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| Statehouse Journalists IOWA PRESS #3132>>
Borg: MONEY, SPECIFICALLY GAMBLING AND THE 2005 STATE BUDGET, BLOCKS LEGISLATORS FROM ADJOURNING IOWA'S 2004 LEGISLATIVE SESSION. STATEHOUSE JOURNALISTS PROVIDE PERSPECTIVE ON THIS EDITION OF "IOWA PRESS."
FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION;
AND BY IOWA BANKER'S ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS;
AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA, THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.
ON STATEWIDE IOWA PUBLIC TELEVISION, THIS IS THE FRIDAY, APRIL 9 EDITION OF "IOWA PRESS." HERE IS DEAN BORG.
Borg: CURIOUSLY, THE SAME TWO ITEMS THAT TOP THE AGENDA OF THIS SESSION OF IOWA'S 80TH GENERAL ASSEMBLY WHEN IT CONVENED FOUR MONTHS AGO ARE STILL THERE. THEY'RE THE STATE'S 2005 BUDGET -- THAT'S EFFECTIVE IN JUST A LITTLE OVER TWO MONTHS FROM NOW -- AND THE ISSUE OF HOW TO ADMINISTER, SPECIFICALLY HOW TO TAX, THIS IS LEGALLY TAX, CASINO GAMBLING. WELL, IT'S NOT THAT LEGISLATORS HAVEN'T BEEN WORKING ON THOSE ISSUES AND OTHERS DURING THE PAST FOUR MONTHS, IT'S JUST THAT BOTH OF THE ISSUES I MENTIONED HAVE PROFOUND FINANCIAL AND POLITICAL IMPLICATIONS. THOSE NUANCES ARE WHAT WE'LL BE ELICITING FROM STATEHOUSE REPORTERS AROUND OUR "IOWA PRESS" TABLE: "DES MOINES REGISTER" POLITICAL COLUMNIST DAVID YEPSEN; "RADIO IOWA" NEWS DIRECTOR KAY HENDERSON, "LEE NEWSPAPERS" CAPITOL BUREAU CHIEF TODD DORMAN, AND "KUNI PUBLIC RADIO" STATEHOUSE REPORTER JENEANE BECK. LET'S START OUT WITH YOU, KAY. I SAID THE SAME ISSUES ARE THERE. ONE OF THOSE IS GAMBLING. WE TALKED ABOUT IT LAST WEEK WITH THE PRESIDENT OF THE SENATE HERE, JEFF LAMBERTI. WE'RE TALKING SPECIFICALLY WHAT'S HOLDING UP THE GAMBLING. DID ANYTHING GET ACCOMPLISHED THIS WEEK?
Henderson: WELL, AT ONE POINT WE THOUGHT SOMETHING MAY HAVE BEEN ACCOMPLISHED BECAUSE REPUBLICAN LEADERS, ON WEDNESDAY AFTERNOON LATE, TOLD US THEY HAD COME UP WITH A COMPROMISE ON THE TAXATION ISSUE ALONE THAT 26 REPUBLICAN SENATORS COULD SUPPORT. VIRTUALLY AS SOON AS WE WALKED OUT THE DOOR, THE REPORTERS, THE THINGS STARTED UNRAVELING SO THAT BY THE NEXT MORNING WE ALL DISCOVERED THAT THAT IS STILL IN PLAY BUT IS NOT THE PLAN THAT MAY GO FORWARD. THEY'RE EXPLORING OTHER IDEAS. THIS HAS BECOME A GREAT PLAY TO WATCH IF YOU'RE A REPORTER BECAUSE YOU HAVE PERSONALITIES INVOLVED THAT REPRESENT AREAS THAT WANT GAMBLING WHO ARE INVOLVED IN THE DECISION-MAKING. YOU HAVE THE GOVERNOR AT ONE POINT SAYING JUST MAKE UP YOUR MIND, DO SOMETHING, I'LL SIGN WHATEVER YOU SEND ME, WHICH THEN SENDING THAT VOLLEY BACK TO LEGISLATORS, IT MAKES THEM MAD BECAUSE THEY REALLY WISH THAT HE WOULD COME UP WITH A SOLUTION AND TELL THEM WHAT TO DO SO THAT THE BUCK COULD BE PASSED SOMEWHERE ELSE. SO AT SOME POINT ON MONDAY COMING UP, THE SENATE IS GOING TO DEBATE A GAMBLING BILL, AT LEAST THAT'S WHAT WE'VE BEEN LED TO BELIEVE. AT THIS POINT ON FRIDAY MORNING, WE DON'T KNOW WHAT THEY'RE GOING TO BE DEBATING AND NEITHER DO THEY.
