Iowa Public Television

 

IOWA PRESS #2713 – Gov. Tom Vilsack
November 28, 1999

Borg: AT THE IOWA STATEHOUSE, 43 DAYS REMAIN UNTIL CONVENING THE GENERAL ASSEMBLY OF 2000, AND THE LEGISLATIVE AND EXECUTIVE BRANCHES OF IOWA GOVERNMENT ARE DEVELOPING THE AGENDA. GOVERNOR TOM VILSACK DISCUSSES HIS LEGISLATIVE PRIORITIES FOR THE UPCOMING SESSION ON THIS EDITION OF IOWA PRESS.

FUNDING FOR IOWA PRESS WAS PROVIDED BY FRIENDS OF IOWA PUBLIC TELEVISION, AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS.

THIS IS THE SUNDAY, NOVEMBER 28TH EDITION OF IOWA PRESS. HERE IS DEAN BORG.

Borg: THE SECOND WEEK OF JANUARY WILL BE A MILESTONE. GOVERNOR TOM VILSACK MARKS HIS FIRST YEAR IN OFFICE. SPEAKER OF THE HOUSE BRENT SIEGRIST, AND SENATE PRESIDENT MARY KRAMER CONVENE THE SECOND SESSION OF THE IOWA 78TH GENERAL ASSEMBLY. THAT WILL BE ON MONDAY, JANUARY 10TH. AND A DAY LATER, ON THE 11TH, GOVERNOR VILSACK DELIVERS HIS CONDITION OF THE STATE ADDRESS, DETAILING HIS AGENDA AND BUDGET PRIORITIES. BOTH THE MAJORITY REPUBLICANS AND THE MINORITY DEMOCRATS IN THE LEGISLATURE WILL CAUCUS IN EARLY DECEMBER TO ESTABLISH THEIR RESPECTIVE AGENDAS AND THEIR LEGISLATIVE PRIORITIES. GOVERNOR VILSACK JOINS US HERE AT THE IOWA PRESS TABLE TODAY TO PREVIEW ISSUES FOR THE EXECUTIVE BRANCH PERSPECTIVE. WELCOME BACK TO IOWA PRESS.

Vilsack: GREAT TO BE HERE, DEAN.

Borg: ACROSS THE TABLE, STATEHOUSE REPORTERS DAVID YEPSEN OF THE DES MOINES REGISTER AND MIKE GLOVER OF THE ASSOCIATED PRESS.

Glover: GOVERNOR, AS DEAN MENTIONED, YOU'RE GOING TO BE DELIVERING A CONDITION OF THE STATE SPEECH IN JANUARY. GIVE US A PREVIEW. WHAT IS THE CONDITION OF THE STATE RIGHT NOW?

Vilsack: WELL, I TELL YOU, WE HAVE SOME CHALLENGES, MIKE. WE'VE BEEN TAKING A LOOK AT SOME OF THE DEMOGRAPHIC TRENDS IN IOWA, AND WE'VE CONCLUDED THAT WE NEED TO FOCUS ON THREE GOALS: WE NEED MORE IOWANS, WE NEED YOUNGER IOWANS, AND WE NEED BETTER PAID IOWANS IF WE'RE TO MOVE THIS STATE FORWARD. SO WE'RE FOCUSING ON CREATING STRATEGIES AND PROGRAMS THAT WILL TRY TO ACHIEVE AND WORK TOWARDS THOSE GOALS.

Glover: SO THE STATE FACES CHALLENGES. THE ECONOMY SEEMS TO BE FAIRLY GOOD EXCEPT FOR THE FARM SECTOR, BUT THE STATE STILL IS…

Vilsack: ACTUALLY, INTERESTING ENOUGH ABOUT THE FARM SECTOR, BECAUSE OF THE CONGRESSIONAL ASSISTANCE PACKAGE THAT WAS PASSED -- AND I THINK IOWA HAD A LOT TO DO WITH GETTING THAT PASSED -- WE'LL ACTUALLY HAVE HIGHER NET FARM INCOME THIS YEAR THAN WE HAD LAST YEAR. BUT THERE'S STILL SIGNIFICANT CHALLENGES AND OPPORTUNITIES WITHIN THE AGRICULTURAL COMMUNITY.

Yepsen: GOVERNOR, WHAT'S THE TENOR OF THE SESSION GOING TO BE LIKE? IT'S AN ELECTION YEAR. DEMOCRATS ARE TRYING TO TAKE CONTROL OF THE HOUSE, WHICH IS CONTROLLED BY THE REPUBLICANS. WHAT KIND OF MOOD, WHAT KIND OF TENOR DO YOU THINK THERE'LL BE?

Vilsack: WELL, I TELL YOU, MY GOAL IS TO WORK WITH BOTH PARTIES, LEGISLATIVE LEADERS ON BOTH SIDES. WE HAVE A LOT OF WORK TO DO. WE HAVE SIX STRATEGIES WE'RE GOING TO FOCUS ON SIMULTANEOUSLY. IT'S GOING TO BE AN AGGRESSIVE PROGRAM THAT WE'RE GOING TO PUT FORWARD. SO THERE'S A TREMENDOUS AMOUNT OF WORK TO DO. I DON'T THINK WE HAVE TIME FOR PARTISANSHIP. I THINK IOWANS EXPECT US TO GET TO WORK AND WE'RE GOING TO DO THAT.

Yepsen: DO YOU EXPECT A REPUBLICAN LEGISLATURE TO JUST ROLL OVER AND GIVE A DEMOCRATIC GOVERNOR ALL SIX OF HIS BIG THINGS?

Vilsack: WELL, I DON'T THINK IT'S A QUESTION OF GIVING A DEMOCRATIC GOVERNOR ALL SIX THINGS; I THINK IT'S A QUESTION OF REPUBLICAN LEADERS UNDERSTANDING THIS IS WHAT IOWANS WANT. THEY CLEARLY WANT THEIR EDUCATION SYSTEM IMPROVED. THEY WOULD LIKE TO SEE A COMPREHENSIVE HEALTH CARE SYSTEM DESIGNED AND PROMOTING PREVENTION. THEY'RE CONCERNED ABOUT THE ENVIRONMENT. THEY WANT BETTER PAYING JOBS. THEY CLEARLY WANT US TO PROVIDE SAFER COMMUNITIES. AND I THINK WE CAN HAVE A GREAT DISCUSSION ABOUT MORE ACCOUNTABLE GOVERNMENT.

Borg: DISTILL IT JUST A LITTLE BIT MORE FROM SIX. WHAT IS YOUR TOP PRIORITY?

Vilsack: DEAN, I WISH I COULD TELL YOU THAT I HAD A SINGLE TOP PRIORITY, BUT THE CHALLENGES THAT FACE IOWA TODAY REQUIRE US TO SIMULTANEOUSLY LOOK AT ALL SIX. FOR EXAMPLE, YOU COULD HAVE THE BEST EDUCATION SYSTEM IN THE WORLD, YOU COULD HAVE THE GREATEST COMPREHENSIVE HEALTH CARE SYSTEM IN THE WORLD, BUT IF YOU CAN'T DRINK THE WATER OR BREATHE THE AIR OR DON'T HAVE GOOD PAYING JOBS, YOU'RE NOT GOING TO HAVE THE KIND OF PROGRESS THAT WE NEED. SO WE REALLY NEED TO FOCUS ON ALL SIX AREAS.

