Iowa Public Television

Borg: AT THE IOWA STATEHOUSE, THE SECOND SESSION OF THE 78TH IOWA GENERAL ASSEMBLY CONVENES ON MONDAY, JANUARY 10. WE'LL PREVIEW THE AGENDA FROM THE PERSPECTIVE OF THE LEADERS OF THE MINORITY DEMOCRATS - SENATOR MIKE GRONSTAL OF COUNCIL BLUFFS AND REPRESENTATIVE DAVE SCHRADER OF MONROE 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, DECEMBER 19^th EDITION OF IOWA PRESS. HERE IS DEAN BORG.

Borg: IN JUST 22 DAYS SPEAKER OF THE IOWA HOUSE OF REPRESENTATIVES, BRENT SIEGRIST, AND SENATE PRESIDENT, MARY KRAMER, WILL GAVEL OPEN THE IOWA LEGISLATIVE SESSION OF 2000. THE 78TH IOWA GENERAL ASSEMBLY WILL BE UNDER WAY WITH ITS SCHEDULED 100-DAY SECOND SESSION. BOTH THE MAJORITY REPUBLICANS AND THE MINORITY DEMOCRATS CAUCUSED EARLIER THIS MONTH TO DETERMINE THEIR LEGISLATIVE PRIORITIES. LEADERS OF THE MAJORITY OF REPUBLICANS, SENATOR STEWART IVERSON AND SPEAKER SIEGRIST, WERE HERE AT THE IOWA PRESS TABLE IN NOVEMBER, AND TODAY WE WELCOME THE DEMOCRATS' LEADERS TO DISCUSS THE UPCOMING SESSION. JOINING US TODAY, SENATOR MIKE GRONSTAL OF COUNCIL BLUFFS AND REPRESENTATIVE DAVE SCHRADER OF MONROE. GENTLEMEN, WELCOME BACK TO IOWA PRESS.

Gronstal: THANK YOU.

Schrader: THANK YOU.

Borg: ALSO HERE AT THE TABLE, IOWA STATEHOUSE REPORTERS DAVID YEPSEN OF THE DES MOINES REGISTER AND MIKE GLOVER OF THE ASSOCIATED PRESS.

Glover: REPRESENTATIVE SCHRADER, LET'S START WITH THE BASICS. WHAT IS THE DEMOCRATIC AGENDA FOR THIS UPCOMING SESSION?

Schrader: EDUCATION IS AT THE TOP OF OUR AGENDA. THE ENVIRONMENT IS PART OF THAT AGENDA; HEALTH CARE IS ANOTHER COMPONENT OF THAT AGENDA; SAFE SCHOOLS, SCHOOLS WITH THEIR INFRASTRUCTURE PROBLEMS SOLVED, FIRE SAFETY PROBLEMS SOLVED; AN ENVIRONMENT WITH WATER THAT'S SAFE TO DRINK. PAUL JOHNSON OF THE DEPARTMENT OF NATURAL RESOURCES IS PROPOSING SOME SIGNIFICANT VOLUNTARY-TYPE COMPLIANCE PROGRAMS FOR FILTER STRIPS -- NOT THE OLD METHOD OF MANDATING PROGRAMS, BUT HAVING A CREW OF FOLKS FROM IOWA GO OUT AND SIT DOWN AT THE KITCHEN TABLES OF FARMERS AND LAY ON THE TABLE ALL OF THE OPTIONS THAT ARE THERE TO HELP THEM, PROGRAMS THAT A LOT OF FOLKS AREN'T AWARE THAT MIGHT HELP THEM. AND HEALTH CARE, WE WANT TO WORK HARD. WE DON'T THINK THAT THE STEPS THAT HAVE BEEN TAKEN ALREADY ARE BAD, BUT THEY'VE BARELY BEEN A BEGINNING. WE THINK WE OUGHT TO GIVE CITIZENS MUCH MORE DECISION-MAKING IN THEIR HEALTH CARE DECISIONS.

Glover: SENATOR GRONSTAL, SAME AGENDA IN THE SENATE?

Gronstal: VERY SIMILAR AGENDA IN THE SENATE. WE'RE GOING TO WORK ON EDUCATION. I'D ADD, WE HAVE REAL NEEDS IN IOWA FOR HIGHER EDUCATION IN THE AREA OF COMMUNITY COLLEGES, TRAINING, RETRAINING TO MAKE SURE OUR WORKFORCE IS HIGHLY PRODUCTIVE IN THIS STATE.

Glover: AND WHERE IS YOUR AGENDA, SENATOR GRONSTAL, DIFFERENT THAN A DEMOCRATIC GOVERNOR?

Gronstal: I CAN'T THINK OF A LOT OF AREAS WHERE IT'S DIFFERENT. THIS GOVERNOR CAME FROM THE SENATE, CAME FROM THE LEGISLATURE. MUCH OF THE AGENDA HE'S BEEN TALKING ABOUT ARE ISSUES THE DEMOCRATS HAVE BEEN TALKING ABOUT FOR THE LAST SIX OR EIGHT YEARS.

Glover: REPRESENTATIVE SCHRADER, SAME AGENDA IN THE HOUSE?

Schrader: OH, ABSOLUTELY. LAST YEAR WAS A TEMPLATE FOR THIS YEAR, I THINK. LAST YEAR THE GOVERNOR'S AGENDA WAS THE AGENDA THAT HOUSE DEMOCRATS HAD BEEN WORKING ON FOR SEVERAL YEARS. WE ACCOMPLISHED SEVERAL OF THOSE THINGS; METHAMPHETAMINE, REPUBLICANS HAD RESISTED MEASURES TO MAKE GREAT STRIDES THERE, BUT WHEN WE GOT GOVERNOR VILSACK, THAT HOUSE AGENDA BECAME THE GOVERNOR'S AGENDA AND WE PASSED IT. DEMOCRATS HAVE BEEN TALKING ABOUT CLASS SIZE. FOR SEVERAL YEARS MIKE AND I HAD TALKED ABOUT CLASS SIZE; BUT WHEN GOVERNOR VILSACK CAME IN, IT BECAME OUR AGENDA AND WE ACCOMPLISHED IT.

Yepsen: MR. SCHRADER, ONE THING THE GOVERNOR WILL PROPOSE IS A SPECIAL TAX CREDIT FOR TEACHERS. DO DEMOCRATS SUPPORT THAT IDEA?

Schrader: I THINK A LOT DO. WE'RE DISCUSSING THAT. SOME OF US. I'LL TELL YOU THAT I'M A DEMOCRAT THAT HAS SOME CONCERNS WHEN YOU USE TAX POLICY TO TRY TO MODIFY BEHAVIOR.

