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: THE BATTERED IOWA BUDGET HAS TAKEN ANOTHER HEAVY HIT. A DEFICIT OF AT LEAST $158 MILLION BROUGHT EMERGENCY ACTION FROM THE IOWA GENERAL ASSEMBLY IN SPECIAL SESSION ON NOVEMBER 8. WITH THE BUDGET CUTS, THERE'S A NEW LOOK TO IOWA STATE GOVERNMENT ON THE WAY. AND HERE TO PROVIDE INSIGHTS ARE THE IOWA SENATE'S REPUBLICAN MAJORITY LEADER, STEWART IVERSON, FROM DOWS; AND THE DEMOCRATIC MINORITY LEADER, MIKE GRONSTAL, FROM COUNCIL BLUFFS. GENTLEMEN, WELCOME BACK TO "IOWA PRESS."

THANK YOU.

Borg: AND WITH US HERE, TOO, AT THE "IOWA PRESS" TABLE: "DES MOINES REGISTER" POLITICAL COLUMNIST DAVID YEPSEN; AND "ASSOCIATED PRESS" LEGISLATIVE REPORTER MIKE GLOVER.

Glover: SENATOR IVERSON, WITHIN MINUTES OF THIS SPECIAL LEGISLATIVE SESSION ADJOURNING, GOVERNOR VILSACK ISSUED A STATEMENT IN WHICH HE CALLED IT A SMASHING SUCCESS, REALLY. WHAT'S YOUR VIEW?

Iverson: I THINK IT WAS A SUCCESS TO THE POINT THAT WE HAVE DONE THE THINGS THAT WE NEEDED TO DO UNTIL WE COME BACK IN JANUARY. ARE THERE GOING TO BE MANY MORE TOUGH DECISIONS TO MAKE IN JANUARY? YES, WE KNOW THAT. AND WE HAD TO MAKE ADJUSTMENTS BEFORE JANUARY, SO I THINK WE DID THAT TO, YOU KNOW, TO THE SATISFACTION OF MOST PEOPLE IN THE STATE OF IOWA. THE ONE THING I THINK IS GOING TO BE THE CENTERPIECE MORE THAN JUST TRIMMING BUDGETS AND PUTTING SOME BACK WAS THAT WE HAVE EXPANDED THE 99-PERCENT SPENDING LIMITATION TO ALSO INCLUDE THE ENACTED BUDGET, WHICH HOPEFULLY THE GOVERNOR WILL SIGN, AND ALSO THAT WE CAN'T USE THE REVERSIONS TO COUNT IN, IN MAKING BUDGETING. SO I THINK THAT IN THE FUTURE WILL HELP US DRAMATICALLY.

Glover: SENATOR GRONSTAL, WHAT'S YOUR VIEW? HOW WOULD YOU CHARACTERIZE THIS ONE-DAY SPECIAL SESSION?

Gronstal: I THINK THIS SESSION HAD A LOT OF DISAPPOINTMENTS IN IT. I THINK IT'S A DISAPPOINTMENT THAT TODAY WE HAVE FEWER CHILD-ABUSE INVESTIGATORS THAN WE DID THAN WHEN SHELBY DUIS DIED. I THINK THAT'S SAD. I THINK IT'S SAD OUR STATE HAS THE HIGHEST COMMUNITY COLLEGES -- COMMUNITY COLLEGE TUITION IN THE COUNTRY. SO I THINK THERE WERE A LOT OF DISAPPOINTMENTS. THE SUCCESS OF THE SESSION WAS THE FACT THAT RATHER THAN PURSUE NARROW PARTISAN GOALS, THAT WE SET ASIDE THE DIFFERENCES, FOUND OUR AREAS OF AGREEMENT, AND MOVE FORWARD ON AREAS OF AGREEMENT, AND LEFT THE DISAGREEMENT ASIDE. THAT'S WHY I THINK THE SESSION -- THE SPECIAL SESSION WAS SUCCESSFUL. BOTH SPECIAL SESSIONS THIS YEAR HAVE BEEN SUCCESSFUL. THE LAST SESSION WAS HIGHLY PARTISAN. AND LEAVING THOSE PARTISAN ISSUES ASIDE, FINDING OUR AREAS OF AGREEMENT RATHER THAN DISAGREEMENT. BUT THERE ARE STILL BIG DISAGREEMENTS.

Glover: THEN WHO'S FAULT WAS IT THAT IT WAS DISAPPOINTING? YOUR GOVERNOR OF YOUR PARTY IS GOING TO SIGN THOSE APPROPRIATIONS BILLS THAT DID JUST WHAT YOU'RE CRITICAL OF? IS IT HIS FAULT?

Gronstal: NO. ACTUALLY THE BILLS HE'S GOING TO SIGN ARE ALL FUNDS THAT WILL, AT LEAST TO SOME DEGREE, MITIGATE THOSE PROBLEMS. WE COULD HAVE DONE MORE. WE COULD HAVE DONE MUCH MORE. THE SUCCESS WAS THE FACT THAT TWO PARTIES WITH DIFFERENT CONCERNS WERE ABLE TO PASS SOMETHING PRETTY MUCH UNANIMOUSLY.

Glover: SENATOR IVERSON, THERE'S BEEN A LOT OF TALK SINCE SEPTEMBER 11 THAT THE PRESSURE IS ON POLITICIANS TO GET ALONG, TO PUT PARTISANSHIP ASIDE, TO STRIKE DEALS, TO MOVE FORWARD. HOW LONG DO YOU THINK THAT WILL LAST?

Iverson: WELL, I THINK ON MANY ISSUES WE CAN ACCOMMODATE EACH OTHER, REACH SOME COMPROMISE. THERE ARE SOME DIFFERENT PHILOSOPHICAL ISSUES. I THINK SENATOR GRONSTAL HAS JUST POINTED OUT SOME, UNDERLYINGLY, WHERE HE SAID WE COULD HAVE DONE MUCH MORE. WELL, THERE'S TWO WAYS TO GO IN AND DO MORE MONEY. YOU EITHER RAISE TAXES OR GO INTO THE EMERGENCY FUND, WHICH ESSENTIALLY IS THE CASH-FLOW DOLLARS. AND THAT'S WHERE THE DIFFERENCES OF OPINION -- AND I THINK THEY'RE HONEST DIFFERENCES OF OPINION. WE FIRMLY BELIEVE, AND I WAS JUST READING IN THE PAPER THIS MORNING ABOUT A COUPLE WHO GOT LAID-OFF AND THE THINGS -- THE ADJUSTMENTS THAT THEY WERE GOING TO HAVE TO MAKE IN THEIR OWN FAMILY. I THINK GOVERNMENT IS NO DIFFERENT. WE ARE NOT GOING TO RAISE TAXES. WE'RE NOT GOING TO THE EMERGENCY FUND TO SPEND ONE-TIME MONEY ON ONGOING PROGRAMS. THAT IS WHAT GOT THIS STATE INTO TROUBLE IN THE PAST, AND WE'RE NOT GOING THERE AGAIN.

