Iowa Public Television

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.

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: IOWA'S CURRENT BUDGET, THE BUDGET FOR FISCAL 2002, HAS A NEW LOOK. ON THURSDAY OF THIS PAST WEEK, MEMBERS OF IOWA'S GENERAL ASSEMBLY TOOK MEASURES TO STEM THE TIDE OF RED INK. THE RED INK IS A $158-MILLION REVENUE SHORTFALL, BECAUSE TAX REVENUE WASN'T WHAT HAD BEEN EXPECTED WHEN THE BUDGET WAS FORMED, AND THE STATE WASN'T ABLE TO MEET ITS ORIGINAL SPENDING PLANS. TO GET INSIGHT ON WHAT HAPPENED, WE'VE CONVENED IOWA STATEHOUSE JOURNALISTS: "DES MOINES REGISTER" COLUMNIST DAVID YEPSEN; "RADIO IOWA" NEWS DIRECTOR KAY HENDERSON; "ASSOCIATED PRESS" POLITICAL REPORTER MIKE GLOVER; AND "LEE NEWSPAPER" STATEHOUSE REPORTER KATHIE OBRADOVICH. KATHIE, WHAT HAPPENED?

Obradovich: WELL, THEY DID PRETTY MUCH WHAT WE THOUGHT THEY WERE GOING TO DO. THEY CAME BACK TO DEAL WITH THE FALLOUT FROM $150-MILLION REVENUE SHORTFALL IN THE BUDGET. THE GOVERNOR CANNOT PICK AND CHOOSE WHAT HE WANTS TO CUT, SO HE HAD TO CUT EVERY PROGRAM IN STATE GOVERNMENT BY A 4.3-PERCENT AMOUNT. THAT WAS $200 MILLION. BUT THERE WERE SOME THINGS THAT HE REALLY WANTED TO RESTORE, AND LEGISLATORS AGREED THINGS LIKE PUBLIC SAFETY, DEFENSE -- YOU KNOW, RIGHT NOW IN THE WAKE OF SEPTEMBER 11, THOSE THINGS ARE PARTICULARLY IMPORTANT. THERE WAS SOME MONEY FOR SCHOOLS AND A FEW OTHER PROGRAMS THAT WERE CONSIDERED CRITICAL. AND REALLY, THAT IS THE BULK OF WHAT THEY DID.

Borg: KAY, SHE'S TOLD US WHAT HAPPENED. NOW, WERE THERE WINNERS AND LOSERS IN THAT, OR ONLY SOME WHO DIDN'T LOSE QUITE AS MUCH. [ LAUGHTER ]

Henderson: THEY WERE FACED WITH SOME HARD CHOICES. IF YOU STEP BACK AND TAKE A LOOK AT THIS, I THINK PERHAPS THE MOST SIGNIFICANT THING THEY DID WAS THE REORGANIZATION PLAN FOR THE DEPARTMENT OF HUMAN SERVICES. IF YOU'RE A MIDDLE MANAGER WEARING A WHITE COLOR IN STATE GOVERNMENT, YOU'RE QUAKING NOW BECAUSE THE LEGISLATORS AND THE GOVERNOR HAVE SHOWN THAT THEY ARE WILLING TO CUT MIDDLE MANAGEMENT, AND PRETTY SEVERELY BY THAT REORGANIZATION PLAN THAT THEY DID IN THE DEPARTMENT OF HUMAN SERVICES. ALSO, IN TERMS OF WINNERS AND LOSERS, I THINK IN THE STATE EMPLOYEES UNION, THE AFSCME LOCAL HERE CAME OUT AS A WINNER BECAUSE THEY DIDN'T KICK AND SCREAM. THEY HAD A VOTE LAST MONTH AND SAID, "WE'LL TAKE EARLY RETIREMENT AND ALSO WE'LL DELAY OUR PAY RAISE. WE'LL AGREE NOT TO TAKE A PAY RAISE JULY 1," SO THEY'VE HELPED MATTERS OUT A LITTLE BIT. THE BIG LOSER IN THIS IS THE IOWA FEDERATION OF LABOR. THEIR PRESIDENT CAME OUT AND SAID THAT IT WAS A GOOD IDEA TO RAISE TAXES. NO ONE -- NO DEMOCRAT THAT I KNOW IN THE STATEHOUSE IS CHAMPIONING THAT IDEA.

Yepsen: WE'RE NOT DONE FIGURING OUT WHO THE LOSERS ARE. THIS IS A VERY CONFUSING THING, I THINK, FOR ALL OF US TO UNDERSTAND. THERE'S SO MUCH TALK ABOUT DEFICITS. IN '01 THEY WOUND UP WITH A SURPRISE $58-MILLION HOLE. NOW WE'RE IN THE '02 BUDGET YEAR AND THEY HAD TO COME BACK AND MAKE THIS CUT IN SHORT REVENUES. AND THEN LAWMAKERS WILL COME IN, IN JANUARY, AND THEY'LL START WORKING ON THE FISCAL '03 BUDGET. SO YOU'RE REALLY DEALING WITH THREE FISCAL YEARS, AND THIS IS KIND OF A WORK IN PROGRESS. ONE OF THE THINGS THAT A LOT OF PEOPLE WERE SAYING UP THERE THAT PAST WEEK IS THAT WE'RE CUTTING ENOUGH. SO WHILE THERE'S BEEN A LOT OF CUT AND THERE'S A LOT OF ANXIETY, THERE'S STILL A FEELING THAT THIS ECONOMY IS IN BAD SHAPE. DEAN, THE CURRENT BUDGET, '02, IS PREDICTED TO GROW 1.9 PERCENT. AS OF THURSDAY, IT WAS 1.5 PERCENT BELOW ESTIMATES.

Glover: AND PART OF WHAT WAS HAPPENING AT THE STATEHOUSE DURING THIS ONE-DAY SPECIAL SESSION WAS SOME FAIRLY STRONG SIGNALS WERE SENT TO EVERYPLACE ELSE IN STATE GOVERNMENT. YOU'VE GOT TO REMEMBER WHAT KAY WAS TALKING ABOUT WITH THE DEPARTMENT OF HUMAN SERVICES IS, A DEMOCRATIC GOVERNOR GOING AFTER AN AGENCY THAT IS TRADITIONALLY THE PET PROGRAM FOR DEMOCRATS AND WHACKING THEM HARD, IF I'M ANYWHERE IN STATE GOVERNMENT, I TAKE THAT AS A SERIOUS SIGNAL THAT CUTS ARE GOING TO BE HITTING ME TOO.

