On November 7, Branstad said in a speech at a GOP fundraiser that the legislature should let the people of Iowa vote on an amendment to the state constitution which would ban gay marrriage here. Branstad, as you may know, also issued a written statement through his campaign spokesman this week, saying he favors “traditional” marriage.  Branstad will be asked about this issue on the campaign trail, as rival Bob Vander Plaats has said the 2010 election should be a referendum on gay marriage and Vander Plaats has promised that, if elected, he would issue an executive order to try to override the Supreme Court ruling that legalized gay marriage.  So I asked Branstad, specifically:  what are your views on gay marriage and what does he think is the appropriate response to the court decision?

“Well, first of all, I signed the law which established marriage as a contract between one man and one woman,” Branstad said. “That’s what I think it should be.  I think the court’s decision was wrong. I think the people should have an opportunity to vote on a constitutional amendment to override that court decision and 31 states have had that opportunity and every one of them — from Maine to California — has passed it…The legislature needs to authorize it and the citizens should have an opportunity to vote on it.  I feel very strongly that the people should have a chance to vote on it.”

Next, we had a discussion about former Lieutenant Governor Joy Corning (Branstad’s running mate in 1990 and 1994) and her “robocall” in support of same-sex marriage as well as a general discussion about the Republican Party and its view on gay marriage.

“First of all, you know, I’ve been around when I was considered to be the right-wing fringe I guess when I started out in politics and now I have people telling me I’m not conservative enough.  But the truth of the matter is I don’t think I’ve really changed that much.  I still have the same, basic, fundamental values and beliefs that I’ve always had. I’ve always been a conservative.  I’m proud to be a conservative. I became a Republican because I was a conservative.  I haven’t changed my viewpoint on that, but I think I’m also a realist and I try to work with everybody and I try to respect other people’s poitns of view even if they don’t agree with me 100 percent of the time.”

“…It’s the only way you can accomplish things.  I mean, I was governor for 16 years.  Ten years the Democrats controlled the legislature.  You can’t get anything accomplished if you can’t get a majority to pass things and people are not interested in a governor that only wants confrontation.  They want a governor that’s going to accomplish things and resolve problems and some people maybe don’t understand that but I’ve lived it and I know that that you’ve got to do that sometimes and I understand some people that are new to politics maybe just don’t understand that, but, I mean, I’ll do my best to try to convince people and to try to make people understand that realities of what needs to happen, but you can still fight for what you believe in and I believe in that (traditional marriage).

“But I also believe that somebody that — let’s take (former Democratic State Representative) John Connors.  John Connors and I were good friends.  We disagreed, strongly, on labor issues, but on education issues, on osteopathic medical education we were in total agreement.  We both were strong believers in it.  In fact, John Connors, before he died, had been the chair of the foundation from Des Moines General Hospital and made a $100,000 contribution of the funds that were left over from their foundation to Des Moines University, and so I guess what I’m saying is that just because somebody is your adversary on one issue, they may be your best ally on the next.”

Branstad then walked over and asked if he could hold Bridget, his six-month-old grandchild.  Photos were taken.  Tape rolled.  Bridgett did not make a statement.

There was a rush to get microphones in front of Branstad’s wife, Chris.  I was late arriving after disconnecting from the sound system and unable to get anything usable, other than to notice her husband waded in to sort of deflect the questions and attention from his wife.

The media huddle nearly dispersed.  Branstad and a reporter were joking about one of Branstad’s old bromides:  the only poll that counts is the one they take on Election Day.

Kathie Obradovich of The Des Moines Register opined: “This stuff comes back pretty naturally, doesn’t it?”

Branstad replied, at first, in the negative.  “No, I still have a lot to learn but that’s the great thing about life,” Branstad said.  “I never imagined in my wildest dreams that I’d be in this position, but I look at it as, it’s an adventure, an opportunity and I love the state and I’m to go out, you know, and talk to a lot of Iowans and get their ideas.  I certainly have some thoughts of my own of where we can go.”

I asked Branstad if he had promised his wife that she would not have to move into Terrace Hill if he wins a fifth term so she could, instead, stay in what Branstad himself describes as a “beautiful log home” near Boone.  “That’s our retreat,” Branstad said, with a laugh.

“Like Camp David,” Obradovich said.

“Well, let me say this:  we have two grandchildren that live here in West Des Moines and that’s actually closer to Terrace Hill,” Branstad replied.

Emily Price of KCCI jumped in to ask Branstad about the nature of the discussions he’d had with his wife about running.

“Well, we’ve had several family discussions and, you know, we love each other.  We have been through a lot together and I’m very appreciative and understanding of my wife and she is even more understanding of me and so I feel that, yeah, there are some challenges ahead of us, but there’s, I also look at it as an exciting adventure and a new chapter of our life and we’ve been able to do some wonderful things together and I just know that this is something that we can do that responds to a concern and a need that a lot of Iowans see.”

Christine Paladino of WOI-TV asked: “Did you think about running for a few years or was this pretty recent?”

Branstad: “No, no.  This all happened in the last few months.” Branstad started to walk away from reporters, toward his wife who was holding baby Bridget/their grandchild.

“Are you going to nominate (Chris) for the Nobel Peace Prize?” I asked as Branstad walked away.

Branstad turned to face me (and the cameras) just as he reached his wife.  “I don’t know,” Branstad said, breaking into a huge smile. “They give those things out pretty easy.”  The Branstad family laughed together over that one.

If you want to listen to Branstad’s 22 minute long news conference, click here — that’s also the Radio Iowa story.  Below are my typewritten notes from the news conference.

Branstad walked into the room and started talking.  He did not have on the lavaliere microphone, however, and there was no sound for the TV and radio folks who’d pulled into the sound system to record every moment.

“Oh, wait a minute.  I don’t have my microphone on yet,” Branstad said.

A few moments pass.  Branstad reenters, center stage.  “Is that working now?” Branstad asks, laughing a little before adding: “Take two.”

“Well, thank you all for coming today and welcome to Des Moines University.”  Branstad introduces his family, starting with his wife Chris, followed by daughter Allison who he reveals is a third grade teacher in Waukee; Marcus, Eric and his wife, plus the “newest member” of the Branstad family.  Bridget will be six months old in about a week.

Granddaughter McKinzie isn’t here, though.  “She was given the choice of whether she wanted to play with her friends  or listen to her grandfather speak and she chose to play with her friends, so,” Branstad said, laughing. “I am indebted to my family for their support.”

Branstad talked about his speech to the faculty, staff and students of Des Moines University.  “At noon I announced that I intend to retire as the president of Des Moines University to fully explore the possibility of becoming a candidate for governor in the year 2010.  This was a difficult decision because I love this place.”

Branstad said the noon-time event had been “emotional.”

“We’ve accomplished wonderful things here…We’ve gone from 1200 to 1800 students,” Branstad said, before talking about the scholarship named for Willie Glanton, a DMU trustee, and her husband, a federal judge who passed away several years ago.

