Yesterday the House of Representatives approved and President Barack Obama signed a $26.1 billion package to support state education and Medicaid budgets in the current fiscal year. The bill passed the House by a 247 to 161 vote. Iowa’s House delegation split on party lines, as with the 2009 federal stimulus bill and previous legislation designed to support public sector jobs in the states. Iowa will receive about $96.5 million of the $10 billion in education funding, enough to save an estimated 1,800 teachers’ jobs.

The bill also contains $16.1 billion in Federal Medical Assistance Percentage or FMAP funding, including about $128 million to support Iowa’s Medicaid budget in the 2011 fiscal year. Last week I read conflicting reports about how much Medicaid assistance Iowa would receive, but staffers for Representatives Bruce Braley and Dave Loebsack confirmed yesterday that $128 million is the correct figure. That’s a bit more than Iowa legislators were counting on for FMAP funding in the 2011 budget. Extra federal spending on Medicaid also “has an economic benefit for the state of Iowa far greater than the federal government’s initial investment,” according to Iowa State University economist Dave Swenson.

For the last several days, I have been searching for some comment on this legislation from Republican gubernatorial candidate Terry Branstad. I’ve found nothing in news clips, and his campaign has not issued a press release on the federal fiscal aid since the Senate approved the bill on August 4.

Branstad rails against “one-time sources” of funding to support the state budget, but he has nothing to say about $96.5 million for Iowa schools and $128 million for Iowans dependent on Medicaid services.

Branstad is happy to run false advertising about the number of teachers’ jobs supposedly lost in Iowa, but he has nothing to say when federal action saves a significant number of teachers’ jobs. The issue is a bit awkward for Branstad, because Republicans Tom Latham and Steve King voted against the fiscal aid bill in the House, just as Republican Chuck Grassley voted no in the Senate.

Perhaps Branstad lacks the courage to go beyond vague campaign rhetoric about excessive government spending. It’s easy to talk abstractly about “one-time” funding, but risky to slam government support for education and Medicaid. CNN’s latest nationwide poll, which was in the field from August 6 through August 10, asked respondents, “Do you favor or oppose a bill in which the federal government would provide 26 billion dollars to state governments to pay for Medicaid benefits and the salaries of public school teachers or other government workers?” 60 percent of respondents favored such a bill, while only 38 percent opposed it.

Speaking of conspicuous silence from Branstad, when will he tell us how he plans to keep his contradictory promises to cut state spending by 15 percent while having the state pay a larger share of mental health and school funding?

Share any relevant thoughts in this thread.

Good news: the U.S. Senate overcame an attempt to filibuster a bill containing $26.1 billion in fiscal aid to state governments today. About $10 billion will support state education budgets in order to save teaching jobs. The other $16.1 billion will support state Medicaid budgets according to the Federal Medical Assistance Percentage or FMAP formula, which was originally part of the 2009 stimulus package. The Senate’s final vote on this bill is set for August 5, and it will easily gain more than the 50 votes needed for passage. Speaker Nancy Pelosi plans to call the House of Representatives back from August recess in order to approve this bill next week.

Iowa’s Senator Tom Harkin was a co-sponsor of this bill. Senator Chuck Grassley joined Republicans who tried to block it from getting an up-or-down floor vote. I haven’t seen a statement from his office explaining why. The bill does not add to the deficit, because expenses are offset by revenue-raising measures:

Senate Democrats said the $26 billion bill would be paid in part by revenue raising changes in tax law. Senate Democrats said the modifications would curtail abuses of the U.S. foreign tax credit system. The bill would also end the Advanced Earned Income Tax Credit and would return in 2014 food stamp benefits to levels set before last year’s federal stimulus plan.

I’m not happy about cutting future food stamp benefits, but there may be opportunities to restore that funding in other bills. This federal fiscal aid is urgently needed to prevent teacher layoffs in the school year that’s about to begin.  