Obradovich: WELL, LOCAL GOVERNMENTS NEED TO TAKE A SIGNAL AS WELL BECAUSE IN THE GOVERNOR'S ORIGINAL PLAN, HE SPARED MOST PROPERTY TAX CREDITS THAT STATE GOVERNMENT PAYS DOWN TO LOCAL GOVERNMENT SO THEY CAN GIVE YOU A BREAK ON YOUR PROPERTY TAXES. MOST OF THOSE THINGS WENT BY THE BOARD. ONE BIG ONE DID GET REFUNDED, BUT MOST OF THOSE WENT BY THE BOARD, WHICH MEANS THAT PROPERTY TAXPAYERS ARE GOING TO TAKE A BIGGER SHARE OF THAT.

Borg: WELL, THAT'S A GOOD EXAMPLE OF HOW IOWANS ARE GOING TO BE AFFECTED. ARE THERE OTHER WAYS, KAY, THAT YOU CAN THINK OF THAT -- IN WHAT HAPPENED? NOW, MIKE SAYS THAT HUMAN SERVICES WAS RESTRUCTURED AND TOOK A BIG HIT. NOW, ARE IOWANS IN GENERAL GOING TO FEEL THAT?

Henderson: I DON'T THINK IOWANS IN GENERAL ARE GOING TO FEEL THAT BECAUSE THEY'RE ALSO IN THERE OWN WORK-A-DAY WORLD, FEELING THE SAME THINGS THAT STATE EMPLOYEES ARE FEELING. YOU'VE GOT 60 LAYOFFS IN SOUTHEAST IOWA. YOU'VE GOT ROCKWELL-COLLINS IN CEDAR RAPIDS LAYING OFF PEOPLE. I MEAN, TIMES ARE TOUGH ALL OVER AND I THINK THAT IOWANS ARE EXPECTING THEIR STATE GOVERNMENT TO CONTRACT A LITTLE BIT DURING THIS RECESSION.

Yepsen: I THINK PEOPLE WILL FEEL IT IN SMALL WAYS. I'LL GIVE YOU ONE EXAMPLE. MY DAUGHTER SAYS IN SCHOOL NOW THEY DON'T HAND THEM A TEST PAPER; THEY PUT IT ON AN OVERHEAD PROJECTOR AND THEY WRITE THEIR ANSWERS OFF OF THAT. NOW, THAT'S A LITTLE THING BUT I THINK -- THESE EFFECTS ON IOWANS WILL BE SMALL BUT THERE WILL BE SOME THAT WILL BE NOTICEABLE.

Borg: WELL, IF IT'S GOING TO BE TOUGHER NEXT SESSION, MIKE, THEN WHAT'S LIKELY TO HAPPEN NEXT SESSION? IS IT GOING TO BE ACROSS-THE-BOARD AGAIN OR -- THEY'VE GOT THE TIME NEXT SESSION TO PICK AND CHOOSE.

Glover: NO, IT WON'T BE ACROSS THE BOARD. THE ONLY REASON IT WAS ACROSS THE BOARD THIS TIME IS BECAUSE IT WAS IN THE GOVERNOR'S LAP TO DO IT AND THAT'S THE ONLY POWER HE'S GOT. BUT THERE'S NO SIGN, FIRST OF ALL, THAT THE ECONOMY IS GOING TO BE TURNING AROUND. YOU HAVE TO START WITH THE BASICS. THERE IS NO SIGN ON THE HORIZON THAT THINGS ARE SUDDENLY GOING TO START TO GET A LOT BETTER, STATE REVENUE IS GOING TO PICK UP. BOTH SIDES -- AND KAY MENTIONED EARLIER THE FEDERATION OF LABOR PRESIDENT ADVOCATING A TAX CUT -- OR A TAX INCREASE. NO ONE HAS TALKED ABOUT THAT AT THE STATEHOUSE. THAT'S NOT GOING TO HAPPEN. SO, YES, IT'S GOING TO BE MORE BUDGET CUTS AND MORE TARGETED BUDGET CUTS. AND I THINK YOU'RE GOING TO HAVE TO LOOK AT EDUCATION BEING PROBABLY A WINNER IN THIS WHOLE PROCESS. BOTH SIDES SAY THEY WANT TO FUND EDUCATION AT THE HIGHEST LEVEL THEY CAN.

Borg: KATHIE, WAS THERE ANY TALK AT ALL ABOUT AN ECONOMIC STIMULUS? SURE, YOU CAN RAISE TAXES AND TAKE IN MORE REVENUE OSTENSIVELY, BUT THE REAL KEY IS STIMULATING THE ECONOMY.

Obradovich: RIGHT. AND REALLY THAT WOULD HAVE BEEN TOO CONTENTIOUS FOR A SPECIAL SESSION, BECAUSE THEY WANTED TO GET IN AND GET OUT IN ONE DAY. AND FRANKLY, YOU CAN ONLY REALLY DO THAT IF YOU HAVE AN AGREEMENT IN ADVANCE. ONE THING THAT THE GOVERNOR AND REPUBLICAN LEGISLATORS DON'T OFTEN AGREE ON IS TAX CUTS. THE ONE THING THEY DID DO WAS THEY SET UP STATE LAW SO THAT IF CONGRESS APPROVES A NATIONAL TEN-DAY SALES TAX HOLIDAY, IOWA WILL BE PREPARED AND THEY'LL BE READY TO GO.

Glover: THERE'S A LOT OF THOUGHT UP AT THE STATEHOUSE THAT "VISION IOWA" IS THE BEST ECONOMIC STIMULUS PACKAGE OF TOOLS THEY HAVE AT THEIR DISPOSAL, BUT THERE WASN'T A LOT OF TALK ABOUT DOING IT FOR PRAGMATIC REASONS. (A) IT'S WINTER; THE CONSTRUCTION SEASON ISN'T GOING TO HAPPEN FOR A FEW MORE MONTHS AND IT WOULD TAKE SOME TIME TO GET NEW PROJECTS IN, SO THEY FELT THEY COULD WAIT FOR THE REGULAR SESSION TO -- I THINK THERE'S SOME REAL STEAM TO DO THAT.