At this point, Branstad starts reading from a script.  “And yet, thousands of Iowans from all across our state have asked me to reenter public life, to become a candidate once again.  I’m very touched and humbled by that interest and that support and I’ve said I’ll give that serious consideration.

“…To fully explore this possibility I need to leave Des Moines University….I am not resigning, I am retiring…By retiring, I am eligible to use the Wellness Center and I also get invited to the holiday parties and that’s important because I want to stay connected with this Des Moines University community…I’m proud of this institution.”

Branstad talked about Des Moines University for a few minutes, about his management style as DMU president and when he was govenror for 16 years.

“As you know, I left office about 10 and a half years ago with a $900 million surplus and a record level of employment and then I look at the fiscal debacle that exists today and I believe that we can do better.”

After a few more sentences, Branstad concluded and threw it open to questions.

The first question is about his decision to say he’s still exploring the idea rather than an outright declaring that he’s running for govenror.

“First of all, I’m humbled by the thousands of people that have written or emailed or contacted me and urged me to run,” Branstad said, before outlining his decision to go on a steel-wheels tour of Iowa before making a formal declaration.  “That’s why I’ve chosen to retire and now will have time devote my full attention to examining this possibility.”

Time frame for decision?

“I always say I only have one speed: overdrive,” Branstad said.  Branstad said he has to go to a meeting in Vegas Saturday through Tuesday.  “Then I will come back and begin the process of getting around Iowa…I want to specifically get on college campuses and talk to students as well because it’s their future we’re talking about.”

Are you the frontrunner?

“I don’t take anything for granted,” Branstad said.  “…You’ve got to earn the support and respect of the people and I hope to do that.”

You decided you weren’t going to seek another term in 1998.  What changed your mind?

“The circumstances of today,” Branstad said, listing a variety of things he sees the failings of current Governor Chet Culver.  “…We need to get our fiscal house in order…We have this tremendous budget mess.”

When Hillary Clinton ran, the nation found out that Bill Clinton — like any older point guard in the NBA — had lost a step, that his political instincts had atrophied during his time out of office.  Can you guarantee Republicans that you still have the acumen and the instincts to run in 2010?

“First of all, I would ask people to look at what I’ve accomplished at Des Moines University,” Branstad began, talking about being hired, then morphing into the “team” he put together and about how what he’s learned in higher education will make him more effective.

Next question is about the critics who cite the tax increases he signed into law as governor.

Branstad said critics were “pulling things out of context.  They don’t mention all the taxes we cut.”  Branstad listed getting rid of inheritance tax on lineal descendants; lowering the top income tax rate from 13 percent to 8.9 percent; property tax reductions.  He also said he’d insisted the state increase state aid to schools, “so that the share that was paid by property taxes was dramatically reduced.”    Branstad said he had raised the sales tax, but when he left office it was still “less than neighboring states” and lower than the national average.

“I will be glad to debate anybody on my record on taxes, but this isn’t about the past, it’s about the future,” Branstad said.  Branstad closed this answer with a reference to the so-called Fisher Commission and GAAP accounting.  Glover’s cell phone rings.

You had 16 years in office.  Is there anything left undone that you want to go back and finish?

“It is strictly in response to the current situation,” Branstad said, stressing that he could work in a “bipartisan way” to fix the state.

What’s your personal motivation?  You’ve been there, done that.  What do it again?

“I am sick about what’s going on today and I guess I believe that I have the experience and the ability to make a different and I want to,” Branstad said.  “…I love Des Moines Univesity and I hate leaving here, but I think there’s a bigger calling I have right now and I believe at this point in time in history, the people want a leader with experience and somebody that can put the state back on track.”

There are already Republican candidates talking about those issues.  Why does it have to be you?

“My wife asked the same question,” Branstad said.  The family laughed.  “…I love all of the other candidates that are running on the Republican ticket and they all have the right to run.  They don’t have the name recognition that I have.  They don’t have the experience that I have and I guess I think that the people of Iowa by the thousands are saying we want a leader with experience.”

What do you say to Republicans who say you aren’t conservative enough?

“You know, this is pretty amazing because in most of my life I’ve been accused of being too conservative,” Branstad said.  “I am a conservative.  I’m proud of my conservative record and I’ll be glad to defend it and whatever, but I find it almost, well, I find it laughable.”

Branstad added he wouldn’t get into a “tit for tat” with anyone.

The “one more question” notice is issued by a staffer.  I’m going to pack up to be ready to go.

“Des Moines University President Terry E. Branstad will make an announcement related to his future with the University. He will take questions,” the media release says.

After the details of the when and where…the news release continues with this:

STORY: Former Iowa Governor Terry E. Branstad has been president and CEO of Des Moines University since August 2003. He was the 14th president in the University’s 111-year history.
###
Des Moines University is the only private medical school in Iowa, offering graduate-level, professional degree programs in osteopathic medicine, podiatric medicine, physical therapy, physician assistant studies, anatomy, biomedical sciences, health care administration and public health. Founded in 1898, the institution offers superior academics in a collaborative environment. DMU students’ pass rate on national examinations and board certifications is consistently higher than the national average and the rates at similar institutions. For more information, please visit www.dmu.edu.

Vilsack’s second appearance came at 10 a.m. when he joined Iowa Attorney General Tom Miller in calling for creation of a U.S. Consumer Financial Protection Agency.

As Vilsack was leaving the attorney general’s office, Charlotte Eby of the Lee Enterprises newspapers in Iowa asked Vilsack if his wife, Christie, would be running against U.S. Senator Chuck Grassley (R-New Hartford, Iowa).  Lynn Campbell of IowaPolitics.com followed, asking Vilsack what he thought of Terry Branstad, his predecessor as governor, running for a fifth term.  Here is Vilsack’s response to both questions:

“Honestly, when I come into a setting like this, it’s probably not appropriate for me to respond on political questions, so I hate to beg off, but I’ve been told by our ethics people that that’s not advisable.”

Henderson:  “I don’t think a fellow would resign from his job if he didn’t think he was landing a sort-of full time gig.  Is this the signal here?

Schwarm:  “Well, the statement pretty much speaks for itself, but I think individuals could certainly draw the conclusion that you have.”

Henderson: “Why Jeff?”

Schwarm:  “Well, if the governor, if Governor Branstad decides he is going to run, part of what I and others were looking for were the best people to be involved in his campaign, along with other things.  Jeff is a great talent in Iowa, long experience, great individual, was very — is a great catch.  We visited with him and had no idea if he would take it and he has agreed to step into this role and we’re very pleased.”

Henderson:  “When you say ‘we’ and ‘we are’ — who do you mean?”

Schwarm: (Laugh) Terry Branstad 2010 Committee, the exploratory committee. (Laugh)

Henderson: “It seems odd that someone would sign on without having talked to Governor Branstad himself.  Has Governor Branstad signed off on this hire?”

Schwarm:  “Governor Branstad is aware of the hire.”

Henderson: “So, where are you in this process?  Is an announcement imminent or within 24, 48 hours?”

Schwarm:  “It’s not my role to give that information.”

Henderson: “Is there anything else our listeners need to know about this moment?”