Yepsen: SO IT ISN'T ALL SWEETNESS AND LIGHT BETWEEN DEMOCRATS IN THE LEGISLATURE AND THE DEMOCRATIC GOVERNOR?

Schrader: I'LL TELL YOU WHAT, IT'S PRETTY GOOD. THE FACT IS --

Gronstal: I THINK THE GOALS ARE THE SAME. SOMETIMES WE DIFFER ABOUT THE BEST WAYS TO GET THERE.

Yepsen: WHAT ABOUT TAX CREDITS FOR TEACHERS?

Gronstal: FOR YEARS WE DIRECTED RESOURCES TO COMPANIES TO CONVINCE THEM TO COME HERE. NOW WE'RE DIRECTING RESOURCES -- I LIKE THE IDEA OF DIRECTING RESOURCES TO OUR KIDS, OUR BEST AND BRIGHTEST, TO COME BACK TO IOWA.

Yepsen: OKAY, SO YOU WOULD SUPPORT THE TEACHERS?

Schrader: I THINK I CAN WORK UP SOMETHING THAT WILL WORK.

Yepsen: WHAT ABOUT HIS IDEA? HE WANTS A REFERENDUM. BEFORE WE PASS SALES TAX OR INCOME TAX INCREASES IN IOWA, HE WANTS A VOTE OF THE PEOPLE. SENATOR GRONSTAL, DO SENATE DEMOCRATS SUPPORT THAT IDEA?

Gronstal: I'D SAY WE'RE PROBABLY DIVIDED ON THAT ISSUE. THERE'S SOME THAT SUPPORT IT, SOME THAT DON'T. I THINK WE CAN CERTAINLY WORK ON A PLAN THAT MANY OF US COULD AGREE TO.

Yepsen: HOW ABOUT IN THE HOUSE? HOW DO HOUSE DEMOCRATS FEEL ABOUT IT?

Schrader: THAT'S AN ISSUE THAT CAUSES A LOT OF HOUSE DEMOCRATS CONCERN. GOVERNOR VILSACK FEELS STRONGLY THAT THINGS THAT HE CAMPAIGNED ON, THINGS THAT HE TALKED ABOUT, AND THIS IS ONE OF THEM, IT WASN'T A SURPRISE TO US. HE FEELS STRONGLY THAT HE NEEDS TO DELIVER ON THOSE THINGS, AND WE UNDERSTAND THAT. WE ALSO KNOW THAT NONE OF US IN THE LEGISLATURE, MIKE AND I, DON'T AGREE ON EVERY ISSUE, AND WE KNOW THAT THAT'S GOING TO BE THE CASE WITH DEMOCRATS IN THE LEGISLATURE AND THE GOVERNOR, BUT WE DO AGREE ON OUR TOP PRIORITIES. THOSE ARE THE ISSUES THAT IOWANS WANT US TO ADDRESS FIRST, AND I THINK WE'RE READY TO MAKE SOME REALLY GOOD ACCOMPLISHMENTS.

Yepsen: OKAY, BUT WE'VE IDENTIFIED TWO THINGS WHERE SOME OF YOUR TROOPS DISAGREE WITH THE GOVERNOR. ARE THERE OTHER AREAS THAT ARE LIKE THAT, WHERE HE'S PROPOSING THINGS THAT WILL CAUSE SOME TREPIDATION IN YOUR RANKS?

Schrader: OVER THE COURSE OF THE SESSION, I'M SURE THERE WILL BE.

Yepsen: BUT NOTHING SPECIFIC THAT YOU CAN IDENTIFY RIGHT NOW?

Schrader: BEFORE THE SESSION'S OVER, I KNOW THAT THERE WILL BE. THAT'S WHAT THE SESSION IS ABOUT. DEMOCRATS ARE A BIT DIFFERENT FROM REPUBLICANS. WHAT I WANT MY MEMBERS TO DO IS TO COME TO DES MOINES AND EACH OF THOSE PEOPLE REPRESENT THE PEOPLE IN THEIR DISTRICT. AND I'LL TELL YOU, PEOPLE FROM DUBUQUE HAVE SOME DIFFERENT CONCERNS THAN PEOPLE IN KNOXVILLE, IN MY DISTRICT, AND THE PEOPLE FROM SIOUX CITY HAVE SOME OTHERS. IF THOSE REPRESENTATIVES AND SENATORS DON'T COME IN AND SPEAK PAROCHIALLY AT TIMES FOR THEIR DISTRICT, AS WELL AS GATHERING TOGETHER ON STATE ISSUES, THEIR DISTRICT ISN'T GOING TO BE REPRESENTED. SO I WANT THOSE FOLKS TO BRING THOSE ISSUES FROM HOME. AND THAT'S WHY WE HAVE A DUSTUP EVERY NOW AND THEN IN THE STATE CAPITOL.

Glover: LET ME TAKE AN ARGUMENT TO YOU FOR THIS LEGISLATIVE SESSION NOT BEING VERY PRODUCTIVE AT ALL. IT'S AN ELECTION YEAR. YOU'VE GOT A GOVERNOR OF ONE PARTY AND A LEGISLATURE RUN BY ANOTHER PARTY. THERE'S NOT AN OVERWHELMING CLAMOR OUT THERE FOR ANYTHING GREAT TO BE ACCOMPLISHED. ISN'T THAT A REMEDY FORMULA FOR A DO-NOTHING SESSION?

Schrader: I THINK THAT THE GOVERNOR HAS LAID OUT AN AGENDA ALREADY, AND WE HAVEN'T HEARD ALL OF IT. WE HAVEN'T HEARD THE STATE OF THE STATE ADDRESS. HE'S LAID OUT AN AGENDA THAT WILL PROVIDE FOR A VERY PRODUCTIVE SESSION. THE NEXT STEP, I'M AFRAID, ISN'T IN MY HANDS. IT'S IN THE HANDS OF THE SPEAKER, AND IF THE SPEAKER CHOOSES NOT TO COME TO THE TABLE AND TALK ABOUT THOSE ISSUES, THAT COULD HAPPEN.

