapids Mayor Ron Corbett and Iowa Secretary of Agriculture Bill Northey.

P.P.S.S.-I will always believe Branstad could have been beaten in 1990, if Democrats had nominated a stronger candidate than Don Avenson. Attorney General Tom Miller lost that three-way primary for one reason only: he was against abortion rights. Miller later changed that stance but never again ran for higher office.

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A smoke-free Cedar Rapids casino is not a public health initiative

The Iowa Racing and Gaming Commission sent a strong message last week to backers of a casino project in Cedar Rapids: don’t bother trying to get a license for at least the next three years.

Rational actors would have started working on Plan B for prime downtown real estate as soon as commissioners voted down the application for a Cedar Rapids casino in April. But Mayor Ron Corbett and some other movers and shakers are determined to chase the gambling dream, through legislative or judicial means. Instead of taking the hint from the Racing and Gaming commissioners, Corbett is ratcheting up his strategy for gaining legislative approval for a new casino. He’s smart and experienced enough to know that state lawmakers need a better excuse for acting than “we don’t like what the commission did.” So, he’s now dressing the casino project up as a public health initiative. Lawmakers shouldn’t fall for or hide behind this ruse.

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Hopeless lawsuit only adds to Cedar Rapids' opportunity costs

Cedar Rapids movers and shakers should be pursuing alternative plans for a prime downtown location rejected for a casino license in April. Instead, city leaders have vowed to find a legislative path to their casino dream. Now a former Linn County attorney hopes a court will throw out the Iowa Racing and Gaming Commission’s decision. Rick Smith reports for the Cedar Rapids Gazette,

[Eugene] Kopecky filed a lawsuit this week in Linn County District Court against the commission and the four of five commission members who voted April 17 to deny a state gaming license to casino investor group Cedar Rapids Development Group LLC.

Kopecky, who has practiced law in Cedar Rapids since 1966, said Thursday that his lawsuit seeks a declaratory judgment. He said he wants the court to instruct the commission on the state’s gaming law in a way that would require the commission to revisit the Cedar Rapids casino application and grant a state gaming license.

Kopecky said the state’s gaming law requires voters in a county to approve gaming before a casino is permitted to operate. […]

He said state law doesn’t give the state commission the ability to deny a casino license in one county based on a license in another county, he said.

The fact that voters must approve a plan before a casino can be licensed does not imply that the commission must approve every application for a casino license where a referendum has passed. The Racing and Gaming Commission has denied some two dozen gambling licenses in its 30-year history. There is ample precedent for the commission denying a license based on concerns a new casino would largely cannibalize from existing ones. I’ve seen no evidence that state legislators thought commissioners were exceeding their authority in those cases. I’m not an attorney, but I would be shocked if a court agreed with Kopecky’s interpretation of Iowa statute.

Cedar Rapids Mayor Ron Corbett commented yesterday that he supports the lawsuit. For his part, Kopecky “said his lawsuit could take more than two years to make its way through the Iowa court system if a decision in Linn County District Court is appealed.”

What a shame to waste so much time on a Hail-Mary pass, when Cedar Rapids could be considering other development plans for the downtown space. Richard Florida, a leading expert on urban land use, has written that “urbanists across the ideological spectrum are unanimous” about one thing: “building casinos, especially in an already thriving downtown, is a truly terrible idea.”  

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Gaming commission grants casino license to Greene County (updated)

The Iowa Racing and Gaming Commission voted 3-2 today to grant a casino license for a $40 million project near Jefferson (Greene County) in western Iowa, between Boone and Carroll counties. Residents had overwhelmingly approved a gambling referendum last year, but the outcome was in doubt because the commission recently voted down a casino proposal for Cedar Rapids. According to Dar Danielson’s report for Radio Iowa, the commissioners who opposed the license cited evidence a new casino would largely take business from existing Iowa casinos, and that the Greene County community didn’t need a gambling facility as much as other amenities. The commissioners who favored the license cited the potential economic impact for a rural area.

The Prairie Meadows Racetrack and Casino in Polk County had lobbied the commission to reject Greene County’s application, citing potential impact on its business. Jefferson is a little more than an hour’s drive northwest of the Des Moines metro area. But in casting the decisive yes vote, Racing and Gaming Commission Chair Jeff Lamberti noted,

We have lots of advantages in Polk County and I think we have lots of advantages that are going to come in the future,” Lamberti explained. “We’ve got significant population growth amongst all of our suburbs. We’ve got some good things that are in the work that are pretty historic by Iowa standards. And quite frankly, we have advantages that a lot of other parts of the state don’t have, and quite frankly I think we are going to be just fine.”

Cedar Rapids Mayor Ron Corbett, who has vowed to keep working toward a casino for his city, sounds furious about today’s decision. I’ve posted some of his comments below.  

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Branstad will sign cannabis oil, e-cigarette bills; undecided on dog racing

Governor Terry Branstad plans to sign a bill that would allow possession of cannabis oil for the treatment of some seizure disorders, he announced while taping Iowa Public Television‘s “Iowa Press” program today. He noted the bill will help some children with epilepsy, and he’s satisfied its “limited” scope will not increase abuse of marijuana in smokeable form.  

The governor also said he will sign a bill banning the sale of e-cigarettes to children, adding that his wife is a “militant” anti-smoker. Trouble is, that bill was backed by tobacco industry lobbyists. Many public health groups lobbied against the bill.