Glover: ONE OF THE BIG ISSUES FACING THIS LEGISLATURE IS GOING TO BE SOMETHING ENTIRELY NEW. THE SETTLEMENT WITH THE TOBACCO INDUSTRY MEANS A LOT OF MONEY IS GOING TO START FLOWING TO THE STATE, IN FACT, ALREADY HAS STARTED FLOWING IN TO THE STATE. YOU'RE GOING TO BE MAKING RECOMMENDATIONS ON WHAT SHOULD BE DONE WITH THAT MONEY. WHAT'S YOUR RECOMMENDATION? WHAT SHOULD BE DONE WITH THAT TOBACCO SETTLEMENT MONEY?

Vilsack: WELL, CLEARLY, THAT MONEY SHOULD BE USED TO PROMOTE A HEALTH CARE SYSTEM IN THIS STATE THAT BECOMES A NATIONAL LEADER, ONE THAT FOCUSES ON PREVENTION AND EXPANDS HEALTH INSURANCE OPPORTUNITIES FOR CHILDREN, MAKES SURE THAT WE HAVE EXPANDED SUBSTANCE ABUSE AND MENTAL ILLNESS TREATMENT OPPORTUNITIES INSTEAD OF HAVING TO DO IT IN THE CORRECTION SYSTEM, WHICH IS WHAT WE'RE DOING NOW, EXPANDS AND CREATES A COMPREHENSIVE HEALTH CARE SYSTEM FOR THE ELDERLY, AND FOCUSES ATTENTION ON SPECIAL NEEDS POPULATIONS.

Glover: WHEN YOU TALK ABOUT PREVENTION, DO YOU MEAN PREVENTATIVE HEALTH CARE, DO YOU MEAN ANTITOBACCO-PREVENTATIVE ACTIVITIES?

Vilsack: ACTUALLY, IT'S A COMBINATION OF BOTH. CLEARLY, WE NEED TO USE SOME OF THOSE MONIES FOR TOBACCO CESSATION AND EDUCATION PROGRAMS. BUT PREVENTION CAN ALSO MEAN PREVENTING MORE SERIOUS ILLNESS. FOR EXAMPLE, IF YOU INSURE CHILDREN, WE KNOW THAT WE WILL PREVENT YOUNGSTERS FROM GETTING SICKER THAN THEY ARE CURRENTLY GETTING TO GET CARE. IF WE TREAT SUBSTANCE ABUSE AND MENTAL ILLNESS MORE QUICKLY, THEN WE, PERHAPS, SAVE MONEY IN THE LONG RUN. THE WHOLE CONCEPT OF A PREVENTATIVE HEALTH CARE SYSTEM IS TO SAVE MONEY IN THE GENERAL FUND THAT WE'RE CURRENTLY SPENDING.

Glover: IS IT TIME FOR A DEBATE ABOUT WHETHER TOBACCO OUGHT TO BE OUTLAWED IN OUR SOCIETY?

Vilsack: I DON'T THINK SO, MIKE. I THINK IT'S TIME FOR US TO EDUCATE PEOPLE ABOUT THE HAZARDS THAT ARE ASSOCIATED WITH TOBACCO AND THEN LET PEOPLE MAKE A CHOICE.

Yepsen: ONE OF THE CONTROVERSIES ABOUT THIS TOBACCO SETTLEMENT ARE THE LAWYERS' FEES BEING PAID. WHAT SHOULD THE LAWYERS FOR IOWA WHO PARTICIPATED IN WINNING THIS MONEY, WHAT SHOULD THEY BE PAID?

Vilsack: WELL, IF YOU PUT IT IN THE CONTEXT OF SOCIETY TODAY, WE PAY PEOPLE $20 MILLION TO MAKE A MOVIE. WE PAY BASEBALL PLAYERS $10 OR $15 MILLION TO HIT A BASEBALL. WHY DO WE DO THAT? IT'S BECAUSE THEY ESSENTIALLY GENERATE A PROFIT FOR SOME COMPANY. ESSENTIALLY, WHAT THESE LAWYERS DID WAS TO GENERATE ALMOST $2 BILLION FOR THE STATE OF IOWA. YOU KNOW, A QUESTION COULD BE ASKED, HOW MUCH DID THE TOBACCO COMPANY EXECUTIVES GET PAID FOR, BASICALLY, PUTTING A PRODUCT ON THE SHELVES THAT CLEARLY HAS SOME HEALTH CARE PROBLEMS ASSOCIATED WITH IT. IOWA'S LAWYERS ARE ACTUALLY VERY REASONABLE IN RELATIONSHIP TO THE FEES THAT THEY'RE ASKING FOR IN COMPARISON TO WHAT OTHER STATES' FEES ARE, THE STATE OF ILLINOIS, $900 MILLION, THE STATE OF TEXAS, $3.3 BILLION.

Yepsen: REPUBLICANS ARE SAYING THAT THEY'RE MAKING $2,700 AN HOUR. THAT'S PRETTY GOOD MONEY.

Vilsack: WELL, IT WAS A REPUBLICAN GOVERNOR WHO SIGNED THE CONTRACT THAT WOULD HAVE PAID THESE LAWYERS $218 MILLION, WHICH WOULD BE SIGNIFICANTLY GREATER THAN THAT.

Yepsen: BUT, GOVERNOR, ARE YOU AN HONEST BROKER OF THIS? MANY OF THESE LAWYERS ARE DEMOCRATICALLY CONNECTED. THEY WERE HIRED BY A DEMOCRATIC ATTORNEY GENERAL AND YOU YOURSELF ARE A TRIAL LAWYER, WHO ALSO WON A BIG SETTLEMENT DURING YOUR CAREER. I MEAN HOW HONEST OF A -- NEUTRAL OF A BROKER ARE YOU IN TRYING TO SETTLE THIS?

Vilsack: WELL, LET'S JUST PUT THE FACTS ON THE TABLE, DAVID. THE CONTRACT THAT WAS APPROVED BY GOVERNOR BRANSTAD AND THE EXECUTIVE COUNCIL WOULD PAY THE LAWYERS $218 MILLION. THE ARBITRATORS AWARD WOULD PAY THE LAWYERS $85 MILLION, AND WE'VE NEGOTIATED A DEAL TO PAY THEM $44 MILLION. SO, CLEARLY, WE'VE CUT THE CONTRACTUAL FEE BY 80 PERCENT. THAT, I THINK, IS A PRETTY GOOD DEAL.

Yepsen: IN THE FUTURE SHOULD THIS KIND OF WORK BE LET OUT FOR BID, OR SHOULD THE ATTORNEY GENERAL JUST BE ABLE TO GO OUT AS HE DOES NOW AND HIRE WHOEVER HE WANTS?