Yepsen: SENATOR GRONSTAL, LET'S LOOK AHEAD TO NEXT YEAR. WE WANT TO COME BACK TO SOME OF THE THINGS THAT YOU DID IN THE SPECIAL SESSION, BUT I WANT YOU TO LOOK AHEAD FOR A MINUTE. WHERE IS THE ECONOMY HEADED? WHERE ARE YOUR REVENUES HEADED?

Gronstal: I THINK THAT'S DIFFICULT FOR US TO DETERMINE RIGHT NOW, VERY DIFFICULT IN LIGHT OF THE EVENTS OF SEPTEMBER 11. SO WE DON'T KNOW THE ANSWER TO WHERE THE ECONOMY IS GOING. WE CAN LOOK AT EXPERTS AND, FRANKLY, THAT'S WHAT WE'RE SUPPOSED TO DO. LOOK AT THE REVENUE ESTIMATING CONFERENCE, THOSE FOLKS WILL GIVE US A NUMBER, AND WE WILL ABIDE BY THAT NUMBER. WHERE THE ECONOMY IS GOING IS DIFFICULT TO TELL, BUT IF YOU LOOK AT LAST YEAR, THIS YEAR, AND NEXT YEAR, WILL BE THE THREE WORST BACK-TO-BACK BUDGET YEARS IN TERMS OF REVENUE GROWTH IN PROBABLY 35 YEARS.

Yepsen: SENATOR IVERSON, SAME QUESTION. I MEAN, THAT REVENUE ESTIMATING CONFERENCE WILL MEET IN A FEW WEEKS IN DECEMBER, AND IT WILL GIVE YOU THAT NUMBER. THE LAST NUMBER THEY GAVE YOU WAS 1.9 PERCENT. THE LAST TIME I CHECKED, THE STATE REVENUES WERE ABOUT THAT BELOW, THERE'S ABOUT A 3-POINT GAP BETWEEN WHAT YOU EXPECTED AND WHAT IT'S TURNING OUT TO BE. WHAT'S YOUR TAKE ON WHAT THE ECONOMY IS GOING TO BE LIKE AND WHAT YOUR TAX REVENUES ARE GOING TO BE LIKE?

Iverson: I THINK THE ECONOMY IS GOING TO BE FAIRLY SLOW, AND I THINK IT WILL START TO REBOUND MAYBE AROUND THE JUNE/JULY MARK, WHICH WON'T NECESSARILY HELP US OUT FOR THIS YEAR. THE REVENUE ESTIMATING CONFERENCE, I DO NOT EXPECT THEM TO RAISE THE ESTIMATE AT ALL. AT BEST, STAY THE SAME OR MAY LOWER IT SOME, AND WE MAY HAVE TO MAKE SOME MORE ADJUSTMENTS IN THE BUDGET. AND I THINK THAT'S, YOU KNOW, PART OF THE JOB THAT WE -- NONE OF US LIKE TO DO, IS TO GO IN AND REDUCE SPENDING, BUT I ALSO THINK IT CREATES AN OPPORTUNITY TO STREAMLINE. I'VE BEEN A FARMER MOST OF MY LIFE, AND I'VE HAD MY BACK TO THE WALL ABOUT THREE TIMES IN MY SPAN OF FARMING. SO HAVE I MADE ADJUSTMENTS? HAVE I HAD TO DO THINGS DIFFERENTLY? YES. BUT THE ONE THING I HAVE LEARNED THE HARD WAY IS THAT I USUALLY COME OUT A LITTLE STRONGER BY MAKING THOSE ADJUSTMENTS, BECAUSE WHEN THINGS ARE GOOD, WE DON'T LOOK AT THINGS AS CAREFULLY AS WE DO.

Borg: SENATOR IVERSON, YOU CONTROL THE REPUBLICAN MAJORITY, SO I'LL FIRST DIRECT THIS QUESTION TO YOU. YOU SAID WITH THE STATE'S BACK AGAINST THE WALL -- YOU SAID YOU HAD FARMED -- YOU CAN EITHER REDUCE SPENDING OR YOU CAN RAISE TAXES. BUT I SUGGEST THERE'S A THIRD WAY TOO, AND THAT IS, WITHIN THE EXISTING TAX STRUCTURE, THE STATE COULD STIMULATE THE ECONOMY. DO YOU THINK THAT'S GOING TO BE AN OPTION?

Iverson: I THINK THAT IS VERY MUCH AN OPTION. I JUST VISITED THE OTHER DAY WITH AN INDIVIDUAL FROM THE GOVERNOR'S OFFICE. THE ONE THING THAT WE DO NEED TO DO THAT WE HAVE WORKED ON, AND BOTH THE GOVERNOR AND US AGREE AND I THINK SENATOR GRONSTAL WOULD, VENTURE CAPITAL IS VERY MUCH NEEDED IN THIS STATE. THAT CAN BE STIMULATED THROUGH THE TAX CODE. IN THE FIRST QUARTER OF THIS YEAR, ILLINOIS HAS HAD OVER $500 MILLION OF VENTURE CAPITAL. MISSOURI OVER 300, MINNESOTA OVER 200, IOWA, ONE MILLION DOLLARS. THESE ARE THE THINGS THAT CREATE THE GOOD PAYING JOBS THAT WE ARE GOING TO NEED TO EXPAND OUR ECONOMY. IF WE ARE VERY SHORT-SIGHTED AND SAY WE'RE JUST GOING TO TAKE THIS MONEY AND SPEND IT ON MORE GOVERNMENT INSTEAD OF GROWING THE ECONOMY, FIVE YEARS FROM NOW WE'RE IN WORSE SHAPE THAN WE ARE TODAY. SO I THINK WE HAVE TO BE FORWARD THINKING, AND I THINK THE VENTURE CAPITAL AND SOME OTHER THINGS THAT WE NEED TO DO TO STIMULATE THE ECONOMY IS VERY HELPFUL.

Borg: SENATOR GRONSTAL, YOU SHOOK YOUR HEAD YES WHEN HE STARTED TO MENTION VENTURE CAPITAL. WHERE DOES THAT MONEY COME FROM?