Borg: WELL, TODD, WHO ARE THE PLAYERS INVOLVED HERE? SHE HAS ELICITED SOME OF THE ISSUES, BUT WHO SPECIFICALLY ARE DUG IN ON EACH SIDE?
Dorman: WELL, THE TWO SUPERPOWERS, I GUESS, IN THIS BATTLE ARE THE RACETRACK CASINOS AND THE STATE OF IOWA. THE RACETRACK CASINOS FILED A LAWSUIT LAST YEAR CLAIMING THAT THE TAX STRUCTURE THEY WERE UNDER WAS UNCONSTITUTIONAL. RACETRACKS WERE TAXED ON AN ASCENDING SCALE UP TO 36 PERCENT. RIVERBOAT CASINOS WERE TAXED AT 20 PERCENT. TO MAKE A LONG STORY SHORT, THEY EVENTUALLY WON THAT BATTLE. WHAT THAT'S MEANT TO THE STATE IS THE POTENTIAL LOSS OF REVENUE, NUMBER ONE, AND NUMBER TWO, THE POTENTIAL LOSS OF TAXES THAT THE CASINOS HAVE OVERPAID OVER THE LAST FEW YEARS. SO THE CRUX OF THE ISSUE IS TRYING TO FIGURE OUT A WAY FOR THE STATE TO KEEP THE REVENUE FLOWING AND TO HAVE THEM NOT HAVE TO PAY THOSE BACK TAXES. AND TO THIS POINT, THEY HAVEN'T BEEN ABLE TO SETTLE ON SOMETHING THAT EVERYONE CAN VOTE FOR.
Borg: JENEANE, I'VE HEARD SOMETHING ABOUT A BAG OF HAMMERS, BUT IT SEEMS LIKE THOSE HAMMERS MUST BE RUBBER.
Beck: WELL, THEY TRIED TO DROP THE BAG OF HAMMERS THIS WEEK. THE PLAN THAT KAY TALKED ABOUT NOT ONLY SET A TAXATION RATE BUT REQUIRED ALL 13 CASINOS IN IOWA, EXCLUDING THE INDIAN-BASED CASINO, TO COME UP WITH A ONE-TIME FEE TO HELP WITH STATE REVENUE AND TO SET ASIDE A POT OF MONEY IN CASE THEY ARE EVER FORCED TO REFUND SOME BACK TAXES TO THE RACETRACKS. SO THIS LESSER PLAYER, THE RIVERBOATS, WHO HAVE BEEN TRYING TO STAY OUT OF THE FRAY ON THIS, SUDDENLY GOT THROWN INTO IT BECAUSE THEY WERE GOING TO BE EXPECTED TO PAY THIS ONE-TIME FEE TOO AND THEY SAID, OH, I DON'T THINK SO. AND THEY FINALLY KIND OF LEVERAGED THEIR VOTES I THINK AND SAID TO ALL OF THEIR LAWMAKERS FROM RIVERBOAT COMMUNITIES, "YOU CANNOT SUPPORT THIS, WE CANNOT AFFORD IT, AND WE WILL NOT HELP PAY FOR A REFUND FOR A LAWSUIT WE NEVER BROUGHT."