Schwarm:  “I think that the statement needs to speak for itself.”

‘Tis hard for written statements to speak on the radio, as you may know.  Read the written statement Schwarm emailed this morning below.

Jeffrey Boeyink named to head Terry Branstad 2010 Committee

            Richard Schwarm today announced the hiring of Jeffrey Boeyink to lead the Terry Branstad 2010 Committee as it continues to explore a possible gubernatorial run by former Iowa Governor Terry Branstad.

            Schwarm said, “This is the next natural step in our exploratory process as we move from a volunteer effort to the acquisition of professional staff and financial resources to take Terry Branstad 2010 to the next level of effectiveness.”

            Boeyink has served as Executive Director of the Republican Party of Iowa (RPI) since last February and resigned yesterday to accept this new position.  Prior to joining RPI, Boeyink served as President of Iowans for Tax Relief where he worked for more than two decades.

            Schwarm also noted, “This appointment does not signal any change in Terry Branstad’s status as a potential gubernatorial candidate.   He continues in his role at Des Moines University and will make his plans known at a future date.”

UPDATE — a statement from the Iowa GOP: Chairman Strawn Comments on Executive Director’s Resignation

Des Moines, IA – Republican Party of Iowa Chairman Matt Strawn issued the following statement after the resignation of Executive Director Jeff Boeyink:

“I hope all Iowa Republicans join me in thanking Jeff for a job well done. The Iowa GOP is better off because of his service and tireless advocacy for principled, conservative government. I’m personally grateful for his wisdom and guidance and wish him well.”

AFSCME Council 61 president Danny Homan says state worker layoffs will be “devastating.”

Republicans aren’t supportive. Read some of their reaction here.  (Full statements posted below.)

Here’s some historical perspective,  with data courtesy of Culver press secretary Troy Price.  It’s a list of across-the-board cuts ordered by Governors Ray, Branstad, Vilsack & Culver.  It goes back to the Farm Crisis.

• August, 1980 –  Governor Robert D. Ray (R) orders 3.6 % across the board cut.
• December, 1980 — Governor Robert D. Ray (R) orders 1 % across-the-board cut.
• September, 1983 — Governor Terry E. Branstad (R) orders 2.8 % across-the-board cut.
• September, 1985 — Governor Terry E. Branstad orders 3.85% across-the-board cut.
• July, 1991 — Governor Terry E. Branstad orders 3.25% across-the-board cut.
• November, 2001 — Governor Thomas J. Vilsack orders 4.3% across-the-board cut.
• October, 2003 — Governor Thomas J. Vilsack orders 2.5% across-the-board cut. (10% of cut restored in June, 2004 to make it 2.25%)
• December, 2008 – Governor Chester J. Culver orders 1.5% across-the-board cut.
• October, 2009 — Governor Chester J. Culver orders 10 % across-the-board cut.

Now, to the prepared statements which reached my email inbox.

McKinley Statement on Governor Culver’s Budget Reaction
Governor’s actions leave Iowans headed for massive property tax increase

DES MOINES, IA – Senate Republican Leader Paul McKinley (R-Chariton) issued the following statement today regarding Governor Culver’s 10 percent across the board reduction:

“Iowans know that you simply cannot irresponsibly spend more money than you take in and yet Governor Culver and legislative Democrats continually plugged their ears to the Republican warnings about passing unsustainable budgets.

Governor Culver and legislative Democrats chose to deny the existence of their self-created deficits and then vote against common sense Republican amendments aimed at cutting hundreds of millions in waste and now the taxpayers of this state are suffering the consequences of Democrat fiscal mismanagement. Democrats had an opportunity to make responsible reductions earlier and now this action taken by Governor Culver will lead to significantly higher property taxes at a time when Iowans can least afford it.

Senate Republicans recently proposed a constitutional limit on state spending, a 2/3 supermajority vote of both houses of the Legislature to authorize new state borrowing, and a sunset on every state funded program so a thorough review of those programs can be conducted. Iowa does not have a revenue problem – we have a spending problem and Senate Republicans stand ready to again offer solutions to solving the worsening budgetary crisis if Governor Culver and Democrats are finally willing to listen to the taxpayers of Iowa.”

Republican Leader Comments on Governor Culver’s Property Tax Increase

(DES MOINES)-House Republican Leader Kraig Paulsen (R-Hiawatha) commented on the across the board cuts and resulting tax increases which Gov. Culver made today.

“Today the governor raised property taxes,” said Paulsen.   “The result of this across the board cut is higher property taxes for Iowans.   A tax increase that could have been avoided by better management of the state budget.   The governor is pushing his out-of-control spending problem on to the backs of Iowans.”

Among other things, an across the board cut reduces the state funding for the K-12 foundation formula.   This is the amount the state provides school districts on a per pupil basis.   If the state does not provide its statutory share, school districts have three options:   cut spending, use reserves or raise property taxes.   As a result of his actions, hard-working Iowans could see their property taxes increase as much as $245 million.

During the 2009 legislative session, House Republicans offered over $330 million in cost-saving measures.   Nearly all were rejected by legislative Democrats.   Also rejected by Democrats was a searchable budget database accessible to Iowans that allows them see how the state is spending taxpayer dollars.   Paulsen points to Republican’s targeted and meaningful budget efficiencies as more responsible than resorting to haphazard across the board cuts.

“The governor should instead look at cost-saving measures to eliminate unnecessary and wasteful government spending,” said Paulsen.   “House Republicans will continue to offer sensible solutions and reduce spending rather than asking the taxpayers to pick up the tab.”

Governor breaks his ‘no tax increase’ pledge as his order will increase property taxes by $284 million
Strawn: Culver’s budget ax an indictment of his failed leadership

Des Moines, IA – Republican Party of Iowa State Chairman Matt Strawn today commented on Governor Culver’s order to a 10% across-the-board cut in state spending in response to a projected $400 million revenue shortfall for the current budget year. Strawn said, “Governor Culver has completely failed the citizens of Iowa. This devastating across-the-board cut could and should have been avoided and his decision today only postpones the truly difficult work that must be done to fundamentally change the way our state government does business.

“The Governor acts as if these horrific revenue numbers are a surprise. Yet, who didn’t know this state was facing a serious recession last March and April when Culver and majority Democrats in the Legislature ignored our repeated warnings and passed the largest spending budget in Iowa’s history. This budget crisis is no surprise to anyone who was paying attention and the Governor’s use of his budget ax is an indictment of his failed leadership,” said Strawn.

In ordering his across-the-board spending cut, Culver decided against calling the Legislature back for a Special Session to attempt to balance the budget through more thoughtful, targeted budget reductions.

In addition, due to the way various property tax credits are funded and the method in which the state’s school finance formula works, an across-the-board spending reduction of this size will actually trigger a potential property tax increase of $284 million.

Strawn said, “Governor Culver has repeatedly said he would not raise taxes to balance the state’s budget. Apparently he doesn’t understand how our state budget functions. When you issue an across-the-board cut it reduces property tax credits and the state’s share of K-12 education funding and, thus, local property taxes will rise to fill the gap. This broken pledge is just one more example of Culver’s repeated failure to be honest with Iowans about the problems we face.