Gronstal: I THINK CERTAINLY VENTURE CAPITAL. WE'RE LOOKING AT SOME STRUCTURES THAT PROBABLY WOULDN'T AFFECT THE STATE BUDGET IN ANY WAY FOR THREE OR FOUR YEARS AT THE EARLIEST BEFORE IT ACTUALLY POTENTIALLY WILL HAVE AN IMPACT ON REVENUES, AND IT POTENTIALLY HAS A VERY POSITIVE IMPACT -- UPSIDE IMPACT ON OUR ECONOMY. WE THINK THAT'S IMPORTANT, BUT I ALSO THINK IT'S IMPORTANT -- YOU KNOW, THERE'S TWO SIDES TO THIS COIN. IN THE '80S, THE LAST TIME WE WERE IN BUDGET DIFFICULTIES, WE LOST A GENERATION OF OUR KIDS TO OTHER STATES, TO ARIZONA, TO TEXAS, TO FLORIDA. WE'VE GOT TO MAKE SURE WE MAINTAIN OUR STRUCTURES IN PLACE, TO TRAIN OUR KIDS AT OUR COMMUNITY COLLEGES FOR THE JOBS OF THE FUTURE. AND HAVING THE HIGHEST COMMUNITY COLLEGE TUITIONS IN THE COUNTRY IS NOT A SOLUTION TO OUR PROBLEMS.

Borg: WITH VENTURE CAPITAL, ARE YOU SAYING ENCOURAGE PRIVATE INDIVIDUALS OR ARE YOU COMMITTING SOME GOVERNMENT MONEY TOO?

Gronstal: I DON'T THINK IT'S LIKELY YOU'LL SEE US COMMIT STATE DOLLARS, BUT I THINK IT'S LIKELY YOU'LL SEE US PURSUE SOMETHING THAT REDUCES THE RISK, RATHER THAN GUARANTEE THE RETURN FOR VENTURE CAPITAL, SOMETHING THAT REDUCES THEIR RISK IF THESE THINGS GO BAD.

Glover: SENATOR IVERSON, NOTHING IS NEW IN POLITICS. THAT'S ONE OF THE OLDEST SAYINGS WE HAVE. IN THE 1980S -- IN THE EARLY 1980S THIS STATE HAD A BUDGET PROBLEM; THE LEGISLATURE RAISED THE SALES TAX. IN THE EARLY 1990S THE STATE HAD A BUDGET PROBLEM; THE LEGISLATURE RAISED THE SALES TAX. SHOULDN'T WE ASSUME THAT ONCE WE GET PAST THIS NEXT ELECTION THAT THAT'S WHERE THIS SET OF POLITICAL LEADERS WILL TURN?

Iverson: NO.

Glover: ABSOLUTELY NOT?

Iverson: ABSOLUTELY NOT. I HAVE BEEN COMMITTED TO THAT FROM DAY ONE THAT WE HAVE TO -- WE MAY HAVE TO RESTRUCTURE GOVERNMENT. WE MAY HAVE TO DO SOME THINGS DIFFERENTLY. OUR FOCUS IS ON GROWING THE ECONOMY OF THE STATE OF IOWA, NOT GROWING THE IOWA BUDGET BY INCREASING TAXES. AND WE WILL NOT INCREASE TAXES EVEN AFTER THE ELECTION.

Glover: WHAT DO YOU SAY TO THE ARGUMENT THAT THE LEGISLATURE HAS CAUSED PART OF THIS PROBLEM BY CUTTING TAXES FOR ABOUT TEN STRAIGHT YEARS?

Iverson: THE BIGGEST THING THAT ARGUMENT SAYS IS WHEN YOU REDUCE THE TAX BURDEN ON IOWANS, THAT THOSE PEOPLE AREN'T ABLE TO SPEND THEIR MONEY THAT REJUVENATE THE ECONOMY TO SOME EXTENT. IF THOSE DOLLARS -- IF THOSE TAXES HAD NOT BEEN CUT, I WILL GUARANTEE YOU THE GOVERNMENT WOULD HAVE GROWN BY ABOUT THAT SAME AMOUNT, AND THE PROBLEM NOW WOULD BE EVEN DEEPER, BECAUSE THE ONE THING THAT I HAVE LEARNED IN MY TWELVE YEARS IN THE LEGISLATURE, WHEN THERE'S MONEY LAYING ON THE TABLE, PEOPLE WILL SPEND IT.

Glover: SENATOR GRONSTAL, YOUR ANSWER TO THAT QUESTION?

Gronstal: IT'S GREAT RHETORIC. IT'S GREAT RHETORIC TO PUT THAT KIND OF LANGUAGE OUT, "WE'RE NOT GOING TO RAISE TAXES." THIS SPECIAL SESSION JUST RAISED PROPERTY TAXES ACROSS THIS STATE, PROBABLY IN THE NEIGHBORHOOD OF $60-, $70 MILLION TO MAKE UP FOR THE SHORTFALL THAT'S GOING TO HAPPEN TO SCHOOLS. AS A DIRECT RESULT OF OUR ACTIONS, WE HAVE RAISED TAXES. AND WE'VE RAISED ONE OF THE WORST TAXES, THE PROPERTY TAX. SO I DON'T THINK THERE'S ANYBODY RIGHT NOW -- I THINK EVERYBODY IS LOOKING AND HOPING THIS ECONOMY WILL GET BETTER, AND I THINK IT WILL GET BETTER IN A FEW YEARS.

Yepsen: SENATOR GRONSTAL, THE DIRECT QUESTION MIKE ASKED WAS SHOULD THIS LEGISLATURE RAISE TAXES. NOW, I UNDERSTAND THAT SCHOOLS MAY BE FORCED TO RAISE PROPERTY TAXES --

Gronstal: I THINK THE ANSWER RIGHT NOW IS CLEARLY "NO." WITH A FRAGILE ECONOMY, NOW IS NOT THE TIME TO BE RAISING TAXES. BUT THERE IS AN ECONOMIC EMERGENCY FUND, AND IF THE WORST SET OF THREE YEARS IN THIRTY-FIVE YEARS ISN'T AN ECONOMIC EMERGENCY, I DON'T KNOW THAT THERE WILL EVER BE ANYTHING THAT MEETS THAT.

Yepsen: OKAY. NO TAX INCREASE OUT OF DEMOCRATS THIS YEAR? WHAT ABOUT NEXT YEAR AFTER THE ELECTION?

Gronstal: I DON'T SEE THAT. AND I'D ALSO SAY I KIND OF AGREE WITH STEW. I'M HOPEFUL THAT NEXT SUMMER OR FALL, OUR ECONOMY WILL BECOME MORE HEALTHY AND WE'LL START TO SEE SOME REVENUE GROWTH.