Yepsen: MY METAPHOR FOR THIS WHOLE DEBATE, DEAN, IS COOKING A POT OF CHILE. YOU HAVE TO LET IT SIMMER FOR A GOOD LONG WHILE BEFORE IT'S EDIBLE. AND IT'S JUST TAKING A LONG TIME FOR A LOT OF HOT, PUNGENT INGREDIENTS IN THIS STEW TO GET TO A POINT WHERE IT'S CONSUMABLE. AND I THINK AS LAWMAKERS MOVE TO TRY TO ADJOURN, THEIR EXPENSE MONEY RUNS OUT IN ANOTHER SEVEN OR EIGHT DAYS, THERE'S MORE AND MORE PRESSURE TO CUT A DEAL, TO BACK OFF A POSITION. AND GAMBLING IS A PARTICULARLY DIFFICULT ISSUE TO DO.
Borg: DAVE, FROM YOUR PERSPECTIVE, DO I HAVE A SPECIAL INTEREST IN THIS IF I DON'T GO TO A CASINO, I DON'T HAVE ANY LINK TO GAMBLING? THE AVERAGE PERSON ON THE STREET IS WHAT I'M ASKING, WHY SHOULD THEY CARE?
Yepsen: MONEY. I MEAN THERE'S A LOT OF MONEY AT STAKE IN THE REFUND THAT MAY HAVE TO BE PAID AND WHERE THE MONEY COMES FROM TO SUBSTITUTE FOR THAT. WHETHER YOU LIKE IT OR NOT, DEAN, GOVERNMENTS IN IOWA AND A LOT OF CHARITIES ARE HOOKED ON GAMBLING. AND THOSE DOLLARS -- AND THAT'S REALLY WHAT THIS FIGHTING IS ALL ABOUT, WHO GETS WHAT MONEY HERE. SO THAT'S REALLY THE STAKE THAT A LOT OF IOWANS WHO DON'T GAMBLE HAVE IN THIS DEBATE.
Borg: TODD, IS THERE -- KAY HAS ALREADY SAID THIS IS SCHEDULED FOR DEBATE BUT WE DON'T KNOW WHAT THEY'RE GOING TO DEBATE. BUT DO YOU PERCEIVE THAT THERE'S A LIKELY OUTCOME EMERGING?
Dorman: A LIKELY OUTCOME MIGHT BE A STRETCH. THE OTHER WILD CARD IN THIS IS THAT YOU'VE GOT SIX COMMUNITIES -- SIX COUNTIES IN IOWA WHERE VOTERS HAVE GIVEN A GREEN LIGHT TO NEW CASINOS. A BILL THAT PASSED THE HOUSE THAT'S WAITING IN THE SENATE AND IS KIND OF THE CENTER OF ALL THESE NEGOTIATIONS WOULD PUT A MORATORIUM ON THE NUMBER OF LICENSES AT THE CURRENT LEVEL, SO THOSE COUNTIES WOULD BE SHUT OUT. THERE'S GOING TO BE A PUSH IN THE SENATE TO VOTE ON THAT ISSUE, WHETHER NEW LICENSES SHOULD BE ISSUED. AND THE OUTCOME OF THAT VOTE COULD HAVE IMPLICATIONS FOR THE FINAL BILL AND WHETHER THAT FINAL BILL CAN GET THROUGH THE HOUSE. THAT'S ONE UNRESOLVED ISSUE THAT WE'RE ALL WAITING TO SEE WHAT HAPPENS.
Borg: AND WHAT THIS IS, IS THE POSSIBLE EXPANSION OF GAMBLING IN IOWA, KAY. AND THAT CAN BREAK A LOGJAM? THAT IS, THAT ISSUE BRINGS SUPPORT TO ONE SIDE OR THE OTHER ON TAXATION?