Branstad has not decided whether to sign the dog racing bill, which would end greyhound racing at one casino in Council Bluffs and get a non-profit casino in Dubuque off the hook for subsidizing the races. His concern isn’t the massive giveaway to dog breeders and kennel owners, which makes no sense to me. Rather, he is worried that lobbyists for horse racing interests didn’t get their cut from the bailout. O.Kay Henderson reports for Radio Iowa,

“I understand the benefits that the people in Council Bluffs and Dubuque see from this, and the greyhound industry,” Branstad says. “My concern is the horse industry was left out of this.” […]

However, the governor’s concern is over provisions in the bill that would give the greyhound industry authority to strike deals to simulcast dog and horse races at any of the state’s casinos and get all of the profit from it. Today simulcasting deals are only allowed at the casinos in Altoona, Council Bluffs and Dubuque and Iowa’s horse industry gets the financial take.

“There is some concern that I’m hearing from my friends in the horse industry. I’ve always been close with them,” Branstad says. “We have a very big and significant horse industry in the state of Iowa.”

Branstad has ’til June 2 to decide whether to sign or veto the bill.

“I’m trying to weigh all those things,” Branstad says. “I want to do something that’s fair to all the communities involved and fair to all the parties and the one group that seems to be, because of the simulcasting provisions of that bill, having some concerns is the horse industry and so I’m carefully reviewing that,” Branstad says. “I have not made a final decision.”

Environmental activists in Iowa are nervously awaiting the governor’s decision on a bill to expand solar tax credits and several spending bills that include record-high funding for the Resource Enhancement and Protection (REAP) conservation program. The governor recently said he is concerned about various parts of a supplemental spending bill that contained $5 million of the REAP funding. In 2012, Branstad line-item vetoed half a million dollars for Iowa food banks on the Friday before Memorial Day.

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Cedar Rapids mayor won't give up casino dream

Talk about opportunity costs: Cedar Rapids Mayor Ron Corbett will not pursue any alternative development plans for a downtown parcel of land where backers hope to build a casino. Rather, he will continue to pursue the casino project despite last month’s 4 to 1 vote by the Iowa Racing and Gaming Commission to reject a gambling license for Cedar Rapids.

Speaking to Rick Smith of the Cedar Rapids Gazette, onetime Iowa House Speaker Corbett said he hopes the Iowa legislature will approve a bill granting a license for a smoke-free casino to Iowa’s second-largest city. Democratic State Senator Wally Horn already tried to add such language to a bill limiting greyhound racing, but his amendment was ruled not germane.

Independent research has repeatedly shown that the hidden economic costs of casinos “far exceed their benefits and that [casinos] are a poor use of precious downtown land.” But even if that were not true, why waste years trying to persuade the Iowa legislature to pass this kind of bill? What are the chances lawmakers will go along with a special deal for Cedar Rapids, when many of them represent districts with casinos that stand to lose market share? Furthermore, current Iowa House Speaker Kraig Paulsen, who represents a suburban Cedar Rapids district, screwed up Iowa’s chance to get passenger rail to Iowa City (and possibly later to Des Moines and Council Bluffs).

Corbett seems to hope Jack Hatch will win the governor’s race; Hatch has expressed support for a Cedar Rapids casino. If elected, he might sign a bill for this purpose, or might appoint like-minded people to the Racing and Gaming Commission. But that process would take years. Why not pursue plan B or plan C for Cedar Rapids? There are many other approaches to economic development that do not hurt other local businesses the way casinos do.

The spin about a smoke-free casino being a “healthy” option for a “Blue Zone” community like Cedar Rapids is a sick joke. Casinos are no benefit to public health. On the contrary, problem gambling increases with accessibility and incurs major hidden health costs.  

Two triumphs for Iowa lobbyists: Dog racing and e-cigarettes (updated)

Iowa lawmakers advanced two bills yesterday that illustrate how effective corporate and interest group lobbyists can be. In the Iowa House, a bill allowing greyhound racing to end in Council Bluffs and become less costly for a casino in Dubuque won final passage by 79 votes to 16. I’ve posted the roll call after the jump. As Bleeding Heartland discussed here, Iowa greyhound breeders and trainers, along with their paid representatives, managed to get the state legislature to insist on a massive bailout for their industry–even though public demand for dog racing is near zero these days. According to the Dubuque Telegraph-Herald’s Erin Murphy, Governor Terry Branstad has not committed to signing the bill. But if he does, tens of millions of dollars from the Las Vegas-based Caesar’s corporation will be divided among a relatively small group of greyhound breeders, trainers, kennel owners, and rescue organizations.

Meanwhile, yesterday the Iowa Senate approved “an act relating to vapor products and alternative nicotine products, and providing penalties.” Bleeding Heartland discussed this bill in February, when it passed the Iowa House. On its face, House File 2109 looks like it is designed to protect children’s health by banning e-cigarette sales to minors. But medical and public health groups opposed the bill. Lobbyists who supported it mostly represented tobacco companies or retailers. They liked the bill because it didn’t classify vapor cigarettes as tobacco products and didn’t ban fruit-flavored e-cigarettes. Before final passage, senators rejected an amendment offered by Senator Joe Bolkcom, which would have strengthened the bill. They then approved an amendment offered by Senator Bill Dotzler, making minor changes to the definition of “vapor product.” The lobbyist declarations on the bill still show opposition from the public health community and support from the tobacco industry and retailers. On final passage senators approved the bill by 37 votes to 12. Because of the slight change in wording, this bill goes back to the Iowa House rather than straight to the governor’s desk. I doubt it will run into any trouble there, given how easily it passed in February.