Republican gubernatorial nominee Terry Branstad has been touring Iowa this summer with a contradictory campaign message. On the one hand, he blasts education cuts that have eliminated some teaching positions (he exaggerates the number of teacher layoffs, but that’s a topic for another post). On the other hand, Branstad criticizes the use of “one-time money” from the federal government to support the state budget. He promises to veto any budget that would spend more than 99 percent of projected state revenues. Branstad has never explained what he would have cut to make up for the federal stimulus money, but other questions are on my mind today, namely:

1. Does Branstad think Grassley did the right thing in trying to stop this fiscal aid package from reaching Iowa and other states?

2. Iowa’s budget for fiscal year 2011 assumes about $120 million in additional Medicaid funding under the FMAP program. If elected governor, would Branstad try to return that money to the federal government?

3. Would Branstad reject federal education funding that is targeted for saving teachers’ jobs in the upcoming academic year?

Share any relevant thoughts in this thread.

UPDATE: A statement from Senator Harkin’s office says this bill would provide “at least $128 million in additional Medicaid funding” to Iowa in the current fiscal year. Harkin also said,

“This vote came down to one thing: priorities.  Today, a majority of Senators proved that our priority is helping those who are the backbone of this country, America’s teachers and our families, to weather the continuing effects of the great recession.  And we provide this funding without adding one dime to the deficit.

“This is a crisis of the first order.  Not since the Great Depression have our public schools faced the prospect of such massive layoffs.  With this fund, we will preserve tens of thousands of education jobs that states can use for retaining or hiring employees at the pre-K and K-12 levels.

“Also with the funding, we provide critical assistance to states, whose budgets are already stretched to the limit, to protect Medicaid.  This six month extension of federally-matched funding will allow states to continue health benefits for some of the nation’s most needy.”

SECOND UPDATE: Jennifer Jacobs reported somewhat different numbers for the Des Moines Register:

A federal spending plan that advanced in Congress Wednesday would route $83.1 million in extra money to help Iowa pay for children’s services and payments to hospitals and nursing homes.

But the Iowa Legislature banked on getting an $116 million in extra federal Medicaid money in the first six months of next year.

That means the state budget will be short $32.9 million – or short $116 million if the bill fails to pass Congress altogether, according to the non-partisan Legislative Services Agency. Medicaid is the government health insurance plan for the poor. […]

The measure would give states $16 billion to help cover their Medicaid budgets, and $10 billion to extend programs enacted in last year’s stimulus law to help preserve the jobs of teachers, police officers, firefighters and other public employees.

Iowa would get about $96.5 million in the jobs piece, which would protect about 1,500 jobs, said U.S. Sen. Tom Harkin, a Democrat.

Keep in mind that Iowa’s budget for fiscal year 2011 has an ending balance of $182.6 million, providing a cushion in case some expected revenue doesn’t materialize. Also, state revenues for the first month of the current fiscal year exceeded projections. Falling short $32.9 million in federal Medicaid assistance isn’t ideal, but it is manageable and far better than falling $116 million short, as would happen if Grassley and other Republicans got their way.

THIRD UPDATE: The Senate gave final approval to this bill on August 5 by a 61-39 vote. Grassley voted no along with most of the Republican caucus.

Governor Chet Culver’s campaign released a second television commercial spotlighting Terry Branstad’s record. Like the Culver tv ad that debuted last week, the new commercial mentions Branstad’s dismal record on fiscal issues. It also mentions eight pay raises that Branstad signed for himself, some of them during very tight budget years:

Transcript:

As Governor, Terry Branstad admitted “his books were never balanced.” According to the State Auditor, Terry “cooked the books.” And when state unemployment hit a record high, Branstad asked for a raise. When Terry cut foster care, Branstad took another raise. When the state couldn’t pay its bills, Branstad raised our taxes and raised his pay once again. Terry Branstad: Cooked books, Raised Taxes, Eight pay raises. A past we can’t repeat.

