Iowa Public Television

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

STATEWIDE IOWA PUBLIC TELEVISION IS CELEBRATING THE 30TH ANNIVERSARY OF "IOWA PRESS," NOW SERVING THE STATE AS IOWA'S LONGEST RUNNING PUBLIC AFFAIRS PROGRAM. WITH THIS WEEK'S EDITION OF "IOWA PRESS," HERE IS DEAN BORG.

Borg: THURSDAY, NOVEMBER 8, IS THE DATE FOR A SPECIAL SESSION OF THE IOWA GENERAL ASSEMBLY. IOWA'S 150 ELECTED SENATORS AND REPRESENTATIVES RETURN TO THE STATE CAPITOL TO DEAL WITH RED INK, AND THE STATE'S BUDGET FOR THE CURRENT FISCAL YEAR. IN TODAY'S DEPRESSED ECONOMY, THERE ISN'T SUFFICIENT TAX REVENUE TO MEET PLANNED SPENDING. THE STATE IS EXPECTED TO FALL AT LEAST $150 MILLION, MAYBE AS MUCH AS $200 MILLION SHORT, AND SOME ARE CALLING FOR ACROSS-THE-BOARD CUTS IN THE STATE'S BUDGET. INDEED THAT IS WHAT GOVERNOR VILSACK HAS ORDERED UNTIL THE LEGISLATURE CONVENES TO CONSIDER WHETHER SOME AREAS OF GOVERNMENT OUGHT TO BE PROTECTED FROM THOSE BUDGET CUTS. THE SOLUTIONS TO THE CURRENT BUDGET CRUNCH ARE WRAPPED IN THE POLITICS OF THE NEARLY $5.5-BILLION TOTAL STATE BUDGET AND THE PHILOSOPHIES OF THE DEMOCRATIC GOVERNOR AND THE REPUBLICAN- CONTROLLED LEGISLATURE. HERE TO HELP US SORT THROUGH THE PARTICULARS: REPRESENTATIVE CHRISTOPHER RANTS, REPUBLICAN FROM SIOUX CITY... HE'S THE HOUSE REPUBLICAN'S MAJORITY LEADER; AND REPRESENTATIVE RICHARD MYERS FROM IOWA CITY... HE LEADS THE MINORITY DEMOCRATS. GENTLEMEN, PAINFUL SUBJECT.

GOOD MORNING.

GOOD MORNING.

Borg: WE'RE ANXIOUS TO SEE THE SOLUTIONS THAT YOU HAVE. THEY'LL BE QUESTIONED BY STATEHOUSE REPORTERS DAVID YEPSEN OF "THE DES MOINES REGISTER" AND MIKE GLOVER OF "THE ASSOCIATED PRESS."

Glover: REPRESENTATIVE RANTS, THERE HAVE BEEN DISCUSSIONS GOING ON FOR SOME TIME NOW BETWEEN LEGISLATORS AND THE GOVERNOR AND BETWEEN REPUBLICANS AND DEMOCRATS IN THE LEGISLATURE. BRING US UP TO SPEED. WHERE ARE THINGS?

Rants: I THINK THAT WE CAN -- DICK AND I BOTH TODAY CAN TALK WITH SOME ASSUREDNESS IN WHERE WE BELIEVE THE HOUSE OF REPRESENTATIVES IS IN THE AREA OF PUTTING OR RESTORING MONEY BACK TO THE STATE'S BUDGET. AS DEAN ALLUDED TO EARLIER, WE DO HAVE A SITUATION WHERE THE GOVERNOR HAS MADE A 4.3-PERCENT ACROSS-THE-BOARD REDUCTION. LEGISLATIVE LEADERS HAVE HAD CONVERSATIONS WITH THE CHIEF JUSTICE OF THE SUPREME COURT, AND HE'S WILLING TO AGREE WITH US THAT WE NEED TO MAKE A SIMILAR SIZED 4.3-PERCENT REDUCTION TO THE JUDICIAL BRANCH OF STATE GOVERNMENT. AND WE BELIEVE THAT WE NEED TO MAKE A SIMILAR SIZED REDUCTION, 4.3-PERCENT REDUCTION, TO THE LEGISLATIVE BRANCH OF GOVERNMENT. AND THAT BRINGS OUR TOTAL REDUCTION WHEN WE COME BACK TO ABOUT $209 MILLION. HOUSE REPUBLICANS HAVE BEEN TALKING WITH HOUSE DEMOCRATS AND WITH THE SENATE REPUBLICANS AS WELL TO PUT TOGETHER A PACKAGE TO RESTORE SOME FUNDING TO SOME PRIORITY AREAS, WHILE STILL MAINTAINING A CUSHION THAT SHOULD GUARD AGAINST ANY FUTURE DOWNTURN IN REVENUE OR UNEXPECTED MEDICAID EXPENSES. THE KEY AREAS THAT WE WOULD LIKE TO RESTORE DOLLARS TO WOULD BE THE K-THROUGH-12 EDUCATION CATEGORICAL FUNDS.

Yepsen: HOW MUCH?

Rants: $6.4 MILLION WE WOULD PUT BACK TO K-THROUGH-S12 CATEGORICAL FUNDS, SUCH AS THE TECHNOLOGY FUNDING, EARLY CHILDHOOD PROGRAMS. IT WOULD ALSO GIVE SCHOOL DISTRICTS SOME FLEXIBILITY SO THAT IF A SCHOOL SUPERINTENDENT NEEDS TO BUY GAS FOR A BUS INSTEAD OF A NEW LAPTOP COMPUTER, THEY WOULD HAVE THAT FLEXIBILITY. THE SECOND LARGEST AREA THAT WE THINK WE OUGHT TO RESTORE FUNDING TO IS THE MENTAL HEALTH PROPERTY TAX CREDITS. THAT'S THE FASTEST GROWING AREA FOR COUNTY GOVERNMENTS, AND WE'D LIKE TO MAINTAIN OUR COMMITMENT ON THAT.

Glover: HOW MUCH?

Rants: $4 MILLION. THE NEXT AREA WOULD BE PUBLIC SAFETY, PUBLIC DEFENSE.

Yepsen: WHICH IS $3 MILLION.

Rants: WHICH IS $3 MILLION FOR THAT, $3 MILLION AND SOME CHANGE. THE NEXT AREA IS OUR CORRECTIONS DEPARTMENT. WE DON'T WANT TO -- WE WANT TO MINIMIZE ANY RELEASE OF PRISONERS, AND SO WE WANT TO PUT ANOTHER $3 MILLION BACK TOWARD THAT, SPECIFICALLY TARGETED TOWARD CBCs, COMMUNITY BASED CORRECTIONS, AS WELL AS THE STATE PRISONS.

Glover: SO ABOUT $16 MILLION.