Incidentally, the e-cigarettes bill is a rare example of legislation that passed the Iowa Senate with more votes from the minority party (22 of the 24 Republicans) than from the majority party (15 of the 26 Democrats). Someone please correct me if I’m wrong, but I can’t think of any similar Iowa Senate vote during the last few years. Scroll to the end of this post for the roll call.

UPDATE: On April 29, the Iowa House approved the Senate version of House File 2109, after rejecting along party lines Democratic amendments that would have strengthened the bill. The vote on final passage was 74 to 23, similar to the margin by which House members approved the e-cigarette legislation in February. I’ve posted details on the roll call after the jump.

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No casino for Cedar Rapids

The State Racing and Gaming Commission voted 4-1 this morning against allowing a new casino to be built in downtown Cedar Rapids. Last year Linn County voters approved a casino referendum by a 20-point margin. Even some opponents of the project believed its construction was inevitable, given the political connections of the group hoping to build in Cedar Rapids. However, today’s vote is in line with the precedent of approving gambling licenses only where new casinos would not “cannibalize” from existing ones in Iowa. Four years ago, the Racing and Gaming Commission rejected applications for casino projects in Fort Dodge, Ottumwa and Tama County, despite public approval of all three plans. Multiple studies indicated that the Cedar Rapids casino would draw much of its business from Iowans who now visit casinos in Riverside or Waterloo.

I will update this post as needed with political reaction to today’s vote. Although many Bleeding Heartland readers will be disappointed, I agree with economists who have argued that the “interior casinos” not near Iowa borders do not promote economic development. Meanwhile, new casinos incur significant social costs.

Already I’ve seen several Cedar Rapids residents asking whether the CEO of the Riverside casino will build the waterpark he promised last year, if Linn County voters rejected the casino project. Don’t hold your breath.

UPDATE: In his report for the Cedar Rapids Gazette, Rick Smith noted that Cedar Rapids Mayor Ron Corbett “served in the legislature with three of the five members of the Iowa Racing and Gaming Commission.” Former Iowa House Republican and Iowa Senate Republican Jeff Lamberti both voted no this morning. Dolores Mertz, who used to be the most conservative Iowa House Democrat, was the only commissioner to vote yes.

SECOND UPDATE: Further thoughts and more reaction are after the jump.

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Terry Branstad's philosophy of second chances

Governor Terry Branstad’s office released a long list of nominees to state boards and commissions yesterday. I’ve posted the full list after the jump. As he’s done during the past three years, the governor tapped several former state legislators or onetime Republican candidates for the Iowa House or Senate. The latest batch of appointees includes former GOP State Representative Lance Horbach for the State Judicial Nominating Commission, former GOP State Representative Jamie Van Fossen for the Public Employment Relations Board, and former GOP State Senator John Putney for the State Transportation Commission.

Branstad also re-appointed former GOP State Senator Jeff Lamberti to the Racing and Gaming Commission. I’m not surprised; the governor has expressed his confidence in him many times, even immediately after Lamberti’s drunk driving arrest in May 2012. A few weeks later, Lamberti pled guilty to driving while intoxicated, after which his colleagues elected him chairman of the Racing and Gaming Commission.

Several Iowa lawmakers in both parties have been caught driving after drinking too much alcohol. Lieutenant Governor Kim Reynolds was arrested for drunk driving twice while serving as a county treasurer. Arguably, Lamberti’s lapse in judgment is no impediment to leading one of the most powerful state commissions, which will soon make a high-profile decision on granting licenses to two new casino projects.

At the same time, it’s striking that Branstad, so committed to a continuing role in public life for Lamberti, so committed to seeing Reynolds succeed him as governor, is also determined to prevent tens of thousands of Iowans from ever participating in politics at the most basic level for a U.S. citizen. Since he signed an executive order making Iowa one of the most restrictive states for felon voting, only about 40 people have managed to regain their voting rights out of an estimated “25,000 offenders who finished their sentences for felonies or aggravated misdemeanors” since January 2011. Branstad’s policy affects mostly non-violent criminals. Non-white Iowans are more likely to be permanently disenfranchised, since Iowa is the worst state for racial disparities in marijuana arrests.

Branstad recently defended his policy on these terms: “At least somebody that commits an infamous crime such as a felony ought to pay the court costs and the fine associated with that crime before they expect to get their rights restored.” The governor knows perfectly well that most ex-felons are lucky to find a job that covers essentials like food and housing. Repaying thousands of dollars in court costs is not realistic for most of these people. Moreover, “infamous” crimes can include stealing a vending machine as a teenager. Denying thousands of Iowans a real chance to exercise their right to vote is a scandal, especially for a governor so forgiving of serious mistakes made by certain well-connected Republicans.

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Weekend open thread: Storylines

What’s on your mind this weekend, Bleeding Heartland readers? I saw Peter Jackson’s new Hobbit film, and it’s a good movie if you don’t mind the director taking major liberties with the plot of the novel. If you’re a dedicated fan of Tolkien’s story, you will probably agree with Christopher Orr, who called it “bad fan fiction.” What I appreciate about Jackson is that unlike George Lucas (massively overrated as a director in my opinion), he didn’t try to make his film too much of a kids’ movie. There were plenty of children in the theater audience, but The Hobbit doesn’t include as many stupid characters or cheap laughs as the Star Wars movies.