Yepsen: AND IT'S CHEAP. IT'S A FEW MILLION DOLLARS AND YOU CAN LEVERAGE SOME MORE. THE OTHER PART OF THE REASON IT DIDN'T HAPPEN WAS POLITICS. IF YOU'RE GOING TO DO SOMETHING LIKE A STIMULUS PACKAGE, YOU DO THAT IN AN ELECTION YEAR. I THINK THAT WAS THE MOST DISAPPOINTING FEATURE OF THIS SESSION. OTHER STATE LEGISLATURES ARE HAVING TO COME IN AND CUT BUDGETS BUT THEY'RE ALSO CREATING SOME -- DOING WHAT THEY CAN WITH THE STIMULUS PACKAGE -- A VENTURE CAPITAL PROGRAM, A TAX CUT, SOMETHING LIKE THAT -- TO GIVE PEOPLE SOME HOPE. AND THIS LEGISLATURE AND THE GOVERNOR FAILED TO DO ANYTHING LIKE THAT.

Borg: HE TALKED ABOUT POSSIBLE POLITICAL FALLOUT THERE. AT LEAST HE LED INTO IT. AND KAY, I'D LIKE TO ASK YOU DIRECTLY ABOUT THAT. IN WHAT HAPPENED, DO YOU THINK THERE IS ANY POLITICAL FALLOUT? I SAW REPUBLICANS AND DEMOCRATS ARM-IN- ARM WALKING INTO THIS SESSION ALONG WITH THE GOVERNOR. SO APPARENTLY THERE WAS AGREEMENT UP FRONT AND NOBODY TAKES A HIT.

Henderson: WELL, THE FALLOUT I SAW WAS DIRECTLY A RESULT OF WHAT HAPPENED SEPTEMBER 11. PEOPLE AREN'T REALLY KEEN ON POLITICIANS OF THE TWO WARRING PARTIES, IF YOU WILL, SNIPING AT ONE ANOTHER. SO BIPARTISANSHIP IS IN, IN THIS NEW ERA OF AMERICAN GOVERNMENT. SO YOU DIDN'T HAVE DEMOCRATS ACCUSING REPUBLICANS AND REPUBLICANS ACCUSING DEMOCRATS. YOU HAD SOME BIPARTISANSHIPS AND BACKROOM DEALS THAT WERE MADE.

Glover: AND IT'S HARD FOR THEM, DEAN. IT'S REAL HARD FOR THEM. BUT KAY IS RIGHT, YOU CAN'T BE PARTISAN IN THIS ATMOSPHERE. SHORTLY AFTER THE GOVERNOR CALLED THIS SPECIAL SESSION, THE SENATE REPUBLICAN LEADERSHIP HELD A NEWS CONFERENCE, AND THEY WERE PRETTY SHARP. THEY WERE PRETTY HARSH. THEY WERE PRETTY STRAIGHTFORWARD ABOUT WHAT THEY WERE GOING TO DO TO THE GOVERNOR. THEY WERE QUIETLY ADVISED, "CUT IT OUT. THE ONLY WORDS OUT OF YOUR MOUTH IS 'WE'RE WILLING TO WORK WITH THIS GOVERNOR.'" THE OTHER THING THAT'S GOING ON -- AND SEPTEMBER 11 IS THE MAIN DYNAMIC. THERE'S ANOTHER MORE SUBTLE DYNAMIC GOING OUT UP THERE. I THINK IN THEIR HEART OF HEARTS RIGHT NOW, REPUBLICANS DON'T THINK THEY CAN BEAT VILSACK. IN THEIR HEART OF HEARTS RIGHT NOW REPUBLICANS DON'T THINK THEY CAN LOSE THE LEGISLATURE, SO THEY'RE GOING TO HAVE TO LEARN TO WORK TOGETHER AND MAKE EACH OTHER LOOK GOOD.

Yepsen: I AGREE WITH MIKE. I THINK THAT IT'S IN THEIR BEST -- IT'S IN -- SURVIVAL IS THE STRONGEST INSTINCT, AND SO IT'S IN THEIR INTEREST TO WORK WITH HIM, TO LOOK LIKE THERE'S A COOPERATIVE AGREEMENT GOING ON, AND THEN THEY'LL ALL SURVIVE.

Obradovich: BUT THE OTHER THING IS, TOO, BECAUSE OF THE WAY THIS STRUCTURE WORKED, VILSACK HAD TO TAKE THE HUGE SHARE OF THE POLITICAL PAIN FOR THESE BUDGET CUTS BECAUSE HE WAS THE ONE WHO CUT THINGS ACROSS THE BOARD. LEGISLATORS GOT TO COME BACK AND RESTORE A FEW THINGS THAT WERE KEY. IF VILSACK EVEN GOT BLAMED FOR ELIMINATING A POPULAR PROGRAM IN THE JUDICIAL BRANCH -- AND IT'S REALLY NOT EVEN HIS DECISION TO MAKE. SO, I THINK THAT LEGISLATORS PROBABLY RECOGNIZE, FIRST OF ALL, THAT THEY WERE GETTING THE BETTER END OF THE SESSION. AND NEXT YEAR WHEN THEY HAVE TO MAKE THEIR OWN DECISION ABOUT WHICH PROGRAMS ARE GOING TO CUT, IT'S GOING TO BE A LOT MORE DIFFICULT.

Yepsen: I THINK, YOU KNOW, TOM VILSACK IS THE CEO AND I THINK VOTERS HAVE A SENSE THAT THE BUCK DOES STOP THERE. AND I'VE NOTICED A CHANGE IN GOVERNOR VILSACK IN THE LAST MONTH. YOU TAKE THIS DHS REORGANIZATION, FOR EXAMPLE. HE WOULDN'T HAVE DONE THAT SIX MONTHS AGO. BUT NOW HE'S SINGING OUT OF THE REPUBLICAN HYMNAL. IT TOOK NIXON TO GO TO CHINA. I THINK IT TAKES A DEMOCRATIC GOVERNOR TO RESTRUCTURE DHS, AND THERE'S A REASON WHY HE LED WITH THAT ONE. HE'S GOT ABOUT 37 OTHER CHANGES HE WANTS TO MAKE. HE AGREED NOT TO DIP INTO THE STATE'S EMERGENCY FUND. HE TRIED DOING THAT ONCE. HE WASN'T DOING THAT AGAIN. HE'S NOT TALKING ABOUT TAX INCREASES, WHICH THE FEDERATION OF LABOR WAS. SO I THINK THE GOVERNOR HAS GOTTEN A LOT MORE PRAGMATIC ABOUT THIS SITUATION. HE KIND OF LOOKED INTO HIS GRAVE AND SAID, "THANK GOD THE REPUBLICANS DON'T HAVE SOMEBODY REAL TOUGH TO THROW AT ME BECAUSE I COULD BE IN TROUBLE."

