# Ron Corbett



Cedar Rapids mayoral race offers contrast in values, priorities

Cedar Rapids residents will elect either Amara Andrews or Tiffany O’Donnell to be city’s third woman mayor on November 30. O’Donnell received about 42 percent of the votes cast in the November 2 general election. Andrews advanced to the runoff with about 28 percent of the vote, just 41 votes ahead of outgoing Mayor Brad Hart, who endorsed O’Donnell the following week.

While O’Donnell has to be considered the favorite going into Tuesday, the general election leader has lost Cedar Rapids runoff elections at least two times in the recent past. Anything can happen in a low-turnout race, and voter participation usually drops in runoffs.

Although Iowa’s local elections are nonpartisan, some candidates have revealed their party affiliations as one way of expressing their values. Andrews has been campaigning as a progressive Democrat who will make the city more equitable and fair. In contrast, O’Donnell has downplayed her Republican affiliation and presented herself as a candidate for “all of Cedar Rapids.”

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Where are they now? Chris Hagenow edition

Former Iowa House Majority Leader Chris Hagenow has joined the conservative advocacy group Iowans for Tax Relief as vice president, the organization announced on November 10. In that position, he will “develop public policy solutions and strengthen relationships across the state to advance ITR’s goals of lower taxes, less government spending, and fewer onerous regulations.” Iowans for Tax Relief said Hagenow’s “new role will be an advisory one and he will not be participating in the organization’s lobbying efforts.”

Speaking to WHO Radio host Simon Conway on November 11, Hagenow said he would spend a lot of time “traveling around the state, visiting with business leaders and activists, and frankly the taxpayers and find out what’s important to them, and communicating the things we think should be done.”

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Apparently, legal deadlines don’t apply to everyone

Randy Evans is executive director of the Iowa Freedom of Information Council and previously was editorial page editor and assistant managing editor of the Des Moines Register. -promoted by desmoinesdem

Some of the most stressful memories I have of my school days involve the words, “We’re going to have a pop quiz today.”

Don’t panic, but there’s a pop quiz today. Here goes:

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Then and now: Kim Reynolds on Steve King

Governor Kim Reynolds downplayed her association with U.S. Representative Steve King on Friday, saying “No two people are going to agree on everything” and describing the bigoted loudmouth as just “one of over 4,000 honorary chairs” of her campaign.

When it has suited her political purposes, she has spoken of King in a much more flattering way.

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IA-Gov: First speeches by the Hubbell-Hart ticket (audio, transcripts)

“Whether it’s her own story or distorting facts about my story, one thing is clear: Governor Reynolds is running a campaign about yesterday,” Fred Hubbell told Iowa Democratic Party state convention delegates on June 16. “We’re running a campaign about tomorrow. We are running to get Iowa growing the right way.”

Hubbell’s first speech to a large crowd since his decisive victory in the high-turnout June 5 primary served several purposes:

• Preview the main themes of his general election campaign;

• Reassure Democratic activists (many of whom had been strongly committed to other candidates) that he shares their values and goals;

• Address and reframe early attacks from Governor Kim Reynolds; and

• Introduce his running mate State Senator Rita Hart, who’s not well-known outside Clinton and Scott counties.

For those who weren’t able to attend the convention, I enclose below audio and full transcripts of the speeches by Hubbell and Hart.

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Iowa candidates on notice: Signature requirements are real

A state panel disqualified two prominent Republican candidates yesterday due to insufficient valid signatures on their nominating petitions. A leading Democratic contender for Congress would have suffered the same fate, had a party committee not bailed her out using a questionable legal loophole.

All of the candidates had been actively campaigning for months. Yet they failed to ensure that they could meet a straightforward, longstanding requirement to qualify for the ballot. Nothing like this should happen to another serious contender for public office in Iowa.

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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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Kim Reynolds should have made one clean break from Terry Branstad

Governor Kim Reynolds made a strategic error by not distinguishing herself from her predecessor in any meaningful way, judging by the new Iowa poll by Selzer & Co for the Des Moines Register and Mediacom.

Changing course on even one high-profile policy could have demonstrated strong critical thinking and leadership skills. Instead, Reynolds is in effect running for a seventh Terry Branstad term. Unfortunately for her, Iowans are inclined to think it’s “time for someone new” in the governor’s office.

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Republican Brad Hart wins Cedar Rapids mayoral election

Iowa local elections are nominally non-partisan, but Republicans have reason to celebrate attorney Brad Hart’s victory in today’s Cedar Rapids mayoral runoff election. Hart defeated former city council member Monica Vernon by 9,518 votes to 7,995 (54.3 percent to 45.6 percent), according to unofficial results. It’s the third straight win for the GOP in Iowa’s second-largest city. Outgoing Mayor Ron Corbett, a former Republican speaker of the Iowa House, did not seek a third term because he is running for governor.

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Nothing says "civil discourse" like Steve King as your campaign co-chair

“There is no civil discourse left and it is really sad,” Governor Kim Reynolds said yesterday, adding, “We ought to be able to debate ideas because that’s how you get to consensus.” Reynolds lamented the “vitriol” that dominates the current “vicious” political climate.

Today the Reynolds/Gregg campaign announced that Representative Steve King will be a co-chair. A written statement described the governor as “humbled by the endorsement” from a “strong defender of freedom and our conservative values” who is “independent, principled, and is fighting the good fight in Washington, D.C.”

You can posture as a consensus-seeker, or you can brag about support from a walking highlight reel of mean-spirited and dehumanizing rhetoric. Not both.

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IA-Gov: Ron Corbett running first radio ad

Leadership is the theme of Cedar Rapids Mayor Ron Corbett’s opening commercial promoting his gubernatorial candidacy. In the first half of the 60-second spot, a woman whose home was “nearly destroyed” in 2008 says the mayor “delivered” on his promise “to rebuild our city better than ever.”

Corbett then tells listeners, “the floods in Cedar Rapids proved that we can’t wait for things to get better on their own.” Without mentioning current Governor Kim Reynolds, Corbett asserts that “Iowans can’t afford the status quo,” and the state needs “a bold new leader in the governor’s office” to “slash income tax rates and champion conservative solutions.”

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How did Kim Reynolds crunch the numbers to avoid a special session?

Governor Kim Reynolds won’t call a special legislative session to balance the budget for the year that ended on June 30, her office announced this morning.

They haven’t explained how a fiscal year 2017 shortfall that non-partisan analysts estimated at $104 million in July and around $75 million a few weeks ago became a $14.6 million shortfall, according to the governor’s staff.

Reynolds didn’t take questions from the press today. She didn’t even attend the briefing where Department of Management Director Dave Roederer handed out a puzzling table.

Whatever the Reynolds administration did to avert a short-term political problem will likely worsen the strain on the state budget in the coming months.

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Treasurer submits backup plan to ensure Iowa can pay its bills

Warning that “Iowa must use all available tools to prepare for strained general fund cash flows” in the current fiscal year, State Treasurer Michael Fitzgerald formally asked Governor Kim Reynolds yesterday to authorize short-term borrowing this fall. Reynolds has previously said she is confident the state will be able to pay its bills without such action.

The country’s longest-serving state treasurer counters that “prudent” management of state finances justifies cash-flow borrowing to ensure that Iowa can meet its obligations, including school aid payments, in early 2018.

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Iowa political opinion is shifting against corporate tax giveaways

The Apple corporation’s plan to build a “state-of-the-art data center” in Waukee is attracting national attention and ridicule for a state and local incentives package worth more than $4 million to the country’s most profitable company for every long-term job created.

While Governor Kim Reynolds celebrated yet another deal to fleece taxpayers, one encouraging sign emerged last week: more Iowa politicians are willing to say out loud that this approach to economic development doesn’t pay for itself.

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Kim Reynolds may one day regret not taking state treasurer's advice

Michael Fitzgerald has seen tight budgets come and go in his 35 years as state treasurer. He is increasingly concerned that Iowa may have trouble making ends meet next spring.

Only a few months into her new job, Governor Kim Reynolds plans to reject Fitzgerald’s considered opinion. The political gamble allows her to downplay the severity of Iowa’s fiscal situation for now. However, her strategy could backfire if a cash-flow problem blows up just before the final stretch of next year’s primary campaign.

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Is Kim Reynolds on track to borrow more money than Chet Culver?

Cedar Rapids Mayor Ron Corbett fleshed out his case against Governor Kim Reynolds as a manager of state finances this week, saying she is behaving like former Democratic Governor Chet Culver. During the 2010 campaign, then-candidates Terry Branstad and Reynolds derided Culver as “Big Debt Chet.” Now, Corbett asserts, “instead of learning from Governor Culver, she’s mirroring from Governor Culver.”