A Culver campaign press release with supporting facts and citations from news reports is after the jump.

We all know Branstad wasn’t a good manager of state finances, but I like the way this ad touches on his deeply flawed priorities as well. Branstad started seeking a pay raise during his very first year in office, when unemployment peaked at 8.5 percent. A few years later, this guy wasn’t ashamed to take home more money even as he was cutting foster care programs.

I hope future Culver ads will underscore how cutting state assistance to vulnerable Iowans has long been Branstad’s knee-jerk preference, rather than his last resort. The foster care cuts highlighted in Culver’s new commercial occurred in 1987. When Iowa faced a budget crisis in 1992, Branstad brought two money-saving ideas to a meeting with state lawmakers in advance of a special legislative session: first, cut spending on foster care, and second, cut Medicaid programs that helped children buy eyeglasses and keep senior citizens out of nursing homes. During this year’s campaign, when asked an open-ended question about how he would cut state government, Branstad

said he’s still looking for ideas but did mention reforming the state’s mental health system and rolling back Medicaid, which has been expanded to cover more people, including children. He said state employees should pay for their health insurance like private sector employees.

That’s classic Branstad. Gee, I haven’t figured out yet how to make the budget numbers add up, but why not change Medicaid so that fewer people qualify? While we’re at it, let’s stop helping tens of thousands of families send their four-year-olds to preschool.

Branstad’s record of incompetence should be at the center of the gubernatorial campaign, but let’s not forget about his skewed priorities.

UPDATE: Conservative blogger Gary Barrett claims the Culver ad distorts the facts on Branstad’s pay hikes. The Culver campaign released a response to Barrett’s post, which you’ll find after the jump.

The Branstad campaign cited a Des Moines Register report from 1982 on how Branstad didn’t want a pay raise and might veto such a bill. Culver’s campaign leaped on that as evidence Branstad “said one thing and did another on pay raises.”

The Senate version of a bill designed to create jobs, support state budgets and extend various tax credits and benefit programs failed to overcome a Republican filibuster yesterday. Tom Harkin was among 56 members of the Democratic caucus who voted for the cloture motion (which would end debate on the bill), but Ben Nelson of Nebraska and Joe Lieberman of Connecticut voted with all the Republicans present, including Chuck Grassley, to kill the bill (roll call here). Joan McCarter observed that Senate Majority Leader Harry Reid

voted yes, without changing his vote, signaling that this iteration of the bill is indeed dead.

Reid followed the vote by attempting to pass the emergency provisions of the bill, the “doc fix,” unemployment benefits extension, and FMAP as well as the homebuyer tax credit, as separate bills under unanimous consent. McConnell objected to each, so we’re stuck in further limbo.

Extending unemployment benefits should be a no-brainer when the percentage of unemployed Americans who have been out of work for more than six months is higher “than at any time since the government began keeping track in 1948.” Without the “doc fix,” medical providers’ reimbursements for Medicare patients stand to drop about 20 percent. FMAP stands for Federal Medical Assistance Percentage funding, relating to federal government reimbursements for part of each state’s Medicaid spending. The 2009 stimulus bill temporarily raised FMAP payments for states during the recession, with larger increases going to states with higher unemployment rates. Failing to extend this provision will put state budgets under further strain for the 2011 and 2012 fiscal years.

Republicans who blocked this bill claim we should not be adding to the federal deficit. A spokesman for GOP enabler Ben Nelson laid out his views here. Ezra Klein pointed out a few glaring problems with the analysis: the federal budget can’t start approaching balance with unemployment at 9 percent, polls show Americans are much more concerned about jobs than the deficit, and the current rate of economic recovery is “far, far too slow to really dent unemployment.” Meanwhile, the same senators who claim to oppose adding to the deficit also oppose rolling back tax cuts or tax loopholes for the wealthy in order to pay for extending unemployed benefits, state fiscal aid and tax credits.