Today’s edition of the Sunday Des Moines Register contains some findings from the latest Iowa Poll by Selzer & Co. The margins of error are large due to small sample sizes of Iowa Democrats and Republicans, but the headline news is that Hillary Clinton’s favorable/unfavorable numbers are 50 percent/45 percent with all Iowa respondents and 89 percent/7 percent with Democrats surveyed by Selzer between December 8 and 11. In other words, this poll does not support the narrative I’ve argued against repeatedly, which holds that Clinton “needs” to do more retail campaigning here to compensate for her allegedly poor Iowa caucuses showing and failure to connect with Iowans. In my view, Clinton didn’t do as badly here in 2008 as some people believe, nor is she as unpopular among rank and file Iowa Democrats as some bloggers imagine. She will not have any substantial Democratic competition here or anywhere else if she runs for president again.

Speaking of unfounded beliefs, backers of proposed casinos in Cedar Rapids and Jefferson (Greene County) talk a good game about the economic development their projects will bring. Economists Ernie Goss of Creighton University and Dave Swenson of Iowa State University threw cold water on those claims during this weekend’s edition of Iowa Public Television’s “Iowa Press” program. Excerpts are after the jump, including Goss’ memorable comparison of some casinos to a “neutron bomb” that “destroys” surrounding local businesses such as restaurants.

This is an open thread: all topics welcome.  

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Greene County approves casino referendum

Residents of Greene County voted overwhelmingly yesterday to approve a casino proposed for the county seat town of Jefferson. Full unofficial results (pdf) indicate that nearly 57 percent of registered voters cast ballots, which is a phenomenal turnout for a summer election. “Yes” defeated “no” by 2,905 votes to 964 (75 percent to 25 percent). The campaign in Greene County paralleled other Iowa battles over casino proposals. Local political leaders touted the economic development potential. Detractors, particularly in the faith community, warned of hidden social costs associated with gambling.

According to local resident and casino advocate Chuck Offenburger, the case for the gambling referendum rested largely on “the positive impact a similar casino has had in Emmetsburg and Palo Alto County” in northwest Iowa. Wild Rose Entertainment of Des Moines, which operates the Emmetsburg casino, spent about ten times as much money during the referendum campaign as did the “No Casino Greene County” group.

Wild Rose Entertainment was also the corporate entity backing the Norwalk casino project that Warren County residents voted down in May. The “casino as economic development” message wasn’t compelling in rapidly growing Warren County. But the Greene County vote took place against a backdrop of 10 percent population loss in the past decade. As Offenburger wrote recently, “Let’s be honest here, yes, there are a few problems that might come with a casino development and with community growth. But we already know there are a whole lot of problems that definitely come with decline.”

I am skeptical that the Iowa Racing and Gaming Commission will approve a casino for Jefferson, given that Greene County is neither close to Iowa’s border with another state nor part of a large metro area lacking a casino (as is the case for Linn County, where voters approved a gambling referendum in March). A study is underway to determine how a new casino in Cedar Rapids, the Des Moines area, or Greene County might affect the 18 existing casinos with state licenses.

Iowa casino news and discussion thread

The Iowa Racing and Gaming Commission voted yesterday to commission a new study of Iowa’s gambling market to determine how a new casino would affect the 18 existing casinos with state licenses. In March, Linn Couty voters approved a proposed casino for Cedar Rapids, the largest city in Iowa not currently served by a casino. The study will focus on whether there is market share to support a Cedar Rapids casino, or whether that facility would mostly cannibalize business from existing casinos. Racing and Gaming Commission Chair Jeff Lamberti indicated that the study would also examine the impact of new casinos in Greene County and/or the Des Moines area. For more details, read William Petroski’s report for the Des Moines Register and Rick Smith’s story for the Cedar Rapids Gazette.

I have never been convinced that the Racing and Gaming Commission would grant new casino licenses in Iowa. In 2010, commissioners denied licenses for proposed casinos in Fort Dodge, Ottumwa, and Tama County, despite strong local support. On the other hand, the backers of the Cedar Rapids casino project have close ties to Governor Terry Branstad.

Any comments related to gambling in Iowa are welcome in this thread. In related news, the casino owner who bankrolled the “No Casino” campaign in Cedar Rapids is proposing a new casino in the Davenport area.

Warren County rejects casino, Johnson County rejects justice center (updated)

While politics-watchers across the country were focused on creepy adulterer Mark Sanford’s victory in the special election to represent South Carolina’s first Congressional district, two important local elections took place in Iowa yesterday.

Warren County voters overwhelmingly rejected a proposed casino for Norwalk (just south of Des Moines). A simple majority was needed to approve the gambling referendum, but “no” carried the day with 60 percent support, 6,545 votes to 4,327. Click here (pdf) for unofficial precinct-level results. I know many Democrats backed the Norwalk casino, and local officials said it would help create jobs and reverse some of the economic “drain” from Warren County to Polk County. If I lived in Warren County, I would have voted no for the same reasons discussed in this post on the proposed Cedar Rapids casino. After the jump I’ve posted excerpts from a compelling commentary by Tom Coates, president of Consumer Credit of Des Moines. Meta observation: this will probably be the only time Bleeding Heartland ever links approvingly to the FAMiLY Leader’s website.

Johnson County voters rejected a proposed bond issue to build a new justice center. The proposal was revised somewhat after the previous referendum failed in November 2012. Although a 54 percent majority voted yes yesterday, a 60 percent super-majority is needed for bond issues to pass. Unofficial precinct-level results show 7,394 yes votes to 6,226 no. Percentage-wise, that’s a bigger loss for the yes camp than the last referendum (when 56 percent voted yes), even though some prominent voices flipped from “no” to “yes” this time around. The total number of votes cast was nearly four times times higher last November, when the justice center was on the presidential election ballot.