Vilsack: WELL, I THINK WHEN YOU'RE INVOLVED IN A CASE LIKE THIS, YOU HAVE TO LOOK FOR A UNIQUE SET OF LAWYERS. WHAT MOST PEOPLE DON'T REALIZE IS THAT THESE LAWYERS ACTUALLY WENT OUT AND BORROWED SEVERAL MILLION DOLLARS OF THEIR OWN MONEY TO PUT INTO THIS CASE. THERE'S NO GUARANTEE OF PAYMENT. UNLIKE A BASEBALL PLAYER, IF HE GETS PAID $10 MILLION TO HIT HOME RUNS AND HE HAS A POOR SEASON, HE STILL GETS PAID $10 MILLION. IN THIS CASE, IF WE HAD NOT BEEN SUCCESSFUL, THE LAWYERS WOULD HAVE RECEIVED ABSOLUTELY NOTHING, WOULD HAVE HAD THE MULTIMILLION DOLLAR LOANS TO PAY OFF, AND WOULD HAVE PROBABLY PUT THREE OR FOUR YEARS OF THEIR CAREER ASIDE FOR THIS CASE.

Borg: AND THOSE LOANS WENT TO RESEARCH THE CASE, IS THAT IT?

Vilsack: THEY WENT TO FUND THE CASE, BECAUSE WHEN YOU TAKE A CASE LIKE THIS ON, YOU HAVE TO BASICALLY STEP ASIDE FROM ALL OTHER CASES BECAUSE OF THE MAGNITUDE AND THE SERIOUSNESS OF IT.

Glover: LET'S STEP BACK AND TAKE A LOOK AT ANOTHER DOLLAR ISSUE, IF WE COULD, AND THAT'S THE STATE'S BUDGET, IN AN OVERVIEW. WE HAD A $900-MILLION SURPLUS, IT SEEMS TO ME, A FEW MONTHS AGO. IT SEEMS TO HAVE GONE AWAY. WHAT HAPPENED TO THAT $900-MILLION SURPLUS?

Vilsack: WELL, WE NEVER HAD A $900-MILLION SURPLUS. BUT, NEVERTHELESS, WE DID HAVE A SURPLUS AND WE STILL DO HAVE A SURPLUS IF YOU CONSIDER THE RAINY-DAY FUNDS AND THE EMERGENCY FUNDS THAT ARE FULLY FUNDED. WE HAVE ABOUT 10 PERCENT OF OUR BUDGET IN RESERVE, WHICH IS WHAT WE NEED TO HAVE AND WHAT WE SHOULD HAVE TO BE PRUDENT. BUT THE BALANCE OVER THE LAST SEVERAL YEARS HAS BEEN SPENT TO COVER GENERAL FUND EXPENDITURES. WE'VE BEEN SPENDING MORE GENERAL FUND MONEY THAN WE'VE BEEN TAKING IN. NOW THAT'S A CONSEQUENCE OF TWO THINGS: ONE, A DECISION TO SPEND MONEY; AND TWO, A DECISION TO CUT TAXES.

Glover: AND WHAT'S THE CONDITION OF THE BUDGET RIGHT NOW? HOW TIGHT IS IT?

Vilsack: WELL, IT'S TIGHT ENOUGH THAT I THINK IT'S FISCALLY PRUDENT FOR US TO TAKE A LOOK AT TRYING TO TRIM SOME OF THE CURRENT YEAR'S SPENDING, WHICH WE WILL BE MAKING RECOMMENDATIONS TO THE LEGISLATURE HERE IN THE NEXT COUPLE OF WEEKS, ABOUT AREAS WHERE WE CAN TRIM SPENDING THIS YEAR. AND IT'S ALSO GOING TO BE TIGHT IN TERMS OF THE GENERAL FUND NEXT YEAR.

Glover: HOW MUCH? WHAT'S THE TRIMMING INVOLVE? 5 PERCENT? 6 PERCENT?

Vilsack: NO, IT'S NOT THAT MUCH. BASICALLY, TO BE PRUDENT THIS YEAR, WE NEED TO LOOK SOMEWHERE IN THE RANGE OF $30 TO $35 MILLION OF CUTS OR ADDITIONAL REVENUES. NEXT YEAR IT'S A WHOLE DIFFERENT BALL GAME. IT DEPENDS ON HOW MUCH ACTION THE LEGISLATURE TAKES THIS YEAR.

Glover: THIS IS ACROSS THE BOARD?

Vilsack: NOT NECESSARILY. ACROSS-THE-BOARD CUTS ARE DIFFICULT TO DO, PARTICULARLY FOR SOME OF THE SMALLER BUDGET AREAS. SO WHAT YOU TAKE A LOOK AT IS INNOVATIVE WAYS, CREATIVE WAYS, APPROPRIATE WAYS TO CUT TAXES OR, EXCUSE ME, CUT EXPENDITURES.

Yepsen: $35 MILLION, THOUGH, THAT'S LESS THAN 1 PERCENT OF THE STATE'S BUDGET.

Vilsack: WELL, BUT HERE'S THE THING ABOUT THE BUDGET THAT PEOPLE DON'T UNDERSTAND: THAT ABOUT 60 PERCENT OF THE BUDGET IS PASS-THROUGH MONEY, MONEY THAT WE'RE REQUIRED BY FEDERAL LAW TO SPEND. AND THEN THERE IS A PORTION OF THE 40 PERCENT, WHICH BASICALLY GOES TO LOCAL SCHOOL DISTRICTS THAT CURRENTLY WE'VE COMMITTED TO. SO THE RANGE OF POSSIBLE AREAS WHERE YOU CAN CUT TO GET $35 MILLION IS NOT AS GREAT AS IT WOULD SEEM.

Yepsen: SO YOU TAKE THE CURRENT LEVEL OF SPENDING, YOU CUT IT DOWN BY $35 MILLION. WHAT SORT OF INCREASE ARE YOU LOOKING FOR IN THE FOLLOWING YEAR? HOW BIG OF AN INCREASE WOULD YOU EXPECT TO SEE ON A PERCENTAGE BASIS?

Vilsack: WELL, THE PROBLEM IS THAT THE LEGISLATURE MAKES DECISIONS THAT BASICALLY PRECOMMIT MONEY. SO BASED ON PRECOMMITTED DECISIONS, DECISIONS WHERE WE'VE ALREADY SPENT MONEY OR WHERE WE'VE HISTORICALLY SPENT MONEY, WE'RE GOING TO HAVE TO LOOK FOR SOME ADDITIONAL REDUCTIONS IN TRADITIONAL SPENDING IN ORDER TO MAKE SURE THAT THAT BUDGET BALANCES.

Yepsen: SUCH AS?

Vilsack: YOU MEAN IN TERMS OF SPECIFICS?

Yepsen: YEAH.

Vilsack: WELL, IT KIND OF DEPENDS. I MEAN YOU HAVE TO PRETTY MUCH TAKE A LOOK AT THE HUMAN SERVICES BUDGET, YOU TAKE A LOOK AT THE EDUCATION BUDGET, YOU TAKE A LOOK AT THE ECONOMIC DEVELOPMENT BUDGET, YOU TAKE A LOOK AT ALL THE BUDGETS.