Rants: IT GOES UP A LITTLE HIGHER THAN THAT. WE HAVE SOME SMALLER LINE ITEMS. THE UNIVERSITY OF IOWA HAS A FACILITY THAT DOES ANTHRAX TESTING THAT WE BOTH FEEL STRONGLY ABOUT THAT WE OUGHT TO MAINTAIN THE FUNDING FOR THAT. THE STATE ALSO HAS SOME BOND PAYMENTS THAT WE HAVE TO MAKE GOOD ON. WE'VE GOT ABOUT HALF A MILLION DOLLARS IN ICN NETWORK BONDS THAT HAVE TO BE PAID. WE'VE GOT ABOUT $1.2 MILLION IN TUITION REPLACEMENT BONDS AT THE UNIVERSITIES THAT HAS TO BE PAID. THE STATE IS OBLIGATED FOR THAT. SO ALL TOLD, IT WILL BE ROUGHLY CLOSE TO $20 MILLION THAT WE THINK NEED TO BE RESTORED TO THOSE PRIORITY AREAS TO MAINTAIN THE STATE'S FISCAL INTEGRITY ON THOSE KINDS OF BOND PAYMENTS AND ALSO BACK PRIORITY AREAS.

Glover: REPRESENTATIVES MYERS?

Myers: YES.

Glover: IS IT CUMBAYA TIME? ARE WE SINGING THE SAME SONG HERE?

Myers: WELL, I LAID A PLAN WITH MY CAUCUS -- ON THE TABLE WITH MY CAUCUS LAST SATURDAY, AND THEN I WENT IN THIS WEEK. I'VE BEEN DISCUSSING THIS WITH REPUBLICAN LEADERS FOR SOME TIME, AND WE'VE BEEN WORKING TOGETHER TO TRY TO FIND A SOLUTION. WE AGREE BASICALLY ON THE GENERAL AMOUNT. WE'VE NEGOTIATED BACK AND FORTH ON SOME OF THE COMPONENTS, UP OR DOWN, HERE OR THERE. BUT I DO BELIEVE IT'S PRUDENT TO KEEP A CUSHION, AT THE SAME TIME TO TAKE CARE OF OUR PRIORITIES, SOME OF THE SAME PRIORITIES WE HAD IN THE LAST SESSION OF THE LEGISLATURE... EDUCATION AND PUBLIC SAFETY. WE WANT TO MAKE SURE THAT THE PEOPLE ARE SAFE AND THAT WE STILL KEEP A PRIORITY OF PROGRAMS GOING IN THE EDUCATION DEPARTMENT.

Glover: HOW CAN YOU SAY YOU'RE PROTECTING EDUCATION? EDUCATION -- K-12 EDUCATION IS GOING TO TAKE ABOUT AN $80-MILLION HIT IN THESE ACROSS-THE-BOARD CUTS.

Myers: 76 IN THE FOUNDATION AID.

Glover: AND YOU'RE GIVING THEM SIX MILLION BACK.

Myers: THAT'S RIGHT.

Glover: HOW ARE YOU PROTECTING EDUCATION?

Myers: WELL, AT THE SAME TIME EVERYBODY IN THE STATE IS TAKING A HIT. EVERYBODY IN THE STATE IS TAKING SOME REDUCTION. THAT'S WHAT THE ACROSS-THE-BOARD CUT DID. SO WHILE WE'RE SHARING IN THE PAIN, ALSO WE'RE ESTABLISHING SOME PRIORITIES THAT WE REALLY NEED TO CONTINUE. WE'D LIKE TO DO MORE; MAKE NO MISTAKE. BUT I ALSO BELIEVE THAT CUSHION SHOULD BE THERE, AND MAYBE WE'LL DO MORE IN THE FUTURE. I'M NOT SURE BUT THAT CUSHION NEEDS TO BE THERE.

Rants: THAT'S THE NEXT QUESTION. THERE WAS ONE AREA I FORGOT TO MENTION THAT'S FAIRLY SIGNIFICANT, AND THAT IS WE'D BE LOOKING TO PUT A MILLION DOLLARS BACK TOWARD COMMUNITY COLLEGES. COMMUNITY COLLEGES TOOK A FAIRLY SUBSTANTIAL REDUCTION THROUGH THE REGULAR SESSION ON TOP OF THE GOVERNOR'S 4.3. THEY'D BE LOSING ANOTHER 5. WE'D LIKE TO RESTORE ANOTHER MILLION DOLLARS TOWARD COMMUNITY COLLEGES.

Myers: THERE WAS ANOTHER 6, AS A MATTER OF FACT.

Yepsen: MR. RANTS, LET'S BACK UP A MINUTE. HOW BAD IS THE PROBLEM? WHAT SORT OF DEFICITS DO YOU THINK YOU FACE HERE?

Rants: WELL, THE LOSS IN REVENUE IS VERY SIGNIFICANT. WHAT WE'RE VERY CONCERNED ABOUT, EVEN AFTER WE RESTORE THIS FUNDING, WE'RE STILL LOOKING AT A REDUCTION OF ABOUT $201 MILLION IN STATE GOVERNMENT ACROSS ALL THREE BRANCHES OF GOVERNMENT. THE AREA THAT WE ARE VERY CONCERNED ABOUT AS WE MOVE FORWARD AND WHY WE HAVE TO BE CAUTIOUS ABOUT HOW MUCH MONEY WE RESTORE, IS WE KNOW THAT RIGHT NOW THE DEPARTMENT OF HUMAN SERVICES IS HEMORRHAGING MONEY. OUR MEDICAID PROGRAM IS RUNNING RIGHT NOW $20- TO $25 MILLION OVERBUDGET, AND WE'RE ONLY FOUR MONTHS INTO THE FISCAL YEAR. AS OTHERS HAVE POINTED OUT ALREADY, AT A TIME WHEN YOU HAVE ECONOMIC PROBLEMS, YOU WILL HAVE ADDITIONAL PEOPLE APPLYING FOR ASSISTANCE FROM THE DHS. SO WE HAVE TO KEEP A CUSHION THERE, AND WE HAVE TO GET THAT MEDICAID PROBLEM SOLVED. THAT'S PROBABLY NOT SOMETHING, IF YOU'RE TALKING ABOUT CHANGING THE WAY THEY OFFER SERVICES, ON MEDICAID IN PARTICULAR, PROBABLY NOT SOMETHING WE CAN COME TO AN AGREEMENT ON BY NOVEMBER 8, BUT SOMETHING WE'LL HAVE TO TACKLE IN JANUARY.

Yepsen: MEDICAID PAYS FOR HEALTH CARE FOR THE POOR. PRESUMABLY THOSE COSTS ARE GOING TO GO UP.

Rants: THAT'S CORRECT.

Myers: WE KNEW GOING INTO THE YEAR WE WERE UNDERFINANCED.

Yepsen: MR. MYERS, SAME QUESTION. HOW BAD DO YOU THINK THE PROBLEM IS?

Myers: WELL, FIRST OF ALL, THE EVENTS OF SEPTEMBER 11 HAVEN'T REALLY WASHED THROUGH THE IOWA ECONOMY YET, AND WE'RE CONCERNED ABOUT THAT. I THINK THE DECEMBER REVENUE ESTIMATING CONFERENCE WILL REFLECT PROBABLY SOME MORE PAIN. I HOPE NOT BUT, AT THE SAME TIME, WE'VE GOT TO BE PREPARED FOR THAT. THAT'S ONE OF THE REASONS WHY WE'RE NOT RESTORING ALL THIS MONEY, BECAUSE WE WANT TO PREPARE FOR THAT.