Henderson: IT COULD. I MEAN THIS IS A HOUSE OF CARDS. IF YOU TAKE A CARD OVER HERE AND PUT IT OVER HERE, THE WHOLE THING SHIFTS. AND YOU HAVE THESE GAMBLING FORCES WHO WANT EXPANDED GAMBLING. YOU HAVE PEOPLE WHO REPRESENT RIVER COMMUNITIES THAT HAVE RIVERBOAT OPERATIONS WHO DON'T WANT EXPANDED GAMBLING.
Borg: SURE.
Henderson: YOU HAVE THE RACETRACK PEOPLE WHO REPRESENT THE RACETRACKS. THEY WANT TABLE GAMES. THEY WANT TO EXPAND THEIR OPERATION, AND THEY DON'T WANT TO BE ON THE HOOK FOR THIS LAWSUIT THAT THEY BROUGHT AGAINST THE STATE. ONE OF THE OTHER DEVELOPMENTS IN THIS GAMBLING ISSUE THAT HAPPENED THIS WEEK WAS IOWA'S ATTORNEY GENERAL FILED AN APPEAL TO THE U.S. SUPREME COURT. NOW, THIS IS THE SECOND TIME THEY'VE ASKED THE U.S. SUPREME COURT TO TELL THE IOWA SUPREME COURT THAT, HEY, YOU DID IT WRONG, DO OVER. SO THAT HAS COME TO PLAY IN THIS WHOLE DEBATE BECAUSE THE RACETRACKS DON'T WANT THE POSSIBILITY THAT ON DOWN THE ROAD LEGISLATORS COULD CHANGE THEIR MIND ABOUT THE TAX RATES THEY SET.
Yepsen: I THINK ONE OTHER THING THAT'S IN THIS DEBATE, DEAN, IS POLITICS. THIS IS AN ELECTION YEAR. DEMOCRATS ARE MAKING A STRONG PUSH TO TAKE CONTROL OF THE LEGISLATURE FROM THE REPUBLICANS, AND DEMOCRATS REALLY HAVE NO VESTED INTEREST IN MAKING A REPUBLICAN LEGISLATURE LOOK GOOD. I MEAN GOVERNOR VILSACK, WHO PLANS TO CAMPAIGN RATHER HARD FOR DEMOCRATIC CANDIDATES, IS QUITE CONTENT TO SIT BACK AND LET THE REPUBLICAN LEADERSHIP SORT OF STEW IN THEIR OWN JUICE AND FLOP AROUND AND LOOK SILLY TO VOTERS BECAUSE IT SERVES HIS AGENDA AND OTHER DEMOCRATIC LEGISLATORS TO TAKE CONTROL OF THAT.
Borg: EXCEPT, DAVE -- AND I WANT YOU TO WEIGH IN ON THIS TOO, JENEANE -- GOVERNOR VILSACK IS LOOKING FOR MONEY FROM ANY SOURCE POSSIBLE IN ORDER TO FUND HIS EDUCATION OBJECTIVES AND OTHER THINGS. IT WOULD SEEM TO ME THAT HE HAS A BIG STAKE IN GETTING THIS RESOLVED AND GETTING AS MUCH TAXATION MONEY PUT INTO THE STATE BUDGET AS POSSIBLE.
Yepsen: HE DOES BUT I THINK THE LARGER AGENDA HERE IS A POLITICAL ONE, AND THAT IS TAKING CONTROL. I MEAN I THINK THAT'S MORE IMPORTANT TO HIM IN LONG TERM THAN SETTLING FOR A FEW EXTRA MILLION DOLLARS HERE OR THERE AS A RESULT OF THE GAMBLING SETTLEMENT.
Borg: JENEANE?