Yepsen: BUT CAN YOU GIVE ME A PERCENTAGE FIGURE FOR HOW MUCH NEXT YEAR'S BUDGET WILL GROW OVER THIS YEAR'S?

Vilsack: WELL, I'M A LITTLE RELUCTANT TO DO THAT FOR THIS REASON, BECAUSE THERE ARE THREE DIFFERENT FUNDS INVOLVED HERE. THERE'S THE GENERAL FUND, THERE'S THE TOBACCO FUND, AND THEN THERE'S THE REBUILD INFRASTRUCTURE FUND. THE TOBACCO FUND AND THE REBUILD INFRASTRUCTURE FUND ARE IN PRETTY GOOD SHAPE. IT'S THE GENERAL FUND WHERE WE'RE GOING TO HAVE TO BE CAREFUL.

Glover: HAVE THERE BEEN MISTAKES MADE IN THE PAST IN BUILDING IN LONG-TERM SPENDING PROGRAMS? YOU'VE GOT THE $150 MILLION SCHOOL TECHNOLOGY FUND, THE CLASS-SIZE REDUCTION FUND. HAS IT BEEN A MISTAKE TO BUILD IN THOSE LONG-TERM SPENDING PROGRAMS?

Vilsack: NO, I DON'T THINK IT'S BEEN A MISTAKE. BUT I THINK, BASICALLY, WE UNDERESTIMATED, PERHAPS, THE IMPACT OF SOME OF THE TAX CUTS THAT HAVE BEEN APPROVED THE LAST SIX YEARS. WE'RE NOW BEGINNING TO SEE THE IMPACT AND EFFECT OF THOSE TAX CUTS.

Yepsen: WILL YOU BE RECOMMENDING ANY TAX CUTS IN THE NEXT SESSION?

Vilsack: WELL, I WANT TO TALK ABOUT TAX CUTS, BECAUSE IN THE PAST BASICALLY WE'VE CUT TAXES FOR THE SAKE OF CUTTING TAXES. AND IT SEEMS TO ME THAT WE OUGHT TO DEVELOP A DIFFERENT STRATEGY NOW THAT WE'RE NOW AT A POINT WHERE OUR REVENUES ARE ABOUT EQUAL TO WHERE OUR EXPENDITURES ARE. WE NEED TO STRATEGICALLY LOOK AT TAX CUTS. WHAT TAX CUTS CAN WE APPROVE THAT WILL MOVE AN AGENDA FORWARD TOWARDS MORE IOWANS OR YOUNGER IOWANS OR BETTER PAID IOWANS? I THINK THAT THERE ARE POSSIBLE TAX CUTS OR TAX CREDITS THAT COULD BE EXTENDED IN VENTURE CAPITAL AS INCENTIVES AND INDUCEMENTS FOR CERTAIN PROFESSIONS TO COME TO IOWA. I THINK, ALSO, THAT WE NEED TO TAKE A LOOK AT THE STRUCTURE OF OUR TAX SYSTEM. IT'S CLEAR TO ME THAT WE DO NOT HAVE A COMPETITIVE SYSTEM BECAUSE OF FEDERAL DEDUCTIBILITY. WE'LL BE RECOMMENDING THAT WE ELIMINATE FEDERAL DEDUCIBILITY, THAT WE ROLL THAT MONEY BACK INTO REDUCING RATES SO THAT WE GET A CLEAR PICTURE. I HAVE HEARD FROM MANY, MANY BUSINESS LEADERS HOW DIFFICULT IT IS FOR THEM TO RECRUIT MIDDLE-LEVEL MANAGEMENT -- THIS IS VERY IMPORTANT, DAVID -- MIDDLE-LEVEL MANAGEMENT PEOPLE, BECAUSE THEY TAKE A LOOK AT THE HIGH TAX RATE AND THEY DON'T LOOK AT THE EXPLANATION. WE CAN ROLL THAT RATE DOWN AND, IN DOING SO, THE ARGUMENT HAS ALWAYS BEEN, WELL, IT'S GOING TO CREEP BACK UP AGAIN. WELL, LET'S GIVE THE PEOPLE THE RIGHT TO DETERMINE WHETHER WE'RE GOING TO HAVE INCOME OR SALES TAX RATE INCREASES IN THE FUTURE.

Yepsen: PUT IT TO A VOTE.

Vilsack: YES.

Yepsen: YOU THINK THE REPUBLICAN LEGISLATURE WILL BUY THAT IDEA? THEY DON'T LIKE FEDERAL DEDUCTIBILITY, GOVERNOR, AND THEY WEREN'T REAL COOL ABOUT YOUR IDEA LAST SESSION. THEY THOUGHT THERE OUGHT TO BE CONSTITUTIONAL RESTRICTIONS ON SPENDING BEFORE WE GET INTO TAX CUTS. WHAT'S CHANGED?

Vilsack: WELL, THEY PUT THE CONSTITUTIONAL AMENDMENTS TO THE PEOPLE UNDER THE BEST SCENARIO FOR PASSAGE AND IT FAILED. SO NOW WHERE ARE WE? WE STILL HAVE A COMPETITIVENESS PROBLEM WITH REFERENCE TO OUR TAX SYSTEM. LET'S ADDRESS THAT. LET'S DEAL WITH THAT, AND THEN LET'S GIVE THE PEOPLE THE RIGHT TO, BASICALLY, SAY, FROM NOW ON WE'RE GOING TO BE IN CHARGE OF WHETHER INCOME TAX RATES INCREASE OR SALES TAX RATES INCREASE.

Glover: THE REPUBLICAN LEADERSHIP WAS ON THIS SHOW NOT TOO LONG AGO AND THEY WERE TALKING ABOUT PENSION TAXES AND ELIMINATING OR REDUCING PENSION TAXES. IS THAT PART OF THE MIX IN THIS NEGOTIATION OVER TAX CUTS?

Vilsack: WELL, CLEARLY, IF YOU TRAVEL TO EASTERN IOWA OR TO WESTERN IOWA, YOU HEAR REPEATED CONCERNS ABOUT PENSION AND RETIREMENT TAXES AND, CLEARLY, WE NEED TO TAKE A LOOK AT THAT.

Glover: IS THAT SOMETHING YOU'RE WILLING TO TALK ABOUT?

Vilsack: SURE. BUT LET ME SAY THIS, WHEN WE TALK ABOUT THIS, WE HAVE TO UNDERSTAND THAT WHAT MAY SOUND LIKE A PRETTY SIGNIFICANT PLAN MAY NOT BE A SIGNIFICANT PLAN. WHEN YOU TALK ABOUT $32,000 OF SOCIAL SECURITY TAX, YOU HAVE TO UNDERSTAND THAT RIGHT NOW $25,000 OF IT'S PRETTY MUCH OFF THE TABLE. SO IT'S A QUESTION OF HOW SIGNIFICANT THE PROGRAM IS GOING TO BE.

Yepsen: HOW CONCERNED ARE YOU ABOUT INTERNET TAXES, GOVERNOR? MORE AND MORE TRANSACTIONS ARE OCCURRING OVER THE INTERNET AND YOU DON'T PAY ANY SALES TAX ON IT. IS THERE AN EROSION IN IOWA'S SALES TAX BASE GOING ON HERE? ARE YOU CONCERNED ABOUT THAT?