Glover: SENATOR IVERSON, LET'S LOOK AHEAD. WHAT DO WE HAVE LEFT FOR THE NEXT REGULAR SESSION OF THE LEGISLATURE? IS IT GOING TO BE ALL BUDGET, OR IS THERE GOING TO BE ANYTHING ELSE THERE?

Iverson: I THINK THE MAJORITY OF IT IS GOING TO BE BUDGET. WE'VE ALSO STARTED DOWN THE PATH ON DHS RESTRUCTURING, WHICH IS A HUGE ITEM. YOU KNOW, LAST YEAR WE PASSED THE BILL WITH ELIMINATING SOME REGIONAL OFFICES, AND IN THE SPECIAL SESSION -- AND THE GOVERNOR VETOED THAT. IN A SPECIAL SESSION, WE WERE ABLE TO SIT DOWN AND GET STARTED DOWN THAT PATH. I THINK THAT IS GOING TO HAPPEN. WE'RE LOOKING AT COURT RESTRUCTURING WITH THE COURTS, NOT ONLY THE SUPREME COURT BUT THE DISTRICT COURTS AND ALL THAT, AROUND THE STATE OF IOWA. SO I THINK IT IS GOING TO GIVE US AN OPPORTUNITY TO DO SOME OF THE THINGS THAT NORMALLY WE HAVE NOT DONE BEFORE. AND ONE OF THE THINGS THAT THE COURT SAYS IS NOT OUR FUNCTION IS THE "CASA" PROGRAM, THE COURT-APPOINTED SPECIAL ADVOCATES. I THINK IT'S A GREAT PROGRAM. THERE ARE 44 STATES THAT HAVE THAT PROGRAM; 27 OF THEM ARE PRIVATELY FUNDED. ONE THING I DID MENTION TO THE GOVERNOR'S OFFICE THE OTHER DAY, YOU KNOW, IS THE CONCEPT OF TAKING ALL THE CHILDREN'S PROGRAMS. WE'VE GOT THEM SPREAD OUT IN VARIOUS DEPARTMENTS THROUGHOUT STATE GOVERNMENT. LET'S PUT THEM IN ONE PLACE, AND THIS "CASA" PROGRAM COULD ALSO FIT INTO THAT PLACE. I THINK WE COULD DO IT WITH NO MORE MONEY. I THINK WE CAN DO IT BY JUST STREAMLINING THE OVERLAPS THAT WE HAVE NOW, BUT IS THAT AN IDEA THAT I THINK IS WORTH TALKING ABOUT? YES. AND I THINK WE WILL BE HAVING THOSE DISCUSSIONS.

Borg: MR. GRONSTAL, LOOKING INTO THE NEXT SESSION, IS ONE ISSUE YET TO BE SETTLED, IN YOUR ESTIMATION, HOW THAT EMERGENCY FUND IS TO BE USED?

Gronstal: I THINK THAT WILL BECOME ONE OF THE GREAT DISCUSSION POINTS OF THIS NEXT SESSION. IS IT IMPORTANT TO HAVE ENOUGH CHILD PROTECTIVE SERVICE WORKERS TO TRY AND STOP THE NEXT SHELBY DUIS FROM HAPPENING? AND I THINK YOU WILL SEE PEOPLE OFFER THOSE KINDS OF ISSUES NEXT SESSION.

Yepsen: THE DEPARTMENT OF HUMAN SERVICES, SENATOR, HAS ABOUT 5,400 PEOPLE THAT WORK FOR IT. WHY CAN'T THEY REALLOCATE SOME STAFF?

Gronstal: I THINK WE WILL REALLOCATE STAFF, AND I THINK THAT WILL HAPPEN. AND I THINK THAT'S THE DIRECTION, BUT EVERYBODY THAT ANALYZED THIS SYSTEM A COUPLE YEARS AGO AFTER THAT CASE, EVERYBODY THAT ANALYZED IT SAID WE NEEDED MORE CHILD PROTECTIVE SERVICE WORKERS, AND TODAY WE HAVE FEWER.

Yepsen: SO THE ONLY PLACE TO GET THEM IS IN THE EMERGENCY FUND?

Gronstal: I THINK THAT'S ONE VERY GOOD PLACE TO GET THE FUNDS.

Yepsen: SENATOR IVERSON, DO YOU AGREE WITH THAT, HAVING TO DIP INTO THE EMERGENCY FUND?

Iverson: NO. THE BIGGEST THING, AS I STATED EARLIER, THE EMERGENCY FUND IS ONE-TIME MONEY. WE'VE GOTTEN INTO THE PROBLEMS THAT WE HAVE IN THE PAST BY TAKING ONE-TIME MONEY AND SPENDING IT ON ONGOING PROGRAMS. DOES THAT MEAN THAT THERE MAY BE LESS MIDDLE MANAGEMENT AND MORE FRONT-LINE WORKERS? THAT'S WHAT OUR HOPE IS. THAT'S WHERE WE'RE HEADED. WITH THE SHELBY DUIS THING THAT MIKE HAS TALKED ABOUT A LOT, YOU KNOW, WE HAD A -- I WAS ONE OF THE PART OF THE 99 PERCENT THAT THOUGHT THE POLICY HAD CHANGED; "WHEN IN DOUBT, TAKE THE CHILD OUT." AND THEN I FIND OUT IT HASN'T CHANGED, AND WE DID ACTUALLY ALLOCATE MORE MONEY TO FRONT-LINE WORKERS THIS YEAR. WE PUT MONEY BACK INTO THIS PROGRAM IN THE SPECIAL SESSION, $3 MILLION FOR SOME FRONT-LINE WORKERS. AND WILL THERE BE SOME REALLOCATION? YES. BUT I THINK THAT'S WHAT WE HAVE TO DO.

Yepsen: I SEE THAT AS A DIFFERENCE. SENATOR GRONSTAL, WHAT DO DEMOCRATS PROPOSE TO DO ONCE YOU GO THROUGH THE EMERGENCY FUND? I MEAN, IF YOU DO WHAT SENATOR IVERSON SUGGESTS AND NOT DIP INTO IT, YOU'LL ALWAYS HAVE THAT MONEY THERE.

Gronstal: WELL, FIRST OF ALL, THAT'S WHAT HE SUGGESTS, BUT THE FACT OF THE MATTER IS --

Yepsen: WHAT DO YOU DO WHEN IT'S GONE?