Beck: AND IT HAS DRAWN CRITICISM THAT HE HASN'T ENTERED INTO THE FRAY. HE JUST THIS WEEK CRITICIZED THEM FOR NOT -- HE SAID THE SENATE LEADERS NEED TO GET IN THERE, FORGE A COMPROMISE. THEY NEED TO DO WHAT THEY'RE EXPECTED TO DO, WHICH IS LEAD. AND YOU KNOW, THAT RAISED SOME HAIR ON THE BACK OF THEIR NECKS BECAUSE THEY SAID, "HE CAN CALL THE SAME MEETINGS WE CAN. HE COULD BRING US ALL IN AND LEAD AS WELL, AND HE'S SORT OF HUNG BACK AND SAID, 'NO, NO, I'LL SIGN WHATEVER YOU SEND ME.'" AND THE POINT IS THAT, YOU KNOW, HE DOES HAVE A VESTED INTEREST IN THIS, BUT YOU'RE RIGHT, HE JUST WANTS TO FORCE THEM TO TAKE CARE OF THE ISSUE. AND THEY'RE SAYING THAT PART OF THE REASON HE'S NOT ENTERING INTO THE FRAY IS THAT HE'S OUT CAMPAIGNING FOR JOHN KERRY. HE'S POSSIBLY, YOU KNOW, UP FOR VICE PRESIDENCY OR A CABINET POSITION AND THAT HE DOESN'T WANT TO TAKE THE TIME TO HELP OUT WITH THIS.
Yepsen: VILSACK'S OWN CLOUT INSIDE THE DEMOCRATIC PARTY IS SOMEWHAT LIMITED TOO. I FIND IT INTERESTING THAT HE COMES OUT FOR A COUPLE OF TAX INCREASES, CORPORATIONS, CIGARETTES. YOU DON'T SEE MANY DEMOCRATIC LEGISLATORS LINING UP BEHIND THIS THING. HE'S GOT VERY LITTLE LEVERAGE ON THEM. IF NOTHING ELSE, HE'S A LAME DUCK. HE'S NOT RUNNING AGAIN. THEY ARE AND SO THEY'RE ALL CONTENT TO JUMP UP AND DOWN AND SAY WE NEED MORE MONEY FOR EDUCATION AND ENVIRONMENT, UNTIL YOU GET DOWN TO JUST WHERE IT'S SUPPOSED TO COME FROM, AND THEN, OH MY, WELL, WE DON'T WANT TO VOTE FOR TAX INCREASES.
Borg: KAY, YOU HAD A COMMENT. ANYTHING YOU WANT TO SAY?
Henderson: ONE OF THE THINGS THAT DID OCCUR THIS WEEK WAS THAT HOUSE SPEAKER CHRISTOPHER RANTS RATHER SHARPLY CRITICIZED THE GOVERNOR. HE SAID, "HEY, VILSACK DOESN'T WANT TO BE SEEN COMPROMISING WITH REPUBLICANS, SITTING DOWN WITH US AT A NEGOTIATING TABLE BECAUSE THAT WILL REDUCE HIS STATURE NATIONALLY." NOT ONLY IS VILSACK RUMORED TO BE ON THE LIST OF VICE PRESIDENTIAL CANDIDATES THAT JOHN KERRY MAY CHOOSE, HE'S ALSO THE CHAIRMAN -- LEADING THE DEMOCRATIC PARTY'S PLATFORM COMMITTEE AND HE'S ALSO CURRENTLY THE CHAIRMAN OF THE DEMOCRATIC GOVERNORS ASSOCIATION. SO HE'S DOING A LOT OF TRAVELING AND HAMMERING THAT MESSAGE HOME THAT, YOU KNOW, THE DEMOCRATIC PARTY IS THE RIGHT WAY. SO WHEN HE COMES BACK TO THE STATEHOUSE, CHRISTOPHER RANTS IS ALLEGING HE DOESN'T WANT TO BE SEEN COMPROMISING WITH REPUBLICANS.
Borg: TODD, IS THERE ANYTHING ELSE HOLDING UP THE 2005 STATE BUDGET, WHICH TAKES EFFECT JULY 1, OTHER THAN HOW MUCH GAMBLING REVENUE WILL BE POURED INTO THAT STATE BUDGET?