Vilsack: WE ARE CONCERNED ABOUT IT. WHEN I SAY "WE," ALL THE NATION'S GOVERNORS ARE CONCERNED, AND THERE ARE BASICALLY TWO CAMPS: GOVERNOR GILMORE IN VIRGINIA DOESN'T BELIEVE WE SHOULD BE TAXING THOSE TRANSACTIONS. GOVERNOR LEAVITT OF UTAH, WHO'S CHAIRING A COMMITTEE TAKING A LOOK AT THIS ISSUE, BELIEVES THAT WE SHOULD SET UP SOME SORT OF UNIFORM SYSTEM WHERE WE CAN COLLECT TAXES. NOW HERE'S THE PROBLEM.

Yepsen: WHICH CAMP ARE YOU IN?

Vilsack: WELL, HERE'S THE PROBLEM. IF YOU'RE A MAIN STREET RETAILER AND YOU'RE SELLING A SWEATER, YOU HAVE TO ESSENTIALLY ASSESS THAT TAX. IF YOU DON'T TAX THE INTERNET TRANSACTION, THEN, BASICALLY, YOU'RE PUTTING THAT MAIN STREET RETAILER AT A COMPETITIVE DISADVANTAGE. IT SHOULD BE A LEVEL PLAYING FIELD. AND I BELIEVE GOVERNOR LEAVITT IS CORRECT IN TERMS OF TRYING TO WORK AT CREATING A UNIFIED SYSTEM THAT IS A SIMPLIFIED SYSTEM. IF I MIGHT SAY, I WANT TO DISTINGUISH THAT FROM TAXING ACCESS TO THE INTERNET, WHICH IS WHAT WE REMOVED. I THINK THAT WAS VERY IMPORTANT FOR US TO DO THAT.

Yepsen: SPEAKING OF SALES TAXES, VOTERS IN POLK COUNTY LAST WEEK APPROVED A LOCAL OPTION SALES TAX FOR SCHOOLS. MANY URBAN COUNTIES IN IOWA NOW HAVE THAT. I THINK WOODBURY HAS IT, SCOTT, BLACK HAWK. THEY REJECTED IT IN LINN, THEY MAY BE BACK OVER THERE TO TRY TO GET IT. THIS IS CREATING SOME CONCERN AMONG RURAL LEGISLATORS THAT THEY'RE SUBSIDIZING URBAN IOWA THROUGH THIS RETAIL SALES THAT THEY – THAT URBAN FOLKS, OR RURAL FOLKS, MAKE WHEN THEY COME TO SHOP IN URBAN AREAS. THERE'S SOME TALK THAT THEY WANT TO DO AWAY WITH THIS, EITHER DO AWAY WITH THIS TAX OR START TO SHARE THE WEALTH SOMEHOW. HOW DO YOU FEEL ABOUT THAT? WILL YOU SUPPORT ANY OF THOSE IDEAS?

Vilsack: WELL, LET ME SUGGEST TO YOU THAT THE CONCERN OUGHT NOT TO BE ABOUT WHETHER RURAL TAX PAYERS ARE PAYING FOR URBAN SCHOOLS; THE CONCERN OUGHT TO BE ABOUT RURAL SCHOOL CHILDREN. THE FACT IS THAT THESE SALES TAX VOTES BASICALLY SET UP A POSSIBILITY OF HAVING HAVES AND HAVE-NOTS, OF HAVING A DISPROPORTIONATE AMOUNT OF MONEY BEING SPENT IN SCHOOL DISTRICTS, OF CREATING THE POSSIBILITY OF A SUCCESSFUL COURT CHALLENGE TO THE WAY WE FINANCE SCHOOLS. A WAY OF DEALING WITH THAT ISSUE IS TO BASICALLY TAKE A LOOK AT WHAT THE STATE'S RESPONSIBILITY MIGHT BE AND HOW THE STATE CAN BE A BETTER PARTNER THAN IT CURRENTLY IS WITH LOCAL SCHOOL DISTRICTS TO PROVIDE BUILDING AND INFRASTRUCTURE MONIES.

Yepsen: SO LET ME MAKE THIS CLEAR. ARE YOU PROPOSING WE TAKE AWAY THE LOCAL OPTION SALES TAX FOR URBAN SCHOOLS?

Vilsack: NO, WHAT I'M SUGGESTING IS THAT THE STATE OUGHT TO TAKE A LOOK AT CREATING OPPORTUNITIES FOR STATE ASSISTANCE TO PARTNER WITH LOCAL SCHOOL DISTRICTS AS WE PROPOSED LAST YEAR IN THE LEGISLATURE, WHICH THE LEGISLATURE DID NOT DEBATE OR DISCUSS, AND I THINK IT SHOULD.

Glover: YOUR WIFE HAS DEVELOPED A RELATIONSHIP WITH SOME DES MOINES SCHOOLS TO HELP THEM WITH READING PROGRAMS AND SO FORTH. WHAT WAS YOUR REACTION TO THAT LOCAL OPTION VOTE? WERE YOU HAPPY IT PASSED?

Vilsack: WELL, I WAS -- I'LL TELL YOU, MIKE, CHRISTY AND I HAD THE OPPORTUNITY THIS LAST WEEK TO TAKE FOOD BASKETS TO A NUMBER OF FAMILIES ACROSS DES MOINES. IT WAS AN EYE-OPENING EXPERIENCE FOR ME. AND MANY OF THE FAMILIES WERE IN THE BROOKS-LUCAS SCHOOL DISTRICT AREA. I THINK THE CONSTRUCTION OF A NEW SCHOOL IN THAT AREA IS GOING TO BE A TREMENDOUS THING FOR THAT NEIGHBORHOOD AND A TREMENDOUS THING FOR THE KIDS OF THAT NEIGHBORHOOD. HERE'S WHAT I THINK... I THINK WHEN YOU PRESENT THE FACTS TO THE PEOPLE, WHEN YOU GIVE PEOPLE THE POWER TO MAKE THE CHOICE, THEY WILL ALMOST ALWAYS MAKE THE RIGHT CHOICE.

Yepsen: ARE WE HEADED FOR A RURAL-URBAN FIGHT IN THIS STATE OVER TAX POLICY? WHILE IT'S TRUE THAT RURAL FOLKS WILL BE SUBSIDIZING URBAN EDUCATIONS BECAUSE OF SALES TAX REVENUES, IT'S ALSO TRUE THAT URBAN PARTS OF THE STATE SEND MORE MONEY TO RURAL AREAS IN THE FORM OF ROAD USE TAX DOLLARS AND IN THE FORM OF INCOME TAX DOLLARS. IF YOU LET URBAN IOWA KEEP ALL THE ROAD MONEY AND INCOME TAX MONEY THEY MAKE, THEY WOULDN'T HAVE TO BE OUT THERE DOING THOSE SALES TAXES. ARE WE HEADED FOR A GOOD URBAN-RURAL FIGHT IN THIS STATE OVER TAXES?