John Deeth has blogged extensively on this issue, and I think he made a compelling case for the justice center. Preventing Johnson County from building an adequate facility to house accused criminals is not an effective way to protest Iowa City police practices. There were strange bedfellows in the “no” camp: “People’s Republic” lefties and self-styled taxpayer advocacy groups. But I suppose that’s no more strange than the FAMiLY Leader and I agreeing on the Warren County gambling referendum.

Any relevant thoughts are welcome in this thread. For what it’s worth, I don’t believe the Iowa Racing and Gaming Commission would have approved a casino license for Norwalk. The project would have drawn most of its business from the customer base for existing casinos in Altoona and Osceola.

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Big victory for casino backers in Linn County

Linn County voters have strongly endorsed a plan to build a casino in the middle of Cedar Rapids. With almost all precincts reporting, “yes” leads “no” by 36,076 votes to 22,763 (61 percent to 39 percent). The referendum does not guarantee that the project will move forward. In 2010, the Iowa Racing and Gaming Commission rejected applications for new casinos in Fort Dodge, Ottumwa and Tama County despite public support. Commissioners determined that those projects would primarily draw business away from Iowa’s existing casinos. On the other hand, Governor Terry Branstad has close ties to key figures supporting the Cedar Rapids project and has appointed several new members of the Racing and Gaming Commission.

Owners of casinos in Riverside and Waterloo bankrolled the “no” campaign in Linn County. Critics slammed them for profiting from Iowa bettors while paying for warnings about the potential social costs of gambling in Cedar Rapids. Dan Kehl, CEO of the Riverside casino, attempted a hail-Mary pass last Friday, promising to build a family-friendly water park in central Cedar Rapids if voters rejected the casino. In my opinion, Kehl’s hypocrisy and desperation do not invalidate the strong arguments against casinos as economic development projects. But the Linn County voters have spoken.

Does Iowa need more casinos?

Eighteen casinos currently operate in Iowa, but if backers have their way, that number will grow in the near future. Early voting is under way for the March 5 Linn County referendum on a proposed casino in Cedar Rapids.

Meanwhile, this week some people rolled out plans for a new casino in Norwalk (Warren County), just south of the Des Moines metro area. Links and details are after the jump.

Any comments related to expanding casino gambling are welcome in this thread. I tend to agree with Richard Florida, an expert on urban development who made the case against casinos in the Cedar Rapids Gazette not long ago. Florida commented this week that casinos are a good litmus test, showing which self-styled “city builders” are actually “city destroyers.”

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More proof smoking bans save lives

How about a little good news on a lousy day? A new study confirms previous research, which showed public smoking bans reduce hospitalizations for heart attacks and other life-threatening problems. The Iowa Smokefree Air Act, which went into effect in July 2008, has likely prevented many premature deaths.

UPDATE: The smoking ban was controversial while it was debated in 2008. Below I’ve listed all of the state legislators who had the courage to send that bill to Governor Chet Culver’s desk.  

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Weekend open thread: No joy for online poker players

A bill to legalize online poker in Iowa has been up and down this legislative session. The effort spearheaded by Democratic Senator Jeff Danielson stayed alive past the funnel deadline but faced opposition within both political parties. On Thursday the Iowa Senate Ways and Means Committee called for further study of the issue.  

[Senate File 458] asks the Iowa Racing and Gaming Commission to prepare a report to the Iowa Legislature by Dec. 1 regarding the creation of a framework for state regulation of intrastate Internet poker. […]

The state commission’s report on Internet poker would be required to consider the current state of unregulated Internet poker play in Iowa, consumer protection, and “responsible gaming” measures that can be implemented.  The commission could also consult with Iowa casinos and potential Internet poker hub operators in developing the report.

Sen. William Dotzler, D-Waterloo, the bill’s manager,  said the revised proposal will allow lawmakers to take a deliberate approach to examining Internet gambling, recognizing that thousands of Iowans are already gambling online. Other proposed changes are aimed at recognizing the important role that casinos and gambling have in contributing to the economies of  Iowa’s communities, he said.

Some commission reports influence future legislation; others collect dust on shelves at the statehouse. Enthusiasts for bringing legal online poker to Iowa say it would harvest some $30 million in state tax revenues from an activity Iowans are already engaged in. Opponents say it would increase compulsive gambling and diminish protection against underage or drunk people losing money through Iowa casinos. In the Des Moines Register’s Iowa Poll conducted by Selzer and Co. in February, respondents against legalizing online gambling outnumbered supporters 3 to 1.  That survey did not ask specifically about online poker games.

I tend to agree that Iowa has enough gambling already. Enticing people to spend more on new forms of gambling will hurt local economies by reducing the amount people spend on goods and services in their own communities. Online poker is not going to solve the state’s budget issues or create a large contingent of self-made poker-playing millionaires.

On Friday, federal prosecutors indicted founders of three of popular online poker websites for fraud and money laundering and shut down the Full Tilt Poker, PokerStars and Absolute Poker sites. Depending on how you view the issue, this prosecution could either undermine or strengthen the case for legalizing and regulating online gambling in the U.S.

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

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Catch-up thread on Branstad appointments

Governor Terry Branstad announced some important personnel decisions in the past few days, naming former State Representative Libby Jacobs to chair the Iowa Utilities Board and three new members of the Board of Regents, including Bruce Rastetter.

Follow me after the jump for more on those and other Branstad administration appointments.

UPDATE: On March 1 President Barack Obama named Branstad to co-chair the Council of Governors, “established by the National Defense Authorization Act in 2008 to strengthen further partnership between the Federal and State governments as it pertains to national security.” Branstad will serve a two-year term as co-chair.