Glover: ONE OF THE THINGS THEY PASSED THE DURING THE SPECIAL LEGISLATIVE SESSION -- IT DIDN'T GET A LOT OF NOTICE -- BUT THEY PASSED A BUDGET REFORM LAW WHICH RESTRICTS HIS ABILITY TO DO SOME OF THESE TRICKS, DIPPING INTO SPECIAL FUNDS AND SOMETHING LIKE THAT. I THINK YOU'LL SEE HIM SIGN IT, AT LEAST PART OF THAT.

Borg: IS THERE AN AGREEMENT NOW ON WHAT THAT SO-CALLED RAINY DAY FUND IS FOR, MIKE?

Glover: NO, THERE'S NOT A COMPLETE AGREEMENT ON IT. THERE IS AN AGREEMENT, I THINK, BROADLY BETWEEN THE GOVERNOR AND THE LEGISLATURE THAT THIS IS NOT JUST A CASH COW YOU CAN DIP INTO AT YOUR CHOOSING TO EASE ALL YOUR PROBLEMS. THERE ARE CERTAIN CASH-FLOW ELEMENTS TO IT. I THINK THE GOVERNOR WOULD ADMIT THAT. REPUBLICANS CERTAINLY ARGUE THAT.

Borg: KAY, WE'VE SAID EARLY ON HERE THAT THE GUBERNATORIAL RACE MAY ALREADY HAVE BEEN CONCEDED TO GOVERNOR VILSACK. I DON'T KNOW WHETHER YOU SAID THAT OR NOT, BUT IS THAT THE WAY YOU FEEL? BECAUSE STEVE SUKUP WAS IN THIS SESSION --

Henderson: REALLY? WAS HE?!

Borg: WELL, GO AHEAD AND TELL ME.

Henderson: HE HAD NOTHING TO DO WITH ANYTHING. HE WASN'T IN ANY DEAL MAKING. HE HAD LITTLE TO SAY DURING THE WHOLE EVENT.

Borg: WHAT'S THAT TELLING ME?

Henderson: IT'S TELLING ME THAT HE DIDN'T KNOW THE LANDSCAPE. HE DIDN'T KNOW WHAT TO DO BECAUSE VILSACK WAS WINNING, REPUBLICAN LEGISLATORS WERE WILLING AND HE WAS SORT OF ON THE SIDELINES. VANDERPLAATS, HIS OPPONENT IN THE REPUBLICAN PRIMARY, HAD NOTHING TO SAY DURING THE WHOLE EPISODE EITHER, SO THEY WERE REALLY PLAYING THEMSELVES DOWN. IN A SITUATION BEFORE SEPTEMBER 11, THEY WOULD HAVE BEEN SQUAWKING BIG TIME.

Glover: THAT'S GOING TO BE AN INTERESTING PRIMARY AND IT'S TIME, I THINK, WE START THINKING ABOUT THAT BECAUSE I THINK IT'S SETTLING IN ON REPUBLICANS NOW THAT THESE ARE THE CHOICES THEY'RE GOING TO HAVE FOR THEIR GUBERNATORIAL CANDIDATE. BOB VANDERPLAATS, WHO RUNS A NONPROFIT FOUNDATION IN SIOUX CITY, AND STEVE SUKUP, A BUSINESSMAN AND STATE LEGISLATOR FROM NORTH CENTRAL IOWA, ARE THE TWO CANDIDATES. AND THAT'S GOING TO BE AN INTERESTING PRIMARY. I DON'T KNOW WHO'S GOING TO WIN IT.

Obradovich: BOTH OF THEM HAVE BEEN HURT BY THE NEW POLITICAL CLIMATE AFTER SEPTEMBER 11, BECAUSE REALLY WHAT THEY NEED TO BE DOING AT THIS POINT -- IT REALLY IS LATE, EVEN THOUGH THE ELECTION IS A YEAR AWAY. FOR A PRIMARY, THEY NEED TO BE OUT LETTING VOTERS KNOW WHO THEY WERE AND WHAT THEY'VE BEEN DOING. AND REALLY, I THINK THEY'VE BEEN LAID PRETTY LOW BY THIS WHOLE SEPTEMBER 11 SITUATION.

Yepsen: I DON'T WANT TO DISAGREE WITH ANYTHING MY COLLEAGUES HAVE SAID HERE, BUT I WANT US ALL TO REMEMBER THAT WE WERE SAYING EXACTLY THE SAME THING ABOUT A GUY NAMED TOM VILSACK FOUR YEARS AGO: "WHO IS HE? EVERYBODY THINKS HIS NAME IS THAT OF A PICKLE"; REMEMBER THOSE JOKES?

Obradovich: YEAH.

Yepsen: AND, YOU KNOW, HE TURNED THAT THING AROUND IN THE LAST COUPLE WEEKS IN THE CAMPAIGN. SO THERE WILL BE A REPUBLICAN NOMINEE FOR GOVERNOR. HISTORICALLY THE REPUBLICAN NOMINATION FOR GOVERNOR OF IOWA HAS ALWAYS BEEN A PRIZE WORTH HAVING. IF THIS ECONOMY DOESN'T GET BETTER, THINGS COULD GET A LITTLE TOUGHER FOR VILSACK. AND WE'LL SEE WHAT HAPPENS IN THE LAST THREE WEEKS OF THE GAME. I JUST DON'T WANT TO BE TOO PREDICTIVE OUT HERE.

Borg: KAY?

Henderson: HERE'S ANOTHER THOUGHT THAT I'D LIKE TO THROW OUT. SOMETHING ELSE THAT HAPPENED THIS PAST WEEK, WE HAD MID-TERM ELECTIONS ALL ACROSS THE COUNTRY. WHAT YOU SAW IN OTHER PLACES WAS THAT DEMOCRATS DID WELL. A COUPLE OF DEMOCRATS PICKED UP GUBERNATORIAL SEATS IN STATES. IN GENERAL, INCUMBENTS DID VERY WELL. PEOPLE DON'T LIKE TO ROCK THE BOAT VERY MUCH. LONG-TIME MAYOR IN COUNCIL BLUFFS WON. THE ONE EXCEPTION BEING WHAT HAPPENED IN CEDAR RAPIDS, WITH THE MAYOR THERE LOSING HER JOB.

Borg: BEFORE WE GET TOO FAR INTO THAT, I WANT TO GO BACK TO THE LEGISLATIVE SESSION, BECAUSE I WANT TO KEY IN ON THE THE ELECTIONS -- THE CONGRESSIONAL ELECTIONS. WAS THERE SORT OF AN UNDERTONE? BECAUSE YOU HAVE SOME CONGRESSIONAL CANDIDATES IN THE LEGISLATURE.