As the leading GOP rival to Reynolds, Corbett will make fiscal policy a central issue in his gubernatorial campaign. But is Reynolds really on track to borrow more money for the state than Iowa’s last Democratic governor did?

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IA-Gov: Ron Corbett responds to critics of his labor record

As Ron Corbett seeks the GOP nomination for governor, his support of project labor agreements in Cedar Rapids will be a leading point of attack by Republicans supporting Governor Kim Reynolds. Corbett’s stance put him on a collision course with Governor Terry Branstad in 2011. The mayor explained his reasoning in chapter 25 of his memoir Beyond Promises and in an interview with Bleeding Heartland last week.

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IA-Gov: Ron Corbett faults Iowa officials' failure to address health insurance crisis

Cedar Rapids Mayor Ron Corbett finds it “disappointing” and “short-sighted” that neither the Iowa legislature nor the Branstad/Reynolds administration developed a plan earlier this year to address the collapse in Iowa’s individual health insurance market. By his account, state lawmakers and executive branch officials knew insurers were likely to stop selling individual policies for 2018 and should have developed “some type of backstop” instead of waiting for Congress to act.

Corbett plans to launch a Republican campaign for governor later today. He commented on Iowa’s potential health coverage crisis during a telephone interview with Bleeding Heartland last week.

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IA-Gov: Ron Corbett says "exclusively Republican" push for tax reform would be "big mistake"

When Cedar Rapids Mayor Ron Corbett kicks off his Republican campaign for governor on June 20, tax reform will be a major part of his “new game plan for Iowa.”

Iowa has no shortage of Republican politicians seeking to lower taxes for those with high incomes or replace a progressive income tax structure with a flatter tax. State House and Senate leaders have promised to push for income tax cuts next year, and in her first speech as governor last month, Kim Reynolds identified “reforming Iowa’s tax structure” as her “first priority.”

But Corbett frames the case for tax reform differently from the usual GOP rhetoric about spurring investment or putting money back in people’s pockets. In a wide-ranging interview last week, the mayor repeatedly called for addressing inequities in the tax code, which now favor the wealthiest Iowans over middle-class taxpayers. He also warned it would be “a big mistake” for Reynolds to lead an “exclusively Republican” push for tax changes next year.

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IA-Gov: Ron Corbett to decide soon, previews case on taxes and education

Outgoing Cedar Rapids Mayor Ron Corbett will decide “in the next 45 days or so” whether to seek the Republican nomination for governor, he told WHO-TV’s Dave Price on May 8. After months of laying the groundwork for a possible gubernatorial campaign, Corbett launched a tour this week promoting his new political memoir, Beyond Promises. He will use those speaking engagements to see “if people can feel a connection to Ron Corbett.”

Asked how he could compete financially against Kim Reynolds, who will be the incumbent governor, Corbett responded,

Yeah, people have asked me that, “You know, you’re going to have a big uphill battle ahead of you, a big challenge ahead of you.” But you know, what in life isn’t, you know, sometimes a big climb? And I’ve taken on big challenges. Again, when–and I talk about this in the book, when I take on an incumbent speaker of the House or an incumbent state representative, I don’t do it because I want to take on that particular person. I just have ideas that I want to talk about and get implemented.

Assuming Corbett does run for governor, tax and education policy will be central to his message, so let’s take a closer look at his ideas.

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IA-Gov: Ron Corbett continues to lay groundwork for 2018 campaign

Outgoing Cedar Rapids Mayor Ron Corbett continues to signal that he is serious about seeking the Republican nomination for governor in 2018. Speaking as “president and founder” of the Engage Iowa think tank, Corbett will deliver a major speech on education policy at the Downtown Cedar Rapids Rotary this Monday, May 1.

In a press release enclosed in full below, Corbett said, “This event kick-offs my second round of visits to Iowa rotaries. Last time I was talking about the need for tax modernization and improving Iowa’s water quality – two topics that were at the forefront of discussion this past legislative session and continue to be hot topics. I look forward to re-imagining education and rallying education champions as we work to make improvements to our state’s educational system.” Since late 2015, Corbett has spoken to scores of local business-oriented groups (Rotary Clubs, Chambers of Commerce, or Farm Bureau chapters) in 55 counties as of last December.

The landing page of Engage Iowa’s website now advertises a livestream of Corbett’s forthcoming speech. He will promote a new “research-based teacher compensation plan” and discuss “opportunities that the state needs to address” in light of the new collective bargaining law, which could profoundly affect public schools and teachers. The full plan will go up on the think tank’s website after the May 1 Rotary event.

Corbett also has a new book coming out, which sounds like a case to Iowa voters, judging by the blurb on the Barnes and Noble website (emphasis added):

“Beyond Promises” is a memoir of sorts by Ron Corbett, who became the youngest speaker of the Iowa House of Representatives and who now is finishing up his eighth year as mayor of Iowa’s second largest city, Cedar Rapids. In the late 1990s, Corbett was considered a possible Republican candidate for Congress or governor. Then he surprised many and resigned from the Legislature so he wouldn’t have to spend so much time away from home and his growing family. He headed the local Chamber of Commerce for six years, a period in which he led a community campaign to rebuild schools, another to redevelop the Cedar Rapids riverfront and a third that brought professional management to Cedar Rapids city government. Corbett’s tenure as Cedar Rapids mayor coincided with the city’s recovery from a devastating flood in 2008, the costliest natural disaster in Iowa history. Can someone who was a leading Republican voice in much of Iowa reclaim statewide prominence and be elected governor? In 2017, that’s the elephant in the room-the unstated question lingering in the backdrop of “Beyond Promises.” This book is Corbett’s first-person account of where he came from and what shaped him, as well as a chronicle of doing, not simply promising.

Lieutenant Governor Kim Reynolds has a big head start on fundraising and will have more establishment support in next year’s Republican primary, as the sitting governor–or acting governor, to be more precise. But Corbett sounds ready to take on this challenge, and the book title Beyond Promises hints at a possible line of attack. The Branstad/Reynolds administration hasn’t accomplished any of the four key goals promised during the 2010 gubernatorial campaign: creating 200,000 new jobs, reducing the cost of government by 15 percent, increasing family incomes by 25 percent, and having the “best schools in the nation.”

This year’s severe budget shortfall could also create an opening for Corbett to argue that Branstad and Reynolds mismanaged the state’s finances, compared to the period when he was Iowa House speaker. If revenues fall well below projections again during the coming fiscal year, as former Iowa revenue estimator Jon Muller considers likely, Reynolds may be forced to enact large, disruptive spending cuts in early 2018, as happened this year.

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With Hensley out, who will business interests run against Josh Mandelbaum?

Christine Hensley will not seek re-election to the Des Moines City Council this year, she announced today in an interview with the Business Record. The 24-year incumbent told Perry Beeman, “I’ve got a tremendous amount done, and it’s time for me to look at the next chapter and figure out what I’m going to do.” Hensley discussed spending “a little more time with family” and didn’t mention her challenger Josh Mandelbaum, though his capacity to run an effective campaign likely factored into her retirement plans.

The race for Des Moines City Council Ward 3 was shaping up to be a focal point for central Iowa progressives. Mandelbaum has raised more $110,000 in less than a month as a candidate, his campaign told Iowa Starting Line today. More than 150 people have volunteered to help spread the word.

While winning an open seat is usually easier than beating an entrenched incumbent, no one should celebrate victory too soon. Republicans and business groups will surely recruit and heavily promote someone to run in Hensley’s place. Proxies of the Iowa Farm Bureau have spent hundreds of thousands of dollars on television and radio advertising bashing the Des Moines Water Works during the last two years, so I anticipate a well-funded smear campaign against Mandelbaum. Countering that message will require a strong grassroots effort. City council races are usually low-turnout affairs, so a few thousand people will decide the outcome. You can sign up to volunteer here.

Democrats outnumber Republicans in the west-side and south-side neighborhoods that are part of ward 3 (a map is at the end of this post). That reality, along with Mandelbaum’s early start and big fundraising, may deter other potential candidates. But some ambitious person with business connections will step up. Any speculation about who might enter the Des Moines City Council race is welcome in this thread.

UPDATE: Mandelbaum released the following statement on today’s news.

I want to thank Councilwoman Hensley for serving her community for 24 years. While Councilwoman Hensley and I have our disagreements, we should all honor and respect the work that all of our civil servants do every day to make our community stronger.This race was and still is about representing the interests, values, and concerns of the residents of Des Moines. I will continue to champion clean water, strong neighborhoods with strong public schools, and investing in people through policies that support decent wages. I also want to thank my supporters. The outpouring of support throughout the community in the month since we have announced has made it clear that Des Moines is ready for a progressive voice on the City Council. With your continued support, we will be prepared to fight outside special interests that have been attacking champions of clean water like what the so-called Partnership for Clean Water has done to Bill Stowe and the Des Moines Water Works. This election will still be a fight to be won even if it’s not the original one we anticipated when we announced one month ago. This campaign has just begun and I look forward to continued conversations with residents throughout the third ward as I keep running vigorously all the way through Nov. 7th, 2017. Thank you again-

According to Jason Frerichs of the Progressive Voices of Iowa blog, he has interviewed another Democrat planning to run for city council in this ward. Will update once that person’s identity is known.