“The Governor has spent the last four months assuring Iowans all was right with the budget and, due to his I-JOBS program, recovery was underway. Unfortunately, this is not the case and Culver has no one to blame but his own unwillingness to face reality, accept responsibility, and take the bold action that was necessary to prevent today’s terrible news,” concluded Strawn.

Iowa Association of School Boards: Statement from President Jack Hill on Today’s Across-the-Board Cuts

“The governor made a difficult decision today by announcing a 10 percent cut. While that is a significant cut, we thank him for acting quickly so that school boards can start planning ahead as we work on budgets,” said Jack Hill, president of the Iowa Association of School Boards, and a North Scott school board member. “It is critical right now that all educational leaders step back and evaluate their options before taking action. It’s not going to be an easy year, but if we work together, hopefully we can all come up with viable solutions to keep achievement levels, curriculum development and education as a whole moving forward.”

VANDER PLAATS STATEMENT IN RESPONSE TO CULVER’S ACROSS-THE-BOARD BUDGET CUT

DES MOINES – Republican gubernatorial candidate Bob Vander Plaats issued the following statement in response to Gov. Chet Culver’s 10-percent, across-the-board budget cut announced this afternoon:

“When I was growing up in Sheldon, my Dad always used to say to me, ‘Don’t start something you can’t finish.’ He said that because he knew it was especially important that you don’t let people down when you make a promise to them.  Chet Culver started a lot of things with the state budget he signed that he just can’t finish. It’s not the result of the national economy; it’s the result of his failure to contain spending even as he was being warned the recession was going to hit Iowa hard. As a result, a lot of people are going to be hurt.  State employees are going to pay a high price for his fiscal irresponsibility.  Iowans who were counting on state services because of the promises inherent in the budget he signed into law are going to feel a lot of unnecessary pain and suffering. And, property tax payers are going to feel the impact of this action, too.

“Chet Culver once again has proven that his procrastinating when it comes to taking on problems has only made them worse and worse. The idea that the Department of Corrections, for instance, must make a $40-million reduction three months into the fiscal year really means the cuts are deeper than 10 percent.

“If I had been governor I would never have approved the exorbitant spending increases over the past few years that got us into this trouble.  I would’ve exercised foresight and caution rather than increasing the state budget roughly 18 percent in the past few budget cycles at the same time Iowa families and businesses were being forced to cut their own budgets.

“Finally, it doesn’t require a lot of leadership to make an across-the-board cut.  It’s an easy way out. It says outdated and ineffective programs are just as important as public safety, human services and education. Going forward, Governor Culver should be working closely with legislators from both sides of the aisle to prioritize spending and budget cuts.  The time of a crisis is where effective leadership matters most.  Unfortunately, Chet Culver has already failed the test.”

Iowa Sec. of Agriculture Bill Northey today issued the following statement on the 10 percent across the board budget cut announced by Governor Culver this afternoon.  This cut will bring the Department’s total two year budget cut from the beginning of FY’09 through FY’10 to 23 percent.

The Iowa Department of Agriculture and Land Stewardship had already experienced a 15 percent cut from FY2009 to FY2010 that reduced the Department’s General Fund appropriation from $22 million to $18.7 million.  The new cut announced today cuts an additional $1.87 million from the Department’s budget to a level of $16.8 million.

This level of funding is approximately the same as the Department’s appropriation for FY1994.

The Department is currently authorized 408 Full Time Employees (FTEs).  Due to the previous cuts the Department has not been filling positions and currently has 37 open positions.  The Department’s 371 FTEs are the fewest number of employees by the Department in more than 20 years.  These numbers are before the additional 10 percent cut announced today.

The Department was handling the previous 15 percent cut by not filling open positions, 3 permanent layoffs, and mandatory leave without pay for the Department’s 38 non-contract employees, offering voluntary leave without pay to all employees, and using one-time funding sources such as depreciation funds that was authorized during the legislature last session.

It is still unclear what additional steps will be needed to handle the additional $1.87 million cut, but layoffs and possible elimination of certain Department functions are possible.

Sec. Northey’s comments regarding the Governor’s announcement follow here:

“The Iowa Department of Agriculture and Land Stewardship has taken a significant reduction over the past year and another 10 percent cut in funding will have a dramatic affect on how we operate and the services we will be able to provide.  We will spend less money in this fiscal year than was spent 16 years ago, all while state government has grown approximately 48 percent in the same period of time.”

Department Overview
The Department is responsible for a wide variety of consumer protection and agriculture promotion programs.  This includes regulating meat processing, commercial feed and fertilizer, pesticide application, and dairy production and processing.  The Weights and Measures Bureau makes sure both buyers and sellers are treated fairly at the gas pump, grocery store or grain elevator.

The State Climatologist, Entomologist, Horticulturalist and Veterinarian are also all part of the Department.  Other areas of responsibility for the Department include Agriculture Statistics, the Iowa Horse and Dog Breeding program and helping promote the more than 170 farmers markets located across the state.

Land stewardship is also central to the work of the Department.  The Division of Soil Conservation provides farmers with expertise and funds to help them install practices that preserve our highly productive soil, prevent erosion and protect our critical waterways.  The Department is focused on making sure future Iowans can experience the same high quality of life that past generations have enjoyed in our state.

Statement from Christian Fong, Republican for Governor

Today, Iowa could no longer avoid the inevitable; our government growth has been out-of-control.  The Governor’s attempt to blame the recession, Wall Street or Washington D.C. is political theater, and not accepting responsibility.  None of those outside parties were responsible for our overspending, on pet projects like the $208 million Iowa Film Office scandal.

Under Governor Culver, Iowa’s state government grew by 20%.  Today’s painful 10% cut would not be necessary if the State had not embarked on an outrageous pattern of overspending in the first place.  Yet today Governor Culver said he would not do anything differently.  Iowans should take that as a signal of what the future would hold if he was re-elected.

Iowa needs intelligent leadership that can learn from mistakes.  Responsible leadership that admits when a past decision did not work.  And hard-working leadership that prevents a problem from growing into a crisis.  Iowa needs a new Governor.

Statement from President Miles In Response to Governor’s Announcement
October 8, 2009

I commend Governor Culver for his swift action today in response to yesterday’s report of the Revenue Estimating Conference and the need to prepare for additional decreases in State revenues.  The Board of Regents also needs to act quickly given the potential impact of this national financial crisis on the many important programs and services that Iowa’s Public Universities and Special Schools provide for our students, and for all of Iowa.

Over the past year, our institutions have responded proactively and effectively to the changing economic needs of our state.  At the Board’s direction, our university presidents have focused on key strategic initiatives, initiated efficiency and productivity improvements, consolidated or downsized academic programs, improved facility utilization, adjusted teaching and research loads, strictly limited salary increases, deferred open positions, implemented furloughs, and eliminated positions.