Yepsen: YOU HAD A PROBLEM EVEN BEFORE SEPTEMBER 11 --

Myers: THAT'S RIGHT.

Yepsen: -- THAT YOU DID NOT SEE COMING. NOW, YOU'VE GOT AN ECONOMIC FORECASTING COUNCIL, YOU'VE GOT A REVENUE ESTIMATING CONFERENCE, YOU'VE GOT A WHOLE LOT OF STATE EMPLOYEES WHO LOOK AT ECONOMICS AND ALL THAT, AND THEY BLEW IT. NOW, MR. RANTS, ARE YOU GOING TO BE DOING ANYTHING TO CHANGE THE WAY YOU ESTIMATE REVENUE SO THAT WE DON'T HAVE TO GO THROUGH THIS AGAIN?

Rants: A COUPLE OF THINGS THAT WE WANT TO PUT ON THE TABLE FOR CONSIDERATION ON NOVEMBER 8 IN ADDITION TO THE BUDGET CHANGES -- AND WE CAN TALK ABOUT DHS CHANGES AND EARLY RETIREMENT LATER IN THE SHOW IF YOU WANT TO --

Yepsen: I'M TALKING ABOUT THE ESTIMATES.

Rants: CORRECT. WE WANT TO MAKE SOME BUDGET REFORMS. ONE OF THE FIRST THINGS THAT WE OUGHT TO DO IS TO TAKE THE ACCRUAL PROCESS, DEPOLITICIZE IT, AND PUT IT UNDER THE REVENUE ESTIMATING COUNCIL. RIGHT NOW WE BASICALLY RELY ON NUMBERS FROM THE DEPARTMENT OF MANAGEMENT, AND THAT'S THE NUMBER THAT JUMPED FROM $11 MILLION TO $60-SOME MILLION AFTER THE FACT. WE THINK THAT'S SOMETHING THAT WE OUGHT TO HAVE THE REVENUE ESTIMATING COUNCIL ESTIMATE, AND WE'D BE BOUND BY THOSE NUMBERS JUST LIKE WE ARE ON THE REVENUE ESTIMATING NUMBER. THAT'S FIRST CHANGE WE THINK WE OUGHT TO MAKE. THE SECOND CHANGE WE OUGHT TO MAKE IS GOING INTO REVERSIONS. WE'VE TRIED IN THE PAST TO CHANGE THE WAY THAT THE GOVERNOR COUNTS REVERSIONS IN SETTING UP HIS BUDGET, THAT THOSE SHOULD BE SUBJECT TO THE 99 PERCENT. AND THE LAST AREA THAT WE WANT TO MAKE A CHANGE IN IS TO REASSERT -- AND THIS IS A DIFFERENCE BETWEEN EXECUTIVE BRANCH AND LEGISLATIVE BRANCH, DESPITE PARTIES -- IS THAT WE BELIEVE THAT WE NEED TO MAKE SURE THE LEGISLATURE HAS CONTROL IN APPROPRIATING MONEY FROM THOSE RESERVE FUNDS.

Yepsen: HE'S NOT GOING TO GO ALONG WITH TINKERING WITH HIS ITEM VETO.

Rants: THAT WASN'T WHAT I SAID, THOUGH. I'M TALKING SPECIFICALLY ABOUT WHO CAN APPROPRIATE MONEY FROM THOSE RESERVE FUNDS.

Yepsen: MR. MYERS, WHAT DO YOU THINK OF WHAT MR. RANTS JUST SAID?

Myers: FIRST OF ALL, I THINK WE NEED A TRUE GAAP SYSTEM. WE DON'T HAVE THAT.

Yepsen: GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

Myers: THAT'S RIGHT. WE HAVE A SYSTEM WITH A SORT OF A HYBRID, AND SO IT COULDN'T PREDICT SOME OF THE THINGS THAT WE SAW HAPPEN WITH THAT BIG DEFICIT. THERE'S A SYSTEMIC FAILURE HERE, AS WELL AS SOMEBODY'S JUDGMENT, SO I THINK WE NEED TO FIX THAT. THERE'S BEEN SOME SUGGESTIONS MADE TO US BY THE PEOPLE WHO DO THIS... THE DEPARTMENT OF REVENUE, THE DEPARTMENT OF MANAGEMENT, THE FISCAL BUREAU, AS WELL AS THE STATE AUDITOR. I THINK WE OUGHT TO SIT DOWN AND WORK THIS THROUGH AND TRY TO SOLVE THIS PROBLEM. I BELIEVE IT IS A MANAGEMENT PROBLEM.

Glover: THERE'S BEEN A LOT OF TALK HERE ABOUT AGREEMENTS BETWEEN REPUBLICANS AND DEMOCRATS IN THE LEGISLATURE ABOUT WHAT YOU'RE GOING TO PUT BACK. IS THIS AGREEMENT WITH THE GOVERNOR, AS WELL?

Rants: WE HAVE GIVEN THE INFORMATION TO THE GOVERNOR'S OFFICE. I HOPE TO HEAR BACK FROM HIM THE FIRST OF NEXT WEEK.

Borg: MR. RANTS, YOU'VE TALKED ABOUT A CUSHION. MY QUESTION IS: IS WHAT YOU'RE DOING NOW REALLY JUST A WARMUP FOR THE REAL PAIN THAT'S AHEAD? THAT IS, IS THERE ANY IDEA OR INDICATION THINGS ARE GOING TO GET BETTER SOON?

Rants: I'M NOT ANTICIPATING THAT IT'S GOING TO GET BETTER SOON. ONE OF THE REASONS WE WANT TO KEEP A CUSHION IS IN CASE THE DECEMBER REVENUE ESTIMATING CONFERENCE LOWERS OUR REVENUE ESTIMATE FOR THE BUDGET YEAR THAT WE'RE IN THE MIDDLE OF. BUT YOU'RE RIGHT WHEN YOU SAY THAT IT IS A WARMUP, BECAUSE WE WILL BEGIN WORK ON THE FISCAL YEAR '03 BUDGET WHEN WE BEGIN IN JANUARY. WE WILL BE STARTING WITH A LOWER REVENUE ESTIMATE. WE WILL HAVE SEVERAL HOLES TO FILL FROM THIS LAST FISCAL YEAR. AND OF COURSE, THE LEGISLATURE HAS BORROWED SOME MONEY IN THE PAST TO FUND SOME PROGRAMS. FOR INSTANCE: THE TEACHER COMPENSATION PLAN WE'VE AGREED WE HAVE TO BACK; WHEN THE GOVERNOR TOOK THE $60 MILLION OUT OF THE RESERVE FUNDS. AT SOME POINT AND TIME THAT HAS TO BE PAID BACK, SO WE'LL HAVE SOME DIFFICULT DECISIONS TO MAKE ON THAT. YOU'RE LOOKING AT, DEPENDING ON WHICH NUMBERS YOU WANT TO USE, ANYWHERE FROM A $250- TO $350-MILLION HOLE IN THE COMING YEAR'S BUDGET THAT WE'RE GOING TO HAVE TO FILL IN SOME FASHION OR IN MAKING CORRESPONDING REDUCTIONS.