I share John Aravosis’ view that it was a terrible mistake for President Barack Obama to talk tough about reducing the deficit earlier this year. As Aravosis writes,

[T]he President didn’t want to blame Bush and the GOP for the deficit, and he didn’t want to sufficiently defend the stimulus and explain to people that they had a choice between a Great Depression and a bigger deficit. […] If the public understood that the deficit was a) mostly caused by Bush, and b) not nearly as important as staving off a Depression and creating jobs, the GOP would be facing far more pressure not to launch these filibusters at all.

Perhaps no jobs bill passed this week would alter the economy enough to affect the November elections, but if we accept current unemployment levels and don’t pass additional fiscal aid to the states, the economy may still be very weak leading up to the 2012 election.

Share any relevant thoughts in this thread. From where I’m sitting, the case for Harkin’s filibuster reform proposal has never looked stronger.

Anyone following the Iowa governor’s race must read Todd Dorman’s recent interview with Republican front-runner Terry Branstad. The Branstad so many Iowans remember from his four terms as governor shines through.

Branstad is at his most incoherent when speaking about gay marriage, but his answer to an open-ended question about the state budget was also revealing. The whole interview is worth your time. I discuss a few of my favorite excerpts after the jump.

Following up on my review of news from the first half of last year, I’ve posted links to Bleeding Heartland’s coverage of Iowa politics from July through December 2009 after the jump.

Hot topics on this blog during the second half of the year included the governor’s race, the special election in Iowa House district 90, candidates announcing plans to run for the state legislature next year, the growing number of Republicans ready to challenge Representative Leonard Boswell, state budget constraints, and a scandal involving the tax credit for film-making.

Last night the U.S. Senate voted 60 to 40 to move forward with debate on the health insurance reform bill. All senators who caucus with Democrats voted for cloture, and all Republicans voted against. The breakthrough came on Saturday, when Senate Majority Leader Harry Reid secured Senator Ben Nelson’s support with extra money for Medicaid in Nebraska and new language on abortion.

At Daily Kos mcjoan published a good summary of what’s in the latest version of the bill.

Reid reportedly promised Nelson a “limited conference” on this bill, meaning that very few changes will be made to the Senate version. However, it’s far from clear that the House of Representatives will approve the Senate’s compromise. About two dozen House Democrats plan to vote against health care reform no matter what, meaning that it will only take 15-20 more no votes to prevent supporters from reaching 218 in the House.

Bart Stupak, lead sponsor of the amendment restricting abortion coverage in the House bill, has been working with Republicans against the Senate’s abortion language. Meanwhile, the leaders of the House pro-choice caucus have suggested the Senate language may be unconstitutional.

Even before Reid struck the final deal with Nelson, Representative Bruce Braley told the Des Moines Register, “I think the real test is going to be at the conference committee and if it doesn’t improve significantly, I think health care reform is very remote based on what I’m hearing in the House.”

Senator Tom Harkin has done several media appearances in recent days defending the Senate compromise. He seems especially pleased with the Medicaid deal for Nebraska:

The federal government is paying for the entire Medicaid expansion through 2017 for every state.

“In 2017, as you know, when we have to start phasing back from 100 percent, and going down to 98 percent, they are going to say, ‘Wait, there is one state that stays at 100?’ And every governor in the country is going to say, ‘Why doesn’t our state stay there?’” Harkin said. “When you look at it, I thought well, god, good, it is going to be the impetus for all the states to stay at 100 percent. So he might have done all of us a favor.”

Ezra Klein has posted some amazing spin this morning about how the Senate bill is “not very close to the health-care bill most liberals want. But it is very close to the health-care bill that Barack Obama promised.” Sorry, no. Obama campaigned on a health care plan that would control costs and include a public insurance option, drug re-importation, and letting Medicare negotiate for lower drug prices. Obama campaigned against an individual mandate to purchase insurance and an excise tax on insurance benefits.