P.S.- Hensley’s decision to stand with the Farm Bureau against her local water utility was a political mistake as well as a betrayal of her constituents. And it was all for nothing, because despite lobbying by groups including the city of Des Moines, the plan to dismantle the Water Works stalled in the Iowa House and won’t be attached to an appropriations bill this year. Since the Water Works lawsuit against three northwest Iowa counties will not move forward, state lawmakers will have little reason to pursue this goal during the 2018 legislative session either.

P.P.S.- If outgoing Cedar Rapids Mayor Ron Corbett seeks the Republican nomination for governor in 2018, as I expect him to do, Hensley will be a leading contender for the lieutenant governor spot on his ticket.

APRIL 24 UPDATE: Multiple central Iowa sources have relayed a rumor that Hensley is being considered for the lieutenant governor position under Kim Reynolds after Governor Terry Branstad leaves for China. Offering Hensley that job could be a way for Reynolds (who has a big head start on fundraising for the 2018 governor’s race) to hurt Corbett’s ability to tap major Republican donors in the Des Moines area. If Hensley joined the Reynolds administration, it would be a slap in the face to Corbett, with whom she has worked closely as an original board member of the Partnership for Clean Water.

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Josh Mandelbaum taking on Des Moines City Council member Christine Hensley

Promising to be a “voice for strong neighborhoods and strong schools,” defending local interests and fighting harmful state policies, Josh Mandelbaum confirmed Thursday night that he will run for Des Moines City Council against 24-year incumbent Christine Hensley. I enclose below the audio and full transcript of Mandelbaum’s first campaign speech, along with background on the candidate and a map of Ward 3, which covers west-side neighborhoods south of University Avenue and much of the south side.

I’ve been acquainted with Mandelbaum since before he was a policy advisor for Governor Tom Vilsack and Lieutenant Governor Sally Pederson. More recently, I’ve closely observed his work on renewable energy and clean water issues through our mutual involvement in Iowa environmental circles. I’m an active supporter of the non-profit Environmental Law & Policy Center, where Mandelbaum is a staff attorney. Last year Midwest Energy News named Mandelbaum to its “40 Under 40” list of list of “emerging leaders” working on “America’s transition to a clean energy economy.” He was one of only two Iowans to receive that recognition.

Even if I couldn’t personally vouch for Mandelbaum’s talent and work ethic, I would be excited to see a progressive willing to take on this incumbent. Hensley’s 2015 vote to extend a tax abatement program was indirectly a vote to benefit her employer. Timothy Meinch reported for the Des Moines Register at the time that the city attorney “warned of an ‘appearance of impropriety’ and ‘potential of a conflict of interest’” before Hensley “cast a pivotal vote in favor of developers.” Des Moines Cityview’s Civic Skinny column explained here how Hensley’s deciding vote benefited Midwest Housing Equity Group, “an Omaha-based firm that syndicates and sells tax credits from developers” where she “is a director and paid consultant.”

Hensley has given Des Moines residents plenty of other reasons to look for new representation. Mandelbaum covered several of them in the remarks I transcribed below. Her most egregious act was joining the small board of directors of the Orwellian-named Iowa Partnership for Clean Water. This advocacy organization grew out of the Iowa Farm Bureau’s desire to discredit the Des Moines Water Works, which delivers drinking water to half a million central Iowans, including all of Hensley’s constituents. My theory is that Hensley hitched her wagon to this cause in the hope of becoming Cedar Rapids Mayor Ron Corbett’s running mate in the 2018 race for governor. Whatever her motives, she chose to stand with Big Ag against her own city’s utility, despite evidence connecting farm runoff with high nitrate levels and toxic algae blooms that threaten the local water supply.

This year Hensley urged the city council to support legislation that would disband the Des Moines Water Works. The bill is widely understood to be retribution for the Water Works lawsuit against drainage districts in northwest Iowa (see the first part of this post). Mandelbaum spoke against House File 484 at a public hearing earlier this month; scroll down to view the video.

Taking on an entrenched incumbent is always an uphill battle, especially for a first-time candidate. Hensley will raise a ton of money. Even so, this race is winnable for Mandelbaum. City council elections are low-turnout affairs. Hensley didn’t have a challenger in 2005 or in 2009 and defeated Cal Woods by 3,536 votes to 2,248 four years ago.

Ward 3 “has an overwhelming Democratic registration advantage and has a D+20 performance index,” Pat Rynard noted last month. The Water Works issue alone is highly salient for Des Moines residents. A large number of teachers and public workers live on the west and south sides of Des Moines, as do many progressives interested in economic and social justice. If Mandelbaum can tap into outrage over statehouse Republicans destroying collective bargaining rights and lowering the minimum wage in Polk County, don’t bet against him turning out a few thousand Democrats who have never voted in a local election before. He won’t be able to match Hensley’s fundraising, but with Pederson and former Attorney General Bonnie Campbell co-chairing his campaign, he should raise enough money to get his message out to Ward 3 residents.

This race will be one of the most important local elections in central Iowa this November. Please spread the word.

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A Word of Caution on Local Control

Pete McRoberts describes how some local officials in Iowa lobbied against a 2016 bill designed to protect domestic violence victims from eviction. -promoted by desmoinesdem

It’s impossible to spend any time at the state legislature this year without hearing phrases like “local control” and “home rule” discussed in concert with any number of progressive questions. At yesterday’s public hearing on a statewide preemption bill, many people based their opposition on these same ideas, specifically, that a local government “knows best for its residents,” and that city councils are where big decisions should be made.

The Iowa Constitution, and state law, both support this idea – within some clearly defined boundaries. Home rule is simple; it generally means local governments are in charge when there’s no contrasting state law, or when they are acting to execute an identified city power.

These rights exist for a reason; there are more than 900 cities in Iowa, each with their own local issues. The boundaries exist for that same reason, but on the other side of the ledger – a person’s rights can never be diminished because of a local decision. Home rule and local control work when both of those parts are understood.

An example of local control and home rule falling apart came to my attention in 2014, when activists began a multi-year response to abusive local ordinances in Cedar Rapids and Des Moines which hurt survivors of domestic violence, and set them up for eviction upon calling the police when they needed to. It was a full-blown battle. Those cities spent hundreds of thousands of dollars in taxpayer money to defend their corrupt ordinances, all in the name of “home rule” and local control. They nearly won.

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IA-Gov: Ron Corbett's think tank running online ad campaign

When Ron Corbett announced in December that he will not seek a third term as Cedar Rapids mayor and will consider running for governor, he promised a “big surprise” at the end of his final “state of the city” address on February 22.

Corbett has long been positioning himself to run for governor. Since creating the conservative think tank Engage Iowa in late 2015, he has given dozens of speeches around the state, most often to Rotary clubs or members of local Iowa Farm Bureau chapters and Chambers of Commerce.

After Governor Terry Branstad confirmed plans to resign in order to become U.S. ambassador to China, many Iowa politics watchers speculated that Corbett would decide against seeking higher office next year. Instead of competing for the GOP nomination in an open primary, he would have to run against a well-funded sitting governor, Kim Reynolds.

To those who don’t share my view that Corbett will take on the challenge of running against a Republican incumbent, I ask: why is Engage Iowa spending money to promote Corbett’s name and catchy conservative slogans online?

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How Kim Reynolds built her $1.1 million war chest

Lieutenant Governor Kim Reynolds will take many advantages into the 2018 gubernatorial campaign, by virtue of being the incumbent after Governor Terry Branstad leaves for China.

Though Cedar Rapids Mayor Ron Corbett is considering a bid for the Republican nomination next year, he may have second thoughts after looking at the Reynolds committee’s latest campaign finance reports. The lieutenant governor ramped up her fundraising during 2016 and has more than $1.1 million in the bank.

Contrary to the picture painted by spin doctors for Reynolds, most of the money came from major donors.

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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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Branstad's budget puts Kim Reynolds on a collision course with Big Ag

Governor Terry Branstad has rarely found himself at odds with any powerful farm lobby group. In 1995 he signed a law banning agricultural zoning, which fueled explosive growth of confined animal feeding operations across Iowa. Since returning to the governor’s office in 2011, he has named several agribusiness representatives to the the Environmental Protection Commission. He signed the probably unconstitutional “ag gag” bill targeting whistleblowers who might report alleged animal abuse. He moved to protect farmers from state inspections for electrical work. He joined a poorly-conceived and ultimately unsuccessful lawsuit seeking to block a California law on egg production standards. He has consistently rejected calls to regulate farm runoff that contributes to water pollution, instead supporting an all-voluntary nutrient reduction strategy heavily influenced by the Iowa Farm Bureau.