Borg: MR. MYERS, GIVEN THAT, WHERE ARE THE LIKELY PLACES THAT YOU'RE GOING TO HAVE TO STREAMLINE THIS STATE IN ORDER TO CUT THAT MUCH OUT OF FUTURE BUDGETS?

Myers: ONE OF THE THINGS THAT THE GOVERNOR HAS BEEN DOING IS LOOKING AT RESTRUCTURING SOME DEPARTMENTS AND TRYING TO FIND SOME SAVINGS THERE.

Borg: WHERE WOULD YOU SAY?

Myers: WE'RE GOING TO SEE THAT IN THE DEPARTMENT OF HUMAN SERVICES. I THINK WE'RE GOING TO SEE IT IN HOW SERVICES ARE DELIVERED. I'M REALLY WORRIED ABOUT WHAT WE'RE GOING TO DO WITH THE SCHOOL FOUNDATION FORMULA IN THE NEXT SESSION. I WANT TO KEEP THAT ALLOWABLE GROWTH FORMULA INTACT. I THINK THAT'S IMPORTANT. THAT WILL BE A PRIORITY FOR DEMOCRATS, I CAN TELL YOU THAT.

Yepsen: CAN'T SCHOOLS BE MADE MORE EFFICIENT, MR. MYERS?

Myers: I THINK THERE ARE SOME AREAS, YES. BUT AT THE SAME TIME, WE -- WE'VE GOT SOME SERIOUS PROBLEMS HERE IN TRYING TO KEEP TEACHERS IN THE STATE AS WELL. SO EDUCATION IS A PRIORITY FOR THE STATE OF IOWA. EDUCATION IS A PRIORITY FOR DEMOCRATS IN THE STATE LEGISLATURE.

Glover: REPRESENTATIVE RANTS, WE ARE IN A PARTISAN LEGISLATIVE ENVIRONMENT.

Rants: I THOUGHT THIS WAS A BIPARTISAN EFFORT HERE TODAY.[ LAUGHTER ]

Glover: AT THE BOTTOM LINE, WHAT DO REPUBLICANS NEED OUT OF THIS SPECIAL SESSION?

Rants: WE WANT TO MAKE SURE WE'VE GOT A -- PUT THE FINALITY TO THE '02 BUDGET AND THAT WE LEAVE THAT SPECIAL SESSION WITH A CUSHION THAT WOULD COVER A MEDICAID SHORTFALL; WOULD COVER A REDUCTION IN THE REVENUE ESTIMATING CONFERENCES, SHOULD THAT COME TO PASS; WE WANT TO SEE SOME BUDGET REFORMS BE PUT INTO PLACE. THOSE ARE THE THINGS REPUBLICANS NEED TO HAVE COMING OUT OF THE SPECIAL SESSION.

Glover: REPRESENTATIVE MYERS, WHAT DO DEMOCRATS NEED?

Myers: SOLVE '02'S PROBLEMS SO WE CAN HEAD INTO THE YEAR WITH A CLEAN SLATE. AT THE SAME TIME, DON'T PUT US IN THE HOLE WHERE WE HAVE PROBLEMS THAT CARRY OVER INTO THE NEXT YEAR.

Yepsen: MR. MYERS, WHAT ABOUT RAISING TAXES?

Myers: WELL, I DON'T BELIEVE THAT TAX INCREASES ARE ON THE RADAR SCREEN RIGHT NOW AT ALL. I THINK IT'S VERY DIFFICULT TO DISCUSS THAT WHEN WE'VE GOT AN ECONOMY WHERE PEOPLE ARE LOSING JOBS AND INCOME IS FALLING IN SOME AREAS. I DON'T BELIEVE THAT WE NEED TO DISCUSS TAX INCREASES AT THIS TIME.

Yepsen: MR. RANTS, WHY NOT RAISE TAXES?

Rants: ABSOLUTELY NOT.

Yepsen: WHY NOT?

Rants: ABSOLUTELY NOT BECAUSE THIS IS THE LAST THING THAT WE OUGHT TO BE DOING, DAVID. AS DICK POINTED OUT, WHEN THE ECONOMY IS DROPPING, WE WANT TO KEEP IOWANS HAVING AS MUCH MONEY IN THEIR POCKET TO KEEP THE ECONOMY GOING. THIS IS THE LAST TIME THAT WE OUGHT TO BE TAKING MORE MONEY OUT OF THE HANDS OF IOWANS AND PUTTING IT INTO THE GOVERNMENT'S POCKET.

Yepsen: MR. RANTS, THIS CONVERSATION CAN ALWAYS BE CONFUSING FOR ALL OF US BECAUSE WE'RE REALLY DEALING WITH THREE FISCAL YEARS. FISCAL YEAR '01, WHERE YOU HAD TO TAKE MONEY FROM THE EMERGENCY FUND TO PAY OFF A DEFICIT. YOU'RE IN THE MIDDLE OF FISCAL '02 RIGHT NOW, TRYING TO MAKE CUTS IN THIS SPECIAL SESSION, AND THEN YOU COME BACK IN JANUARY AND DEAL WITH FISCAL '03. IT GETS AWFULLY CONFUSING. MR. RANTS, WHAT ABOUT THAT MONEY THAT WAS TAKEN FROM THE EMERGENCY FUND TO COVER A DEFICIT IN '01? WILL YOU REPAY THAT?

Rants: THAT MONEY IS GOING TO HAVE TO BE REPAID.

Yepsen: WHEN?

Rants: IT SAYS SPECIFICALLY IN THE STATUTE THAT IT WILL BE REPAID, THOSE RESERVE FUNDS WILL FILL UP. I BELIEVE THAT WE'LL START REPAYING IT IN THE COMING FISCAL YEAR. THAT WILL PROBABLY BE A BONE OF CONTENTION WITH THE CHIEF EXECUTIVE, GOVERNOR VILSACK, OVER THAT ISSUE. BUT WE NEED TO START FILLING THAT MONEY BACK UP. THE REASON WHY THAT'S IMPORTANT IS WE USED THAT MONEY TO CASH-FLOW. A LOT OF IOWANS DON'T UNDERSTAND. THERE SEEMS TO BE A LOT OF CONFUSION OVER OUR RESERVE FUNDS. THE REALITY IS WE USE THOSE RESERVE FUNDS EVERY DAY. WE USE THOSE RESERVE FUNDS TO PAY SCHOOL DISTRICTS ON TIME, TO PAY STATE EMPLOYEES, TO PAY COMMUNITY COLLEGES. WHEN PEOPLE SAY "WHY DON'T YOU USE THOSE RESERVE FUNDS IN THIS TIME OF ECONOMIC CRISIS," THE ANSWER IS WE ARE.

Yepsen: AND NOW YOU'RE HAVING TO BORROW MONEY TOO.

Rants: THAT'S RIGHT. AND IF WE WEREN'T, THE SCHOOL DISTRICTS WOULD BE SHORT.

Yepsen: MR. MYERS, DO DEMOCRATS WANT TO PAY THIS BACK? AND IF SO, WHEN?