Gronstal: THE FACT OF THE MATTER IS, REPUBLICANS ARE MORE THAN WILLING TO DIP INTO ONE-TIME MONEYS. THEY DID IT AT THE END OF LAST SESSION FOR TEACHER SALARIES, TOOK ONE-TIME MONEY FOR TEACHER SALARIES. IN THE BUDGET LAST YEAR, YOU TALKED ABOUT THE LEVEL OF GROWTH AT 1.9 PERCENT. ABOUT 1.5 PERCENT OF THE PROJECTED GROWTH IS FUNDS THAT THEY TOOK, ONE-TIME FUNDS, FROM VARIOUS TRUST FUNDS IN THE STATE. SO THEY DO THAT ON A REGULAR BASIS. IT'S A QUESTION OF WHETHER THESE THINGS MEET THEIR PRIORITY LIST, AND THEY APPARENTLY DON'T BECAUSE THEIR ACTIONS HAVEN'T LED TO THAT. THEY DO ONE-TIME MONIES AS WELL.

Glover: SENATOR IVERSON, YOU TALKED A LOT ABOUT RESTRUCTURING DHS, DOING SOME MANAGEMENT CHANGES THERE, AND THAT SORT OF STUFF. AT THE END OF THE DAY, WILL THE AVERAGE CITIZEN NOTICE SOMETHING DIFFERENT BY THE WAY DHS OPERATES?

Iverson: I WOULD SAY PROBABLY NOT. BUT THE DIFFERENCE WILL BE IS WITHIN THE SYSTEM ITSELF, WHICH -- THE DEPARTMENT OF HUMAN SERVICES IS THE SECOND LARGEST BUDGET THAT WE HAVE IN THE STATE OF IOWA OUTSIDE OF EDUCATION. CAN YOU STREAMLINE IT SO THAT THE SERVICES WILL BE DELIVERED DIFFERENTLY? YES. WILL THE AVERAGE INDIVIDUAL NOTICE IT? BUT THEN AGAIN, WHEN WE TALK ABOUT HOW MANY PEOPLE GET SERVICES FROM DHS, I DON'T KNOW IF THAT'S 20 PERCENT, 50 PERCENT OF IOWANS, YOU KNOW. SO FOR THE PEOPLE WHO ARE WITHIN THE SYSTEM OR GET SERVICES FROM THE SYSTEM, THEY WILL PROBABLY NOTICE SOME DIFFERENCE. BUT FOR THE PEOPLE WHO DON'T, PROBABLY NOT.

Glover: PEOPLE THAT ARE GETTING SERVICES IN THAT AGENCY, WHAT WILL THEY NOTICE?

Iverson: I THINK THEY WILL NOTICE THAT INSTEAD OF THIS OFFICE BEING OPEN IN THIS COMMUNITY FIVE DAYS A WEEK, IT MAY BE THERE ONE DAY OR TWO DAYS A WEEK INSTEAD OF THE FIVE DAYS A WEEK IT IS NOW. SO WILL THERE HAVE TO BE SOME ADJUSTMENTS MADE THAT WAY? YEAH. AND I THINK SOME PEOPLE THAT USE THOSE SERVICES WILL NOTICE SOME OF THE DIFFERENCE.

Glover: SENATOR GRONSTAL, WHAT WILL BE THE IMPACT ON IOWANS, BOTH THOSE WHO USE SERVICES FROM THAT DEPARTMENT AND THOSE WHO DON'T, FROM THE ACTIONS OF THIS LEGISLATURE?

Gronstal: I THINK THERE WILL BE SIGNIFICANT IMPACTS. I THINK WE WILL HAVE MORE PROBLEMS WITH CHILD ABUSE IN THIS STATE. I THINK WE'LL HAVE MORE PROBLEMS WITH DYSFUNCTIONAL FAMILIES. I THINK WE'LL HAVE MORE KIDS THAT FALL THROUGH THE CRACK, AND THOSE ARE THE KIDS THAT TEN YEARS FROM NOW OR TWELVE YEARS FROM NOW WILL BE COSTING OUR SOCIETY IN A VARIETY OF WAYS. SO THAT'S THE PROBLEM I SEE.

Yepsen: SENATOR GRONSTAL, LAST WEEK THE BOARD OF REGENTS RAISED TUITIONS FOR STATE UNIVERSITY STUDENTS. IT AMOUNTS TO $12.80 A WEEK. WILL THE LEGISLATURE NEXT YEAR FORCE ANOTHER TUITION INCREASE?

Gronstal: I THINK THAT'S PROBABLY LIKELY AT THIS POINT. WITH THE VERY LIMITED RESOURCES THE STATE HAS NEXT YEAR, THAT'S VERY LIKELY.

Yepsen: IS THAT GOOD OR BAD, IN YOUR ESTIMATION? STUDENTS AT STATE UNIVERSITIES IN IOWA PAY BELOW COMPARABLE TUITIONS AT PEER INSTITUTIONS. IS IT GOOD OR BAD THAT TUITIONS IN IOWA HAVE TO GO UP?

Gronstal: IOWA FAMILIES MAKE BELOW THE AVERAGE OF OUR PEER STATES IN TERMS OF INCOMES AS WELL. OUR TUITION SHOULD BE ON THE LOW SIDE OF THE AVERAGE. AND THE REGENTS ARE ON THE LOW SIDE OF THE AVERAGE. COMMUNITY COLLEGES ARE NUMBER ONE IN THE COUNTRY, HIGHEST TUITIONS IN THE COUNTRY. THERE'S 65-, 70,000 KIDS A YEAR THAT THAT'S THEIR TICKET TO A BETTER LIFE. THAT'S THEIR TICKET TO A JOB -- NOT A MINIMUM-WAGE JOB, A JOB WHERE THEY CAN EARN AN INCOME.

Yepsen: SENATOR IVERSON, WILL TUITIONS GO UP NEXT YEAR?

Iverson: THEY WILL PROBABLY GO UP SOME. WE'RE GOING TO TRY AND DO THE BEST WE CAN, OF COURSE, WITH THE DOLLARS ALLOCATED. AND YOU KNOW, THAT'S ONE OF THE TOUGH PARTS OF BEING THE MAJORITY. WE'RE THE ONES THAT HAVE TO MAKE THINGS HAPPEN AND MAKE THOSE DECISIONS, AND THEY'RE NOT EASY DECISIONS. BUT I WOULD VENTURE TO SAY, YES, THEY WILL PROBABLY GO UP SOME.