Glover: IT WASN'T AN UNDERTONE, DEAN, IT WAS AN OVERTONE. RAPIDS SWEEPING RIGHT DOWN THE MIDDLE OF THE RIVER. STEVE KING, A STATE SENATOR FROM WESTERN IOWA, IS RUNNING FOR CONGRESS -- THE REPUBLICAN NOMINATION FOR CONGRESS IN THE FIFTH DISTRICT. BRENT SIEGRIST, SPEAKER OF THE HOUSE, IS RUNNING FOR THE SAME NOMINATION. AND JOHN REDWINE, STATE SENATOR FROM SIOUX CITY, IS RUNNING FOR THE SAME NOMINATION. IT WAS NO ACCIDENT THAT DURING THE SESSION STEVE KING WAS LEADING THE CHARGE AGAINST A BUDGET DEAL NEGOTIATED BY BRENT SIEGRIST. HE WANTED TO CUT SPENDING DEEPER. HE DIDN'T WANT TO RESTORE ANY SPENDING. AND HE'S GOING TO GO BACK TO THOSE FISCAL CONSERVATIVES OUT THERE IN WESTERN IOWA AND SAY TO THEM, "BRENT SIEGRIST, MY OPPONENT, IS A GUY WHO SAT DOWN WITH A BIG SPENDING LIBERAL, TOM VILSACK, AND CUT A DEAL. SEND ME TO CONGRESS AND I WON'T DO IT."

Obradovich: I THINK KING COULD HAVE HELPED HIMSELF IF THAT'S ALL HE DID. IF HE HAD JUST COME BACK AND SAID, "OKAY, WE NEED TO CUT MORE MONEY. HERE'S A PLAN FOR CUTTING MORE MONEY." BUT HE WENT BEYOND THAT. HE PRESENTED A PLAN TO TAKE $44 MILLION IN UNSPENT "VISION IOWA" MONEY. WE WERE TALKING ABOUT HOW THAT WAS AN ECONOMIC STIMULUS. WELL, HE WANTED TO USE THAT MONEY TO STIMULATE THE SCHOOLS OR TO PUT IT BACK INTO THE RAINY DAY FUND, EITHER WAY.

Henderson: AND THERE'S A NAGGING LITTLE PART OF THAT: IT WAS ILLEGAL. IT WAS TAKING MONEY THAT WAS INTENDED FOR ONE PURPOSE AND USING IT FOR ANOTHER.

Obradovich: THAT LITTLE LEGALITY QUESTION IS ONE THING, BUT REPUBLICANS HAVE BEEN TELLING EVERYBODY ELSE IN THE STATE FOR MONTHS THAT YOU DON'T TAKE ONE-TIME MONEY AND PUT IT INTO AN ONGOING PROGRAM. IT'S GOES RIGHT AGAINST THE REPUBLICAN PHILOSOPHY.

Glover: UNLESS YOU'RE RUNNING FOR CONGRESS.

Obradovich: WELL, THE OTHER THING IS THAT TWO OF THE BIG CITIES THAT HAVE GOTTEN "VISION IOWA" MONEY ARE IN THAT CONGRESSIONAL DISTRICT.

Yepsen: REPUBLICANS WENT ALONG WITH VILSACK. PRIVATELY THEY BELIEVED THEY DID NOT CUT ENOUGH. THEY'RE ALSO IN A POSITION NOW WHERE, "OKAY, FINE, WE'LL GO ALONG WITH THE GOVERNOR ON THIS BUDGET DEAL BECAUSE IF MORE HAS TO BE CUT, IT'S GOING TO GET TO BE TOM VILSACK STANDING UP IN FRONT OF THE PEOPLE OF IOWA IN A BUDGET MESSAGE NEXT YEAR SAYING, 'GEE, I HAVE TO CUT SCHOOL AID.'" SO I THINK THEY'D RATHER HAVE HIM TAKE THAT HIT THAN TAKE IT THEMSELVES. BUT WE'RE TALKING ABOUT SPECIAL ELECTIONS, DEAN. YOU'RE THE EASTERN IOWA GUY HERE AT THIS TABLE. TELL US WHAT HAPPENED TO LEE CLANCEY.

Borg: WELL, LEE CLANCEY, OF COURSE, SHE'S BEEN IN TROUBLE BECAUSE AFTER SIX YEARS SHE HAD PICKED UP SOME POLITICAL BAGGAGE. SOME CONSTITUENCIES WERE ALIENATED WITH LEE CLANCEY: VETERANS GROUPS. I WON'T GO INTO THE HISTORY ON THAT BUT JUST TO SAY THAT THE CITY HALL IS LOCATED IN THE VETERANS MEMORIAL COLISEUM. AND THERE WAS -- GO AHEAD.

Yepsen: WHAT DID HER ENDORSEMENT OF AL GORE DO? I MEAN, I REMEMBER A LOT OF REPUBLICANS WERE VERY ANGRY. SHE'S NOMINALLY A REPUBLICAN, SHE'S THE MAYOR OF CEDAR RAPIDS. BUSH IS IN TOWN AND SHE COMES OUT AND ENDORSES GORE.

Borg: SHE WAS ASKED TO INTRODUCE AL GORE AND SHE TURNED THAT IN -- YOU WERE THERE TOO, MIKE, COVERING FOR "AP." AND SHE TURNED THAT INTO A FIVE-MINUTE ENDORSEMENT, NOT SO MUCH AN ENDORSEMENT -- IT WAS AN ENDORSEMENT, BUT WHAT I NORMALLY SAW WAS A TWISTING OF THE KNIFE AND SPEAKING IN A LOW TONE, IF YOU WILL, ABOUT GEORGE W. BUSH. AND HERE'S A LIFELONG REPUBLICAN DOING THAT. IT WASN'T ONLY AN ENDORSEMENT, IT WAS MAKING FUN OF BUSH.

Glover: IT WAS AN EPISODE WHERE IT WAS CLUMSILY HANDLED ON HER PART AND ALMOST GUARANTEED TO GIVE HER NO BENEFIT. SHE WAS NOT GOING TO WIN FRIENDS AMONGST DEMOCRATS. SHE WAS NOT GOING TO CONVINCE DEMOCRATS TO BACK HER BECAUSE SHE IS A REPUBLICAN, AND SHE WAS GOING TO DO SOMETHING THAT WAS GOING TO ABSOLUTELY OFFEND EVERY REPUBLICAN, WHO WOULD CARRY THAT MEMORY FOR A LONG, LONG TIME.