Myers: CLEARLY, WE WANT THE SYSTEM TO WORK. AFTER ALL, WE WERE THE PARTY, I BELIEVE, THAT HELPED PUT THE SYSTEM IN PLACE WHEN WE WERE IN CHARGE OF THE LEGISLATURE. BUT AT THE SAME TIME, I LIKE TO HAVE A LITTLE BALANCE INVOLVED IN THIS THING. YOU KNOW, ONE PERCENT OF THE BUDGET RIGHT NOW IS ABOUT $50 MILLION. THAT'S AN ASSET IN THE BUDGET BECAUSE THAT'S MONEY THAT CANNOT BE SPENT. AND THEREFORE, THAT MONEY COMES IN EVERY YEAR AS LONG AS OUR BUDGET STAYS AT ABOUT THE SAME LEVEL. I THINK WE NEED TO HAVE SOME BALANCE. MAKE SURE THAT WE FUND OUR PRIORITIES. THERE IS A USE FOR THAT ECONOMIC EMERGENCY FUND, OR SO-CALLED RAINY-DAY FUND, WHATEVER YOU WANT TO CALL THOSE TWO THINGS. I MEAN, IF IT ISN'T RAINING ECONOMICALLY NOW, IF IT ISN'T RAINING ON OUR STATE GOVERNMENT RIGHT NOW, I'D LIKE TO KNOW WHEN IT IS. SOME OF THESE THINGS ARE EMERGENCIES. SOME OF OUR CIVIL DEFENSE PROBLEMS COULD BE EMERGENCIES, SO WE WANT TO KEEP THEM FULL BUT, AT THE SAME TIME, LET'S BE SURE WE FUND OUR PRIORITIES.

Glover: REPRESENTATIVE RANTS, EVERY DAY IT SEEMS WE GET UP AND SOMEBODY ELSE HAS ANOTHER BRIGHT IDEA ABOUT WHAT THE LEGISLATURE OUGHT TO DO IN THIS SPECIAL SESSION. WHAT IS THIS LEGISLATIVE SESSION GOING TO INCLUDE? WHAT'S THE SCOPE OF THE SPECIAL SESSION?

Rants: THIS SPECIAL SESSION WILL PROBABLY BE FOUR ITEMS. IT WILL BE A RE-APPROPRIATION BILL. IT WILL BE A RESTRUCTURING IN THE DEPARTMENT OF HUMAN SERVICES. IT WILL BE A BUDGET REFORM PACKAGE, LANGUAGED SPECIFICALLY ON THE 99-PERCENT EXPENDITURE LIMITATION LAW SO WE DON'T GET BACK INTO THE SAME POSITION WE FOUND OURSELVES IN. AND LASTLY, GIVEN THE FACT THAT APPARENTLY THE AFSCME UNION HAS AGREED WITH DELAYING THEIR PAY RAISES, THERE WILL IN ALL LIKELIHOOD BE SOME SORT OF EARLY RETIREMENT PACKAGE. THE DETAILS HAVE TO BE AGREED UPON.

Glover: REPRESENTATIVE MYERS?

Myers: I AGREE THAT WITH AGENDA. AND I THINK IT OUGHT TO BE AN AGENDA THAT DEALS SPECIFICALLY WITH ISSUES IN FRONT OF US RIGHT NOW THAT WE CAN AGREE TO, BECAUSE WE'RE NOT GOING TO SPEND A LOT OF TIME DEBATING IT. WE CAN SAVE SOME OF THE MONEY CONTENTIOUS ISSUES FOR THE REGULAR SESSION IN JANUARY.

Glover: SUCH AS?

Myers: WELL, SUCH AS THE SCHOOL FOUNDATION FORMULA, SUCH AS NEXT YEAR'S BUDGET. LET'S CLEAN UP THE MESSES WE HAVE RIGHT NOW.

Yepsen: FOCUS ON THAT QUESTION FOR A MINUTE, MR. RANTS. WHAT'S OFF THE TABLE?

Rants: EVERYTHING ELSE. THOSE ARE THE FOUR AREAS THAT I WANTED TO SEE ADDRESSED. IDEALLY WE WILL HAVE AN AGREEMENT. WE WILL HAVE AN AGREEMENT AHEAD OF TIME. WE'RE A LONG WAYS TOWARD THAT WITH TODAY'S ANNOUNCEMENT, AND EVERYTHING ELSE CAN WAIT UNTIL JANUARY. WE NEED TO CLOSE THE BOOKS ON '02, SO WE WILL HAVE PLENTY OF THINGS TO ARGUE ABOUT AND HAVE THE PARTISAN BICKERING OVER WHEN WE RETURN IN JANUARY.

Yepsen: MR. MYERS, I DIDN'T HEAR YOU SAY WHEN DEMOCRATS WANTED TO REPAY THE EMERGENCY FUND?

Myers: WELL, I THINK, AGAIN, I'M GOING TO STICK TO OUR PRIORITIES.

Yepsen: I JUST WANT TO KNOW WHEN YOU WANT TO REPAY IT.

Myers: I WANT TO REPAY IT AS SOON AS POSSIBLE, LET'S PUT IT THAT WAY. I KNOW IT'S IMPORTANT TO THE BALANCE OF THIS STATE. I THINK IT'S IMPORTANT TO THINGS LIKE OUR BOND RATINGS AND EVERYTHING ELSE, ABOUT THE CONFIDENCE THAT PEOPLE HAVE IN OUR STATE. I THINK IT GIVES US ABOUT TWO YEARS TO ACTUALLY DO THAT, IF I'M NOT MISTAKEN.

Glover: REPRESENTATIVE RANTS, AS YOU MENTIONED, THERE IS AN AGREEMENT BETWEEN THE STATE AND THE UNION REPRESENTATIVE STATE WORKERS TO DELAY SOME PAY INCREASES AND TO DO SOME EARLY RETIREMENT INCENTIVES. I ASSUME THAT WILL SAIL FAIRLY EASILY IN THE LEGISLATURE. IS THERE A BROAD AGREEMENT THAT SHOULD BE DONE?

Rants: IN CONCEPT, YES. TO BE HONEST, MIKE, WE HAVEN'T GOTTEN THE DETAILS YET FROM THE GOVERNOR'S OFFICE. WE'VE HAD A COUPLE CONVERSATIONS ABOUT IT, BUT WE'RE ACTUALLY ASKING FOR SOME RUNS FROM THE NONPARTISAN LEGISLATIVE FISCAL BUREAU. WHETHER OR NOT IT MAKES SENSE DEPENDS UPON WHAT YOU BELIEVE WILL BE PROJECTED IN ACTUAL RETIREES, HOW MANY PEOPLE WILL TAKE ADVANTAGE OF IT, HOW MANY OF THOSE POSITIONS WILL BE REPLACED OR WILL THE EXECUTIVE BRANCH ACTUALLY KEEP THOSE VACATED POSITIONS OPEN, THAT'S WHERE YOU GET YOUR SAVINGS. AND WE'RE WAITING FOR SOME ESTIMATES TO COME IN ON WHAT PERCENTAGE OF PEOPLE WILL BE TAKING ADVANTAGE OF IT.