Yepsen: DO YOU THINK THERE'S A PROBLEM HERE? I MEAN, PEOPLE SAY, WELL, YOU'RE MAKING IT DIFFICULT FOR KIDS TO GO TO SCHOOL, AND YET BOTH STATE UNIVERSITIES AND COMMUNITY COLLEGES CONTINUE TO SET RECORD ENROLLMENT. SO THAT WOULD SUGGEST THE PRICE, MAYBE, ISN'T TOO HIGH.

Iverson: WELL, ANYTIME WHEN YOU'RE GOING TO SCHOOL, I MEAN, IT'S NO DIFFERENT TODAY THAN OVER THIRTY YEARS AGO WHEN I WENT TO COLLEGE. YOU KNOW, THE COSTS ARE THERE AND YOU KIND OF FIGURE THAT IN, AND THEN WHEN THEY RISE, THEN HAVE YOU TO MAKE ADJUSTMENTS. IT'S NEVER EASY. WHEREVER THE PRICE IS AT FOR TUITION, I COULD VENTURE TO SAY IT'S ALWAYS TOO HIGH FOR THE PERSON PAYING.

Gronstal: IT'S NOT JUST TUITIONS AT COMMUNITY COLLEGES. COMMUNITIES COLLEGES ARE CLOSING DOWN PROGRAMS, PROGRAMS THAT PROVIDE TRAINING FOR PEOPLE. I HAD A GUY CALL ME AT THE END OF LAST SESSION OF THE REGULAR SESSION, CALL ME AND SAY, "THEY'RE ENDING THIS PROGRAM THAT I'M IN. I'M 48 YEARS OLD. I'VE GOT NO RETIREMENT AT THIS POINT. THIS WAS MY TICKET TO A BETTER LIFE, AND THEY'RE STOPPING IT BECAUSE THEY CAN'T AFFORD TO OFFER THAT PROGRAM ANYMORE AT THAT COLLEGE." WE'RE TAKING AWAY OPPORTUNITIES FROM MANY IOWANS TO GET THE KINDS OF EDUCATION THEY NEED TO LEAD A DECENT LIFE.

Yepsen: SENATOR, HOW CAN YOU SAY THAT WHEN ENROLLMENTS CONTINUE TO GO UP AT BOTH COMMUNITY COLLEGES AND STATE UNIVERSITIES? THAT WOULD SUGGEST THAT THAT STORY YOU JUST TOLD US IS AN ANECDOTAL ONE AND THAT MORE AND MORE PEOPLE ARE GOING TO STATE UNIVERSITIES AND COMMUNITY COLLEGES.

Gronstal: AND A LOT OF THE GROWTH IN COMMUNITY COLLEGES IS IN THE LIBERAL ARTS, AND THEY'RE DOING THAT BECAUSE IT'S CHEAPER THAN GOING TO THE REGENTS AND THEY'RE DOING THEIR FIRST TWO YEARS THERE. BUT FOR A LOT OF PEOPLE IN THE TECHNICAL AREAS, THAT ARE THE MOST EXPENSIVE FOR THE COMMUNITY COLLEGE TO OPERATE AND, THEREFORE, THE MOST LOGICAL IN TERMS OF THEM LOOKING AT WHEN THEIR BUDGETS ARE CUT, THAT'S WHERE THEY'RE GOING TO. SO WE'RE TAKING THOSE OPPORTUNITIES AWAY FROM THOSE KINDS OF KIDS THAT ARE GETTING TECHNICAL EDUCATIONS.

Iverson: WELL, TO A POINT. THE TROUBLE IS WE DO HAVE A PROGRAM OUT THERE. IS IT JUSTIFIABLE IF YOU HAVE 2 OR 3 OR 4 OR 5 STUDENTS IN THERE VERSUS 10 OR 20 OR 30 STUDENTS? THE TROUBLE IS THE COLLEGES HAVE TO MAKE DECISIONS, JUST LIKE EVERY ONE OF US IN BUSINESS THAT HAS TO MAKE A DECISION. AND ARE YOU GOING TO PLEASE EVERY SINGLE PERSON EVERY TIME? NO. BUT IF I'VE GOT A COURSE OUT HERE THAT'S GOT 3 STUDENTS IN IT, CAN I JUSTIFY SPENDING "X" AMOUNT OF DOLLARS WHEN I'VE GOT A COURSE OVER HERE THAT'S GOT 30 STUDENTS IN IT. THAT'S A BUSINESS DECISION THAT HAS TO BE MADE. AND I REALIZE THAT THROUGHOUT THE STATE, MOST OF THE COMMUNITY COLLEGES OFFER A TRADE. IT MAY NOT BE AT EVERY COMMUNITY COLLEGE. THERE MAY BE ONE OR TWO COLLEGES IN THE STATE THAT OFFER THIS PROGRAM THAT'S NOT OFFERED IN THE REST, BUT THOSE ARE THE TYPES OF THINGS THAT WE HAVE TALKED ABOUT ALSO WITH THE REGENTS: ARE EVERY REGENTS SCHOOL OFFERING THE SAME THING; SHOULD WE BE SPECIALIZING IN CERTAIN AREAS SO AS TO THE OVERLAP, BECAUSE THAT IS PART OF THE COST?

Glover: SENATOR IVERSON, LET'S STICK TO ANOTHER EDUCATION ISSUE THAT WAS PROBABLY THE DOMINANT ISSUE IN THE LAST LEGISLATIVE SESSION, AND THAT WAS TEACHER PAY. GIVEN THE STATE'S BUDGET CRUNCH, IS THE ISSUE OF PAYING ANOTHER INSTALLMENT TOWARD THE TEACHER PAY INCREASE OFF THE TABLE FOR THE NEXT SESSION?

Iverson: I THINK IT'S GOING TO BE VERY DIFFICULT TO COME UP WITH AN ADDITIONAL $40 MILLION OR WHERE. BUT TO THIS POINT, THERE'S BEEN A FEW MILLION DOLLARS OUT OF THAT 40 SPENT ON MENTORING, AND I THINK MENTORING IS A VERY IMPORTANT PROGRAM. AND BEYOND THAT, I DON'T KNOW HOW MANY SCHOOLS HAVE GONE AHEAD AND GOT THINGS SET UP TO WHERE THEY CAN PROCEED WITH THIS. BUT THE LAST I HEARD, THERE'S NOT BEEN A LOT OF THAT MONEY THAT HAS BEEN SPENT, AND A GOOD CHUNK OF THAT MAY BE ABLE TO CARRY OVER.

Glover: SENATOR GRONSTAL, DO YOU ANTICIPATE THE GOVERNOR OF YOUR PARTY IS GOING TO PROPOSE ANOTHER INSTALLMENT OF THE TEACHER PAY INCREASE NEXT SESSION?

Gronstal: ABSOLUTELY. ABSOLUTELY.