Yepsen: IS PAUL PATE, THE NEW MAYOR-ELECT OF CEDAR RAPIDS --

Borg: PAUL PATE IS A FORMER SENATOR, AS YOU KNOW, FORMER SECRETARY OF STATE TOO -- STATE SENATOR AND SECRETARY OF STATE. SHE, AFTER HE BEGAN TALKING ABOUT RETURNING CIVILITY AND ACCESSIBILITY TO THE MAYOR'S OFFICE, BECAUSE CLANCEY HAD GOTTEN A REPUTATION FOR ARROGANCE BECAUSE SOME OF THESE GROUPS THAT SHE HAD ALIENATED OVER TIME, I MENTIONED VETERANS GROUPS -- SHE ALSO HAD SUPPORTED THE HUMAN RIGHTS ORDINANCE -- THOSE THINGS BEGAN TO ATTRACT DETRACTORS WHO CAME TO THE CITY COUNCIL MEETING AND IN THE OPEN FORUM WOULD JUST GO ON ENDLESSLY. SO THEY CUT THAT OUT AND THAT, THEN, LED TO ACCESSIBILITY. AND PATE ZEROED IN ON THAT, ALONG WITH UNEMPLOYMENT IN CEDAR RAPIDS, WHICH IS GROWING, ALONG WITH EVERYPLACE ELSE. BUT HE ZEROED IN ON, "WE NEED JOB CREATION."

Yepsen: ONCE AGAIN, IN VIRGINIA AND IN NEW JERSEY AND IN CEDAR RAPIDS, IOWA, "IT'S THE ECONOMY STUPID." DOES THIS MEAN PAUL PATE IS GOING TO RUN FOR GOVERNOR AGAIN? IS THIS PART OF HIS COMEBACK?

Borg: YOU HAVE TO TELL ME THAT.

Glover: IS THERE A JOB WORSE IN THE STATE THAN HAVING TO RUN FOR MAYOR EVERY TWO YEARS?

Borg: CLANCEY HAD PUSHED FOR FOUR-YEAR TERMS. NOW I KNOW WHY. WELL, PAUL PATE HAS HIS WORK CUT OUT FOR HIM BECAUSE HE RAN ON JOBS AND IT'S GOING TO BE TOUGH TO TURN THAT AROUND AS A MAYOR. IT'S A BIGGER PROBLEM THAN THAT. WELL, LET'S GET BACK. YOU TALKED ABOUT "VISION IOWA" AND THERE WERE SOME ELECTIONS, KATHIE, THAT REFLECTED "VISION IOWA."

Obradovich: ONE OF THE BIG ONES WAS IN DAVENPORT IN OCTOBER. THE COMMUNITY NEEDED A 60-PERCENT MARGIN TO RATIFY BONDS THAT WOULD BE USED TO PAY THE LOCAL PART OF THE "VISION IOWA" PROJECT THAT THEY HAVE ON THEIR RIVERFRONT. THEY'RE GETTING $20 MILLION FROM THE STATE'S "VISION IOWA" FUND. AND IT WAS A CONTESTED -- THERE WAS AN ORGANIZED GROUP CONTESTING IT AND IT WAS, I THINK, A 67 PERCENT MARGIN, A HUGE MARGIN OF VICTORY FOR THAT PROJECT. REALLY, I THINK A LOT OF PEOPLE IN THE COMMUNITY ARE LOOKING AT THAT AND FEELING A LITTLE BIT BETTER ABOUT THE CHANCES FOR THE RIVERBOAT CASINOS NEXT YEAR IN SURVIVING THEIR REFERENDUM AND SEEING WHETHER TO KEEP GAMBLING IN THE COMMUNITY, BECAUSE IT WAS TIED TO THE RIVERFRONT, THE RIVERBOATS, AND THE MONEY COMING FROM "VISION IOWA" IS FOR GAMBLING.

Glover: ONE OF THE MORE INTERESTING SETS OF ELECTIONS THAT WE HAVEN'T REALLY TALKED A LOT ABOUT -- AND IT'S GOING TO HAPPEN IN THIS STATE NEXT YEAR -- IS MOST ALL -- I THINK ALL BUT ONE OF THOSE GAMBLING LICENSES HAS TO BE REAFFIRMED BY VOTERS NEXT YEAR. AND I HAVE A FUNNY FEELING SOME OF THOSE ARE GOING TO TURN INTO VERY, VERY INTERESTING ELECTIONS, AND I HAVE A FEELING YOU MIGHT SEE SOME GAMBLING OPERATIONS FEEDING ON EACH OTHER, MAYBE TRYING TO ELIMINATE SOME OF THE COMPETITION.

Obradovich: YOU'RE CERTAINLY NOT GOING TO SEE LEGISLATORS TALKING ABOUT CURTAILING GAMBLING BECAUSE IT'S REALLY THE ONLY PART OF THE STATE ECONOMY THAT HAS ANY MONEY RIGHT NOW.

Yepsen: WELL, AND ONE OF THE THINGS HERE IN POLK COUNTY THAT'S GOING TO BE A VERY HOT ISSUE IS THIS VOTE ON PRAIRIE MEADOWS. I THINK THIS IS THE ONE AREA OF THE STATE WHERE PERHAPS GAMBLING IS MOST IN JEOPARDY. RECENTLY WE HAD CONSERVATIVE MEMBERS OF THE CLERGY AND LIBERAL MEMBERS OF THE CLERGY COME TOGETHER AND SAY, "WE'RE GOING TO WORK AGAINST THIS THING." IT'S A YEAR OUT. THEY'VE GOT TIME TO ORGANIZE. AND I THINK MIKE'S RIGHT. THEY'RE GOING TO GET A LITTLE BACK-DOOR HELP FROM THAT CASINO DOWN IN OSCEOLA OR THE CASINO OVER IN TAMA, BECAUSE THEY'D LOVE NOTHING MORE THAN TO BLOW UP THE GAMBLING HERE AND GET THAT MONEY DOWN THERE.

Borg: YOU CERTAINLY WON'T SEE LEGISLATORS, AS KATHIE'S POINTED OUT, SPEAKING AGAINST GAMBLING. THAT'S THEIR LIFELINE.

Glover: YOU WON'T SEE LEGISLATORS SPEAKING AT ALL ABOUT GAMBLING, FOR OR AGAINST. THE LEGISLATURE AT THIS POINT AND TIME IS GRIDLOCKED. ANY PROPOSAL TO EXPAND GAMBLING IS DEAD ON ARRIVAL. ANY PROPOSAL TO GET RID OF GAMBLING IS EQUALLY DEAD ON ARRIVAL BECAUSE, KATHIE IS RIGHT, IT'S "VISION IOWA." IF YOU WANT THESE BIG PROJECTS THAT ARE BEING BUILT ALL OVER THE STATE, YOU'VE GOT TO HAVE GAMBLING REVENUE. SO IT'S GRIDLOCK. IT'S NOT GOING TO CHANGE AT THE STATEHOUSE, BUT IT COULD CHANGE AT THE LOCAL LEVEL.