I want to extend my thanks to the presidents of Iowa’s Public Universities and the superintendents of our Special Schools for their leadership in comprehensively reviewing their very complex operations, developing new ideas and approaches, and making difficult choices.  I also want to thank the faculty, staff and students of our institutions for their unwavering support during this challenging time.

Today I must ask all who care about the Regent institutions to sacrifice once more.

In light of the Governor’s announcement today of a 10% across-the-board budget cut, effective immediately, I am directing:

• A system-wide freeze on general education-funded hirings; and,
• A moratorium on all new building construction projects, except those directly related to flood restoration projects at the University of Iowa.

I will seek ratification of these mandates during a special telephonic meeting of the Board of Regents, State of Iowa, to be scheduled for Wednesday, October 14.  In the meantime, I am directing the Board Office to prepare an implementation plan for the hiring freeze and construction moratorium.

These steps, while important, will not be enough to adjust to budget reductions of the magnitude facing our institutions.  Accordingly, our October 14 meeting will be devoted solely to a discussion involving the Regents and the heads of our institutions regarding additional measures to adjust to the revised FY 2010 budget.

At the conclusion of that meeting, we will ask the institution heads to prepare specific action plans to be presented to the Board at its next regularly scheduled meeting on Thursday, October 29.

Iowa’s Public Universities and Special Schools face significant headwinds, and difficult days lie ahead.  As we move forward, we will face these difficulties together.  Be assured that whatever challenges come our way, this Board and everyone at our institutions remain resolutely committed to (1) continued access for Iowa students to an outstanding higher education, and (2) protecting the exceptional quality of our educational, research and service activities.

ROBERTS CRITICIZES CULVER’S FAILURE TO CALL A SPECIAL SESSION

Republican gubernatorial candidate Rod Roberts is criticizing Governor Culver’s decision yesterday to cut state spending “across the board” by 10%. The Governor’s decision came in response to a report on Wednesday that state revenue would be $415 million lower than expected for the current fiscal year. Roberts—who had been warning Culver of the state’s budget emergency for several months—believes the Governor should have called for a special legislative session to correct the revenue shortfall.
 
“An across the board cut of 10 percent of the state’s budget is simply poor governance,” said Roberts, an Assistant Minority Leader in the Iowa House of Representatives.  “A cut of this size should have been made by the legislature.” 
 
Roberts pointed out that Culver missed several opportunities over the past year to avoid the present budget emergency. During the legislative session earlier this year, House Republicans proposed $330 million in spending cuts to help avoid a budget crisis, but Culver rejected them. Over the past six months, it was already becoming apparent that the state’s revenue for the current fiscal year would be significantly lower than expected. Governor Culver had many opportunities to call a special legislative session to correct the revenue shortfall, but he failed to do so.

“The Governor has known over the past year that his out-of-control spending was going to result in a budget emergency—he didn’t find that out for the first time on Wednesday,” said Roberts. “Chet Culver failed to manage the state’s finances over the past year and now Iowans will pay the price.” 

Culver’s budget cut is a poorly tailored response to the fiscal emergency that the state is facing, according to Roberts. Culver cut $565 million from the state budget when only $415 was necessary. Further, the “across the board” nature of the cut means that programs throughout state government—whether in education, healthcare, or law enforcement—will suffer budget cuts regardless of how well they have been performing, how badly they need the funding, or how important their service is to Iowans.

“Budget cuts were needed, but the Governor’s response went overboard and failed to carefully consider both the performance of state agencies and the interests of Iowans who depend upon the agencies,” said Roberts, a five-term State Representative from Carroll. “Culver should have called a special session yesterday.  Legislators would have been in a better position to make considered, case-by-case judgments on where budget cuts should have been made. If I had been governor, I would have called a special session yesterday; in fact, I would have called one months ago.”

Statement by Chris Bern, president of the Iowa State Education Association
 
DES MOINES, IA (10/08/2009) — “The Governor faced a difficult decision today in making an across-the-board (ATB) reduction of 10 percent to state general fund appropriations. We believe it is imperative that Iowans understand quality education in Iowa must be maintained and there are still options available to K-12 school districts to offset these cuts. Unfortunately, our area education agencies and community colleges are in more immediate need as they do not have the same resource options available to them.

“It is important to note this reduction does not impact spending authority which means that while school districts will receive less state aid, they will still be able to use their cash reserves for any shortfalls. In fact, we believe school districts have an obligation to use the over $400 million in cash reserves available for this time. Tough economic times require all of us to reach into our “savings” and use cash reserves and other resources available rather than making poor choices that would have an adverse effect in the long-run. Iowa’s students should not be short-changed by inadequate course offerings or lose access to world-class educators because districts did not want to dip into their cash reserves, utilize the Iowa School Cash Anticipation Program (ISCAP), or use other resources available to them.

“Now is the time for all of us to pull together and find solutions that will maintain the quality of Iowa’s great public schools. It is during the toughest times that Iowa must maintain its public education system so we come out of this economic downturn stronger than before. The best chance for economic recovery in Iowa is through the doors of our public schools.”

It’s 2:55 p.m.   I’m sitting in the governor’s office, in what’s called the Kennedy Conference Room, awaiting Governor Chet Culver’s arrival to reveal his reaction to today’s Revenue Estimating Conference.  The three-member panel reduced their guess of Fiscal Year 2010 tax revenue by nearly $415 million.  

The full crew of statehouse reporters are assembled for the event.  There are five TV cameras in the back of the room to record it. 

Culver walked in the room at about 3:17 p.m.  “Hello,” he said, before striding to the lectern, opening by saying Iowa is suffering from the impact of the national recession. “The great recession was caused by bad policies in Washington and bad practices on Wall Street,” Culver said.  “…Today’s projected decline of 8.4 percent means state government will now have $414 million less to spend.”

Culver said the Department of Management would recast the state budget, based on the new estimate of state tax revenue. “l will review these new budget figures….Tomorrow afternoon at two o’clock, I will have a news conference to announce the specific steps I need to take,” Culver said.

What are your options?

“Every option is on the table.  Obviously, across the board cuts of up to 8.4 percent is an option, a special session is an option,” he said.

Spare some areas from cuts?

“In the past, we have taken every step to protect or backfill areas like public safety and that is something we’re going to have to weigh again.”

Go higher than 8.4 percent?

Culver said he wants to leave at least $100 million in the ending balance for FY 2010.  “I think it’s extremely important to have a fairly significant ending balance so we might consider going further, however today’s decision was unanimous and they projected out thru the end of the fiscal year so they have factored in, for example, a lot of the economic indicators that will hopefully suggest that this is going to be the shortfall.”

Culver continued in response to another question.

“We’ve got to tighten our belt….We’ve got to make some tough cuts,” Culver said.  “…We’re in uncharted waters, but we’re up to the challenge and we’ll meet it…Everybody understands we’re going to have to make deep cuts.”

Culver is asked to answer criticism from Republicans.

“This isn’t about partisanship.  No one could have predicted we would see this…decline…What, really, we need to do at this time is put the partisan politics aside…and resolve this budget challenge.”

Culver is asked to provide some perspective as to the depth of the problem.  (Earlier, Culver said he would not raise taxes to fix the problem.)