Glover: SENATOR GRONSTAL, ISN'T THIS A REMEDY OR A FORMULA FOR NOT VERY MUCH HAPPENING? YOU'VE GOT DIVIDED GOVERNMENT --

Gronstal: I THINK YOU'RE WRONG, MIKE. I THINK IOWANS ARE ASKING FOR A LOT OF THINGS. I THINK OUR ECONOMY'S IN GOOD SHAPE, BUT I THINK WHEN YOU LOOK AROUND, YOU SEE LOTS OF PROBLEMS; YOU SEE PROBLEMS WITH WORKFORCE, BUSINESSES THAT CAN'T FIND SKILLED WORKERS; YOU SEE PROBLEMS WITH OUR ENVIRNONMENT. THERE ARE 159 IMPAIRED WATERWAYS IN THE STATE OF IOWA. YOU SEE SERIOUS PROBLEMS IN HEALTH CARE WHERE PEOPLE CAN'T GET THE KINDS OF HEALTH CARE SERVICES THEY NEED BECAUSE INSURANCE COMPANIES MAKE THOSE DECISIONS INSTEAD OF DOCTORS AND PATIENTS. SO I THINK THERE ARE LOTS OF PROBLEMS OUT THERE IN EDUCATION. WE HAVE CRUMBLING SCHOOLS IN THE STATE OF IOWA. OUR K-12 SCHOOL SYSTEM REALLY NEEDS ASSISTANCE FROM THE STATE TO HELP REBUILD THOSE SCHOOLS. I THINK THERE'S LOTS OF PROBLEMS OUT THERE. I THINK OVERALL THE ECONOMY'S IN GOOD SHAPE. AND IF YOU JUST LOOK UNTIL THE NEXT ELECTION, THEN-

Glover: I UNDERSTAND THAT, BUT IS STATE GOVERNMENT RIGHT NOW STRUCTURED TO DEAL WITH THOSE PROBLEMS? AND IN FACT, ISN'T STATE GOVERNMENT STRUCTURED TO NOT DEAL WITH THEM?

Gronstal: I DISAGREE COMPLETELY. I THINK WE ARE READY TO MOVE FORWARD ON A NUMBER OF AGENDA ITEMS, AND I THINK IF THE LEGISLATURE DOES NOTHING, THEY DO IT AT THEIR POLITICAL PERIL. WE'VE GOT TO FACE SOME OF THESE PROBLEMS. WE'VE GOT TO FACE THE FACT THAT WE HAVE AN AGING POPULATION AND THAT MANY OF OUR KIDS LEAVE THIS STATE. WE'VE GOT TO DO THINGS TO TURN THAT AROUND. IT WON'T BE A CRISIS NEXT YEAR, BUT IF YOU WANT 2010 TO LOOK GOOD IN THIS STATE, AND FOR OUR STATE TO HAVE A HEALTHY ECONOMY, WE'VE GOT TO TAKE ACTION NOW.

Borg: REPRESENTATIVE SCHRADER, DEALING NOW WITH SOME SPECIFIC ISSUES, TAXES, FOR EXAMPLE. A COUPLE OF WEEKS AGO GOVERNOR VILSACK WAS ON THIS PROGRAM, AND HE PROPOSED AT THAT TIME THE IDEA OF DOING AWAY WITH IOWANS' ABILITY TO DEDUCT FROM THEIR IOWA TAX THE AMOUNT THAT THEY'VE PAID IN FEDERAL TAX AND THEIR TAX LIABILITY. I ASSUME THAT DEMOCRATS IN THE LEGISLATURE ALSO SUPPORT THAT, BUT DO YOU SEE OTHER TAX-CUT ADJUSTMENTS BEING MADE?

Schrader: WELL, THAT'S ONE THE DEMOCRATS HAVE SUPPORTED FOR A LONG TIME. WE'VE BEEN HOPEFUL THAT WE MIGHT SEE SOME REPUBLICANS JOIN IN THAT SUPPORT. AROUND THE BORDERS, PARTICULARLY OF THE STATE, AND NOT JUST AT THE BORDERS, WE'RE HEARING FROM BUSINESS GROUPS THAT THEY SAY, "NOW'S THE TIME TO MAKE A CHANGE. NOT TO RAISE TAXES THERE OR LOWER TAXES BUT TO CHANGE THAT SYSTEM SO THAT THAT FEDERAL DEDUCTIBILITY, THE BENEFIT THAT ALL TAXPAYERS GET FROM THAT, SO THAT THAT IS ROLLED INTO LOWER RATES." IF WE GO BACK TO THE NATIONAL RANKINGS OF IOWA WHERE WE APPEAR MUCH HIGHER THAN WE ACTUALLY ARE, WE COULD LOWER RATES SIGNIFICANTLY AND HAVE THE TAX CONSEQUENCES THE SAME.

Borg: SENATOR GRONSTAL --

Schrader: WE MAY HAVE A CHANCE TO DO THAT THIS YEAR.

Borg: SENATOR GRONSTAL, NOT SO MUCH ON THE FEDERAL DEDUCTIBILITY BUT OTHER TAX CUTS THAT MAY BE COMING.

Gronstal: I THINK THERE ARE A VARIETY OF TAX AREAS THAT WE'RE CERTAINLY WILLING TO LOOK AT. I THINK IN OUR CAUCUS, THERE'S PROBABLY MORE OF A FOCUS ON PROPERTY TAXES. THOSE ARE THE TAXES THAT, WHETHER YOU HAVE GOOD INCOME OR NOT ON A FARM, YOU'VE STILL GOT TO PAY THOSE PROPERTY TAXES. IF YOU'RE A SENIOR CITIZEN ON A FIXED INCOME -- PROPERTY TAXES ARE THE ONES THAT DRIVE SENIOR CITIZENS OUT OF THEIR HOMES AND FARMERS OFF THEIR FARMS.

Yepsen: HOW CAN YOU AFFORD ANY TAX CUTS, SENATOR?

Gronstal: THAT'S PART OF THE OVERALL PROBLEM. WE'VE GOT TO ESTABLISH WHAT THE BUDGET IS, WHAT THE PRIORITIES ARE IN THE BUDGET, BUT I THINK THERE'S PROBABLY ROOM FOR SOME TAX CUTS.

Yepsen: BACK TO DEAN'S QUESTION ON FEDERAL DEDUCTIBILITY. DEMOCRATS SAY THIS IS REVENUE NEUTRAL, THAT WE'LL TAKE AWAY THIS DEDUCTION WHICH WOULD INCREASE TAXES BUT THEN WE'LL LOWER THE RATE SO YOUR TAX BILL WILL BE THE SAME. THE REPUBLICANS ARE ARGUING, THOUGH, THAT THERE'S A SHIFT IN THE TAX BURDEN IF YOU DO THAT, THAT WELL-TO-DO IOWANS WILL, IN FACT, PAY MORE THAN LOWER-INCOME IOWANS; IS THAT TRUE?