SECOND UPDATE: Branstad announced more than 200 appointments to state boards and commissions on March 2. Bleeding Heartland covered the four appointees to the Environmental Protection Commission here; all have ties to large agribusiness.

Another name that caught my eye was Eric Goranson, a lobbyist and parochial schools advocate whom Branstad named to the State Board of Education. He has been a leading critic of the Iowa Core Curriculum (see here and here). The Under the Golden Dome Blog argues that Goranson’s appointment may violate Iowa code, which states, “A voting member [of the Board of Education] shall not be engaged in professional education for a major portion of the member’s time nor shall the member derive a major portion of income from any business or activity connected with education.” Several of Goranson’s lobbying clients represent religious private schools or Christian home-schooling parents.

THIRD UPDATE: I forgot to mention Branstad’s two appointees to the State Judicial Nominating Commission: Helen St. Clair of Melrose and William Gustoff of Des Moines. I have been unable to find any information about Helen St. Clair, but a Maurice St. Clair of Melrose was among Branstad’s top 20 individual donors, contributing more than $45,000 to the gubernatorial campaign. I assume he is related to Helen St. Clair and will update this post if I confirm that. William Gustoff is a founding partner of the Whitaker Hagenow law firm, which includes Republican former U.S. attorney Matt Whitaker and State Representative Chris Hagenow. Branstad’s legal counsel Brenna Findley also worked at Whitaker Hagenow last year.

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Make that 18 Iowa casinos

The Racing and Gaming Commission voted unanimously today to grant a new casino license for Lyon County in Iowa’s far northwestern corner, but the five commissioners rejected applications for new casinos in Fort Dodge, Ottumwa and Tama County. The vote is no surprise; only the Lyon County project was expected to bring in mostly out-of-state gamblers. Opponents argued that the Fort Dodge, Ottumwa and Tama projects would hurt several of Iowa’s 17 current casinos. Also, the commissioners raised questions about the financing of the other projects during last week’s public hearing.

Governor Chet Culver said today that he respects “the independent body that ultimately makes the decision,” but defended his open letter to commissioners urging approval for all four new casino applications:

“I think it’s important for everyone to know where a governor stands. That’s why a public letter made perfect sense,” Culver said.  “Commission members had asked me prior to that letter. The executive director of the Racing and Gaming Commission had asked me prior to that letter. The four communities had asked me prior to that letter. I felt I had an obligation to make sure everyone understood I was for job creation in those four communities.”

Former Governor Terry Branstad is among those who have criticized Culver for trying to influence an independent body. But let’s not be naive: commissioners usually find out through private channels what the governor thinks of such proposals. I don’t see any reason to keep the public in the dark.

Whether Culver helped himself politically is a different question. Some people in the affected communities may appreciate that he did his best to move the projects forward, but the risk is that the governor looks ineffective now that the commission has rejected the Fort Dodge, Tama and Ottumwa applications.

Share any relevant thoughts in this thread.

UPDATE: Radio Iowa has reaction from the groups that sought casino licenses.

Todd Dorman wasn’t impressed by the commissioners’ decision:

I’ve said many times that I think if a county votes for gambling, has financing and a plan, they should get a license. I don’t care if existing casinos don’t want competition. It’s a mature industry. A free market, supposedly. What’s with gambling titans who don’t like risks? […]

Tama and Ottumwa had public votes, but their plans were full of missed deadlines and big funding holes. I don’t blame the commission for voting them down.

Fort Dodge had a 57-percent yes vote, money and a plan. Oh, and baggage. Two backers are being investigated for possibly giving illegal campaign contributions to Gov. Chet Culver. City workers were famously paid to attend a pro-casino rally, etc. There was plenty of foot-shooting to go around.

But Fort Dodge’s plan could have been certified baggage-free by Good Housekeeping and it still would have been voted down because it threatened to take profits from the Wild Rose Casino in Emmetsburg. Wild Rose paid millions of dollars for a state license in 2005, and that, evidently, includes a no-competition insurance policy.

A commission that was once a friendly dealer handing out licenses to the lucky is now a security guard protecting its flock from competition.

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Miller requests special prosecutor for casino donor investigation

Iowa Attorney General Tom Miller announced yesterday that he is asking the State Executive Council to appoint a special prosecutor to look into allegations that three backers of a new casino in Fort Dodge made illegal contributions to Governor Chet Culver’s re-election campaign. Miller is recommending Lawrence Scalise, who is both a former attorney general and a former chairman of the Iowa Racing and Gaming Commission.

“This was not an easy decision,” Miller said [in a prepared statement]. “My office has rarely withdrawn from a case in this manner. However, I believe the need for public confidence in the criminal justice process outweighs any other consideration.”

Miller did the right thing. A longtime aide in the Attorney General’s Office, Donn Stanley, has just taken over as campaign manager for Governor Culver. Although no one from the Culver campaign appears to be a target in the criminal investigation, there is clear potential for a conflict of interest. Republicans would have screamed about a cover-up if an investigator from Miller’s office found no wrongdoing by the governor’s campaign. Brenna Findley, the Republican candidate for attorney general, has been calling on Miller to step back from the investigation.

The three Fort Dodge residents whose donations have been questioned say their contributions to Culver’s campaign came from personal funds, and a spokeswoman for the company that would manage a new casino in Fort Dodge has denied that the company instructed its local consultants to give to Culver’s campaign.

On Tuesday the Racing and Gaming Commission held a lengthy hearing about four applications for new Iowa casinos. Culver has publicly supported new casinos for a long time and sent commissioners a letter in March urging them to approve all four applications. A decision is expected on May 13. My hunch is that only the casino proposed for Lyon County in far northwest Iowa will be approved, because it is unlikely to draw business away from any of Iowa’s existing casinos. The nearest population center is Sioux Falls, South Dakota.  