Henderson: AND THEY ARE ALL DISCOVERING THAT "VISION IOWA" IS A LOT BETTER THAN A TAX CUT BECAUSE AT THE END OF THE DAY, THERE IS A TANGIBLE ASSET WHICH PEOPLE CAN LOOK AT AND SEE IN THEIR COMMUNITY THAT LEGISLATORS CAN CLAIM THAT THEY HAVE CREATED.

Yepsen: THERE'S ALSO A GROUNDBREAKING AT THE START OF EACH ONE AND A RIBBON CUTTING AT THE END. AND GUESS WHO'S ALWAYS THERE!

Borg: AND I THINK WE SHOULD POINT OUT THAT "VISION IOWA" ISN'T ATTRACTIVE TO LEGISLATORS BECAUSE IT'S BONDING, THAT IS, IT'S BORROWING. IT ISN'T SPENDING OUT OF CURRENT REVENUE.

Yepsen: THAT'S RIGHT. BUT I TELL YOU, DEAN, IOWA, WE'RE VERY FRUGAL PEOPLE. AND THAT'S ALSO ONE OF OUR BIG LIABILITIES, BECAUSE IOWA SOME OF THE LOWEST LEVELS OF PUBLIC DEBT OF ANY STATE IN THE COUNTRY. I FIGURED IT OUT ONE TIME, YOU COULD BORROW A BILLION DOLLARS IN THIS STATE, ONE BILLION DOLLARS, AND YOU'D STILL HAVE PER CAPITA LEVELS OF PUBLIC DEBT LOWER THAN THE AVERAGE AMERICAN, SO WE'RE DISCOVERING WHAT OTHER STATES HAVE DISCOVERED BEFORE, THAT IT'S OKAY TO BORROW MONEY TO BUILD AN ASSET. YOU CREATE ECONOMIC GROWTH WHILE YOU'RE DOING IT. IT THROWS OFF ECONOMIC GROWTH. IT CREATES RECREATIONAL OPPORTUNITIES. IT GIVES US SOMETHING TO DO IN IOWA. SO I THINK PEOPLE, FOR A FEW MILLION BUCKS, THEY CAN LEVERAGE A LOT MORE AND EXPAND THIS "VISION IOWA" PROGRAM IN AN ELECTION YEAR.

Obradovich: BUT ALSO, THE OTHER THING IS THAT ONCE THEY GET DONE HANDING OUT ALL THE CURRENT MONEY, THERE ARE STILL GOING TO BE A LOT MORE COMMUNITIES IN THE STATE OF IOWA THAT DIDN'T GET MONEY THAN DID. AND THE LEGISLATORS WHO CAME FROM COMMUNITIES THAT DIDN'T GET MONEY MAY FEEL -- LIKE CEDAR RAPIDS OR LIKE KIRON, YOU KNOW. THEY MAY THINK IT'S BETTER TO TAKE SOME POTSHOTS AT "VISION IOWA," SO THAT COULD PLAY OUT A LITTLE BIT.

Borg: MIKE, AS WE LOOK AHEAD AT THIS NEXT LEGISLATIVE SESSION, CERTAINLY MONEY IS GOING TO BE THE BIG ISSUE. BUT BACK IN THE LAST SESSION, TEACHER SALARIES AND MONEY TO EDUCATION WAS BIG. IS THE TEACHER SALARY, PROGRESSIVE REFORM, IS THAT GOING TO REALLY TAKE A HIT, OR HOW IS THE STATE GOING TO FUND THAT?

Glover: THINK OF THE CONCEPT OF LIFE SUPPORT, DEAN. THAT'S WHERE THE TEACHER PAY INCREASE IS, ON LIFE SUPPORT. PEOPLE TALK BRAVELY ABOUT IT. THE GOVERNOR STILL SAYS EDUCATION IS ONE OF HIS PRIORITIES, AND HE SORT OF HINTS THAT TEACHER PAY IS GOING TO BE A PART OF THIS MIX. BUT WITH THE TYPE OF PRESSURE THAT'S GOING TO BE ON THIS BUDGET, THE SAME THING YOU SAW THE STATE WORKERS UNION DO: THEY STEPPED UP TO THE PLATE, THEY SAID, "OKAY, WE'LL DO AN EARLY RETIREMENT PROGRAM AND WE'LL DELAY SOME OF OUR PAY INCREASES TO HELP SOLVE THIS PROBLEM." I THINK YOU'RE GOING TO SEE THE TEACHERS UNION STEP FORWARD AND SAY, "OKAY, WE UNDERSTAND THE STATE HAS A BUDGET PROBLEM, AND WE'RE WILLING TO TALK ABOUT HOW WE CAN MAYBE PUT THIS OFF A LITTLE BIT, WAIT FOR THE ECONOMY TO TURN AROUND," BECAUSE THEY UNDERSTAND THAT THEIR BEST FRIEND IS A DEMOCRATIC GOVERNOR AND IT'S IN THEIR INTEREST TO HELP HIM LOOK GOOD.

Henderson: REAL SHORTLY, DEAN, IF THE LEGISLATIVE SESSION THAT WE JUST HAD THIS PAST WEEK WAS A HEADACHE, WHAT'S AHEAD IS A MIGRAINE. IT'S GOING TO BE REALLY TOUGH.

Yepsen: PART OF IT, THOUGH, TELLS ME THAT IT MAY NOT BE SO BAD. IT'S "JUST SAY NO." I MEAN, EVERYBODY THAT COMES UP THERE WITH AN IDEA TO SPEND MONEY IS TOLD "NO." AND I WANT TO GO BACK TO THE POINT HERE ABOUT THIS BEING DIFFERENT THAN OTHER BUDGET CUTS. IT IS A DEMOCRATIC GOVERNOR DOING IT. ONE OF THE THINGS THAT HE'S TRYING TO DO, AND I THINK IT'S WISE, IS LET'S CUT MIDDLE MANAGEMENT. THE TROOPER WRITING THE TICKETS, THE TEACHER IN THE CLASSROOM, THE CHILD ABUSE WORKER IN FRONT OF THE CLIENT, THOSE PEOPLE SHOULD NOT HAVE TO WORRY IN THIS. IT'S THE PEOPLE WHO ARE IN THOSE MIDDLE-MANAGEMENT TIERS, THAT'S DIFFERENT THAN THE WAY IT'S BEEN IN THE PAST.