Gronstal: IT DEPENDS ON HOW YOU DO THE TAX CUT. YOU CAN MOVE THE REVENUE THAT YOU GAIN BY DOING AWAY WITH FEDERAL DEDUCTIBILITY EQUALLY INTO EACH OF THOSE CLASSES, OR YOU CAN DO A LITTLE MORE FOR THE MIDDLE CLASS THAT PAYS GREATER THAN THEIR FAIR SHARE RIGHT NOW IN THE TAX CUT.

Yepsen: WELL, WE ARE TRYING TO ATTRACT BUSINESSES AND WELL-TO-DO PEOPLE TO IOWA. SO FOR SOMEBODY WHO MAKES $100,000 A YEAR, CAN YOU STRUCTURE IT IN SUCH A WAY THAT THAT PERSON'S TAX WILL NOT CHANGE?

Gronstal: ABSOLUTELY. YOU CAN VERY EASILY COME UP WITH A SYSTEM THAT ROLLS ALL THOSE THINGS BACK IN BRACKET BY BRACKET. WITHIN CLASSES THERE ARE SOME MINOR SHIFTS THAT ARE DIFFICULT TO PREDICT, JUST AS THERE ARE RIGHT NOW IN THE SYSTEM.

Glover: REPRESENTATIVE SCHRADER, THERE'S BEEN A PROPOSAL, A STUDY ACTUALLY DONE, ABOUT THE STATE'S INFRASTRUCTURE NEEDS, AND IT SAYS THAT ABOUT A $100 MILLION FROM THE STATE'S RESERVES, BUDGET RESERVES, OUGHT TO BE USED TO BEGIN FIXING UP STATE BUILDINGS. IS THAT INFRASTRUCTURE PROBLEM IN IOWA AN EMERGENCY THAT REQUIRES DIPPING INTO THE SURPLUS?

Schrader: I THINK IT REQUIRES US TAKING ACTION, BUT AN EMERGENCY THAT REQUIRED DIPPING INTO THE SURPLUS WOULD BE ONE THAT THERE WAS NO OTHER OPTION. AND I BELIEVE THERE ARE OTHER OPTIONS. WE WILL HAVE SOME MONEY TO MAKE DECISIONS, NEW MONEY TO MAKE DECISIONS ABOUT SPENDING THIS YEAR.

Glover: SENATOR GRONSTAL, IS IT AN EMERGENCY?

Gronstal: I THINK THERE'S MORE OF AN EMERGENCY IN LOCAL SCHOOLS. I'D PREFER TO SEE THE STATE MAKE A REAL EFFORT TO DEAL WITH THE CRUMBLING LOCAL SCHOOLS.

Yepsen: WELL, WHAT MAKES YOU THINK THE REPUBLICANS ARE GOING TO DO THAT THIS YEAR, SENATOR? THEY HAVEN'T DONE IT FOR YEARS.

Gronstal: AND THEY DIDN'T DO CLASS-SIZE REDUCTION FOR YEARS, AND EVENTUALLY THEY CAME AROUND TO THAT ISSUE AND RECOGNIZED THAT IT WAS A REAL ISSUE OUT THERE AMONGST IOWANS. THEY AVOID THOSE THINGS AT THEIR OWN POLITICAL PERIL.

Yepsen: ONE OF THE THINGS THAT SAVE YOU FROM ALL THESE BUDGET PROBLEMS IS, YOU START GETTING NICE CHUNKS OF MONEY IN THE FORM OF A TOBACCO SETTLEMENT. SENATOR GRONSTAL, HOW WILL THAT GET DIVIED UP?

Gronstal: I THINK THE SENATE DEMOCRATS WOULD PREFER TO SEE, ESSENTIALLY, ALL OF THAT MONEY GO TO HEALTH CARE. THAT CASE WAS WON BASED ON HEALTH CARE COSTS. I THINK WE NEED TO MAKE SIGNIFICANT IMPROVEMENTS IN OUR LONG-TERM-CARE NURSING HOME INDUSTRY. I THINK THAT'S GOING TO TAKE SOME RESOURCES TO DO THAT. I THINK WE NEED TO DO SOME FUNDS ON SMOKING CESSATION AND COUNTERADVERTISING TO MAKE SURE OUR KIDS DON'T GET HOOKED ON SMOKING.

Yepsen: MR. SCHRADER, DO YOU AGREE WITH THAT?

Schrader: TOM MILLER, ATTORNEY GENERAL MILLER HAS PROPOSED ABOUT A $21-MILLION PACKAGE ON SMOKING CESSATION PROGRAMS. I THINK THE VAST MAJORITY OF THOSE PROGRAMS WILL BE APPROVED, $19 TO $21 MILLION OF THAT MONEY SPENT THERE. THE REST OF THAT MONEY WON'T BE SPENT SPECIFICALLY ON SMOKING, BUT I THINK IOWANS AGREE, WE GOT THAT MONEY BECAUSE OF HEALTH-CARE RELATED PROBLEMS FROM SMOKING. WE OUGHT TO SPEND IT ON HEALTH CARE.

Glover: SENATOR GRONSTAL, ARE YOU GOING TO GIVE US A LITTLE COMMERCIAL ABOUT YOUR OWN PERSONAL EXPERIENCE WITH THAT?

Gronstal: I WILL TELL YOU THAT 30 YEARS AND UP TO THREE PACKS A DAY AT THE END OF MY SMOKING CAREER. LAST MAY, I QUIT ON MAY 1, SHORTLY AFTER THE SESSION ENDED.

Glover: CONGRATULATIONS. NOW LET'S MOVE TO ANOTHER ISSUE: ONE OF THE PROBLEMS FACING THIS STATE IS AN AGING, OVERCROWDED, WELL-OVERCROWDED PRISON SYSTEM, JAMMED BEYOND CAPACITY. IS THIS LEGISLATURE GOING TO BUILD A NEW PRISON?

Gronstal: I DOUBT THIS LEGISLATURE WILL BUILD A NEW PRISON.

Glover: WHY?

Gronstal: I THINK WE WILL INVEST IN AN EFFORT TO BUILD UP OUR COMMUNITY-BASED CORRECTION SYSTEM. THAT'S THE SYSTEM WHERE MOST OF THE OFFENDERS IN THIS STATE ARE SUPERVISED AT THE LOCAL LEVEL BY PAROLE AND PROBATION OFFICERS. THAT'S WHAT WE OUGHT TO BE BUILDING UP RIGHT NOW, AND THAT'S WHAT WE'VE NEGLECTED FOR THE LAST 10 YEARS.

Glover: REPRESENTATIVE SCHRADER, THE FIRST DUTY OF ELECTED OFFICIALS IS TO PROVIDE FOR THE PUBLIC SAFETY. WHY AREN'T YOU BUILDING A NEW PRISON IF THERE ISN'T ROOM TO HOUSE PEOPLE WHO ARE BREAKING THE LAW?