Despite all of the above, the governor’s two-year budget blueprint contains an obscure proposal that will draw intense opposition from Big Ag. By this time next year, the fallout could cause political problems for Branstad’s soon-to-be-successor, Lieutenant Governor Kim Reynolds–especially if Cedar Rapids Mayor Ron Corbett challenges her for the 2018 GOP nomination.

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IA-Gov: Ron Corbett may challenge Kim Reynolds for the GOP nomination

Despite early efforts to consolidate the Republican establishment around Governor Terry Branstad’s successor, Ron Corbett announced this morning on Simon Conway’s AM 600 Radio show that he will not run for re-election as Cedar Rapids mayor in 2017 and will consider running for governor in 2018. By that time, Lieutenant Governor Kim Reynolds will be the incumbent, assuming the U.S. Senate confirms Branstad as ambassador to China, as expected.

Corbett has been laying the groundwork for a gubernatorial bid for some time. Since creating a new conservative think tank late last year, he’s been rolling out policy proposals and speaking at numerous Rotary clubs and other groups around the state.

The Republican Party of Iowa will back Reynolds against any GOP primary challenger in 2018, state party chair Jeff Kaufmann has warned. (CORRECTION: See update below.) But Corbett has presumably found enough support among potential major donors to proceed with considering a gubernatorial bid. I look forward to covering that primary and will update this post following a press conference Corbett has planned for this morning. Corbett would need to raise millions to run an effective statewide campaign, especially since the Republican Governors Association might get involved to protect Reynolds.

Related side note: There’s no love lost between Corbett and Branstad, dating from the time during the 1990s when Corbett served as Iowa House speaker. As soon as Branstad was back in the governor’s office in 2011, he issued an executive order on project labor agreements that caused problems for a big Cedar Rapids project. Branstad didn’t accommodate Corbett’s efforts to negotiate, and Corbett and Cedar Rapids leaders eventually backed down to avoid costly litigation.

UPDATE: Adding to this post after the jump.

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Branstad going to China: Let the IA-Gov speculation commence

Jennifer Jacobs reported for Bloomberg last night that Governor Terry Branstad has accepted President-elect Donald Trump’s offer to become the next U.S. ambassador to China. Jacobs cited three unnamed sources, and an unnamed member of Trump’s transition team confirmed the news to the Washington Post this morning. I expect Trump to make the official announcement during his Thursday “thank you” rally in downtown Des Moines. (By the way, many central Iowa Democrats as well as Republicans received a robocall invitation to that rally, featuring Donald Trump, Jr.)

I wish Branstad well in his new adventure. He’ll have a lot to contend with: the president-elect’s recent overture to Taiwan was destabilizing; Trump’s threats to punish China for supposedly unfair trade and currency practices could spark a trade war; and horrific air pollution has made Beijing “almost uninhabitable.”

Kim Reynolds is the fifth woman to hold the office of Iowa lieutenant governor and will soon become the first woman governor in our state’s history. Branstad has been saying for years he wanted her to succeed him, and many Democrats expected him to step down before the end of his sixth term, to give her the advantages of incumbency going into the 2018 campaign. The domain KimReynoldsforgovernor.com has been registered since 2012, Mark Langgin pointed out today.

Reynolds will select the next lieutenant governor, and she may use that power to neutralize a potential rival, such as Iowa Secretary of Agriculture Bill Northey. (Why Northey would agree to that arrangement is a mystery to me.) I don’t expect Reynolds to clear the field for the 2018 Republican primary, but as governor, she will be able to raise more money and possibly deter some ambitious people. Cedar Rapids Mayor Ron Corbett has been laying the groundwork for a gubernatorial campaign for years. I don’t know how many major donors would back him now that Reynolds will be the incumbent, though. Running a credible campaign against her would require millions of dollars.

Many Democrats were delighted to read this morning that Representative Steve King told The Hill’s Scott Wong he is thinking about running for governor himself. I suspect this will play out like the early months of 2013, when King attracted a lot of attention by saying he might run for U.S. Senate. I never believed then and don’t believe now that King will run for higher office. However, two recent developments may have changed the equation for him.

First, Iowa’s sharp turn to the right this November may have convinced King he has a chance to win a statewide election, which didn’t appear to be the case a few years ago. Second, he and Branstad are not on good terms. King was a leading surrogate for presidential candidate Ted Cruz, whom Branstad attacked shortly before the Iowa caucuses. Reynolds and many other prominent Iowa Republicans endorsed King before this year’s GOP primary in the fourth Congressional district, but Branstad didn’t join them. Adding to the insult, soon after King defeated State Senator Rick Bertrand in that primary, the governor’s son Eric Branstad hired some of Bertrand’s former staffer to work on Trump’s campaign.

Any thoughts about Branstad’s prospects in China or the 2018 campaign are welcome in this thread.

UPDATE: The Des Moines rumor mill sees State Representative Peter Cownie as a likely lieutenant governor choice for Reynolds. Further updates are after the jump.

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Iowa Democrats will need to fend for ourselves in 2018 and 2020

Since election day, I’ve spoken with many Iowa Democrats and have observed many conversations and debates on social media. People process grief in different ways. Some Democrats are still bogged down in arguments over who is to blame (e.g. centrist or “establishment” Democrats, the FBI director, political journalists). Some are despairing over how Republicans will use total control over state government to destroy safety net programs and erode civil rights. Some have already moved on to pondering how we can create a stronger statewide party, and how Democrats could mitigate the harm Congressional Republicans will be able to inflict on Americans.

I applaud the forward-thinking people who are preparing for the tasks ahead. At the same time, I’m concerned that many Democrats haven’t absorbed the long-term consequences of what happened here on November 8.

For decades, politically-engaged Iowans have enjoyed the attention that comes with being first in the nominating process and a swing state later in the year. Our popular vote tracked closely to the national popular vote margin in six straight presidential elections. Both major-party nominees campaigned here and paid for field networks to get out the vote, with collateral benefits for down-ticket candidates.

We need to recognize that during the next couple of election cycles, we will likely be on our own.

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Weekend open thread: Branstad to China?

For years, I’ve predicted Governor Terry Branstad would step down before the end of this term in order to allow his chosen successor Kim Reynolds to run for governor as an incumbent in 2018. My thinking was influenced by political reality: the lieutenant governor has neither a strong ideological or geographical base nor the stature in Iowa Republican circles to win a statewide primary from her current position.

I saw two likely windows for a Branstad resignation: soon after the 2016 general election, or immediately following the 2017 legislative session. Either time frame would give Reynolds a boost on fundraising and other incumbency advantages going into a gubernatorial primary against rivals such as Cedar Rapids Mayor Ron Corbett and Iowa Secretary of Agriculture Bill Northey.

In recent months, I’ve become convinced Branstad would serve out his sixth term after all. At least a dozen sources have independently indicated that the governor sounds open to running for re-election again in 2018. The resounding Republican victories in this year’s Iowa House and Senate races give Branstad another reason to stick around: the chance to work with a GOP-controlled legislature for the first time since 1998.

Yet President-elect Donald Trump has hinted Branstad might be his pick to serve as U.S. ambassador to China. Speaking to reporters before his birthday party/fundraiser last night, Branstad said, “I’m not ruling anything out.”

I don’t see it happening.

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Few changes in Iowa House Republican leadership team

Iowa House Republicans came out of this campaign in better shape than they could have hoped six months ago. The party successfully defended every incumbent and every GOP-held open seat, including one with a significant Democratic registration advantage. Even better, Republicans defeated State Representative Patti Ruff and picked off one of the four Democratic-held open seats, despite a big tax problem for the GOP candidate there. During the last presidential election year, Republicans suffered a net loss of seven Iowa House seats and were lucky to avoid losing more. In contrast, the caucus came out of last Tuesday with a two-seat gain and a 59-41 majority, just one seat shy of their advantage in the chamber after the 2010 landslide.

Happy endings provide little incentive to shake things up. To no one’s surprise, House Republicans re-elected most of their leadership team during yesterday’s caucus meeting in Des Moines. Linda Upmeyer will continue as speaker, her position stronger now than last year, since several representatives who were rumored to be at odds with her have now retired. Chris Hagenow stays on as majority leader and Matt Windschitl as House speaker pro-tem.

The biggest change is Zach Nunn moving up from one of the assistant majority leader positions to majority whip. Media reports don’t indicate whether last year’s majority whip Joel Fry sought the position again or stepped down from the leadership team voluntarily.

Similarly, Walt Rogers is no longer an assistant majority leader, having held one of those positions from early 2013 through last year’s legislative session.