Glover: DO YOU KNOW HOW MUCH?

Gronstal: NO, I CAN'T PREDICT HOW MUCH IT'S GOING TO BE AT THIS POINT, BUT ABSOLUTELY. AND THAT GETS BACK TO MY POINT ABOUT THE '80S. WE CAN'T LOSE ANOTHER GENERATION OF TEACHERS TO ARIZONA AND FLORIDA AND TEXAS, SO WE'RE GOING TO MOVE FORWARD ON TEACHER SALARIES.

Glover: GIVEN WHAT YOU'VE JUST SAID ABOUT COMMUNITIES COLLEGES, HOW CAN YOU SET ASIDE ANOTHER LUMP OF MONEY FOR A TEACHER PAY INCREASE, TAKING THAT MONEY PROBABLY AWAY FROM COMMUNITY COLLEGES?

Gronstal: IT'S ABOUT MAKING CHOICES. IT'S ABOUT SETTING PRIORITIES. AND THERE ARE OTHER AREAS OF THE BUDGET WE CAN LOOK AT TO CUT AND --

Glover: WHERE?

Gronstal: AND WE CAN LOOK AT THE ECONOMIC EMERGENCY FUND. I THINK WE'VE STARTED WITH THE DEPARTMENT OF HUMAN SERVICES. WE'VE STARTED TO EXPAND THE SPAN OF CONTROL, GET RID OF MIDDLE-LEVEL MANAGERS. I THINK WE CAN DO THAT IN A VARIETY OF AREAS OF STATE GOVERNMENT.

Iverson: BUT THAT IS EXACTLY, I THINK, THE CONVERSATION THAT WE'RE HAVING RIGHT NOW IS THE DIFFERENCE BETWEEN THE MAJORITY AND THE MINORITY. I'VE BEEN IN THE MINORITY. I CAN OFFER EVERY SOLUTION TO SPEND THE MONEY SIX TIMES BECAUSE I DON'T HAVE TO BE RESPONSIBLE. WHEN YOU HAVE TO ACTUALLY CUT THE BUDGET AND MAKE THESE DECISIONS, IT'S A LOT TOUGHER THAN BEING ABLE TO SAY: "THIS IS WHAT I WANT TO DO, BUT I DON'T ACTUALLY HAVE TO DO IT."

Yepsen: SENATOR GRONSTAL, I WANT TO GO BACK TO SOMETHING SENATOR IVERSON SAID, AND THAT'S ABOUT THIS COURT-APPOINTED SPECIAL ADVOCATE PROGRAM. THE STATE OF IOWA SPENDS NOW ABOUT A MILLION DOLLARS HELPING THESE VOLUNTEERS HELP KIDS IN THE COURTROOM.

Gronstal: ABOUT A MILLION TWO.

Yepsen: SENATOR IVERSON IS SUGGESTING THAT BE TURNED OVER COMPLETELY TO THE PRIVATE SECTOR AND BE MADE COMPLETELY A VOLUNTEER PROGRAM. DO DEMOCRATS FEEL THAT CAN BE DONE?

Gronstal: IF WE CAN FIND PEOPLE IN THE PRIVATE SECTOR WILLING TO ASSEMBLE THIS, WE'RE CERTAINLY WILLING TO LOOK AT THAT. BUT I DON'T THINK YOU'RE GOING TO FIND A QUICK SOLUTION BY FEBRUARY 1. AND AT THIS POINT, THE DEMISE OF THAT PROGRAM HAS BEEN DELAYED FOR ONE MONTH, AND THE SPECIAL SESSION DID NOTHING TO SAVE IT, NOTHING TO SAVE IT. IN SPITE OF HEADLINES AND PRESS RELEASES I SAW REPUBLICANS PUTTING OUT ABOUT SAVING THE "CASA" PROGRAM, THEY DID NOTHING.

Glover: SENATOR IVERSON, ANOTHER ISSUE THAT WAS DEALT WITH IN THE SPECIAL SESSION WAS A BILL WHICH DID SOME DEFINITIONAL THINGS FOR HOMELAND SECURITY, SPELLING OUT SOME RESPONSIBILITIES AND RIGHTS. IS THERE SOMETHING THAT THE LEGISLATURE NEEDS TO DO IN THE REGULAR SESSION TO DO WITH HOMELAND SECURITY, GIVEN THE TERRORIST ATTACKS?

Iverson: WELL, I THINK THE BIGGEST THING THAT HAS HAPPENED THERE IS KIND OF A CHANGE IN FOCUS AND A COMBINATION OF JOBS FOR THE DIRECTOR. THERE MAY BE SOME MORE THINGS THAT WE NEED TO DO. WE HAD THE DISCUSSIONS, YOU KNOW, WITH THE GOVERNOR AND OTHER FOLKS DOING WHAT WE NEED TO KIND OF PUT THINGS IN PLACE. RIGHT NOW I AM NOT AWARE OF ADDITIONAL THINGS WE MAY NEED, BUT IT MAY -- THERE MAY BE SOMETHING COME UP THAT WE MAY NEED TO MAKE SOME ADJUSTMENTS IN THAT I'M NOT AWARE OF TODAY.

Glover: IS THAT A POTENTIAL DRAIN ON THE BUDGET FOR SECURITY, HOMELAND SECURITY?

Iverson: WELL, TO A CERTAIN EXTENT, BUT IT ALSO GOES BACK TO, YOU KNOW, WE CAN DO THINGS BY BEING A LITTLE MORE EFFICIENT TO A CERTAIN POINT. BUT WHAT WE ARE -- SPECIFIC THINGS THAT WE MAY BE TALKING ABOUT. IF THERE'S WHOLESALE CHANGES THAT HAVE TO BE MADE, YEAH, THAT MIGHT THEN BECOME A COST ITEM THAT WE HAVE TO TAKE A LOOK AT WITHIN OUR BUDGET.

Glover: SENATOR GRONSTAL, ARE DEMOCRATS WILLING TO LOOK AT HOMELAND SECURITY?

Gronstal: ABSOLUTELY. NO QUESTION ABOUT THOSE ISSUES. AND MOST OF THEM ARE STATUTORY IN TERMS OF AUTHORITY, THE AUTHORITY OF THE EMERGENCY MANAGEMENT DIVISION. THE GOVERNOR'S AUTHORITY, WHEN HE CALLS UP THE NATIONAL GUARD, IT'S THOSE KINDS OF STATUTORY ISSUES WE DEALT WITH IN THE SPECIAL SESSION. AND WE'RE CERTAINLY WILLING TO LOOK AT ANY MORE OF THOSE THAT PEOPLE THINK ARE NECESSARY.