Glover: REPRESENTATIVE MYERS, WILL THAT PASS EASILY?

Myers: YES, I THINK IT WILL PASS, AND I LOOK FORWARD TO DEALING WITH THE GOVERNOR ON THIS. BUT AT THE SAME TIME, WE DON'T HAVE ALL THE DETAILS YET.

Yepsen: MR. RANTS, IS THIS JUST A ONE-DAY SESSION?

Rants: ONE-DAY SESSION.

Yepsen: SO I CAN DO SOME OTHER THINGS ON NOVEMBER 9?

Rants: YOU CAN MAKE OTHER PLANS.

Myers: I BELIEVE IT SHOULD BE A ONE-DAY SESSION. WE'VE GOT TO CLEAN UP FY '02, AND TO ME, THAT'S THE ONLY REAL THING HERE.

Glover: REPRESENTATIVE RANTS, THERE'S BEEN A LOT OF CONTENTION BETWEEN REPUBLICANS AND THE GOVERNOR OVER THE PAST FEW MONTHS ABOUT STATE SPENDING. THERE'S BEEN SOME TALK ABOUT LAWSUITS. ARE YOU GOING TO SUE THE GOVERNOR?

Rants: WELL, IF THE GOVERNOR CAN AGREE TO THE CHANGES WE WANT LIKE TO MAKE TO CLARIFY CHAPTER EIGHT OF THE CODE THAT GOES TO WHO CAN SPEND MONEY OUT OF THOSE RESERVE FUNDS, THERE SHOULDN'T NEED TO BE A LAWSUIT.

Glover: YOU KNOW HE'S NOT GOING TO AGREE TO THAT.

Rants: I DON'T KNOW THAT HE'S NOT GOING TO AGREE TO THAT, MIKE. WE'VE HAD A COUPLE CONVERSATIONS WITH HIM. WE'RE IN THE PROCESS OF TRYING TO EDUCATE HIM WHY WE BELIEVE IT'S IMPORTANT. IT HAS NOTHING TO DO WITH WHO HAS CONTROL OF THE LEGISLATURE OR THE GOVERNORSHIP RIGHT NOW, BUT YOU NEED TO SET IN PLACE AND IRON OUT THE DIFFERENCES BETWEEN THE LEGISLATIVE BRANCH AND THE EXECUTIVE BRANCH. SO WHO HAS POWER OF THE PURSE. AND THE CONSTITUTION SAYS THAT THE LEGISLATURE DOES, AND WE NEED TO MAKE SURE THAT IS CLEAR AND THAT HE AGREES TO THAT.

Glover: REPRESENTATIVE MYERS, IS THIS JUST A REPUBLICAN/DEMOCRATIC POWER STRUGGLE?

Myers: I DON'T KNOW ABOUT THAT BUT I THINK THAT IDEA OF A LAWSUIT OF ONE BRANCH OF THE GOVERNMENT SUING ANOTHER IS NUTS. AND I'M SERIOUS ABOUT THAT. WE HAVE A PROCESS FOR DEALING WITH IT; IT'S CALLED DEMOCRACY. WE NEED TO GET TO THE TABLE AND IRON OUT OUR DIFFERENCES AND GET THE VOTES TO PASS THE PROGRAM, IF THAT'S WHAT THE MAJORITY PARTY WOULD LIKE TO DO. WORK WITH THE GOVERNOR TO SOLVE THIS PROBLEM AND ALSO WORK WITH THOSE FOUR INDIVIDUALS THAT I MENTIONED EARLIER: THE DEPARTMENT OF REVENUE, THE DEPARTMENT OF MANAGEMENT, AND THE AUDITOR OF STATE. LET'S WORK WITH THOSE FOLKS AND THE FISCAL BUREAU. THEY HAVE A PLAN AND I THINK -- I'VE READ THEIR PLAN. IT SOUNDS LIKE IT'S SOMETHING WE CAN COME TO THE TABLE AND AGREE ON. BUT LAWSUITS, FRANKLY, I THINK THAT'S AN OVERREACTION.

Borg: MR. RANTS, YOU BOTH HAVE BEEN FAIRLY EMPHATIC ABOUT THE FACT OF NO NEW TAXES AT THIS TIME. BUT THE FLIP SIDE OF THAT IS WHAT ABOUT ADDITIONAL SPENDING IN ORDER TO STIMULATE THE ECONOMY?

Rants: THE REALITY IS, DEAN, WE'RE NOT GOING TO HAVE A LOT OF ADDITIONAL DOLLARS TO SPEND. TO FUND THE PRIORITIES WE WANT IN THE COMING YEAR, WHETHER IT BE EDUCATION, OTHER AREAS OF THE BUDGET, WE'RE GOING TO HAVE TO CANNIBALIZE AND STREAMLINE SOME PROGRAMS. SOME OF THE THINGS WE'RE GOING TO HAVE TO DO IS TO REORGANIZE GOVERNMENT. AS I SAID EARLIER, ON THE SPECIAL SESSION, ONE OF THE THINGS WE'RE GOING TO HAVE TO DO TO CONTINUE TO FUND HUMAN SERVICE PROGRAMS THAT WE'D LIKE TO FUND IS GOING TO BE RESTRUCTURING THE DEPARTMENT TO ELIMINATE THOSE LEVELS OF MIDDLE MANAGEMENT. IT'S A LITTLE INTERESTING TODAY. THE GOVERNOR UNVEILED A PROPOSAL YESTERDAY THAT WHEN THE REPUBLICANS UNVEILED -- OR TRIED TO PASS SOMETHING VERY SIMILAR DURING THE LEGISLATIVE SESSION, WE WERE TOLD THAT WE WERE PUTTING CHILDREN AT RISK AND IT WASN'T DOABLE. WELL, TODAY IT'S DOABLE AND IT'S BECAUSE OF FINANCIAL CONSTRAINTS, SO WE NEED TO MAKE SOME CHANGES LIKE THAT. I THINK WE'RE GOING TO SEE THE COURTS HAVE TO LAY SOMETHING ON THE TABLE, TO REORGANIZE THE COURT SYSTEM SO THAT THEY CAN CONTINUE TO FUND OR CONTINUE TO OPERATE WHERE THEY NEED TO, BUT THEY'RE GOING TO HAVE TO FIND SOME SAVINGS WITHIN.

Borg: BUT WHAT ABOUT BONDING, SUCH AS IN "VISION IOWA," BORROWING SOME MONEY IN ORDER STIMULATE THE ECONOMY?

Rants: I DON'T FORESEE THAT AT THIS TIME.

Yepsen: WHAT ABOUT A VENTURE CAPITAL SYSTEM? WHEN OHIO CUT ITS BUDGET, THEY PUT A STIMULUS PACKAGE WITH THIS TO GET THE ECONOMY GOING SO YOU HAVE SOME MORE TAX REVENUE.