Vilsack: YOU KNOW, WE CAN'T AFFORD TO BE HEADED FOR THAT KIND OF FIGHT BECAUSE WE ARE ONLY THREE MILLION PEOPLE AND WE'RE COMPETING AGAINST THE REST OF THE WORLD FOR ECONOMIC OPPORTUNITY. WE NEED TO FOCUS ON THOSE THREE GOALS THAT STARTED THIS SHOW: MORE IOWANS, YOUNGER IOWANS, AND BETTER PAID IOWANS. THERE ARE OPPORTUNITIES IN RURAL IOWA. FOR EXAMPLE, I THINK WE SHOULD BE VISITING WITH, TALKING TO PRIVATE TELEPHONE COMPANIES, THE TELECOMMUNICATIONS INDUSTRY, TO FIGURE OUT HOW WE CAN GET HIGH-SPEED INTERNET ACCESS TO RURAL COMMUNITIES. I THINK THAT WILL BE A PRINCIPLE ECONOMIC DEVELOPMENT TOOL FOR RURAL IOWA. WE'VE GOT TO BE FIGURING OUT STRATEGIES TO BUILD UP RURAL IOWA RATHER THAN TRYING TO DIVIDE RURAL AND URBAN IOWA.

Glover: THERE'S NO GOOD SEGUE HERE, GOVERNOR. WE HAVE TO GO TO A NUMBER OF ISSUES WHICH, PERHAPS, ARE LESS OVERWHELMING. THE SPEED LIMIT... THERE'S GOING TO BE A DISCUSSION THIS YEAR ABOUT RAISING THE SPEED LIMIT. WHERE ARE YOU?

Vilsack: YOU RAISE THE SPEED LIMIT, YOU INCREASE THE NUMBER OF ACCIDENTS, YOU INCREASE THE SEVERITY OF ACCIDENTS, YOU INCREASE INSURANCE RATES.

Glover: DO YOU NEED MY PEN TO VETO IT?

Vilsack: WELL, I DON'T KNOW THAT IT WILL PASS.

Yepsen: NEW PRISON? IN FAVOR OF BUILDING A NEW PRISON?

Vilsack: IN FAVOR OF CREATING AND EXPANDING SUBSTANCE ABUSE TREATMENT AND MENTAL ILLNESS PROGRAMS SO THAT WE DON'T HAVE TO CONTINUE TO PUT OUR MENTALLY ILL AND OUR SUBSTANCE ABUSE PROBLEMS INTO THE CORRECTION SYSTEM. 66 PERCENT OF THE PEOPLE WE'RE PUTTING IN PRISON TODAY HAVE A DOCUMENTED SUBSTANCE ABUSE AND MENTAL ILLNESS PROBLEM. WE'VE TRANSFERRED A HEALTH CARE PROBLEM INTO THE CORRECTION SYSTEM IN A MUCH MORE EXPENSIVE SETTING. WE CAN USE, AS WE ARE IN POLK COUNTY, DRUG COURTS TO BEGIN THE PROCESS OF DIVERTING PEOPLE INTO AN APPROPRIATE AREA TO SORT OF ALLEVIATE THE PRESSURE ON THE PRISON SYSTEM.

Yepsen: ISN'T THAT REDUCING SENTENCES? AND HOW CAN YOU SELL THAT TO A REPUBLICAN LEGISLATURE IN AN ELECTION YEAR?

Vilsack: WELL, I WILL TELL YOU, I AM DISAPPOINTED. I AM VERY DISAPPOINTED IN THE LEGISLATURE IN TERMS OF THE SENTENCING COMMISSION THAT HAS BEEN WORKING ON TAKING A LOOK AT AN APPROPRIATE SENTENCING STRUCTURE AND PROVIDING JUDGES WITH APPROPRIATE FLEXIBILITY. WE PUT GOOD PEOPLE ON THE BENCH. WE OUGHT TO TRUST THEIR JUDGMENT IN CERTAIN CIRCUMSTANCES. I THINK SENATOR MCKEAN IS RIGHT ON TRACK HERE, AND I APPLAUD HIM FOR HIS EFFORTS, BUT I'M DISAPPOINTED THAT HE HAS NOT BEEN ABLE TO GET THE SUPPORT FROM HIS COLLEAGUES THAT I THINK HE'S ENTITLED TO.

Glover: WE ALMOST HAVE TO DISCUSS THIS, ALMOST NO ONE WANTS TO, ELECTRIC DEREGULATION. ONE OF THE MOST ARCANE, COMPLICATED, AND PERHAPS CONSEQUENTIAL ISSUES THIS LEGISLATURE MAY FACE. FIRST OF ALL, WILL YOU ASK FOR AN ELECTRIC DEREGULATION BILL, AND DO YOU THINK THIS LEGISLATURE WILL PASS IT?

Vilsack: MY RESPONSIBILITY IN THIS PROCESS IS TO FACILITATE CONVERSATION. WHAT I HAVE SEEN, DURING THE COURSE OF THIS PROCESS, IS A CONSENSUS BILL THAT RESULTED FROM A NUMBER OF GROUPS BUT NOT ALL GROUPS DISCUSSING A POSSIBLE STRUCTURE. WHAT WE'VE DONE DURING THE INTERIM IS TO BRING THE FOLKS IN THE GOVERNOR'S OFFICE IN AND THE EXECUTIVE BRANCH OF GOVERNMENT TOGETHER TO TRY TO SEE WHERE THE DIFFERENCES ARE BETWEEN THE DNR AND THE UTILITY BOARDS AND THE HUMAN RIGHTS DEPARTMENT AND ECONOMIC DEVELOPMENT. WE HAVE NARROWED DOWN THE DIFFERENCES WITHIN THE EXECUTIVE BRANCH TO ABOUT A HALF A DOZEN SIGNIFICANT ISSUES. THE MORE PEOPLE TALK, THE GREATER THE CONSENSUS IS. AND SO MY JOB WITH A VERY COMPLICATED ISSUE IS TO BRING PEOPLE TO THE TABLE BECAUSE HERE'S THE BOTTOM LINE: WE LIVE IN A COMPETITIVE WORLD, WHETHER WE LIKE IT OR NOT. A GLOBAL ECONOMY IN THE MARKETPLACE IS GOING TO LOOK FOR WHERE IT CAN MOST EFFECTIVELY AND MOST EFFICIENTLY DO BUSINESS. WE OWE IT TO OURSELVES TO EXPLORE THE POSSIBILITIES OF CREATING A SYSTEM THAT WILL ALLOW US TO COMPETE. BUT IN DOING SO WE WANT TO MAKE SURE THAT WE DON'T JEOPARDIZE OUR ABILITY TO PROMOTE ALTERNATIVE ENERGY, WHICH IS IMPORTANT, WE DON'T JEOPARDIZE OUR ABILITY TO PROMOTE ENERGY EFFICIENCY, WHICH IS IMPORTANT, AND WE DON'T LEAVE THOSE PEOPLE ON LOW INCOMES IN A POSITION WHERE THEY'RE NOT GOING TO HAVE HEAT.