If any readers can shed light on whether Fry and Rogers wanted out or were pushed out of leadership, please post a comment here or contact me confidentially at the e-mail address near the bottom right of this page. UPDATE: Two sources indicate that Fry is likely to lead the Human Resources Committee, since its previous chair Linda Miller retired this year. Under House rules, assistant leaders don’t chair committees. Still seeking insight on the next move for Rogers.

Two of the just-selected assistant majority leaders played the same role last year: Jarad Klein and John Wills. The other two, Mike Sexton and Megan Jones, join House leadership for the first time. UPDATE: According to one source, Jones and Klein ran against Nunn for majority whip.

Like her counterpart in the upper chamber, incoming Iowa Senate Majority Leader Bill Dix, Upmeyer didn’t lay out specific policy plans when speaking to reporters yesterday. We’ll find out later which taxes Republicans plan to cut, how badly they will decimate collective bargaining rights for public employees, and whether they will do anything to make medical cannabis more widely available to Iowans suffering from severe health conditions.

Upmeyer seemed to rule out raising the sales tax by 3/8 of a cent to fill the the Natural Resources and Outdoor Recreation Trust Fund. That fund has been empty since 63 percent of Iowans approved a constitutional amendment to create it in 2010. Cedar Rapids Mayor Ron Corbett is one of very few elected Republican officials to be on record backing a sales tax hike to fund conservation efforts.

IA-Gov: Sales tax hike for conservation may become fault line in 2018

Leaders of a campaign to provide a “permanent and constitutionally protected funding source dedicated to clean water, productive agricultural soils and thriving wildlife habitats” in Iowa touted support in the business and agriculture communities this week. You can watch Iowa’s Water and Land Legacy‘s September 12 press conference here or listen to the audio at Radio Iowa. Under a state constitutional amendment Iowa voters adopted in 2010, revenues generated by the next 3/8th of a cent sales tax increase (estimated at more than $180 million per year) would flow into a Natural Resources and Outdoor Recreation Trust Fund. Scroll to the end of this post for a current list of IWLL coalition members and details on the formula for allocating trust fund money.

Without knowing which parties will control the Iowa House and Senate next year, it’s hard to gauge prospects for passing a sales tax increase. Democratic State Senator Matt McCoy commented on Monday, “The best time to move on a piece of legislation is just following an election. That’s when you get your best bipartisan compromises, and I think ultimately, this is something we can find a bipartisan compromise on.”

Who might lead statehouse Republicans toward such a compromise is unclear. The GOP lawmaker most supportive of IWLL has been State Senator David Johnson. But he left the party this summer to protest presidential nominee Donald Trump and told Bleeding Heartland in a recent interview that he plans to remain an independent during the 2017 legislative session.

At least one Republican running for governor in 2018 will support the sales tax increase: Cedar Rapids Mayor Ron Corbett. That stance will put him in conflict with either Governor Terry Branstad or his chosen successor, Lieutenant Governor Kim Reynolds. In addition, support for funding IWLL among major farm lobby groups could create problems for Iowa Secretary of Agriculture Bill Northey, also a likely gubernatorial candidate in 2018.

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Branstad, Rastetter, Northey join Donald Trump's Agricultural Advisory Committee

So much for an “unofficial” role: Governor Terry Branstad, Iowa Secretary of Agriculture Bill Northey, and Republican power-broker Bruce Rastetter are among more than 60 people named this morning to Donald Trump’s “Agricultural Advisory Committee.” Its “executive board members will convene on a regular basis,” according to a news release I’ve posted after the jump. Note that the campaign statement misspells Northey’s name and describes Rastetter as having hosted the “first Republican Presidential debate.” Actually, Rastetter organized an Iowa Ag Summit at which nine presidential contenders (not including Trump) appeared in March 2015. New Jersey journalist Claude Brodesser-Akner was the first to report Branstad’s and Rastetter’s involvement as Trump advisers last week.

The other Iowans on the list released today are:

• Sam Clovis, who traded in his conservative and religious principles last summer to become Trump’s “national chief policy advisor”;

• former State Representative Annette Sweeney, a friend of Rastetter’s since childhood who chaired the Iowa House Agriculture Committee until redistricting forced her into a losing primary battle against fellow House Republican Pat Grassley. She was a key player in passing Iowa’s unconstitutional “ag gag bill,” the first of its kind in the country. Soon after finishing her legislative service, Sweeney became president of a public policy group called Iowa Agri-Women.

• Ron Heck, identified as an Iowa farmer and past president of the American Soybean Association.

Any comments about the presidential race are welcome in this thread. Northey is widely expected to run for governor in 2018 rather than seek a fourth term as secretary of agriculture. His likely opponents in a GOP gubernatorial primary include Lieutenant Governor Kim Reynolds and Cedar Rapids Mayor Ron Corbett. While the lieutenant governor has repeatedly urged Iowans to vote for Trump at public events, Corbett has wisely kept some distance between himself and the presidential nominee. He steered clear of Trump’s rally in Cedar Rapids on July 28.

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IA-04, IA-Gov?: Bill Northey endorses Steve King for Congress

The Republican National Convention delegate elections grabbed most of the attention from today’s Iowa GOP district conventions, but Secretary of Agriculture Bill Northey made some news at the fourth district gathering in Fort Dodge. Kathie Obradovich reported for the Des Moines Register,

“When I think of somebody I want in the room talking with conservative congressmen and senators, a potential president, on ethanol issues, I want Steve King,” [Northey] said.

King, in turn, suggested a promotion for Northey — but not to governor, a job for which he is often mentioned as a potential candidate. He noted there will be a new U.S. Agriculture secretary next year. “We’ll no longer have Secretary (Tom) Vilsack. I think maybe Secretary Northey sounds pretty good to me.”

King touted the quadrupling of ag land values during the first 12 years he was in Congress. “We should not forget, those are the best 12 years that agriculture has ever had in the history of this state during that period of time,” he said.

You don’t have to be an economist to know the rise in Iowa farmland values since 2003 has very little connection to who represented our state in Congress. But let’s leave that aside for now. Northey and King have long had a friendly political relationship. The ag secretary cut a radio ad King aired near the end of his toughest re-election campaign, the 2012 race against Christie Vilsack in a substantially redrawn district. Click through to read the transcript of that commercial, in which Northey touted King’s record on agriculture issues and support from farm groups. I would not be surprised to see a similar testimonial hit the airwaves before King’s June 7 primary against State Senator Rick Bertrand. People linked to the ethanol industry are among Bertrand’s heavy-hitter supporters, largely because King endorsed Senator Ted Cruz for president, despite Cruz’s stand on the Renewable Fuel Standard.

Speaking of the presidential race, King discussed possible brokered convention scenarios on this weekend’s edition of Iowa Public Television’s “Iowa Press” program. He predicted that “neither Trump nor Cruz delegates are going to tolerate anyone coming in from the outside that hasn’t been a candidate,” such as U.S. House Speaker Paul Ryan. The full video and transcript are here; I’ve enclosed relevant excerpts below.

Northey is widely considered likely to run for governor in 2018 rather than for a fourth term as secretary of agriculture. King’s support could be helpful in a primary that will almost certainly include at least two other candidates: Lieutenant Governor Kim Reynolds and Cedar Rapids Mayor Ron Corbett. Neither has a strong base in rural Iowa, although Corbett has tried to bolster his credentials with the farm community by touting all-voluntary efforts to reduce agricultural runoff and bashing some efforts to regulate farm-based pollution.

Any relevant comments are welcome in this thread.

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Des Moines Water Works ran nitrate removal system for nearly half of 2015

graph of nitrates in the Des Moines River exceeding safe levels, taken by Steven Witmer using data from the U.S. Geological Survey

The Des Moines Water Works announced yesterday that it spent some $1.5 million during 2015 to operate its nitrate removal system “for a record 177 days, eclipsing the previous record of 106 days set in 1999.” The utility provides drinking water to about 500,000 residents of central Iowa, roughly one-sixth of the state’s population. The U.S. Environmental Protection Agency considers 10 mg/l the maximum safe level for nitrates in drinking water. The Des Moines Water Works switches the nitrate removal system on when nitrates exceed 9 mg/l in both of its sources, the Raccoon River and the Des Moines River. I enclose below the full press release from the Water Works, as well as charts from the U.S. Geological Survey’s website showing recent nitrate levels in the Raccoon and Des Moines rivers.

Runoff from agricultural land is the primary source of nitrates in Iowa waterways. As David Osterberg wrote yesterday, “so little land in Iowa is devoted to urban uses (lawns or golf courses) that even if urban application rates of Nitrogen and Phosphorous fertilizer were much higher than that on farms, only 2 percent of the pollution from land application of fertilizer comes from lawns and golf courses.” This “nutrient pollution” not only incurs extra costs for providing safe drinking water but also creates toxic algae blooms, which caused a record number of beach advisory warnings during the summer of 2015.