Those of you still making excuses for Obama should listen to what Senator Russ Feingold said yesterday:

“I’ve been fighting all year for a strong public option to compete with the insurance industry and bring health care spending down,” Feingold said Sunday in a statement. “Unfortunately, the lack of support from the administration made keeping the public option in the bill an uphill struggle.”

Republican Senator Olympia Snowe was about as unprincipled and two-faced during this process as White House officials were. She voted for the Senate Finance Committee’s bill in October and had suggested her main objection to Reid’s compromise was the inclusion of a public health insurance option. Yet Snowe remained opposed to the bill even after the public option was removed last week. Because of her stance, Reid cut the deal with Nelson. The supposedly pro-choice Snowe could have prevented the restrictions on abortion coverage from getting into the bill if she had signed on instead.

Speaking of Republicans, the Iowa Republican posted this rant by TEApublican: “Nebraska And Huckabee Respond To Ben ‘Benedict’ Nelson’s Christmas Senate Sellout.” If you click over, be prepared to encounter mixed metaphors and misunderstandings about what this “reform” does. Still, the rant is a good reminder of how Republicans will still scream about government takeovers even though corporate interests got everything they wanted out of the bill.

Like Spinal Tap’s amp that goes up to 11, Bob Vander Plaats can ratchet up the demagoguery that little bit more than the competition. While other conservatives warn against compromising the Republican Party’s core principles, Vander Plaats says Republican moderates make voters want to throw up, like Jesus when confronted with “lukewarm” followers.

While other conservatives back a constitutional amendment to ban same-sex marriage (which would take years to adopt), Vander Plaats promises to stop gays and lesbians from getting married on his first day as governor of Iowa.

While other conservatives warn against a “government takeover” of health care, Vander Plaats isn’t just against a new public health insurance plan, he wants to protect Iowans from the tyranny of federal-run Medicare and Medicaid.  

I was intrigued by an article in today's Des Moines Register about Dr. David Nash, who advocates training “oral health therapists” to handle simple procedures for children's teeth.

My cousins who are dentists probably wouldn't like this idea, but Nash made a compelling case:

Nash, who spoke at a conference in Johnston, framed the problem as an issue of justice and fairness. He criticized fellow dentists for concentrating on profitable treatments, including cosmetic procedures. He said they should spend more time on public-health needs, including care for poor children insured under Medicaid.

Dentists often say they limit their Medicaid work because the program pays them too little. But Nash said states that have dramatically raised reimbursements have not seen corresponding increases in dentists willing to accept more Medicaid patients. “Many dentists just do not want to see these people in their offices,” he said.

[…]

The professor has made waves nationally with a proposal to create a new class of “oral health therapists,” who would receive two years of training in the treatment of children. They could perform typical dental-hygienist duties, plus simple fillings, crowns and extraction of baby teeth. They could be posted in schools, pediatricians' clinics or mobile clinics, he said. Such therapists provide safe, economical treatment in 53 countries, including New Zealand, Britain and Canada, he said.

I have a friend whose family is on Medicaid, and I know she has struggled to find a dentist to fill her daughters' cavities. The family dentists or pediatric dentists recommended by me and other friends do not take Medicaid patients. She wants to avoid getting mercury amalgam fillings, and the only dentists in the Des Moines area she can find who take Medicaid patients use mercury in the fillings.

I'm sure there are arguments to be made against Nash's idea, but it seems to merit serious consideration. 

While most of us are focused on insurance or universal care, the Bush Administration has been incrementally shredding Iowa’s existing public health safety net in ways that have yet to become apparent.  The most recent assault on our public health care infrastructure is escaping the notice of mainstream media and citizen journalists alike, probably because it is not easily explained. I am referring to a proposed set of arcane regulation changes by the Center for Medicaid and Medicare Services (CMS) which, if enacted, will result in $15 billion dollars in cuts over five years to service providers, closing or scaling back emergency rooms, medical education and school based services in Iowa communities.