Glover: HOW BIG A DEAL IS THIS? IS THIS SOMETHING THAT REAL CONSUMERS ARE GOING TO NOTICE?

Vilsack: I DON'T KNOW THAT THEY'RE GOING TO NOTICE IT BECAUSE OF THE WAY IN WHICH THE BILL IS CURRENTLY STRUCTURED, IN TERMS OF THE SHORT TERM, THE THREE, FOUR, FIVE YEARS. AND I DON'T KNOW HOW WE'LL EVER BE ABLE TO COMPARE. ONCE YOU TAKE THIS STEP, IT'S KIND OF HARD TO SAY, WELL, WHAT WOULD LIFE HAVE BEEN LIKE IF YOU KEPT IT UNDER A REGULATED SYSTEM? I WILL TELL YOU THIS, THAT THERE ARE -- THAT MANY STATES ARE DOING THIS, AND WE'RE IN A POSITION THAT AT SOME POINT IN TIME WE MAY BE SURROUNDED BY COMPETITIVE STATES, AND THAT MAY POTENTIALLY PUT IOWA AT A DISADVANTAGE.

Yepsen: GOVERNOR, IT'S NEVER AN OFFICIAL SHOW UNLESS WE TALK SOME POLITICS ON IT.

Vilsack: I WAS WAITING FOR THIS.

Yepsen: GORE/BRADLEY... YOU'RE NEUTRAL IN THAT CONTEST. FIRST OF ALL, DO YOU INTEND TO STAY NEUTRAL?

Vilsack: THE WINNER SO FAR IN THE GORE-BRADLEY RACE IS THE IOWA DEMOCRATIC PARTY, IN TERMS OF EXPANDING THE NUMBER OF PEOPLE THAT ARE INTERESTED IN THE PROCESS. BOTH MEN HAVE DONE A GOOD JOB OF DRAWING NEW PEOPLE INTO THE PROCESS. AND THAT'S ONE OF THE REASONS WHY I REMAIN NEUTRAL. I THINK IT'S MY RESPONSIBILITY AS THE LEADER OF THE DEMOCRATIC PARTY TO BASICALLY ENCOURAGE MORE PARTICIPATION. IT IS MY PLAN TO STAY NEUTRAL THROUGH THE CAUCUS PROCESS.

Yepsen: WHO'S AHEAD? GIVE US A HANDICAP.

Vilsack: WELL, I'M NOT ONE TO TALK ABOUT POLLS BECAUSE, YOU KNOW, I'VE NEVER FAIRED VERY WELL IN POLLS, EXCEPT THE ONE THAT COUNTS. IF YOU LOOK AT THE POLLS, I WOULD SAY THAT VICE PRESIDENT GORE IS AHEAD, BUT SENATOR BRADLEY, IN MY VIEW, DOESN'T HAVE TO WIN IOWA, HE JUST HAS TO, BASICALLY, SURVIVE IOWA. I THINK HE SEES THE BATTLEGROUND FOR HIM IN NEW HAMPSHIRE, WHERE HE MAY HAVE A BETTER SHOT.

Glover: WELL, HELP US HERE. ONE OF THE THINGS THAT WE HAVE TO DO IS SET AN EXPECTATIONS GAUGE. HOW WELL DOES SENATOR BRADLEY HAVE TO DO HERE? GIVE US A NUMBER. IF HE GETS 40 PERCENT?

Vilsack: IF HE GETS 40 PERCENT, THEN I THINK HE'S IN THE GAME.

Glover: IF HE GETS 35 PERCENT?

Vilsack: THEN I THINK THAT'S GOING TO HAVE AN IMPACT ON NEW HAMPSHIRE. I THINK IN TERMS OF HIS OPPORTUNITY, HE'S GOT TO SURVIVE IOWA AND HE'S GOT TO WIN IN NEW HAMPSHIRE.

Yepsen: DOES THAT GORE CAMPAIGN HAVE ITS ACT TOGETHER? THERE FOR AWHILE THERE THERE WERE ALL -- THEY JUST WERE LOSING, AND HE HAD TO MOVE HIS HEADQUARTERS TO NASHVILLE. HAVE YOU SEEN A CHANGE IN THE GORE CAMPAIGN? DO THEY HAVE THEIR ACT TOGETHER?

Vilsack: I'M SURPRISED YOU'D ASK ME THAT QUESTION. ALL THE TROUBLE I HAD PUTTING A CAMPAIGN TOGETHER AT THE BEGINNING.

Yepsen: BUT YOU GOT IT RIGHT.

Vilsack: EVENTUALLY, YOU KNOW.

Yepsen: YOU GOT IT RIGHT BY THE TIME ELECTION DAY ROLLED AROUND. THAT'S ALL THAT COUNTS.

Vilsack: YOU TRY ENOUGH TIMES, YOU EVENTUALLY, MAYBE BY CHANCE, GET IT RIGHT. I THINK THE VICE PRESIDENT'S CAMPAIGN IS CLEARLY BETTER THAN IT WAS SIX MONTHS AGO. I THINK HE UNDERSTANDS THAT THE IOWA CAUCUS PROCESS REQUIRES A COMMITMENT OF TIME ON HIS PART. I THINK HE NOW UNDERSTANDS THAT IT ALSO REQUIRES FIELD OPERATION BECAUSE YOU CAN'T CONVINCE PEOPLE TO SIT IN A CAUCUS FOR TWO HOURS UNLESS THEY'RE REALLY COMMITTED. I SEE SIGNS OF HIM DOING THAT. AT THE SAME TIME, SENATOR BRADLEY, HIS PROPOSAL AND PROGRAM IS YOU GO TO THE OUTLYING AREAS OF THE STATE, YOU WILL SEE SIGNIFICANT POCKETS OF SUPPORT FOR SENATOR BRADLEY AND YOU WILL GO TO FUNCTIONS WHERE THERE'S A VERY SIGNIFICANT BRADLEY PRESENCE.

Glover: LET'S GET PAST THIS PRIMARY PROCESS AND LOOK AT THE GENERAL ELECTION. THE LEADING REPUBLICAN CANDIDATE IS TEXAS GOVERNOR GEORGE W. BUSH. HE'S GOT MORE MONEY THAN ANYBODY ELSE. THE POLLS SHOW HE'S AHEAD. CAN THE DEMOCRATS BEAT HIM?

Vilsack: WELL, YOU KNOW --

Glover: AGAIN WE'RE TALKING ABOUT POLLS TO SOMEBODY WHO --

Vilsack: SURE. LET ME JUST SAY THIS: I REMEMBER BACK IN 1988 WHEN A SITTING GOVERNOR FROM A LARGE STATE ON THE DEMOCRATIC TICKET WAS PERCEIVED TO BE THE FRONT-RUNNER, WAS GOING TO BEAT THE SITTING VICE PRESIDENT, THE ELECTION WAS OVER, EVERYONE IN THE DEMOCRATIC PARTY WAS ABSOLUTELY ECSTATIC ABOUT MIKE DUKAKIS. MIKE DUKAKIS RODE IN A TANK AND WE WENT IN THE TANK. SO I DON'T THINK YOU CAN SAY WHAT'S GOING TO HAPPEN. THERE'S A LONG WAY TO GO. I THINK SENATOR MCCAIN -- YOU KNOW, SENATOR MCCAIN, I THINK HE'S MAKING A MISTAKE IN THIS SENSE. I THINK HE'S MAKING A MISTAKE NOT CAMPAIGNING IN IOWA. HE HAS AN OPPORTUNITY TO BRING HIS CAMPAIGN-FINANCE MESSAGE HERE TO IOWA, WHICH I THINK WOULD BE VERY RECEPTIVE. IT'S UNFORTUNATE HE'S NOT DOING THAT BECAUSE IT WOULD ALSO WORK WELL TO DOVETAIL WHAT GORE AND BRADLEY ARE TALKING ABOUT IN TERMS OF CAMPAIGN FINANCE.