Schrader: MIKE, YOUR PREMISE IS WRONG. FOR THE FIRST TIME IN A LONG TIME, WE'RE NOT JAMMED BEYOND CAPACITY.

Glover: ARE YOU TELLING ME THE PRISON POPULATION IN THIS STATE IS BELOW DESIGNED CAPACITY?

Schrader: NOT DESIGNED CAPACITY, BUT THE CAPACITY OF THAT YOU CAN PUT FOLKS IN THOSE PRISONS. WE'VE BEEN ABOVE DESIGNED CAPACITY FOR A LONG TIME IN IOWA, AND WE HAVE A STRUCTURE THERE THAT WILL HOLD PEOPLE ABOVE DESIGNED CAPACITY. IN FACT, WE'VE GOT COUNTY INMATES NOW THAT WE'RE HOUSING IN OUR PRISONS. WE'VE BROUGHT HOME THOSE PRISONERS FROM OTHER STATES THAT HAD HOUSED SOME OF OUR PRISONERS. WE, ACTUALLY, MAY BE AT A TIME WHERE WE'RE STARTING TO SEE A LEVELING OUT. IF WE HAVE A NEED TO PUT VIOLENT PEOPLE BEHIND BARS AND DON'T HAVE ROOM, WE'LL BUILD A PRISON. BUT THANKFULLY, I THINK WE'RE IN A YEAR WHERE WE DON'T HAVE TO DO THAT.

Yepsen: SENATOR GRONSTAL, MANY URBAN COUNTIES IN IOWA ARE PASSING LOCAL OPTION SALES TAXES TO FIX UP THEIR SCHOOLS. NOW WE'RE STARTING TO HEAR TALK FROM MANY RURAL LEGISLATORS THAT, "WELL, THIS IS MONEY THAT WE'RE SPENDING WHEN WE GO TO SHOP IN THESE RETAIL CENTERS, AND WE SHOULD GET SOME OF THAT BACK." WILL THE LEGISLATURE GO ALONG WITH THE IDEA OF TAKING AWAY SOME MONEY FROM HIGHER-URBAN LOCAL OPTION SALES TAXES AND GIVING IT TO RURAL AREAS?

Gronstal: THAT'S ONE I CAN'T GIVE YOU A PREDICTION ON. I DO THINK THERE'S PRESSURE THERE. MY INCLINATION IS THEY PROBABLY WON'T DO THAT; THAT THEY PROBABLY WON'T SAY TO WOODBURY COUNTY, SINCE YOU SOLVED YOUR PROBLEM, WE'RE GOING TO GRAB SOME OF THE REVENUE THAT YOU GENERATED. THIS PROBLEM OF EQUITY IN FUNDS FOR BUILDING SCHOOLS WAS THERE BEFORE THE SALES TAX MECHANISM. IT DID NOT CHANGE THAT EQUITY ISSUE. IT USED TO BE THAT PROPERTY TAXES WERE THE ONLY THING THAT BUILT SCHOOLS, AND THERE WERE UNFAIR ADVANTAGES FOR RICHER COUNTIES. SO THERE WAS AN EQUITY PROBLEM THERE BEFORE. THE SALES TAX HASN'T CHANGED THAT. IT DIDN'T IMPROVE IT. IT HASN'T CHANGED IT. THAT'S WHY THE STATE SHOULD BE INVOLVED. WE CAN COME IN WITH STATE REVENUE, EQUALIZE THAT REVENUE, BETWEEN PROPERTY-POOR AND PROPERTY-RICH DISTRICTS, AND HELP THE SYSTEM, ASSIST IN LOCAL SCHOOL DISTRICTS, IN REBUILDING THEIR SCHOOLS.

Yepsen: MR. SCHRADER, WILL THERE BE A GRAB OF URBAN MONEY TO SEND TO RURAL AREAS?

Schrader: I DON'T THINK THAT A GRAB IS WHAT ANYBODY'S TALKING ABOUT. THERE IS A REAL PROBLEM IN EQUITY. I REPRESENT ONE OF THOSE DISTRICTS IN THE GOLDEN CIRCLE THAT WRAPS AROUND POLK COUNTY. I DON'T THINK ANYONE WOULD DISAGREE THAT WE'RE IN AN ECONOMIC UNIT IN CENTRAL IOWA THAT DOESN'T REALLY RESPECT COUNTY LINES. IT'S JUST AN ECONOMIC UNIT. THE PROBLEM IS THAT THE FIRST THING THAT THOSE COUNTIES THAT BORDER A COUNTY, ANY COUNTY THAT'S PASSED A LOCAL OPTION WOULD HAVE TO DO IS, THOSE CITIZENS WOULD HAVE TO DO THE HEAVY LIFTING THAT OTHERS HAVE DONE, THAT IS, PASS A LOCAL OPTION TAX. BUT THE PROBLEM FOR THOSE FOLKS IS THAT IN MANY OF THESE COUNTIES THAT ARE ON THE FRINGE OF AN ECONOMIC UNIT, THAT EVEN WHEN THEY PASS THE TAX, THEY DON'T HAVE A RETAIL BASE BECAUSE THEIR PART OF THAT UNIT DOESN'T INCLUDE THAT. AND SO THE AMOUNT PER CHILD THAT THEY COULD GET IS A FOURTH OR EVEN LESS OF WHAT IT IS IN THE CENTER OF THAT UNIT, AND WE NEED TO FIND A WAY TO EQUALIZE THAT BECAUSE IT ISN'T FAIR. AND EVERYONE THAT I VISITED WITH, INCLUDING PEOPLE IN POLK COUNTY SAY: "YOU'RE RIGHT, THERE'S AN INEQUITY THERE. WE NEED TO SIT DOWN AROUND A TABLE TOGETHER AND FIND A WAY TO FIX IT."

Yepsen: WELL, THOSE URBAN CENTERS, THOSE RETAIL CENTERS YOU TALK ABOUT ALSO PAY MORE IN INCOME TAXES THAN DO RURAL AREAS, AND YET MORE OF THAN THAT MONEY GOES TO RURAL AREAS THAN STAYS IN URBAN AREAS. SO IF WE'RE GOING TO EQUALIZE THE SALES TAX AND REVENUES, SHOULDN'T WE EQUALIZE THE INCOME TAX REVENUES AS WELL?