Last January, the Des Moines Water Works filed a lawsuit against drainage districts in northwest Iowa’s Sac, Calhoun and Buena Vista Counties. Drake University Law Professor Neil Hamilton wrote an excellent backgrounder on this unprecedented litigation: Sixteen Things to Know About the Des Moines Water Works Proposed Lawsuit. In a guest column for the Des Moines Register last May, Hamilton debunked the “strenuous effort” to convince Iowans that “the lawsuit is unfair and unhelpful.”

Governor Terry Branstad has depicted the lawsuit as a sign that “Des Moines has declared war on rural Iowa” and repeatedly criticized the Water Works last year. Iowa Secretary of Agriculture Bill Northey claims the water utility “has attempted to stand in the way of these collaborative efforts” to reduce nutrient pollution. A front group funded by the Iowa Farm Bureau and other agribusiness interests and led by Cedar Rapids Mayor Ron Corbett, among others, has also tried to turn public opinion against the lawsuit. In recent weeks, that group with the Orwellian name of Iowa Partnership for Clean Water has been running television commercials seeking to demonize Water Works CEO Bill Stowe.

Northey, Corbett, and Lieutenant Governor Kim Reynolds may soon become bitter rivals for the 2018 GOP nomination for governor. But those three will stand together opposing any mandatory regulations to reduce agricultural runoff. All support Iowa’s voluntary nutrient reduction strategy, shaped substantially by Big Ag and lacking numeric criteria strongly recommended by the U.S. EPA.

William Petroski and Brianne Pfannenstiel report in today’s Des Moines Register that Branstad “is exploring a legislative proposal that would provide money for water quality projects by using projected revenue growth from an existing statewide sales tax for schools.” Apparently “superintendents have been getting called to the state Capitol to discuss the proposal” with Branstad and Reynolds. Fortunately, that cynical attempt to pit clean water against school funding appears to have zero chance of becoming law. Of the ten state lawmakers or representatives of education or environmental advocacy groups quoted by Petroski and Pfannenstiel, none endorsed the half-baked idea. Their reactions ranged from noncommittal to negative. Speaking to Rod Boshart of the Cedar Rapids Gazette, Iowa Senate Majority Leader Mike Gronstal said of a possible Branstad proposal on water quality funding, “We certainly would be willing to look at that but we’re not going to cannibalize education or the basic social safety net so that he can put a fig leaf on his record on the environment.”

UPDATE: Erin Murphy reported more details about Branstad’s proposal: extend the 1 percent sales tax for school infrastructure, dedicate the first $10 million in annual growth to schools and allocate the rest to water programs.

SECOND UPDATE: Added below excerpts from Murphy’s report for the Cedar Rapids Gazette on Branstad’s plan. I’m disappointed to see U.S. Secretary of Agriculture Tom Vilsack endorse this ill-conceived proposal. Of course we “need to work on [water quality] now,” but why does the money have to come out of school funds? Remember, the Branstad administration is already pushing a corporate tax break that will cost public school districts millions of dollars a year for infrastructure on top of tens of millions of dollars in lost state revenue.

THIRD UPDATE: Branstad told reporters today he does not believe there is support in the legislature to raise the sales tax. Under a constitutional amendment adopted in 2010, 3/8 of a cent of the next Iowa sales tax increase would flow into the natural resources trust fund. He also indicated that he would not support extending the penny sales tax for school infrastructure beyond 2029, when it is scheduled to expire, without lawmakers agreeing to divert some of the funding to water programs. According to incoming Iowa House Speaker Linda Upmeyer, “House Republicans have been divided on whether to extend the school infrastructure sales tax beyond 2029.”

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Spokesman: Governor Terry Branstad uses neither public nor private e-mail

E-mailing practices by government officials have drawn an unusual amount of scrutiny this year, thanks to the national press corps’ months-long fixation on Hillary Clinton’s use of a private server and e-mail account during her years as secretary of state. Though the most sensational reports about Clinton’s e-mails were wrong, a drumbeat of news articles and commentary pointed to her private e-mail use as a scandal, or at least a serious political problem.

For years, people who have submitted records requests for Governor Terry Branstad’s e-mails have been told the governor does not use e-mail. So I was surprised this week to see footage of Branstad telling his top donor and Iowa Board of Regents President Bruce Rastetter to “send me an e-mail” with facts about Bruce Harreld, at the time a candidate for the University of Iowa presidency. Iowa Public Television’s “Governor Branstad: Behind the Scenes” documentary includes video of Branstad talking with Rastetter during the Iowa State Fair. I transcribed the brief conversation here.

In light of Branstad’s comment to Rastetter, I asked the governor’s communications director Ben Hammes to clarify whether Branstad has an e-mail account for official or private use. He replied, “The governor does not use email or have email. The governor was referring to sending information to our office, which is what he asks of constituents, when he is traveling around Iowa. He will often ask them to send information to the appropriate policy person in our office.”

Since Branstad asked Rastetter to send “me” an e-mail (rather than asking for the background to be sent to his staff), I asked Hammes whether he could confirm that the governor never communicates directly with Rastetter or with anyone else via e-mail, and that “people wishing to e-mail information to the governor can do so only by e-mailing intermediaries.” Hammes responded, “Correct. The governor does not have an email account.” Duly noted with regret, since the lack of an official e-mail account will make it harder for reporters and future historians to reconstruct Branstad’s actions and decision-making process during his fifth and sixth terms.

On a related note, today’s New York Times reported that Defense Secretary Ashton Carter “relied on a personal email account to conduct a portion of his government business during his first months at the Pentagon.” Today’s lead editorial in the Des Moines Register took Des Moines City Council member Christine Hensley to task for, among other things, using a private e-mail account to discuss city business. The newspaper also criticized city policy that allows officials to search for and disclose e-mails that are the subject of open records requests, because those people “lack the technical expertise to conduct document searches” and “have a strong motive to withhold damaging emails they have sent or received.” Hensley is refusing to release a legal opinion on whether she should recuse herself from a policy matter because of a potential conflict of interest. The controversy doesn’t reflect well on the longtime city council member, who I believe is positioning herself to be Cedar Rapids Mayor Ron Corbett’s running mate for the 2018 governor’s race.

UPDATE: I had forgotten that Branstad admitted during a deposition last year to using a Blackberry. More details on that are below. I am seeking further comment on whether the governor receives work-related or private messages from people on that Blackberry.

DECEMBER 21 UPDATE: Hammes was quick to respond to my first questions on this topic last week, but four days since I followed up with a question about the Blackberry, still radio silence from the governor’s office.

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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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Why is Iowa Secretary of Agriculture Bill Northey blocking a liberal blogger? (updated)

UPDATE: This morning Secretary Northey unblocked me and said the blocking had been unintentional. Glad to hear it.

Pulling together some links for a future post about how Iowans have responded to a new Environmental Protection Agency clean water rule, I checked Iowa Secretary of Agriculture Bill Northey’s Twitter feed yesterday and saw this:

 photo Screen Shot 2015-06-30 at 8.51.05 PM_zpswyu83i3v.png

Northey may be the first Iowa Republican elected official to block me. Certainly he is the only statewide official ever to do so. A guy who is likely to run for governor in a couple of years might want to grow a thicker skin.

UPDATE: I learned this morning that I am unable to view Iowa House Judiciary Committee Chair Chip Baltimore’s Twitter feed. That was not the case a few months ago. He may have deleted that account; the old @ChipBaltimoreIA feed has no new tweets since 2013. I haven’t mentioned Baltimore at Bleeding Heartland in a while, but in April I did tweet a link to an unflattering story about him.

SECOND UPDATE: It seems Baltimore deleted that @chipbaltimore Twitter account.

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Iowa DOT insists that cities shut off some of their traffic cameras

The Iowa Department of Transportation is standing behind its ruling that limited the use of traffic cameras in several large Iowa cities. The DOT adopted new rules in late 2013 to limit local governments’ ability to install traffic cameras on or near highways. Those rules required cities to demonstrate that cameras were needed to address “critical safety issues,” which could not be resolved by other means. Studies have produced conflicting data on whether cameras reduce red light or speeding infractions or vehicle accidents.

In March of this year, DOT officials ordered officials in six cities to shut off ten out of 34 traffic cameras cities had defended on safety grounds. The city of Davenport opted to comply with the DOT ruling, but five other cities asked department officials to reconsider the decision. (Although a reversal was unlikely, exhausting administrative appeals typically precedes legal action challenging a state agency’s decision.)