Rants: DAVID, THAT WILL BE VERY IMPORTANT FOR US TO DO. WE NEED TO MAKE SURE THAT WE WEATHER THIS STORM OKAY. BUT WE NEED TO PUT SOME SOMETHING IN PLACE TO MAKE SURE THAT WHEN THE NATIONAL ECONOMY STARTS TO RECOVER THAT WE PARTICIPATE IN THE RECOVERY. USUALLY WE LAG BEHIND IN BOTH GOING INTO A RECESSION AND COMING OUT OF IT. WE HAVE TO DO SOME THINGS TO MAKE SURE THAT WE'RE OKAY IN THE RECOVERY.

Yepsen: MR. MYERS, I WANT TO GO BACK TO DEAN'S QUESTION. WHAT DO DEMOCRATS WANT TO DO TO STIMULATE THE IOWA ECONOMY?

Myers: LIVE WITHIN OR MEANS, FIRST OF ALL. BUT I'M ALSO SUPPORTING THE IDEA OF A VENTURE CAPITAL FUND. I BELIEVE WE NEED TO INVEST IN OURSELVES IN THE FUTURE, AND WE'VE BEEN TRYING TO DO THIS FOR SEVERAL YEARS. WE REALLY HAVEN'T GOT A GRASP ON JUST WHAT IT TOOK TO DO IT. THERE ARE SOME NEW PLANS THAT ARE GOING TO BE PROPOSED IN THIS SESSION OF THE LEGISLATURE THAT DEAL WITH VENTURE CAPITAL, AND SO FAR I THINK IT'S A GOOD IDEA. IT'S SOMETHING WE'VE BEEN LAGGING BEHIND AS FAR AS GETTING MONEY TO INVEST IN THIS STATE. BUT LET'S LIVE WITHIN OUR MEANS AS FAR AS NEW PROGRAMS ARE CONCERNED. LET'S SOLVE OUR PROBLEMS UNTIL THIS ECONOMY STARTS TO TURN AROUND. NOT ONLY DO WE NOT NEED TAX CUTS -- OR TAX INCREASES, WE DO NOT NEED TAX CUTS AT THIS TIME. WE NEED TO LIVE WITHIN OUR MEANS.

Glover: REPRESENTATIVE MYERS, AS REPRESENTATIVE RANTS MENTIONED, THE GOVERNOR HAS PROPOSED SOME PRETTY SIGNIFICANT CHANGES IN THE DEPARTMENT OF HUMAN SERVICES, A FAVORED AGENCY BY DEMOCRATS. WHAT'S THE RESPONSE AMONG DEMOCRATS IN THOSE CUTBACKS TO DHS?

Myers: WELL, RIGHT NOW I HAVEN'T HAD A CHANCE TO GAUGE WHAT THE RESPONSE HAS BEEN. WE GENERALLY SUPPORTED THE DHS, AS YOU SAY. BUT ALSO, A LOT OF THOSE RESPONSIBILITIES ARE ADMINISTRATIVELY GOING TO BE TRANSFERRED TO OTHER AGENCIES BECAUSE THEY'RE BETTER EQUIPPED, ACCORDING TO THE GOVERNOR, TO DEAL WITH THEM.

Glover: SO YOU'RE DEALING WITH ABOUT 170 PEOPLE OVER THERE.

Myers: THAT'S RIGHT. SOME OF THAT WILL BE LOST THROUGH ATTRITION, SOME THROUGH LAYOFF.

Glover: WHAT DO YOU THINK ABOUT THAT?

Myers: WELL, I DO THINK THAT RESTRUCTURING GOVERNMENT IS A GOOD IDEA, AND SO I'M GOING TO SUPPORT WHAT THE GOVERNOR IS DOING. I HAVEN'T SEEN ALL THE DETAILS YET. WE MAY TINKER WITH IT. BUT AT THE SAME TIME, I NOTE THAT HE'S WORKING WITH THE PEOPLE WHO WORK THERE.

Glover: WHAT DO YOUR GOOD LIBERAL FRIENDS IN IOWA CITY SAY ABOUT THAT?

Myers: WE WANT TO DELIVER SERVICES TO PEOPLE. I'LL TELL YOU WHAT WE DO WANT, AND I'LL TELL YOU WHAT DEMOCRATS DO WANT. WE WANT FRONT-LINE PEOPLE BEING ABLE TO DELIVER THESE SERVICES. WE WANT TO DO SOMETHING ABOUT CASELOADS. AND IF THAT MEANS DEALING WITH THINGS IN DES MOINES VERSUS DEALING IN FRONT-LINE SERVICES, I'M GOING TO TAKE FRONT-LINE SERVICES EVERY TIME.

Glover: REPRESENTATIVE RANTS, I ASSUME YOUR GOOD CONSERVATIVE FRIENDS IN SIOUX CITY ARE FINE WITH THIS.

Rants: WE'RE FINE WITH THIS. AGAIN, THIS WAS SOMETHING THAT WE HAVE TALKED ABOUT FOR YEARS, THAT WE'VE NEVER BEEN ABLE TO GET THE GOVERNOR TO GO ALONG WITH IT. WE'RE HAPPY THAT HE IS. WE HAVE A BROAD AGREEMENT WITH THE CONCEPT, BUT WE HAVE A FEW DETAILS WE NEED TO WORK OUT.

Myers: I WANT TO CORRECT ONE THING ABOUT IT. THE GOVERNOR DIDN'T JUST START WORKING THIS BECAUSE OF THE FISCAL PROBLEM. HE'S BEEN WORKING ON THIS FOR SOME TIME, RESTRUCTURING OF GOVERNMENT, BECAUSE HE KNEW IT HAD TO BE DONE.

Yepsen: MR. RANTS, I WANT TO GO BACK TO THIS $20-MILLION FIGURE OF BACKFILL THAT YOU'RE GOING TO PUT IN THE BUDGET. THE NATIONAL GUARD HAS SAID IT COULD USE SOME MORE MONEY WITH ANTHRAX PROBLEMS. WILL THERE BE MONEY FOR THE NATIONAL GUARD IN THIS BACKFILL?

Rants: WE WILL -- IN THE BACKFILL, WE WILL RESTORE THE FUNDING THAT WAS PREVIOUSLY AUTHORIZED FOR PUBLIC SAFETY AND PUBLIC DEFENSE, THE NATIONAL GUARD. AND AGAIN, WE ARE PUTTING SOME MONEY BACK TO THE HYGIENICS LABORATORY IN IOWA CITY TO MAKE SURE THAT IS FULLY FUNDED, BECAUSE THAT'S THE PLACE THAT THEY DO ANTHRAX TESTING, SHOULD IT NEED TO BE DONE.

Yepsen: WE'RE ABOUT OUT OF TIME, BUT WHAT ABOUT ANTITERRORISM MEASURES GENERALLY? WILL THERE BE A PACKAGE IN THIS SPECIAL SESSION OR NEXT YEAR TO DEAL WITH THAT?

Myers: NOT IN THE SPECIAL SESSION.

Rants: NOT IN THE SPECIAL SESSION.