Schrader: WELL, YOU COULD ARGUE IN THE PROPERTY-RICH RURAL AREAS THAT INDIVIDUALS PAY MORE IN PROPERTY TAXES, TOO. I'M NOT SURE THAT ANYONE HAS MADE A CASE THAT THERE'S ONE GROUP OF FOLKS DEPENDENT UPON WHERE THEY LIVE, PAYING A BIGGER BURDEN OF THE TAX RATIO. I AM CONVINCED THAT THERE'S A SOLID NUMBER THAT WE HAVE NOW WHERE ONE CHILD IN SCHOOL IS GETTING MORE HELP IN THEIR YEAR AT SCHOOL, BECAUSE OF THIS INEQUITY, THAN A CHILD THAT LIVES A FEW MILES AWAY ACROSS THE LINE. AND THAT'S SOMETHING THAT ISN'T ALLOWED BY OUR CONSTITUTION, AND WE NEED TO FIX THIS.

Glover: SENATOR GRONSTAL, DOES THAT QUESTION PRESAGE A LOOMING, RURAL/URBAN FIGHT UP AT THE STATEHOUSE? IT STRIKES ME THAT ON THIS ISSUE, ON EDUCATION ISSUES, AND A LOT OF OTHER ISSUES, TRANSPORTATION, THE BIG DIVIDE IS NOT REPUBLICAN/DEMOCRAT ANYMORE, THE BIG DIVIDE IS RURAL/URBAN. ARE WE HEADED FOR A RURAL/URBAN FIGHT IN THIS STATE?

Gronstal: I THINK THERE ARE RURAL/URBAN TENSIONS GOING ON THERE, AND I THINK THOSE TENSIONS HAVE BEEN THERE ALL OF MY EXPERIENCE, 17 YEARS IN THE LEGISLATURE. I THINK WHAT IT REALLY POINTS OUT, I MEAN, 30 YEARS AGO WE CAME UP WITH A SCHOOL FINANCE FORMULA, WHERE THE STATE INVESTED SIGNIFICANT RESOURCES TO EQUALIZE THAT EDUCATION. WHAT WE'RE SEEING IS THIS PIECE ON SCHOOL CONSTRUCTION IS GOING TO, I BELIEVE, LEAD TO THE SAME KIND OF EFFORT THAT THE STATE NEEDS TO BE INVOLVED, SIT DOWN AROUND A TABLE, AND WORK OUT SOME OF THOSE EQUITY ISSUES BY THE STATE BEING INVOLVED IN IT. PEOPLE DON'T WANT IT ON THEIR PROPERTY TAXES.

Yepsen: WHERE DOES THE STATE GET THE MONEY TO DO THAT, SENATOR? WE'RE TALKING ABOUT HUNDREDS OF MILLIONS OF DOLLARS IN LOCAL SCHOOL INFRASTRUCTURE THAT NEEDS FIXED. WHERE DO YOU FIND THE MONEY TO DO THAT?

Gronstal: WE DIDN'T CREATE THIS PROBLEM OF SCHOOL BUILDINGS OVERNIGHT. AND NO, WE'RE NOT GOING TO COME IN AND DO $3.5 BILLION NEST SESSION AND SOLVE THAT PROBLEM ALL IN ONE YEAR. IT TOOK 40 YEARS FOR US TO GROW INTO THIS DILAPIDATED SCHOOL PROBLEM. WE CAN GET OUT OF THAT WITH AN EFFORT TO BUILD A PLAN WHERE OVER 20 YEARS SENATE, WE GET THAT BACK, AND GET THAT PROBLEM SOLVED. AND IT'S NOT JUST GOING TO BE THE STATE DOLLARS; WE'RE GOING TO HAVE TO ASK LOCAL COMMUNITIES TO ALSO PITCH IN ON THIS.

Glover: REPRESENTATIVE SCHRADER, IS THAT A SOLUTION TO THIS RURAL/URBAN THING, TO COME UP WITH SOME KIND OF A STATE FORMULA FOR FIXING UP THESE SCHOOLS?

Schrader: THE STATE HAS TO BE A PART OF THE SOLUTION. HAVING A LOCAL OPTION SOLUTION HAS CAUSED THESE INEQUITIES. THE POINT I WANT TO MAKE IS THAT WE HAVE A REAL PROBLEM HERE, AND THE PROBLEM IS AN UNNECESSARY ONE. THIS LEGISLATURE'S GOING TO FACE THIS TOUGH RURAL/URBAN ISSUE, AND WE SHOULDN'T HAVE TO. THE REASON WE HAVE TO IS BECAUSE REPUBLICANS HAVE CONTROLLED THE LEGISLATURE, WOULDN'T TAKE THE REASONABLE STEPS THAT WOULD HAVE AVERTED THIS KIND OF PROBLEM. WHAT STEP WOULD THAT BE? THERE'S BEEN A PLAN THERE THAT A LOT OF FOLKS COALESCED AROUND, INCLUDING PEOPLE LIKE THE TEACHERS AND SCHOOL BOARDS AND THE FARM BUREAU. THAT PLAN WAS TO CHANGE THE WAY WE FUND SCHOOL INFRASTRUCTURE, BY PASSING BONDS ON A 50-PERCENT THRESHHOLD INSTEAD OF 60 PERCENT, BUT THEN FUNDING THE REPAYMENT OF THOSE BONDS WITH INCOME TAX. LOWERING THE THRESHHOLD BUT IN RETURN HAVING A MORE FAIR WAY TO PAY THEM OFF. HAD REPUBLICANS BEEN WILLING TO DO THAT, WE WOULDN'T BE FACING THIS TOUGH PROBLEM THAT WE HAVE TODAY, AND WE WOULDN'T HAVE A SYSTEM THAT WAS FULL OF INEQUITIES.

Yepsen: MR. SCHRADER, ANOTHER HOT ISSUE ALWAYS IN RURAL IOWA, HOG LOTS. YOU'VE TRIED FOR SEVERAL YEARS TO DO SOMETHING ABOUT THAT, GOTTEN NOWHERE. ARE PROSPECTS ANY DIFFERENT FOR THIS NEXT SESSION?

Schrader: WELL, THERE MAY BE A GLIMMER OF HOPE UP IN WORTH COUNTY. I DON'T KNOW IF YOU'RE AWARE, THERE'S A GROUP OF FIVE COUNTIES, I BELIEVE, HAVE JOINED THAT COUNTY NOW. THE COUNTY HEALTH DEPARTMENT HAS ENGAGED IN A LAWSUIT NOT ALLOWING CONFINEMENTS IN AN AREA OR IN THEIR COUNTY BECAUSE OF A HEALTH RISK. UP IN HUMBOLDT COUNTY A COUPLE OF YEARS AGO, THAT COUNTY TRIED TO DO SOMETHING AS A COUNTY AND WERE DENIED BECAUSE THEY USED THEIR ZONING PROCESS. IT LOOKS LIKE THE PEOPLE UP IN WORTH COUNTY MAY HAVE FOUND A WAY THAT THEY CAN HAVE A SAY. WHAT I'VE BEEN FIGHTING FOR FOREVER IS LOCAL CONTROL.