Glover: THE OTHER ELECTION GOING ON THIS YEAR OR NEXT YEAR WILL BE A LEGISLATIVE ELECTION. AS DAVE MENTIONED EARLIER, THERE'S A PRETTY HARD PUSH ON IT BY SOME DEMOCRATS. WHAT'S YOUR ROLE GOING TO BE IN THAT? ARE YOU GOING TO BE OUT RECRUITING CANDIDATES, CAMPAIGNING AGAINST THESE REPUBLICAN, LEGISLATIVE LEADERS, AND HOW'S THAT GOING TO AFFECT THIS WHOLE UPCOMING SESSION?

Vilsack: WELL, DAVE SCHRADER AND MIKE GRONSTALL ARE DOING A GREAT JOB OF RECRUITING CANDIDATES. AND I THINK THAT THEY HAVE TO BE THE PEOPLE THAT ARE INVOLVED IN MAKING THE SALE AND TALKING TO CANDIDATES, BECAUSE THEY'RE THE PEOPLE THAT ARE GOING TO BE DEALING WITH THESE INDIVIDUALS. YOU KNOW, MY JOB AS THE HEAD OF THE DEMOCRATIC PARTY, IS TO MAKE DEMOCRATS ENTHUSIASTIC ABOUT THE POSSIBILITY OF BEING COMPETITIVE IN LEGISLATIVE RACES, AND WE'LL DO THAT.

Yepsen: GOVERNOR, NOVEMBER IS AN ANNIVERSARY YEAR FOR YOU. ONE YEAR AGO THIS TIME YOU GOT ELECTED. GIVE ME YOUR ASSESSMENT OF YOUR FIRST YEAR IN OFFICE. WHAT HAS GONE RIGHT AND WHAT HAS GONE WRONG?

Vilsack: WELL, WE'VE MADE A GOOD START, BUT WE HAVE A LONG WAY TO GO. WE ESSENTIALLY FOCUSED ON A COUPLE OF ISSUES INITIALLY... CLASS-SIZE REDUCTION TO BEGIN THE PROCESS OF REVERSING DECLINING BASIC SKILLS. PATIENT’S BILL OF RIGHTS, WE GOT IT PASSED, CONGRESS COULDN'T. WE STARTED THE ENVIRONMENTAL EFFORT WITH WATER MONITORING, AND IT'S A GOOD THING WE DID BECAUSE IT PUT US IN A POSITION TO RESPOND TO THE EPA'S ALLEGATIONS ABOUT OUR WATERWAYS. SAFER COMMUNITIES, THE FIGHT AGAINST METHAMPHETAMINE, WE'RE BEGINNING TO SEE SPECIFIC SIGNS THAT THAT'S WORKING. THE QUANTITY AND THE QUALITY OF METHAMPHETAMINE IS CHANGING, WHICH SUGGESTS THAT WE'RE HAVING AN IMPACT. THE NUMBER OF PEOPLE SEEKING TREATMENT FOR METHAMPHETAMINE IS DOWN. THAT MAY BE AN INDICATION WE'RE HAVING AN IMPACT. A GOOD START. BUT NOW -- IT'S DIFFERENT FROM TALKING ABOUT A CAMPAIGN WHERE YOU TALKED ABOUT SPECIFIC ISSUES TO LEAD -- NOW WE HAVE TO PUT AN AGENDA THAT INVOLVES SIX VERY SIGNIFICANT STRATEGIES FORWARD SO THAT WE HAVE MORE IOWANS, YOUNGER IOWANS, AND BETTER PAID IOWANS. AND THE TEST IS GOING TO BE WHETHER OR NOT WE CAN ACCOMPLISH THAT, AND WHETHER OR NOT WE CAN MAKE SIGNIFICANT STRIDES.

Glover: DAVE MENTIONED EARLIER IT WOULDN'T BE AN OFFICIAL IOWA PRESS SHOW IF WE DIDN'T TALK ABOUT POLITICS. IT REALLY WOULDN'T BE AN OFFICIAL IOWA PRESS SHOW IF WE DIDN'T TALK ABOUT RUNNING FOR GOVERNOR. ARE YOU GOING TO RUN AGAIN?

Vilsack: WELL, I WILL TELL YOU THIS. AT THIS POINT IN TIME, I'M HAVING A GREAT TIME, THIS IS THE GREATEST JOB, IF NOT IN THE WORLD, IN POLITICS. I'M ENJOYING IT. I'M EXCITED ABOUT IT. I'M ENTHUSIASTIC. HAVING SAID THAT, IF I WERE TO RUN AGAIN, I AM CONVINCED THAT NOBODY SHOULD BE IN THIS JOB FOR MORE THAN EIGHT YEARS.

Glover: SO TWO TERMS IS STILL IT.

Yepsen: NOW, YOUR WIFE WAS OUT HERE AND SHE INDICATED YOU MIGHT BE WILLING TO GO FOR THREE OR FOUR TERMS.

Vilsack: WELL, I APPRECIATE THAT BUT WE HAD A NICE LITTLE CONVERSATION ABOUT THAT AFTER --

Glover: SO YOU'LL LET HER SUCCEED YOU?

Vilsack: WELL, ACCORDING TO THE DES MOINES REGISTER, SHE'S RUNNING FOR THE NEW YORK SENATE.

Borg: WELL, NOW THAT WE'VE MADE IT AN OFFICIAL PROGRAM, WE ARE OUT OF TIME. THANK YOU, GOVERNOR.

Vilsack: THANK YOU.

Borg: THANK YOU FOR TAKING TIME THIS HOLIDAY WEEKEND TO BE WITH US. ON OUR NEXT EDITION OF IOWA PRESS, WE'RE BACK ON THE PRESIDENTIAL CAMPAIGN TRAIL. JOINING US REPUBLICAN FRONT-RUNNER, TEXAS GOVERNOR GEORGE W. BUSH. GOVERNOR BUSH WILL DISCUSS HIS RUN FOR THE WHITE HOUSE AND ISSUES DOMINATING THE PRECAUCUS CAMPAIGNING. THAT'S NEXT SUNDAY AT NOON AND 7:00 HERE ON STATEWIDE IOWA PUBLIC TELEVISION. I HOPE YOU'LL WATCH. UNTIL THEN, I'M DEAN BORG. THANKS FOR JOINING US TODAY.

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