This week, DOT Director Paul Trombino notified city officials in Des Moines, Cedar Rapids, Council Bluffs, and Muscatine that the department was rejecting their appeals, because data did not demonstrate that the disputed cameras had improved safety or reduced crashes. Click through to read copies of the letters. The fifth city to appeal, Sioux City, filed a lawsuit last year challenging the DOT rules. A Woodbury County District Court is scheduled to hear that case soon. Des Moines officials plan to challenge the DOT in court as well. Cedar Rapids officials have not yet decided whether to file a lawsuit. After the jump I’ve enclosed excerpts from Kathy Bolten’s report for the Des Moines Register and Rick Smith’s for the Cedar Rapids Gazette.

Local governments are generally responsible for enforcing traffic laws. I’ll be interested to see whether Iowa courts back up the DOT’s efforts to restrict those powers on or near major highways. According to Trombino, the Iowa Code allows the DOT to enforce limits on cameras for traffic enforcement. Whatever the courts decide, the state’s multi-pronged assault on local control remains an under-reported story of Governor Terry Branstad’s fifth and sixth terms.

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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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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.  

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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Iowa local election results discussion thread

Polls closed at 8:00 pm across Iowa. What local elections are you following tonight, Bleeding Heartland readers?

Polk County voters appear to have approved Public Measure A to fund improvements to the county court system. UPDATE: With all precincts reporting, “yes” on A has 21,702 votes (67 percent) to 10,611 votes (33 percent) for “no.”

With 65 of 71 precincts reporting, Des Moines at-large City Council member Skip Moore has 7,720 votes, while challenger Chris Diebel has 4,725 votes. Incumbent Chris Hensley has been re-elected in the third ward, and in the open first ward, Bill Gray has a lead over Sean Bagniewski, the candidate preferred by many progressives and labor activists.

UPDATE: Windsor Heights results are in: for the first time I can remember, all of the candidates I supported won! Longtime city council member Diana Willits won the open race for mayor (Jerry Sullivan retired). Diana is one of the few Republicans I’ve consistently voted for over the years. Unofficial results for city council indicate that the winners were incumbent Betty Glover (whom I didn’t support) and candidates Steve Peterson and Tony Timm (for whom I voted). Peterson is a former city council member and was the Joe Biden precinct captain in Windsor Heights 2 in 2008. Timm is the executive director of the largest homeless shelter in Des Moines.

SECOND UPDATE: By a 2-1 margin, Iowa City voters upheld the city ordinance keeping 19 and 20-year-olds out of bars. The Iowa City council results will be a disappointment to those who were hoping to elect more progressives in the “people’s republic.”

THIRD UPDATE: Looks like the incumbents were re-elected in Coralville, a big loss for the Koch brothers’ group Americans for Prosperity.

FOURTH UPDATE: Two local officials who are running for the state legislature as Republicans lost yesterday. Royce Phillips was a city council member in Tiffin and is a candidate for the open Iowa Senate district 39. Mark LeRette was a city council member in Muscatine and is a candidate for the open House district 91.

Cedar Rapids voters re-elected Mayor Ron Corbett. An ten-year extension of the local-option sales tax also passed easily in the Cedar Rapids metro area.

New IA-01 candidate speculation thread

It’s time for a new thread on the open first Congressional district seat. So far former Iowa House Speaker Pat Murphy is the only declared Democratic candidate. Former State Senator Swati Dandekar formed an exploratory committee last week. State Senator Jeff Danielson of the Cedar Falls/Waterloo area has said he’s keeping his options open. I expect a decision relatively soon after the legislative session wraps up.  

Cedar Rapids City Council member Monica Vernon “is nearly ready to announce” her candidacy, Rick Smith reported. She was first elected to the council in 2007, switched parties in 2009, and was re-elected in 2011. Cedar Rapids plaintiff’s attorney Dave O’Brien may also run, Jennifer Jacobs reported. O’Brien’s background is similar to Bruce Braley’s before his first campaign in 2006.

State Representative Tyler Olson, who also chairs the Iowa Democratic Party, hasn’t ruled out running for Congress, but some Polk County Democrats believe that if he runs for higher office next year, it will be against Governor Terry Branstad.

On the Republican side, Cedar Rapids business owner Steve Rathje and Dubuque business owner Rod Blum are already seeking the nomination in IA-01. Once the legislature adjourns for the year, my hunch is that a Republican lawmaker will join the race. State Representative Walt Rogers of the Cedar Falls/Waterloo area confirmed earlier this year that he’s thinking about it.

The Iowa Republican’s Kevin Hall reported last month that former Secretary of State and Cedar Rapids Mayor Paul Pate is “90 percent” likely to run for office in 2014. I think Pate would be a strong general election candidate but might have trouble winning an IA-01 GOP primary. It’s also possible that he may run for Secretary of State again if Matt Schultz goes for the open U.S. Senate seat.

Current Cedar Rapids Mayor Ron Corbett is running for re-election and seems to have ruled out the IA-01 race, judging from his recent comments to Todd Dorman.

After the jump I’ve posted the latest voter registration numbers for the 20 counties in IA-01. Linn County is the largest by population, but it doesn’t dominate the district. About 30 percent of the registered Democrats, 28 percent of the Republicans, and 27 percent of the no-party voters in IA-01 live in Linn County.  

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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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Deal settles labor dispute between Branstad and Cedar Rapids

The Cedar Rapids City Council has rescinded a project labor agreement approved last December for the $75 million downtown Convention Complex project. Governor Terry Branstad’s administration said it would withhold $15 million in I-JOBS state funding for the convention project, because Cedar Rapids had violated his executive order against project labor agreements (full text of order here). Cedar Rapids Mayor Ron Corbett and other city officials maintained that the governor’s executive order did not apply to project labor agreements signed before Branstad took office.

The dispute seemed likely to be settled in court after the governor rejected two compromise offers from Corbett. However, the convention center is a crucial part of Cedar Rapids’ downtown revitalization plans, and construction could not go forward without the $15 million in I-JOBS money. So Corbett negotiated a different solution:

In turn, the city has agreed to rescind the project’s project labor agreement – the governor opposes such agreements on public projects – between the city and the Cedar Rapids/Iowa City Building and Construction Trades Council.

Meanwhile, the city is promising the trades council that the city will use a project labor agreement on the $21-million renovation of the city-owned Five Seasons Hotel next to the Convention Complex and the new $10-million parking ramp across First Avenue East from the hotel and Convention Complex. Neither project involves state funds.

“Everybody gets a little, everybody gives a little,” said Corbett, a former speaker of the Iowa House of Representatives. “We have an agreement with all the parties, and that’s how compromise is supposed to work. … Ultimately, the taxpayer wins because they aren’t involved in a costly legal dispute.” […]

The City Council voted last night to formally rescind the existing agreement with the trades council and to develop a new project labor agreement with the council on the hotel and ramp projects.

According to Rick Smith of the Cedar Rapids Gazette, federal litigation is pending over the Branstad administration’s decision to set aside project labor agreements on state-funded projects in Coralville and Marshalltown. The Central Iowa Building and Construction Trades Council and the Cedar Rapids/Iowa City Building and Construction Trades Council jointly filed that lawsuit.

UPDATE: I agree with Todd Dorman:

I’m a little disappointed that we’ll probably never get an definitive answer on whether Branstad’s order, as it applies in local projects like this one, oversteps his executive authority. The order as written is remarkably broad and sweeping and seems to extend the governor’s power far beyond the executive branch he controls. It reads a lot like legisaltion, and that, as the term implies, is usually the job of the Legislature.

Essentially, the legislature approved a state grant program in a a bill signed by a governor, in this case the Big Lug [Chet Culver]. Then, Branstad takes office and issues an order that in turn modifies the terms of that legislation, and for that matter, any legislation that hands out state dollars for a local projects, without any legislative input or approval. Enforcing his order amounts to the deappropriation of millions of dollars simply by executive edict.

I’m not sure why any lawmakers, regardless of party, would be OK with that sort of precedent. Republicans who think it’s swell now won’t feel that way when a Democratic governor takes Branstad’s precedent and runs.

The Branstad administration’s disregard for local authority is one of the most under-reported stories of the year. I’m not talking only about this executive order, but also about Branstad’s preferred property tax reform plan and zero growth for K-12 budgets, both of which would leave local officials with fewer options.

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Cedar Rapids metro votes down sales tax for flood prevention

Despite a well-funded campaign to extend the 1 percent local option sales tax for another 20 years, voters in the Cedar Rapids metro area (Cedar Rapids, Marion, Hiawatha, Robins and Fairfax, vote breakdown here) rejected the May 3 ballot measure by less than a 1 percent margin.

The defeat will be a blow to Mayor Ron Corbett, the City Council and a long list of the city’s largest and best-known employers. Those employers contributed to a fund-raising effort that raised nearly $500,000 to get the message out to the community that the city needed to help fund its own flood-protection system.

Corbett was hoping to head to Des Moines on Wednesday to tell lawmakers face-to-face that Cedar Rapidians had agreed to its part in flood-protection funding.