Yepsen: EXCUSE ME, THIS WORTH COUNTY, THAT'S IN THE COURTS. DOES THAT REQUIRE THE LEGISLATURE TO DO ANYTHING AT ALL?

Schrader: I'LL TELL YOU WHAT MY FEAR IS THAT REPUBLICANS IN THE PAST HAVE VOWED THAT IF THE COURTS RULED IN FAVOR OF FAMILY FARMERS AND LOCAL PEOPLE, THAT THEY WOULD OVERTURN THAT. TOM VILSACK'S IN THE GOVERNOR'S OFFICE NOW, I DON'T THINK THEY WOULD GET BY WITH THAT. WE'RE NEARLY AT THE END OF A CYCLE WHERE THE REPUBLICAN LEGISLATURE HAVE GIVEN THE BIG CORPORATE INTERESTS EVERY BREAK THAT THEY'VE ASKED FOR, AND THE FAMILY FARMERS, THE SMALL COMMUNITIES AND THOSE PEOPLE THAT LIVE IN THOSE AREAS HAVE LOST THE BATTLE IN MANY PARTS OF IOWA. WE STILL HAVE A CHANCE TO HELP SOME FOLKS THAT -- THE INDUSTRY'S KIND OF DRIFTED EASTWARD, AND WE KEEP FINDING NEW POCKETS OF PROBLEMS BREAKING OUT.

Glover: SENATOR GRONSTAL, REPRESENTATIVE SCHRADER HAS DEALT WITH THE HOG LOT ISSUE. IS THERE ANY OTHER ENVIRONMENTAL ITEMS ON YOUR AGENDA?

Gronstal: I THINK THE -- DAVE MENTIONED THE DEPARTMENT OF NATURAL RESOURCES HAS A NUMBER OF INITIATIVES THIS YEAR. I THINK THERE ARE SOME GREAT IDEAS OUT THERE TO GET VOLUNTARY COMPLIANCE, GO OUT AND TALK TO FARMERS AND PROTECT OUR WATERWAYS WITH FILTER STRIPS, PUT SOME OF THAT LAND INTO CONSERVATION RESERVE THAT LINE OUR CREEKS AND RIVERS IN THIS STATE. I THINK THAT WOULD MAKE A LOT OF SENSE, AND I'M FRANKLY EXCITED ABOUT WHERE WE'RE GOING TO BE ABLE TO GO. PAUL'S TALKING ABOUT TAKING A HALF MILLION ACRES OF LAND IN THIS STATE THAT LINE RIVERS AND CREATING FILTER STRIPS OVER THE NEXT FIVE YEARS GOING TO HALF A MILLION ACRES. THAT WOULD BE A SIGNIFICANT IMPROVEMENT IN WATER QUALITY, SOIL CONSERVATION. I THINK THERE'S SOME REALLY NEAT THINGS GOING TO HAPPEN NEXT YEAR.

Borg: WE'RE RUNNING SHORT ON TIME HERE. WE NEED TO GET TO POLITICS, AND I'M GOING TO GIVE YOU A CHANCE, REPRESENTATIVE SCHRADER, TO WAX OPTIMISTICALLY. WHAT'S THE CHANCE OF YOUR PARTY TO RETAKE THE LEGISLATURE?

Schrader: I THINK THE CHANCES ARE VERY GOOD. WE'RE HAVING GREAT FOLKS STEP FORWARD OUT AND ACROSS IOWA AS CANDIDATES. THAT'S ONE OF THE MOST IMPORTANT THINGS, HAVING A GOOD CANDIDATE IN THIS BUSINESS, AND THAT'S HAPPENING. WE ALSO HAVE A SITUATION WHERE THE REPUBLICANS ARE BEATING US IN ONE CATEGORY THAT I'M GLAD THEY ARE. THEY'RE OUT RETIRING US. RIGHT NOW THEY'RE RETIRING 2 TO 1 OVER DEMOCRATS IN THE LEGISLATURE. AND WE HAVE SOME ISSUES THAT ARE REALLY WORKING FOR US. THE HOG LOT ISSUE IS ONE. PEOPLE OUT THERE IN IOWA WANT SOMETHING DONE. THE REPUBLICANS WON'T DO ANYTHING. LAST YEAR WHEN WE HAD THE DEBATE OVER THE CLASS-SIZE ISSUE, DEMOCRATS TRIED TO PUT REAL MONEY, MORE MONEY THAT THAN WE GOT IN THAT, REPUBLICANS JUST KEPT ARGUING FOR THE BOTTOM AMOUNT. NOW WE HAVE SUPERINTENDANTS SAY WE NEED MORE THERE. PEOPLE WANT US TO FIX EDUCATION. THEY WANT THOSE TEST SCORES TURNED AROUND. REPUBLICANS AREN'T TAKING THE STEPS TO DO THAT. THERE ARE A SERIES OF ISSUES THAT PEOPLE WANT DEMOCRATS TO PROVIDE THE LEADERSHIP ON SO THAT WE SOLVE THEM --

Borg: BUT YOU HAVE TO HAVE THE CANDIDATES.

Schrader: THE CANDIDATES ARE THE MOST IMPORTANT, AND THE FACT IS, THE ENTHUSIASM THAT GOVERNOR VILSACK HAS BROUGHT TO THE TABLE... YOU KNOW, DEAN, I'VE DONE THIS FOR A WHILE, AND MY JOB HAS BEEN TO MEET THE NEW PEOPLE THAT ARE RUNNING, AND WE'VE ALWAYS HAD GOOD PEOPLE RUNNING. BUT SINCE GOVERNOR VILSACK HAS BEEN THE LEADER IN THIS STATE AND THE LEADER OF THE DEMOCRATIC PARTY, I'VE SEEN A NEW ENTHUSIASM THAT'S CAUSING SOME OF THE BEST PEOPLE THAT I'VE WORKED WITH FOR A LONG TIME TO STEP FORWARD.

Yepsen: WHAT IS IT NOW, SIX SEATS AND WE START CALLING YOU MR. SPEAKER?

Schrader: ACTUALLY, IT'S 56-44, SO I NEED SEVEN --

Yepsen: YOU NEED SEVEN SEATS TO GET THERE? ALL RIGHT. SENATOR GRONSTAL, HOW MANY DO YOU NEED BEFORE WE CALL YOU A MAJORITY LEADER?