“It’s as bad as anyone has ever seen in recent history, arguably since the Great Depression,” he said.

Lieutenant Governor Patty Judge is in the room, as is deputy chief of staff Phil Roeder, press secretary Troy Price, Department of Management director Dick Oshlo.

Re-election impact of this budget mess?

“I’m going to get the job done.  It’s an honor & privilege to be governor,” Culver said, adding he’d respond to this crisis appropriately.  “This is not a time for partisanship or politics.”

Culver is asked to respond to audit of the Secretary of State’s office during the time period when he was secretary of state.

Culver expressed his pride in the work he did in SOS office, stressing voter outreach, voter education, voter access issues.  “I’m not going to apologize” for spending in regard to voter access.

Reaction to “Terry Branstad 2010 committee” filing?

“I welcome him to the race,” Culver said.

Will state workers be laid off; what steps is Culver prepared to take in his own office?

“There’s no question that we’re all going to have to make cuts and share the burden,” Culver said.   Unfilled positions are “the first place department directors and I will look.”

There will have to be “layoff plans” developed, due to the contract with unionized state workers, according to Culver.

Reaction to the Film Office audit?

“I think it’s just outrageous that in a number of cases individuals exploited the program, you know, buying luxury vehicles…The abuses really angered me….I have zero tolerance for that type of abuse….I was also, as you know, very disappointed in the mismanagement.  There was not appropriate oversight…and that was why I made a number of personnel changes.”

“…We need to see results.  We need to see data that will guarantee the taxpayers of Iowa a benefit with any tax credit, with any program…That’s going to be the bottom line and I guarantee you we will never, ever again be taken advantage of as we were with this film program.”

Geoff Greenwood of KCCI asked about some comments Steffan Schmidt made about Culver’s management style.   Culver said Schmidt had never brought his concerns directly to him, then Culver turned his comments to the reporters in the room.

“I get along great with the press corps.  You’re all my friends.  I’m happy to sit down with each and every one of you so you get the information you need to do your jobs.”

Event over.

UPDATE:  Culver’s staff sent out a text of the statement he read to start the news conference.

GOVERNOR CULVER’S STATEMENT ON REVENUE ESTIMATING CONFERENCE
 
DES MOINES – During a press availability at the State Capitol, Governor Chet Culver spoke with reporters regarding today’s Revenue Estimating Conference report, which projected an 8.4% decline in revenue. The following is a transcript of the Governor’s statement.
 
“The unanimous decision by the Revenue Estimating Conference today confirms my belief that the national economic recession continues to have a significant negative effect on our state’s economy. This great recession was caused by bad policies in Washington D.C., and bad practices on Wall Street.

“Today’s REC figures are a stark reminder of the impact this recession is having on our state, and on every state across the nation.

“Let’s review the status of Iowa’s budget:

“First, I proposed and the legislature approved a balanced budget for fiscal year 2010, which began on July 1. This budget was based on the official REC estimates from their March meeting last spring. The budget included a nearly $100 million ending balance, and $373 million in reserves.

“However, today’s projected decline in revenue of 8.4% means state government will now have $414 million less to spend this fiscal year.

“As Governor, I am obligated under the Iowa constitution to balance the state’s budget every year. Let me be very clear: I will. Unlike the federal government, Iowa cannot run a deficit, nor can we simply print more money to pay our bills.

“So, this afternoon I want to let you know the steps I am taking today to deal with this.

“First, I have directed the Department of Management and Director Oshlo to recast the state’s fiscal year 2010 budget to appropriately reflect today’s estimate by the REC. I will review these new budget figures first thing tomorrow morning.

“Second, tomorrow at 2:00 p.m., I will announce the specific steps I will take to solve this budget challenge and balance the fiscal year 2010 budget.”

It is 12:55 p.m. on a Wednesday and people are slowly filling up the Supreme Court Chamber in the Iowa  Statehouse.  The ornate room has been converted into a meeting room and the Revenue Estimating Conference is scheduuled to meet at 1 p.m.  The three-member panel will set its official estimate of state tax collections for the current budgeting year.  It’s likely the governor will order an across-the-board cut afterwards, the depth of which will be determined by the estimate this three-member panel decides upon.

As blogged about yesterday, the three members of the panel are Legislative Services Agency director Holly Lyons; Department of Management director Dick Oshlo (the governor’s representative on the panel) and David Underwood, who recently retired from a firm in Mason City where he served as chief financial officer.

At 12:58 p.m., the governor’s staff sent out an advisory via email.  The governor will hold a news conference at 3 p.m. this afternoon to “react” to the decision made by the Revenue Estimating Conference.

Each seat is now full.  Phil Roeder, the governor’s deputy chief of staff, is standing in the back of the room, within arm’s length of a seated Chris Rants, one of the Republican candidates for governor.

The meeting opened with Oshlo being elected chairman of the panel and minutes of the March 20, 2009 meeting were approved by voice vote. 

“Obviously these are difficult economic times for the stsate and based on recent events….we have to review the current numbers and see if there are any revisions,” Oshlo said. 

Lyons said there is a “significant and severe recession not just for Iowa but for all states.  Since last year there’s been a loss of 50,000 jobs…unemployment is slowing, but likely to remain high….November of 2008 was the last month we saw true, positive revenue growth….Consumer confidence remains uncertain.”

Lyons quoted a report suggesting holiday sales will be one percent lower than last year.

Lyons said federal economic stimulus money was being spent in Iowa, but “the good news is that we haven’t felt the effects of the stimulus and the I-JOBS spending yet.”

Suggesting the next nuggett came from “the misery loves company department,” Lyons cited National Conference of State Legislatures data, indicating:  “state governments will face severe budget problems for 12-24 months after the recession ends.”

Underwood said “all of us” had been surprised by the “depth of job loss” in Iowa.  “None of the national forecasts came even close to the 50,000 level for Iowa…The impact to Iowa’s revenue…is probably somewhere in the $80 to $100 million range.”

“…Corporate profits continue to be an issue…I think that’s going to be a reality for us…profits are going to be down.”

Oshlo began speaking, focusing on corporate tax payments, saying the decline in September “was alarming.”  He is a low talker and people in the back of the room, including yours truly, cannot hear all of what he is saying.

Underwood takes the floor again.  He’s preparing to “resolve” the differences in estimates from the legislative and executive branches.  “It’s probably somewhere in the midst of these two,” he adds.

Lyons makes a motion, to reduce the personal income tax refund estimate in Oshlo’s estimate (the governor’s numbers) by about $32 million.  That’s the first reduction (with more to come) and it passes.  It means the TOTAL reduction is in the neighborhood of $414.9 million according to the math-proficient Lynn Campbell of IowaPolitics.com who is sitting to my left.  We’ll double-check with the mumbling people up front after the meeting concludes.  (UPDATE:  It was, indeed, $414.9 million.  That represents a reduction of a little more than seven percent.)

The three have now jumped to a discussion of FY 2011 estimates.  Since the current year estimates are of greater news value today, I shall end this blogging and prepare to ask questions of folks.