Borg: AND ISN'T THIS GOING TO MAKE IT A LOT EASIER, THOUGH, FOR THIS 2010 PROGRESSIVE STUDY ON CONSOLIDATING IOWA GOVERNMENT AND SO ON? ISN'T IT GOING TO MAKE IT A LOT EASIER TO ENACT SOME OF THOSE REFORMS IF THE MONEY ISN'T THERE?

Glover: I DON'T KNOW THAT -- I DON'T KNOW THAT THIS BUDGET FEVER HAS SETTLED ALL THE WAY DOWN TO THE LOCAL LEVEL OR NOT, YET. LOCAL OFFICIALS ARE TERRIBLY, TERRIBLY RESISTANT TO THAT TYPE OF STUFF. BUT ONE THING I THINK IT'S GOING TO DO IS IT'S GOING TO OPEN UP THE POSSIBILITY FOR STATE GOVERNMENT TO DO SOME THINGS THAT STATE GOVERNMENT WOULDN'T HAVE BEEN ABLE TO DO IN THE PAST.

Obradovich: ONE OF THOSE THINGS IS SENTENCING REFORM. I THINK THAT THEY HAVE BEEN, SORT OF, TRYING THE LAST COUPLE OF YEARS. AND SOME KEY PEOPLE IN THE LEGISLATURE WHO HAVE BEEN TOUGH ON CRIME HAVEN'T WANTED TO DO IT. SUDDENLY THEY'RE SEEING THE BUDGET FALLOUT OF BUILDING A NEW PRISON EVERY YEAR, AND I THINK THAT MAY BE ONE ISSUE THAT GETS A LITTLE BIT OF A SHOVE.

Yepsen: I THINK SCHOOL MERGERS, DEAN, ARE STARTING TO BECOME MORE TALKED ABOUT IN RURAL IOWA. AS THE MONEY TURNS DOWN, MORE AND MORE LITTLE SCHOOLS OUT THERE ARE GOING TO HAVE TO TALK ABOUT MERGING.

Borg: WE'RE OUT OF TIME. THANK YOU FOR YOUR INSIGHTS. YOU'VE PROBABLY NOTED BY NOW THAT "IOWA PRESS" HAS A NEW SCHEDULE: FRIDAYS AT 6:30; AND SUNDAYS AT NOON. ONE FURTHER PROGRAM REMINDER: ON TUESDAY OF THIS COMING WEEK, IOWA PUBLIC TELEVISION WILL AIR THREE PROGRAMS DEALING DIRECTLY WITH THE ONGOING THREAT TO AMERICA'S CIVILIAN POPULATION. AT 7 ON TUESDAY, IT'S "BIOTERROR," AS "NOVA" INVESTIGATES THE DYNAMICS AND THE SCIENCE OF BIOLOGICAL WARFARE AND BIOTERRORISM IN THE 21ST CENTURY. AND THEN AT 8:30, IN A FOLLOW-UP TO THAT "NOVA" SPECIAL, IT'S "BIOTERROR: COPING WITH A NEW REALITY." THE HOST THERE IS SCOTT SIMON. AND HE'LL PRESENT INDIVIDUAL RESPONSES TO THE BIOTHREAT CONFRONTING AMERICA. AND THEN AT 9, BILL MOYERS AND MARTIN MARTY EXAMINE THE EVENTS AND THE RESPONSE TO THE NATIONAL TRAGEDY. AND THAT PROGRAM IS ENTITLED "THE AFTERMATH OF SEPTEMBER 11." AUTHOR AND EDITOR JAMES AUTRY WILL BE MODERATING THAT DISCUSSION CONCERNING THE EFFECT OF THAT INTERNATIONAL CRISIS ON OUR SOCIETY. ALL THAT AND MORE ON TUESDAY OF THIS WEEK ON STATEWIDE IOWA PUBLIC TELEVISION. THIS PROGRAM, "IOWA PRESS," IS NOW CELEBRATING ITS 30TH ANNIVERSARY. AS IS OUR PRACTICE DURING OUR ANNIVERSARY YEAR, WE'LL CLOSE WITH A SNAPSHOT OF OUR PAST. IN OCTOBER OF 1978, REPUBLICAN ROGER JEPSEN CHALLENGED IOWA SENATOR DICK CLARK'S REELECTION BID. ON "IOWA PRESS," CANDIDATE JEPSEN DISCUSSED THE SIZE OF THE FEDERAL GOVERNMENT AND WHAT HE SAW AS THE NEED FOR BUDGET TRIMMING. I'M DEAN BORG. THANKS FOR JOINING US.

WE HAD A $35-BILLION ANNOUNCEMENT HERE ABOUT A WEEK AGO OR SO THAT THE ESTIMATED COSTS ARE GOING TO BE OF THE NEW REGULATIONS PASSED BY THIS CONGRESS. WE HAVE A HEALTH, EDUCATION, WELFARE DEPARTMENT THAT ADMITTED EARLIER THIS SUMMER TO NOT BEING ABLE TO ACCOUNT FOR $6.5- TO $7 BILLION. WE HAVE THE GSA, WHICH IS CURRENT NEWS, NOT BEING ABLE TO ACCOUNT FOR, DUE TO MISMANAGEMENT, LOSING SOME $25 BILLION. YOU JUST ADD THOSE LATTER TWO UP, AND THAT'S ROUGHLY 5 PERCENT OF THE BUDGET. YOU COMPARE AND DO JUST AS ALL OTHER GOVERNMENTAL SUBDIVISIONS MUST DO. YOU SEE, IT DOESN'T MAKE SENSE WHEN IOWA'S GOVERNMENT AND ALL SUBDIVISIONS OF GOVERNMENT, STATE GOVERNMENTS, MUST LIVE ON THEIR BUDGET. CITY COUNCILS HAVE TO, OUR LOCAL COUNTIES HAVE TO, OUR SCHOOL BOARDS HAVE TO. IT MAY NOT BE EASY AND THEY MAY NOT BE ABLE TO DO EVERYTHING THEY LIKE. THEY HAVE TO PICK AND CHOOSE, BUT THEY DO. WHY SHOULDN'T THE FEDERAL GOVERNMENT? IT'S GOING TO TAKE A LOT OF HARD WORK. IT'S NOT GOING TO HAPPEN OVERNIGHT, AND THERE ARE NO EASY ANSWERS.

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.