Yepsen: SENATOR IVERSON, WE'VE GOT JUST A COUPLE MINUTES LEFT. I WANT TO GO TO AN ISSUE, CONSOLIDATION OF GOVERNMENT. YOU FOLKS AT THE STATEHOUSE LEVEL, YOU'RE HAVING TO CUT AND REORGANIZE AND LAY PEOPLE OFF. WILL YOU PASS ANY LEGISLATION TO MAKE IT EASIER FOR PEOPLE TO MERGE CITIES AND COUNTIES OR MERGE SCHOOLS SO LOCAL PEOPLE CAN CREATE SOME EFFICIENCIES OUT THERE AND REDUCE PROPERTY TAXES?

Iverson: OFF THE TOP OF MY HEAD, I'M NOT SURE OF ANY STATUTORY CHANGES THAT MAY NEED TO BE MADE. THERE MAY BE SOME TO MAKE IT A LITTLE EASIER. I KNOW SOME COUNTIES HAVE GONE TOGETHER ON CERTAIN SERVICES.

Yepsen: I'M TOLD THE LINN COUNTY PEOPLE ARE GOING TO BE OVER HERE ASKING YOU TO MAKE IT EASIER TO MERGE CITY/COUNTY GOVERNMENTS OVER THERE.

Iverson: THAT'S VERY POSSIBLE AND WE'RE CERTAINLY WILLING TO TAKE A LOOK AT THAT. I THINK IT MAKES SENSE AND WE KNOW DOWN THE ROAD THAT IT DOES NEED TO HAPPEN.

Yepsen: SENATOR GRONSTAL, ANY PROBLEM WITH THAT?

Gronstal: I DON'T THINK THERE ARE MANY PEOPLE THAT WOULD HAVE A PROBLEM DOING SOME OF THAT. OBVIOUSLY THAT RUNS INTO LOCAL POLITICS. THAT MAKES ALL OF OUR DIFFERENT MEMBERS HAVE DIFFERENT FEELINGS ABOUT THE ISSUE.

Glover: AND WE WON'T GO THERE, SENATOR. ONE OF THE THINGS THAT HAPPENED DURING THE SPECIAL LEGISLATIVE SESSION WAS AN EARLY RETIREMENT PROGRAM. AND THE LARGEST UNION REPRESENTING STATE WORKERS HELPED NEGOTIATE THAT AND ALSO NEGOTIATED A DELAY IN THEIR PAY INCREASE, SENATOR IVERSON. WHAT'S YOUR ASSESSMENT OF THE ROLE THAT UNION HAS PLAYED IN THIS BUDGET CRISIS. HAVE THEY BEEN HELPFUL?

Iverson: I THINK IT'S BEEN VERY HELPFUL. THE GOVERNOR WAS ABLE TO SIT DOWN WITH THE UNIONS AND, YOU KNOW, SUGGEST, "HEY, CAN WE DO THIS AND THIS FOR THE EARLY RETIREMENT?" THINGS KIND OF BECOME A TRADEOFF, AND I THINK IT WAS HELPFUL IN PUTTING THAT TOGETHER, KIND OF GIVE THE TEMPLATE THAT WE TOOK AS A LEGISLATURE AND MADE AVAILABLE TO THE REST OF THE WORKERS IN STATE GOVERNMENT. SO I'M VERY APPRECIATIVE OF WHAT THEY HAVE DONE. AND WE KNOW THAT, OF COURSE, THIS WHOLE BUDGET SITUATION IS NOT OUT OF THE WOODS YET.

Borg: WE ARE THOUGH. WE'RE OUT OF TIME. THANK YOU, GENTLEMEN. I HOPE YOU'VE NOTED THAT "IOWA PRESS" HAS NEW AIRTIMES NOW: 6:30 ON FRIDAYS, 12 NOON ON SUNDAYS. AND AS WE CONTINUE WITH THIS PROGRAM'S 30TH ANNIVERSARY, WE CLOSE WITH A VIDEO CLIP FROM ONE OF OUR PAST PROGRAMS. HEADING INTO THE GENERAL ELECTION OF 1980, REPRESENTATIVE JOHN ANDERSON OF ILLINOIS WAS CONSIDERED TO BE A RENEGADE, IF YOU WILL, AMONG THE REPUBLICAN PRESIDENTIAL CANDIDATES. DISCUSSING HIS CAMPAIGN DURING AN APPEARANCE ON "IOWA PRESS," CANDIDATE ANDERSON FOCUSED ON THE BROADENING OF THE REPUBLICAN PARTY BASE. I'M DEAN BORG. THANKS FOR JOINING US TODAY.

Anderson: AT THE PRESENT TIME I HAVE ORGANIZATIONS IN PLACE IN FOUR OF THE EARLY PRIMARY STATES. WE HAVE HEADQUARTERS IN THOSE STATES. AND I JUST BELIEVE THAT WE'RE GOING TO DEMONSTRATE, AS THE CAMPAIGN GOES ON, THAT WE ARE CAPABLE OF BRINGING IN TO THE RANKS OF THE REPUBLICAN PARTY AND ATTRACTING INTO THOSE PRIMARY POLLING BOOTHS SOME OF THE INDEPENDENTS, SOME OF THE PEOPLE THAT HAVE BEEN SO TURNED OFF BY THE POLITICAL PROCESS IN RECENT YEARS THAT THEY SIMPLY HAVEN'T PARTICIPATED. I EMPHASIZE VERY STRONGLY WHEREVER I GO THAT REPUBLICANS, AFTER ALL, ARE ONLY ABOUT ONE OUT OF EVERY FOUR OF THOSE WHO ARE ELIGIBLE TO VOTE IN THIS COUNTRY. UNTIL WE CAN BUILD A COALITION, UNTIL WE CAN DO SOMETHING ABOUT ATTRACTING INTO THE PARTY SOME OF THE BLACKS, SOME OF THE ETHNIC GROUPS, SOME OF THE BLUE-COLLAR LABOR VOTE THAT HAS CHEWED-UP THE REPUBLICAN PARTY UP UNTIL NOW, WE SIMPLY ARE NEVER GOING TO TRANSLATE THAT MINORITY STATUS INTO THAT OF A MAJORITY PARTY. SO I'M REALLY DOING SOMETHING THAT I BELIEVE NONE OF THE OTHER CANDIDATES ARE DOING, AT LEAST AS CONSCIOUSLY AS I AM, AND THAT IS TRYING TO BUILD A MAJORITY REPUBLICAN PARTY IN THIS COUNTRY.

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.