UPDATE:  Here’s the Radio Iowa story.  A variety of statements were issued, via email.  Read them below, in the order they were received.

(DES MOINES)—House Republican Leader Kraig Paulsen (R-Hiawatha) released the following statement regarding the Revenue Estimating Conference newest report on Iowa’s revenue.

“The news from the Revenue Estimating Conference, while troubling, is not surprising.  Gov. Culver signed the largest budget in the history of Iowa and his $1.7 billion borrowing plan has not worked.  The out-of-control spending and lack of fiscal discipline expressed by legislative Democrats has caused the economic mess Iowa is currently in. 

“Even though we face economic turmoil, House Republicans remain ready to offer cost-saving measures, oppose tax increases, and increase transparency in state government budgeting.”

DES MOINES – The nonpartisan Revenue Estimating Conference (REC) met today and released budgetary numbers stating that, as predicted, Iowa revenue numbers are down and will continue to fall.

Senate Republican Whip Steve Kettering (R-Lake View) released the following statement:

“The repeated irresponsible budgeting practices of Governor Culver and Legislative Democrats have placed Iowa’s budget on the edge of a financial abyss.  To spend more money than ever during the midst of a recession and then to wash your hands of responsibility is a terrible policy.  The Governor should admit to his addiction to spending.

“Senate Republicans stand at the ready to again offer solutions to solving the worsening budgetary crisis facing Iowa.  We recently proposed a constitutional limit on state spending, a 2/3 supermajority vote of both houses of the Legislature to authorize new state borrowing, and a sunset on every state funded program so a thorough review of those programs can be conducted.  We offered the suggestions in an effort to incorporate responsible fiscal practices when it comes to the state budget.”

STATEMENT FROM LEGISLATIVE LEADERS ON STATE REVENUE DECLINE
 
Senate Majority Leader Mike Gronstal: “Iowa families, communities and businesses are still reeling from the economic earthquake caused by the biggest recession since the Great Depression.  It’s clearer than ever that the aftershocks of this deepening national recession will require quick action to balance the current state budget.”

House Speaker Pat Murphy: “As we’ve done over the last year as the recession has taken hold in Iowa, we will work together with Governor Culver to ensure a balanced state budget while still maintaining services that are provided to schoolchildren, older Iowans, unemployed workers and others.”

House Majority Leader Kevin McCarthy: “Unlike former Governor Terry Branstad, who raised taxes on all Iowans to balance the budget, I know Governor Culver will show bold leadership and act decisively with a swift and serious cut to keep our budget balanced.  We will continue to work with Governor Culver and take whatever legislative action necessary in January to ensure the state budget remains balanced.”

Senate President Jack Kibbie: “In the coming weeks and months, we remain committed to:
* Listening to our constituents;
* Working with the Governor, Lt. Governor and Republican legislators; and
* Laying the groundwork for passing another fiscally responsible state budget during the 2010 session that protects the progress we’re making on creating good-paying jobs, improving student achievement and teacher quality, and ensuring affordable health care.”

FARM BUREAU URGES GOVERNOR CULVER TO CALL SPECIAL SESSION TO SOLVE 2010 BUDGET SHORTFALL

WEST DES MOINES, IOWA – October 7, 2009 – Today’s Revenue Estimating Conference lowered state revenues by $415 million, illustrating a number of fiscal challenges ahead for Governor Culver in the 2010 budget, according to the Iowa Farm Bureau Federation (IFBF).  As a result, IFBF is urging the Governor not to order across-the-board cuts, but to look at all options, including a special session of the legislature so elected leaders can collectively make the best decision to solve budget issues.

“Across-the-board cuts reduce state spending, but unfortunately they increase property taxes on all Iowans,” said IFBF President Craig Lang.   “The funding of K-12 education is a partnership between state government and local property taxpayers, so when an across-the-board cut is ordered, the state’s share is reduced, which means property taxpayers have to pick up the shortfall.  An across-the-board cut of 7 percent to meet the decline in revenue could raise property taxes for Iowans by $195 million.  This is in addition to the increase taxpayers have already realized to pay for school, city and county government operations.  Because of recent property evaluations, we are already approaching an 8.5 percent property tax increase that will impact not only farmers, but homeowners and business owners,” said Lang.  

“Families struggling to make ends meet in this time of layoffs and foreclosures can’t use ‘across-the-board cuts’ to balance their personal budgets; it’s not like we can pay just 95 percent of our heating bills or 95 percent of our mortgage,” said Lang.  “Our families have to roll up their sleeves and make hard choices on where to cut to pay for our priorities. We expect our elected leaders to do the same.”   

 Farm Bureau members will also be asking Governor Culver and state leaders to work together during the 2010 session to redesign Iowa’s budgeting process and make the necessary changes to avoid budget disruptions that are currently plaguing our state.

AFSCME Iowa Council 61 Statement on Iowa’s Budget Projections

As we find out that revenue is once again lower than projected, it is time to start looking at both sides of the ledger when examining state finances.  Iowa is not alone in its hardship.  At least 48 states have addressed or still face shortfalls in their budgets for fiscal year 2010.  At least 36 states already anticipate deficits for 2011.  The combined budget gaps for all states in the next two years — state fiscal years 2010 and 2011 — are estimated to total at least $350 billion.

We believe that the state needs to look at the full picture and not only study efficiencies that can be made, but should also examine ways to close corporate tax loopholes and re-examine other tax schemes that have not shown evidence that they are growing the Iowa economy.  It is important to remember that Iowans still rely on the services that state government provides, and those needs only grow during these tough times.  Looking at cuts as the only way to balance budgets is short-sided and will only hurt Iowans during and after this recession.

Like all Iowans, AFSCME Iowa Council 61 members have made sacrifices not only during this recession, but have made concessions several times over the past decade.  State workers have faced cuts through the recession of the early 2000s, and once again we have stepped up to the plate taking wage freezes and many have faced layoffs.  Right now, state workers are already doing more with less.  Layoffs and cuts will exacerbate this problem, and those solutions put state workers in dangerous positions when they are understaffed at many facilities.   

Because AFSCME Iowa Council 61 believes that its members who work in state government every day are experts on how to make their workplaces more efficient, AFSCME Iowa members are looking at ways to bring cost savings to government through a wide variety of reforms that they can identify.  AFSCME Iowa Council 61 has formed several working groups to examine how their jobs can be streamlined to save money during lean times.  AFSCME Iowa Council 61 will work with all branches of government to continue to be a constructive part of finding solutions to the current budget problems we all face together.

ITA RESPONDS TO REVENUE ESTIMATING CONFERENCE

ITA Encourages Targeted Cuts in State Spending

The Iowa Taxpayers Association (ITA), the state’s leading nonpartisan business tax policy resource encourages Governor Culver to head back to the budget drawing board following today’s revised projections from the Revenue Estimating Conference (REC).
Because the REC estimates that the net General Fund revenues will be $414 million less in FY 2010 due to an 8.4% decline in revenue from last year, ITA believes that now is the time to make the difficult decisions on cutting state expenditures before the start of the 2nd session of the 83rd General Assembly.