Gronstal: I NEED SIX, AND THIS NEXT CYCLE THE REPUBLICANS ARE DEFENDING 17 SEATS. WE'RE DEFENDING 8, AND I'VE GOT TO AGREE WITH DAVE. WE HAVE DEMOCRATS, EXCITED, GOOD STRONG, CONFIDENT PEOPLE OUT THERE LOOKING FOR THE OPPORTUNITY TO COME DOWN HERE AND WORK WITH THIS NEW GOVERNOR AND SHAPE THE NEW FUTURE FOR THIS STATE. THEY'RE EXCITED ABOUT THAT OPPORTUNITY.

Yepsen: LET'S TALK ABOUT PRESIDENTIAL POLITICS. YOU GUYS HAVE A GORE-BRADLEY CONTEST IN YOUR PARTY. HAVE EITHER OF YOU ENDORSED IN THAT?

Schrader: I HAVE.

Yepsen: YOU'VE ENDORSED?

Schrader: I'VE BEEN SUPPORTING VICE PRESIDENT GORE FOR SOME TIME.

Gronstal: I HAVE NOT ENDORSED.

Yepsen: SENATOR GRONSTAL, START WITH YOU, GIVE ME YOUR HANDICAP. HOW'S THAT RACE LOOK TO YOU? HOW'S IT GOING TO TURN OUT?

Gronstal: I THINK IT'S A GREAT RACE. I THINK BOTH OF THEM -- BOTH OF THE CANDIDATES HAVE BECOME BETTER CANDIDATES BECAUSE OF THE CHALLENGE. SO I THINK IT'S BEEN A GREAT RACE, AND I THINK BOTH OF THEM WOULD MAKE GREAT PRESIDENTS. I'M EXCITED ABOUT THE EXCITEMENT IT CREATES IN THE CAUCUSES. IT'S CREATING NEW VOLUNTEERS FOR US. PEOPLE ARE GETTING INVOLVED. I THINK IT'S BEEN GOOD FOR THE PARTY TO HAVE A RACE.

Glover: REPRESENTATIVE SCHRADER, YOU'RE A GORE PERSON, IS THERE A POSSIBILITY OF A BRADLEY SURPRISE IN THIS STATE? EVERYBODY EXPECTS THE VICE PRESIDENT TO WIN. IS IT POSSIBLE THAT BRADLEY COULD PULL OFF A SURPRISE AND GET CLOSE TO HIM?

Schrader: WELL, I THINK THE BRADLEY SURPRISE HAS ALREADY HAPPENED. BILL BRADLEY WASN'T EXPECTED TO, EARLY ON, TO BE A CANDIDATE THAT EVEN ROSE IN THE POLLS. HE'S REACHED A POINT WHERE, I THINK, THE BRADLEY CAMPAIGN WILL STAY. BUT HE'S DONE A GREAT THING FOR OUR PARTY. THE REPUBLICANS ARE HAVING THIS BIG DEBATE WITH FIVE OR SIX CANDIDATES, SEVEN CANDIDATES. AND THE BIG DEBATE -- BILL BRADLEY HAS MADE THE DEMOCRATIC DEBATE, AND DEMOCRATIC ISSUES HAVE BECOME PART OF THE CAUCUS PROCESS. AL GORE'S GOING TO WIN THE NOMINATION IN IOWA AND THE NOMINATION NATIONALLY. I THINK HE'S GOING TO BE THE NEXT PRESIDENT. BUT BILL BRADLEY IS DOING A GREAT JOB OF HELPING US HAVE A DEMOCRATIC DEBATE.

Glover: SENATOR GRONSTAL, IF YOU NOMINATE, LET'S SAY HE'S WRONG, AND YOU NOMINATE BILL BRADLEY, IS HE TOO LIBERAL TO BE ELECTED?

Gronstal: I THINK BOTH OF THESE CANDIDATES ARE MAINSTREAM DEMOCRATS THAT ARE TALKING ABOUT THE THINGS THAT ARE IMPORTANT TO ORDINARY, WORKING-CLASS FAMILIES IN IOWA. THE MIDDLE CLASS, THAT'S WHO THEY'RE FOCUSING THEIR MESSAGE AT. I THINK EITHER ONE OF THEM CAN BE A GREAT PRESIDENT.

Yepsen: SO TALKING FOR ABOUT BEING FOR GAY RIGHTS AND TALKING ABOUT DEFENSE CUTS IS GOING TO WORK SOUTH OF THE MASON-DIXON LINE IN THE PRESIDENTIAL ELECTION?

Gronstal: UM --

Yepsen: MAYBE NOT.

Gronstal: IF YOU'RE TALKING ABOUT FIRING PEOPLE BECAUSE THEY HAPPEN TO BE GAY, YEAH, I THINK THAT WILL WORK. I DON'T THINK, IF THAT'S WHAT THE OTHER PARTY'S ABOUT IS FIRING PEOPLE BECAUSE THEY HAPPEN TO BE GAY, YEAH, I DO THINK THAT WILL WORK IN THE SOUTH.

Borg: THE PRESIDENTIAL RACE MAY HAVE BEEN ECLIPSING YOU FOR THE PAST FEW MONTHS HERE IN IOWA, BUT YOUR SUN IS RISING NOW, AND WE EXPECT TO BE HEARING MORE ABOUT YOU AS THE PRESIDENT, CANDIDATES MOVE ON TO NEW HAMPSHIRE, AND YOU CONVENE THE SESSION. THANKS FOR BEING WITH US TODAY.

Gronstal: THANKS FOR HAVING US.

Borg: ON OUR NEXT EDITION OF IOWA PRESS OUR TEAM OF REPORTERS WILL GATHER TO REFLECT ON THE BIG-NEWS EVENTS OF THE PAST YEARS. THE 1999 EDITION OF OUR ANNUAL HEADLINE REVIEW, AND WE'LL NOT ONLY BE LOOKING RETROSPECTIVELY BUT ALSO AT THE ISSUES LIKELY TO CREATE HEADLINES IN 2000. THAT'S NEXT SUNDAY AT NOON AND 7:00. AND WE CLOSE THIS WEEK'S EDITION OF IOWA PRESS WITH THE WARMEST OF HOLIDAY GREETINGS TO YOU AND YOUR FAMILY. FROM OUR CREW HERE ON IOWA PRESS AND THE ENTIRE STAFF AT IOWA PUBLIC TELEVISION - WE WISH YOU A HAPPY AND A VERY SAFE HOLIDAY SEASON. UNTIL NEXT WEEK THIS TIME, I'M DEAN BORG. THANKS FOR JOINING US TODAY.

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.