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A bad start to the week for Culver

It’s looking like another rough week for Governor Chet Culver. News broke yesterday that his chief of staff is taking a new job, and the Department of Criminal Investigation is looking into campaign contributions from people who back a new casino for Fort Dodge.

Follow me after the jump for links and background on those stories.

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Sorry, Republicans, Iowans don't think state government is too big

Republicans have complained for years about Democrats allegedly spending too much on “big government,” but a majority of Iowans think state government is about the right size, according to the latest poll by Selzer and Co. for the Des Moines Register. The poll surveyed 805 Iowa adults between January 31 and February 3 and has a margin of error of plus or minus 3.5 percent. Respondents were asked, “In general, do you think the size of state government is too big, about right, or too small?” 52 percent said “about right” and only 39 percent said “too small.”

The Des Moines Register poll also indicates that Iowans would rather tap into the state’s tax reserves, raise fees and perhaps even raise taxes than impose massive service cuts or lay off hundreds of state workers.

The poll tested eleven options for balancing the budget and asked whether that option should be considered, strongly considered or taken off the table. The largest majority (76 percent) said consolidating some state government services should be considered or strongly considered. The Iowa legislature will pass a government reorganization bill this session, but the savings won’t be large enough to avoid other painful budget decisions.

The next largest majority (61 percent) supported considering taking up to $200 million from the state’s cash reserves. But even that probably wouldn’t be enough to balance the 2011 budget.

The other three options that at least half of respondents said should be considered were “increase fines, license fees and other user fees” (53 percent), expand gambling by allowing casinos to host large poker tournaments (51 percent) and raise the sales tax by 1 percent (51 percent).

The Register reported that several political observers found the sales tax numbers most surprising. I was more surprised to see the public evenly divided on raising the income tax. Some 48 percent of respondents said “lawmakers should consider raising state income taxes by a half percentage point; 50 percent said that idea should come off the table.”

The Register’s poll found much less support for “cutting services to thousands of Iowans” (just 33 percent favored considering that option, while 60 percent said it should be taken off the table). Only 42 percent favored considering laying off hundreds of state employees or consolidating school districts. Only 43 percent said legislators should consider eliminating all business tax credits. Just 45 percent said reducing the number of Iowa counties should be on the table.

My point is not that politicians should put blind faith in the wisdom of crowds. I don’t agree with every finding in this poll. I’d rather reduce the number of counties and scrap many business tax credits than raise the sales tax, and I find Iowans’ support for the film tax credit baffling.

The larger message from this poll is that Iowa Democrats should not cower in fear when Republicans bash “big government.” Offered a range of choices for balancing the state budget, most Iowans would prefer not to see services slashed. The Register’s November 2009 poll pointed to the same conclusion, finding broad support for spending increases Democrats have adopted in recent years.

Republicans will be cheered by the portion of Selzer’s latest poll that found one-third of Iowans called themselves supporters of the “tea party” movement, and a majority believe state government is spending too much money. To me that suggests the framing of the budget issue will be critical for this November’s elections. Democrats need to convince voters that they did all they could to find efficiencies in state government without cutting priority areas. If Republicans object, for instance, that the state could have saved tens of millions of dollars by ending the preschool initiative started in 2007, Democrats must point out that doing so would have cut off early childhood education for about 13,000 Iowa kids.

Previewing the Vander Plaats case against Branstad

Bob Vander Plaats was the clear front-runner in the Republican field of gubernatorial candidates a few months ago. He’s been campaigning for the job longer and more actively than anyone else. He had contacts statewide from his 2006 campaign for lieutenant governor, and from Mike Huckabee’s presidential campaign. He also had several endorsements from state legislators and a big lead in a Republican poll taken in July.

During the past six months, various potential Republican candidates have ruled out a campaign for governor, including Secretary of Agriculture Bill Northey and State Auditor David Vaudt. Efforts to recruit a business leader (like Mary Andringa) failed too. Some Iowa politicos believe that these people backed off not because they thought Governor Chet Culver was unbeatable, but because they couldn’t see a way to defeat Vander Plaats in the Republican primary.

Most people would now agree that Vander Plaats is an underdog. Branstad will have more money, more media coverage and more support from Republican power-brokers. He’ll be able to cite last week’s Research 2000 poll, showing Branstad narrowly ahead of Culver, but Vander Plaats way behind the incumbent.

Vander Plaats won’t give up without a fight, though. He has promised to stay in this race through the June primary, and he has some strong cards to play, as I’ll discuss after the jump.  

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Lottery lease worth several times more than gambling exec's offer

State Treasurer Michael Fitzgerald doesn’t make the news often, but I am grateful for his recent frank comments to the Des Moines Register:

Fitzgerald, a Democrat who is chief custodian and investor of state government’s money, said last week that a lottery leasing proposal made recently by Kehl Management to Gov. Chet Culver “was a terribly bad deal.”

The governor should have been embarrassed when the details became public, Fitzgerald added.

“I am against leasing the lottery until somebody proves to me that it is a really good deal for the state. I think the lottery is worth $1 billion – minimum – and that is why I am highly suspicious of selling it,” Fitzgerald told The Des Moines Register. […]

Kehl Management, headed by Riverside casino executive Dan Kehl, has proposed a one-time cash payment of about $200 million for a 49-year lease of the Iowa Lottery, plus a 22 percent annual tax on the lottery’s adjusted gross receipts.