“Given the REC’s best estimate and the recent decline in state revenue, the state is now in a position to have to make the same painful choices that Iowa businesses have had to make during the past 16 months” said Ed Wallace, President of the Iowa Taxpayers Association.

Wallace further stated that “Across the Board cuts may provide some relief, but the Governor alone does not have the ability to make targeted cuts.” Targeted cuts by the legislature may make the most sense provided that they would be able to reach consensus in a special legislative session”

Statement from (Board of Regents) President (David)  Miles on Report of Revenue Estimating Conference October 7, 2009

Today’s report of the Revenue Estimating Conference projecting a large decrease in FY 2010 State revenues is undoubtedly discouraging for the Board of Regents and Iowa’s Public Universities and Special Schools.  Any additional budget reductions that may result from today’s estimates would be a significant burden on our institutions. 

From the time that the global financial crisis first began to impact Iowa, Iowa’s Public Universities and Special Schools have responded effectively to the changing economic realities of our State.  This has included, over the past year, a series of several budget reductions which have posed tremendous challenges to our institutions.  The Board of Regents directed the heads of each Regent’s institution to address budget shortfalls strategically, to refocus and reposition the institutions not just to survive but to continue to prosper over the long term, and to invest in areas of excellence while allocating resources from other areas less central to the institution’s mission or of lower priority moving forward.  While a difficult fiscal task, our university presidents and special school superintendents have shown exemplary leadership by comprehensively reviewing their very complex operations, generating new ideas and approaches, and making difficult choices. 

As we face the likelihood of further budget reductions, our prior analysis and actions have prepared us to once again respond; however, any additional spending reductions would create further hardships for our institutions in providing programs and services for Iowans.  

As always, our first priority will be to assure continued access for Iowa students and to protect the quality of our educational, research and service activities.

Iowans for Tax Relief Update: State Budget $415 Million Short

The state Revenue Estimating Conference (REC) met today in Des Moines to revise the expected tax collections for the current budget year.

Ed Failor, Jr., President of Iowans for Tax Relief, said:
“Iowans for Tax Relief has stated over and over, it is horrible judgment to pass the largest budget in Iowa history when every sign indicated further decreases in government revenue.  It is irresponsible and lacked intelligent forethought by Governor Culver and his cronies in the Legislature to have made these decisions.”

What did the panel decide?
• The three-member panel forecasted state coffers will continue to see a drop in tax collections.
• For the current state budget year 2010, the state has a shortfall of $415 million.

What is the next step?
• Governor Culver is going to have to take immediate action on the state budget because the shortfall has occurred in the middle of the current fiscal year.
• Governor Culver has scheduled a press conference for Thursday, October 8, 2009 to announce his “quick-fix” for the sizable state deficit.

Please continue to check the ITR website at: www.taxrelief.org for updates on the state budget deficit.

The Bottom Line:
The largest budget in state history drove the State of Iowa further down an economic hole. Governor Culver and the Democratic-led Legislature spent too much and used your hard-earned tax dollars unwisely.

Your Iowans for Tax Relief Team will continue to urge lawmakers to keep spending in line with revenues. Now is not the time to hit already strained family budget with more taxes.

Statement from Christian Fong, Republican candidate for Governor

“Today’s news of a deeper dip in tax revenues than expected further shines the spotlight on Governor Culver’s runaway spending.   Yes, the national recession has hurt Iowa revenues, but the genesis of this budget crisis started when Governor Culver and legislative Democrats increased state spending by 21% over the last two years.  Governor Culver’s decision to look the other way when spending grew and grew is the real cause of the deficits we face today.   Iowans deserve a Governor who will cut spending, balance the budget and do so without raising taxes.”

The timing of today’s announcement is weird.  You would think on a day when more bad news will be heaped on the desk of the current Democratic governor, Chet Culver, that Republican candidates of the already-announced to the not-quite-announced variety would let that be the political news of the day rather than try to compete with it.

Sandra (Sandy) Greiner, the former state legislator who has been heading up the “Draft Branstad” PAC issued a statement at 7:19 a.m. today.  No one is answering the phone at the “Draft Branstad” headquarters in Des Moines.  A message left on the machine there has not been returned.  Greiner called me back at 10:25. Read Greiner’s written statement below.

Des Moines, Iowa — Today, Governor Terry Branstad filed papers to form an exploratory committee, the next step in weighing a run for governor of Iowa in 2010.

“Today is a great day for future generations of Iowans as Governor Branstad takes the next step toward deciding to run for Governor of Iowa. Since I began this effort several weeks ago, I have heard from people all across this state who want real, experienced leadership during these tough economic times and like me, they believe Governor Branstad is the best person for this job,” said Sandy Greiner.

Greiner continued, “Iowans have spoken, and Governor Branstad has listened. The Draft Branstad campaign generated support from Iowans young and old, who are looking to the future of Iowa and I am pleased to say your work has payed off as Governor Branstad takes the next step to run for governor. However, it is not time to stop recruiting. It is time to speak louder and recruit harder.”

Draft Branstad PAC will continue its effort to recruit Gov. Branstad to run for Governor of Iowa in 2010 with a petition, social networking efforts and a Young Iowans for Drafting Branstad event this week. Information for all of these can be found at www.DraftBranstad.com

UPDATE:  Here’s the news release on the Branstad Committee.  (Here are the documents which Schwarm filed electronically.)

Terry Branstad 2010 Exploratory Committee Is Formed 

Richard Schwarm, long time friend of Terry Branstad, announced that an exploratory Campaign Committee has been formed on Terry Branstad’s behalf.  The purpose of the Committee is to continue to explore the availability of support and resources for a possible Branstad candidacy for Governor in 2010.   Mary Vermeer Andringa, President and Chief Executive Officer of Vermeer Corporation, Pella, Iowa, is the Committee Chair.
 Schwarm stated, “Iowa campaign law requires the formation of an initial Statement of Organization to be filed within 10 days of a committee’s incurring indebtedness exceeding $750.00.  That threshold has now been reached and the Statement of Organization has been filed with the Iowa Ethics & Campaign Disclosure Board today.” 

 Schwarm also noted, “Terry Branstad has not made a decision on what he will do.   He remains focused on his responsibilities as President of Des Moines University.”

 

“Doug Gross has gone and pulled out of retirement Terry Branstad to run for governor so it got a lot of Democrats thinking, including myself, ‘Maybe it’s time,’ — and I’ll put this in a football analogy since my counterpart (the chairman of the Republican Party of Iowa) owns a football team, that ‘Maybe it’s time to get a first-round draft pick.’ I’m going to tell you here today that Chuck Grassley is going to be in for the race of his life.”

Kiernan would not give clues as to who. As for when the person would announce their intentions to seek the Democratic Party’s 2010 U.S. Senate nomination, Kiernan said it would be after former Governor Terry Branstad announces whether he’s going to seek a fifth term

I’m writing for our air now. Will be back with more later. UPDATE: Radio Iowa story, with more quotes and more detail.