Dorman: WELL, THE BIGGEST STICKING POINT IS EDUCATION FUNDING BOTH IN 2005 AND ALSO IN 2006. THE GOVERNOR WANTS SEVERAL MILLION DOLLARS MORE IN 2005 AND IN 2006. REPUBLICANS SAY THEIR EDUCATION FUNDING LEVELS ARE ADEQUATE. THEY DON'T WANT TO SPEND MORE, AND IT'S ONE OF THOSE ISSUES THAT'S PROBABLY GOING TO BE TAKEN TO THE VOTERS IN NOVEMBER.
Borg: DO -- ANY OF YOU HERE, DO YOU SEE THIS EDUCATION FUNDING FOR THE COMING YEAR OF 2005, WHICH IS AT 2 PERCENT RIGHT NOW, ISN'T IT, THE NEW MONEY? IS THIS ALTRUISTIC OR IS THERE REALLY SOME POLITICAL ISSUE INVOLVED HERE?
Yepsen: WELL, DEAN, AS LENIN ONCE SAID, ALL THINGS ARE POLITICAL, AND THAT'S CERTAINLY TRUE FOR THE EDUCATION DEBATE IN IOWA. LOOK, SCHOOLS ARE HAVING TO UNDERGO A LOT OF BUDGET CUTS. IT'S VERY PAINFUL AND EVERYBODY IN GOVERNMENT IS HAVING TO GO THROUGH THAT AND SO THERE'S A LOT OF PASSION TO TRY TO GET MORE MONEY. HUGE FIGHTS OVER WHETHER WE RAISE TAXES OR WHETHER WE TAKE MONEY FROM SOMEBODY ELSE TO GIVE IT TO SOMEBODY ELSE. THE EDUCATION DEBATE IN THIS STATE HAS NOW GOTTEN VERY POLITICAL, AND I'VE NOT SEEN IT GET THIS POLITICAL. DEMOCRATS ARE TRYING TO ORGANIZE, AS I MENTIONED, TO TAKE CONTROL OF THE LEGISLATURE. THEY SEE STRONG SUPPORT FOR EDUCATION AS A WAY TO DO THAT, AND SO YOU HAVE THE EDUCATION INTEREST GROUPS THAT ARE SORT OF LINING UP WITH DEMOCRATS ON THIS ISSUE. REPUBLICANS ARE SAYING, WAIT A MINUTE, WHY SHOULD WE BE GIVING MORE MONEY TO EDUCATORS WHEN WE DON'T GET ANYTHING POLITICAL BACK FROM THEM. WHETHER WE GIVE THEM 2 PERCENT OR 5 PERCENT, THEY'RE STILL GOING TO BE OUT THERE RUNNING AGAINST US FOR THE LEGISLATURE. SO YOU DON'T SEE THE ISEA, FOR EXAMPLE, ENDORSING A WHOLE LOT OF REPUBLICAN LEGISLATIVE CANDIDATES. AND I THINK SOMETHING HAPPENED HERE LAST WEEK THAT SORT OF GAVE REPUBLICANS SOME WIND BEHIND THEIR SAILS, IF YOU WILL. THERE WAS A BIG EDUCATION RALLY AT THE STATEHOUSE. PROBABLY GOT ABOUT A HALF A DOZEN PEOPLE THAT SHOWED UP, AND A LOT OF REPUBLICANS LOOKED AT THAT AND SAID THE PASSION HAS GONE OUT OF THIS ISSUE. PEOPLE FEEL STRONGLY BUT THERE ARE ALSO A LOT OF PEOPLE IN IOWA WHO FEEL STRONGLY THAT WE SPEND ENOUGH ON SCHOOLS AND IT'S TIME FOR THEM TO BECOME MORE EFFICIENT.