I have no idea how Kehl arrived at the $200 million number. Maybe that was a lowball starting point for negotiation, or maybe he thought state officials might jump at the chance to cover a fourth to a third of the expected hole in next year’s budget.

Either way, Fitzgerald’s comments are on the mark. No one should be talking about leasing the lottery for a price that is well below its value. That’s not only bad policy, but also bad politics, since it would create the appearance of Democratic leaders providing a sweetheart deal for large donors. Kehl gave $25,000 to Culver’s campaign committee in 2008.

Fortunately, Senate Majority leader Mike Gronstal has said, “I’ve not seen much interest inside our caucus in proceeding with the sale of the lottery.”

It’s time for statehouse leaders to definitively take selling the Iowa Lottery off the table.

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Selling the Iowa Lottery should be off the table

Iowa voters handed Democrats the keys to run the state in 2006 and expanded the Democratic majority in the legislature this year. Now we have to prove that we are capable of governing well. Like almost every other state, Iowa is facing a deteriorating revenue base while demands for government services rise in a tough economy. Governor Chet Culver has already imposed two rounds of budget cuts, and more difficult choices will need to be made during the upcoming legislative session.

There is no perfect solution to the budget problem, but some proposals are so bad that they should be ruled out immediately.

Selling the Iowa Lottery is a terrible idea on every level.

I don’t often agree with Des Moines Register columnist David Yepsen, but he is right about this:

Why would anyone want to sell their seed corn? And why would Iowa want to do something that may lead to expanded gambling? […]

We should privatize those governmental functions that cost the taxpayers, not the ones that make them a profit. […]

Since 1985, the Iowa lottery has netted state government $1 billion. Why would we turn some of those profits over to the gambling industry? It’s short-term thinking to give up $50 million in annual lottery profits for a lump sum now.

Also, this idea breaks faith with the promise made to Iowans when we started down the path of expanded gambling: If Iowa was going to get into legalized gambling, it was going to be heavily regulated.

Now we’re going to invite casino owners and others in the gambling industry to run our lottery? I’m sorry; the history of the gaming industry is just too checkered to put people from it in charge.

I have never bought a lottery ticket, and I hate to see the state encouraging people to throw their money away on the lottery. But now that Iowa has a lottery, we should keep the profits in state hands. Selling the lottery would bring in cash this year, but we’d need to replace the lost revenue in future budgets. It wouldn’t solve the problem, and it would make Democrats look incompetent.

By the way, State Auditor David Vaudt described the idea as “a very short-term Band-Aid approach.” The plan he described would involve

a lease of the lottery for up to 50 years in exchange for a lump sum payment of $200 million and some annual lease fee.

The lottery generates more than $50 million a year in profits for the state’s budget, and Vaudt predicted the lump sum would quickly evaporate.

Of course it would.

Vaudt may be the Republican nominee for governor in 2010, and he was warning about budget problems long before Culver and the Democratic leadership in the legislature started talking about budget cuts. Do we want to hand him another talking point on Democrats’ alleged fiscal irresponsibility?

If selling the lottery is bad policy and bad politics, why would anyone consider it? Here is Yepsen’s theory:

[T]he fact that Culver is entertaining sale of the lottery is an example of how big gambling money and influence slosh around Iowa politics.

The delegation that called on him to promote the idea included former Iowa Attorney General Bonnie Campbell, who is a longtime friend, adviser and donor of Culver’s, and Jeff Link, a leading Democratic campaign strategist who also runs referenda campaigns for gambling interests.

Culver will need to show how selling the lottery is a good deal for taxpayers and not just his cronies and campaign contributors on the gambling industry’s payroll. Watch to see how much gambling money starts showing up in Culver’s re-election warchest – and in those of Democratic legislative leaders.

Democrats helped gambling interests last session by putting an unjustified exemption for casino floors into the smoking ban bill. If we care about workers’ health, why should casino employees be less protected than those who work in restaurants and bars?

Handing over the lottery would play right into Republican talking points about “special interests” controlling the Democratic Party.

Culver, House Speaker Pat Murphy and Senate Majority Leader Mike Gronstal should nip this speculation in the bud by ruling out any plan to sell the lottery for short-term gain.

What else, if anything, should be “off the table” in the context of balancing the budget? I agree with Culver that going into debt should be considered.

I also believe that shared sacrifice requires some kind of action on the revenue side, such as closing tax loopholes that primarily benefit the well-off. When middle-income and lower-income Iowans bear the brunt of cuts in services, wealthier Iowans should also be asked to help bring the budget into balance. Some economists have shown that during an economic downturn, raising taxes on the wealthy does less harm to the economy than cutting government spending.

I understand the political arguments against raising taxes in any form now. There will be plenty of time to debate that later. For now, Democrat leaders should make the easy call: keep the Iowa Lottery in state hands.

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No more casinos in Iowa

Well, well, well. The Newton Speedway didn’t miraculously solve that town’s problems, so now there is a drive to build a casino next to the racetrack in the name of economic development.

Iowa has too many casinos already–20 according to the Des Moines Register article linked above. The Iowa Racing and Gaming Commission should say no to this and all other applications for casino licenses in the future.

How will a casino in Newton help the community? More likely it will just drain the wallets of locals whose family incomes already took a hit after Maytag shut down. People love talking about the jobs created by casinos, but they don’t like talking about the social problems that come along with increased gambling.

The advocates of this proposal say the location, visible from I-80, would be visible to some 10 million people who drive on that stretch of road every year. But I suspect a casino in Newtwon would primarily pull gamblers away from existing casinos in central, eastern and southern Iowa.

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