Glover: ALSO, PROBABLY NOT IN THE SPECIAL SESSION, BUT PROBABLY COMING UP IN A REGULAR LEGISLATIVE SESSION, ELLEN GORDON, WHO HAS BEEN NAMED AS DIRECTOR OF HOMELAND SECURITY, HAS SUGGESTED THAT BECAUSE OF SECURITY MEASURES, THE STATE'S OPEN RECORDS LAWS MAY NEED TO BE REVISITED AND TIGHTENED TO CLOSE PUBLIC ACCESS TO SOME RECORDS. WHAT'S YOUR GENERAL VIEW OF THAT?

Rants: SPECIFICALLY WHAT SHE HAS RECOMMENDED IS WE CLOSE PUBLIC -- CLOSE THE LOOPHOLE SO THAT IF SHE COMPILES A LIST OF POTENTIAL TERRORIST SITES, SORT OF A TARGET LIST FOR TERRORISTS, THAT WE NOT PUBLISH THAT IN THE NEWSPAPERS AND ON TELEVISION. I SUPPORT HER IN THAT EFFORT. I DON'T THINK IT MAKES A LOT OF SENSE TO HAVE A LIST OF POTENTIAL TARGETS AVAILABLE.

Glover: REPRESENTATIVE MYERS, IS IT YOUR VIEW THAT YOU CAN NARROWLY TIGHTEN THE LAW LIKE THAT, OR DO YOU HAVE TO DO A BROAD TIGHTENING OF THE LAW?

Myers: NO, I THINK YOU CAN NARROWLY DO IT. AND I -- YOU KNOW, I DON'T WANT TO TELL THE PERSON WHO IS MY ADVERSARY PRECISELY WHAT I'M GOING TO DO WHEN IT THREATENS MY PUBLIC SAFETY.

Yepsen: MR. RANTS, IS FISCAL DISCIPLINE LOST? YOU HAD A DEFICIT IN '01. YOU'RE HAVING TO COME BACK NOW TO CUT '02. WHERE'S THE FISCAL DISCIPLINE?

Rants: I THINK WE'VE EXERCISED A GOOD DEAL OF FISCAL DISCIPLINE, PARTICULARLY IN THE HOUSE REPUBLICANS.

Yepsen: YEAH, THAT'S WHY YOU'RE HAVING THIS SPECIAL SESSION.

Rants: WELL, YOU KNOW, SOME OF THIS COULD HAVE BEEN AVOIDED IN THE PAST. WE WISH THAT WE WOULDN'T BE IN A DEFICIT SITUATION THIS LAST FISCAL YEAR. WE WISH THE GOVERNOR WOULD HAVE GONE ALONG WITH SOME OF OUR DEAPPROPRIATIONS. SOME OF THAT COULD HAVE BEEN AVOIDED. BUT THE REALITY IS WE HAVE BEEN -- THE REPUBLICANS IN THE HOUSE AND THE SENATE HAVE BEEN THE PARTY TRYING TO EXERCISE FISCAL DISCIPLINE. AS YOU RECALL, EVERY TIME THE GOVERNOR SIGNED ONE OF THE LAST APPROPRIATIONS BILLS, HE CRITICIZED US FOR NOT SPENDING ENOUGH MONEY. APPARENTLY TODAY, THERE'S BEEN A REVERSAL IN THAT. BUT WE HAVE IN PLACE, I THINK, A PRUDENT BUDGET. SOMEBODY COULD NOT HAVE PREDICTED $157-MILLION LOSS IN REVENUE TO THE STATE'S BUDGET.

Myers: I WOULD SAY, TOO, THAT WHILE SOMEONE COULD NOT HAVE PREDICTED THAT, THAT THE REPUBLICAN CRYSTAL BALL HAS BEEN A LITTLE MURKY AS WELL. AFTER ALL, THEY PUT A 4.5-PERCENT REVENUE INCREASE IN THIS YEAR'S BUDGET. THAT WASN'T A REALISTIC NUMBER EITHER. SO THE $17 MILLION OF DEAPPROPRIATION WOULDN'T HAVE MADE ANY DIFFERENCE.

Borg: ONE THING THAT IS REALISTIC IS TIME.

Myers: TIMES UP.

Rants: WE'RE OUT OF TIME.

Borg: YOU PROBABLY HAVE ALREADY DISCOVERED THAT "IOWA PRESS" HAS CHANGED BROADCAST SCHEDULES. WE NOW ARE ON TWO DIFFERENT DAYS: 6:30 FRIDAY NIGHT, NOON ON SUNDAY. AND THAT NEW BROADCAST SCHEDULE COMES WITH OUR 30TH ANNIVERSARY, AND WE CLOSE WITH A GLIMPSE OF ONE OF OUR PAST PROGRAMS. SENATOR BOB DOLE OF KANSAS WAS A FREQUENT "IOWA PRESS" GUEST THROUGHOUT THE YEARS. IN DECEMBER OF 1979, JUST FIVE WEEKS BEFORE THE 1980 IOWA PRESIDENTIAL PREFERENCE CAUCUS, SENATOR DOLE FOUND HIMSELF A DISTANT THIRD IN THE REPUBLICAN PRESIDENTIAL-HOPEFUL RACE, BEHIND RONALD REAGAN AND GEORGE BUSH. ON "IOWA PRESS," SENATOR DOLE DEFENDED HIS STATUS AT THAT TIME AND THE WORK OF HIS CAMPAIGN STAFF. I'M DEAN BORG. THANKS FOR JOINING US TODAY.

Dole: I WALKED INTO HUMBOLDT COUNTY A WHILE BACK AND WALKED OUT WITH 66 PERCENT OF THE VOTE THAT EVENING. SO I THINK IF YOU CAN BE HERE AND THE PEOPLE UNDERSTAND THAT THIS MAN HAS EXPERIENCE, HE'S A CONCERNED REPUBLICAN, HE HAS THE CONFIDENCE AND THE COMPASSION TO LEAD THIS COUNTRY, YOU'RE GOING TO DO WELL. AND I'VE BEEN IN OTHER PLACES WHERE THE POLL WAS TAKEN BEFORE WE SPOKE. I DIDN'T THINK THAT -- IT'S ALMOST LIKE THE HANGING BEFORE THE EVIDENCE BUT, YOU KNOW, YOU UNDERSTAND SOME OF THOSE THINGS. BUT WHERE WE APPEAR AND WHERE WE HAVE A CHANCE TO PRESENT OUR CASE AND TO PRESENT OUR QUALIFICATIONS, WE DO QUITE WELL. I'M NOT SO CERTAIN OUR PROBLEMS -- OUR IOWA STAFF HAS BEEN FAIRLY STABLE. I THINK WE'VE HAD A FEW CHANGES. RIGHT NOW WE'RE IN THE PROCESS -- THIS PAST WEEK, WE'VE ADDED THREE ADDITIONAL PEOPLE ON THE IOWA STAFF. MONEY, OF COURSE, IS A PROBLEM. I'M NOT A MILLIONAIRE LIKE GEORGE BUSH OR JOHN CONNELLY. I AM EMPLOYED. I'M IN THE SENATE. YOU CAN'T GET OUT EVERY DAY AND RAISE MONEY, BUT WE'RE DOING VERY WELL. I THINK WE'RE GOING TO DO QUITE WELL IN IOWA.

Narrator: 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.