The “yes” campaign on the local option sales tax raised more than 100 times as much money as its opponents. The “no” campaign was a grassroots effort, lacking the funds for radio or television commercials.

Half of the funds raised over 20 years via the 1 percent sales tax were to be used for a flood prevention system protecting both sides of the river in Cedar Rapids. Corbett had argued that extending the sales tax would improve prospects for the city to receive state and federal funds for the project, estimated to cost approximately $375 million.

Legislation pending in the Iowa House and Senate would allow Cedar Rapids to use $200 million in state sales tax revenues for flood prevention over the next 20 years. The bill cleared the Senate Appropriations Committee last week, and a House Appropriations subcommittee advanced a companion bill on May 3. I doubt the Iowa House and Senate will pass this legislation now that Cedar Rapids area voters have rejected the local option sales tax–unless Cedar Rapids officials have a “plan B” up their sleeves.

Peter Fisher of the Iowa Policy Project and Iowa Fiscal Partnership has argued that creating a “state sales-tax-increment financing district” to fund flood prevention is a “gimmick.” In Fisher’s view, this method conceals real state spending (see also here). On the other hand, Cedar Rapids Gazette columnist Todd Dorman notes that hundreds of small businesses in neighborhoods near downtown will be hurt if the flood prevention plan fails to materialize.

On a related note, the future of the $75 million Cedar Rapids Convention Complex project is uncertain. City officials and Governor Terry Branstad’s administration have not resolved differences over a project labor agreement signed a month before Branstad issued an executive order banning such labor agreements on state-funded projects. On May 3, the Central Iowa Building and Construction Trades Council and the Cedar Rapids/Iowa City Building Trades Council filed a federal lawsuit seeking to force Branstad to honor project labor agreements for construction projects in Coralville and Marshalltown.

The trades councils’ lawsuit said that the governor and the state have breached their contract with the labor councils by eliminating project labor agreements is place before the governor took office. The lawsuit also states that the governor’s action violates the Iowa Constitution regarding separation of powers, Iowa’s Home Rule law and federal law.

The outcome of that lawsuit could determine whether the Branstad administration is able to withhold $15 million in state I-JOBS funds for the Cedar Rapids Convention Complex project. The Iowa Finance Authority threatened to do so in February, and the governor rejected compromises Corbett proposed to honor the project labor agreement as well as the spirit of Branstad’s executive order.

UPDATE: More reaction to yesterday’s vote is after the jump.

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Court may resolve Branstad, Cedar Rapids labor dispute

Governor Terry Branstad and Cedar Rapids officials have made no progress toward resolving a dispute that could derail $15 million in funding for the city’s Convention Complex project. Branstad administration officials continue to insist that Cedar Rapids set aside a project labor agreement signed in December, because it conflicts with Branstad’s Executive Order 69.

Follow me after the jump for recent news on this story, including comments this week from Iowa Attorney General Tom Miller.

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Branstad spurns compromise with Cedar Rapids officials on labor agreements

Cedar Rapids officials and Terry Branstad’s administration are still at odds over labor policy, and the dispute could cost Iowa’s second-largest city a $15 million state I-JOBS grant for work on its Convention Complex flood recovery project. Mayor Ron Corbett, a former Republican speaker of the Iowa House during the 1990s, has suggested compromises to accommodate Branstad’s opposition to project labor agreements, but  the governor has so far dismissed those ideas.

Follow me after the jump for background and recent news on the most significant clash between the new Branstad administration and a local government.  

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Weekend open thread: Iowa jobs edition

The U.S. Air Force announced on Thursday that Boeing will receive a $35 billion contract to build aerial refueling tankers. The contract is expected to create roughly 800 jobs in Iowa, including 200 at Cedar Rapids-based Rockwell Collins. Iowa politicians from both parties hailed the decision, including Republican Governor Terry Branstad and Cedar Rapids Mayor Ron Corbett and Democratic Representatives Bruce Braley and Dave Loebsack. Branstad, Braley and Loebsack all noted in their official statements that they had urged the U.S. Department of Defense to award Boeing the contract.  Former Governor Chet Culver went to Washington to lobby for Boeing’s bid last year. Boeing’s rival for the contract was the European Aeronautic Defense and Space Company, which makes Airbus planes. Airbus also uses subcontractors based in Iowa, but Boeing’s subcontractors employ more Iowans. The European company may protest the Air Force’s decision and has support from some members of Congress.

Des Moines business owner Mike Draper published a guest editorial in Saturday’s Des Moines Register undermining Republican claims about corporate tax cuts creating jobs:

I recently heard “cutting state taxes will add jobs” delivered with a perfect, deadpan tone, but I was the only one laughing. Wasn’t it meant to be a joke?

After all, since starting a small downtown clothing store, Raygun, in 2005, I have added about 25 jobs and never once considered the state tax rate when doing so. […]

Most job growth nationally and in Iowa will come from small businesses like mine, and many small businesses are set up as S-corporations, which don’t pay corporate tax; rather, any profits for the company are paid on the personal tax statements of the owners. So corporate tax cuts will only really affect the largest companies in Iowa, which add the least number of jobs over time.

But for argument sake, let’s say the governor wanted to cut state income-tax rates as well to help small businesses add jobs. Say he even reduced my state taxes by 20 percent and I was expected to hire new staff with that savings. On a salary of $40,000 per year, that 20 percent reduction moves my taxes by 1 percent, or 400 annual dollars.

So, indeed, I could hire a new employee with my savings; it would just take 100 years (and by 2111, would $40,000 per year even be enough for them to afford the newest hover-board that all the other guys at the store will have?).

However, if that tax savings were coupled with public pre-K being eliminated for my son, a $400 annual savings may be slightly offset by the additional $8,000 annually I’d have to spend on day care.

With the governor’s math, I’d be laying off someone every 5 years and hiring every 100.

State tax collection data doesn’t support the claim that corporate tax cuts would help Iowa’s small businesses expand:

About 885 businesses, with sales over $25 million in Iowa, paid 65 percent of the state’s corporate taxes in 2008. That’s $142 million of nearly $219 million paid, Iowa Department of Revenue data show.

In addition, the data show the biggest corporate taxpayers are large retailers with sales outside the state. Iowa taxes companies only for income earned within the state.

Branstad has said small businesses would benefit the most because most of their sales – and income – are within the state.

But data from a state report show the 22,000 companies that have sales exclusively in Iowa contributed just 19 percent of the revenue collected via the state’s corporate taxes. That was about $41.6 million in 2008.

The governor has promoted his plan to cut the state’s corporate tax rates – with the highest rate at 12 percent – to a flat 6 percent for all companies. Branstad has said the tax cut – along with reducing commercial property taxes and government spending and eliminating regulations that stifle job growth – will help create 200,000 jobs and boost income 25 percent for Iowa families over five years. […]

But Iowa State University economist Dave Swenson said “it’s very unclear to me how this tax cut would create significantly more jobs in Iowa.”

Swenson said the proposed tax would be “very beneficial to a lot of large retailers and service firms that serve Iowa demand.”

“But cutting the corporate tax rate isn’t going to create more of those firms,” he said. “And for those large firms we want to attract – the Googles, IBMs, the Microsofts, companies that produce for a worldwide market – it’s a meaningless tax cut because they already do not pay very much Iowa corporate tax,” given that their sales and services are mostly sold outside Iowa and avoid state tax.

Economist Peter Fisher fleshed out that argument in his recent report on Corporate Taxes and State Economic Growth (pdf file):

Business tax breaks are an expensive and inefficient way to attempt to stimulate a state economy. Because of the small effect of tax breaks on business costs, and the much larger importance of other production costs and location considerations, tax breaks will have little if any positive effect on private- sector employment. In fact, the revenue losses may well produce immediate public-sector job losses. Furthermore, the private-sector employment effects of such tax cuts could be reduced or even eliminated by a long-term deterioration in the quality of public services, which themselves have been shown to be important to businesses making location decisions, and which provide an important part of the foundation for the state economy.

The business owners I know hire new employees when they anticipate greater demand for their goods or services. Tax rates are not a factor in that decision.

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

Anyone go to the labor rally on Saturday at the capitol? Snow couldn’t keep 70,000 to 100,000 people from attending the labor rally in Madison, Wisconsin.

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Branstad, Cedar Rapids government on collision course over labor agreement

Governor Terry Branstad and the Republican mayor of Iowa’s second-largest city are at odds over a project labor agreement for construction of the $76.5-million Cedar Rapids Convention Complex. The Branstad administration has threatened to withdraw a $15 million I-JOBS grant for building the convention center, and the dispute could end up in court.

Join me after the jump to discuss on the biggest state-local power struggle Iowa’s seen in years.

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Latest Branstad administration news and appointments

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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