Borg: SO DEMOCRATS MAY SEEM TO BE TAKING THE HIGH GROUND HERE, AS YOU HAVE SAID, IN LET'S GIVE MORE MONEY TO SCHOOLS, RAISE THE NEW MONEY, ALLOWABLE GROWTH I GUESS IT'S CALLED, HIGHER THAN 2 PERCENT FOR THE 2005 YEAR. BUT YOU'RE SAYING THAT THERE ARE SOME PEOPLE WHO REALLY BACKED THE REPUBLICAN CONSERVATIVE VIEW AS --
Yepsen: VERY MUCH SO. A LOT OF PEOPLE IN IOWA THINK THAT OUR SCHOOLS CAN BE DOING BETTER. THEY'RE EDUCATING FEWER CHILDREN. WE'VE HEARD A LOT OF THESE DISCUSSIONS OUT HERE WITH OUR GUESTS ABOUT THE VARIOUS PROS AND CONS: YOU HAVE TO LIVE WITHIN YOUR MEANS. THE BOTTOM LINE IS I THINK IT'S JUST BECOME VERY POLITICIZED, AND I THINK IT HAS REAL BAD IMPLICATIONS FOR THE FUTURE IN EDUCATION FUNDING DEBATES.
Dorman: WELL, THIS IS -- DEMOCRATS HAVE RUN LEGISLATIVE CAMPAIGNS BASED ON THIS PREMISE BEFORE, THAT REPUBLICANS REFUSE TO SPEND ADEQUATE MONEY ON SCHOOLS. AND IN THE LAST SEVERAL ELECTIONS, IT HASN'T -- IT'S VIRTUALLY GIVEN THEM NO SEATS. SO IT DOESN'T BODE WELL FOR THEIR CHANCES IN NOVEMBER IF THIS IS THE ONLY STANDARD THAT THEY'RE BEARING.
Borg: ARE WE ONLY TALKING NOW -- WE'VE BEEN REFERRING HERE TO 2005, THE VERY NEXT SCHOOL YEAR. BUT ALSO 2006 SCHOOL FUNDING IS ALSO IN PLAY; IS IT NOT?
Yepsen: THAT'S TRUE. BUT GOING BACK TO WHAT TODD SAID, BY BECOMING THIS POLITICAL ABOUT THIS WITH THE DEMOCRATS, EDUCATORS PUT THEMSELVES IN A POSITION OF HAVING TO DEAL WITH REPUBLICANS WHO MAY BE CONTROLLING THE LEGISLATURE IN THE FUTURE. THAT'S WHAT I MEAN. IF TODD IS RIGHT THAT THIS DOESN'T NET THE DEMOCRATS MANY VOTES, WE'RE GOING TO COME INTO THIS -- INTO THE LEGISLATURE NEXT YEAR IN 2005, EDUCATORS ARE GOING TO BE THERE WITH THEIR LITTLE TIN CUP ASKING FOR MORE MONEY, AND REPUBLICAN LEADERS ARE GOING TO SAY, "GET OUT OF HERE, YOU DIDN'T DO ANYTHING FOR US, WHY SHOULD WE DO ANYTHING FOR YOU." IT'S VERY POLITICAL.
Beck: THE PEOPLE HAVE SPOKEN TOO.
Yepsen: THAT'S RIGHT. THAT'S RIGHT.
Borg: JENEANE, ARE THERE ANY OTHER UNRESOLVED ISSUES THAT WOULD BLOCK -- I SAID THE BUDGET AND GAMBLING, BUT CAN THEY JUST DITCH EVERYTHING ELSE THAT'S PENDING UP THERE?
Beck: THEY SURE CAN AND THAT'S WHAT HAPPENS NEAR THE END OF THE SESSION. THERE ARE OTHER ISSUES THEY MIGHT WANT TO RESOLVE OR MIGHT WANT TO TAKE CARE OF, BUT AS THE WEATHER TURNS NICE AND THEY WANT TO GET OUT AND PLANT OR CAMPAIGN, IN THIS CASE, THEY'LL JUST DROP SOME OTHER ISSUES. AND ONE OF THOSE THAT WE WONDER IF THE HOUSE WILL LET GO OF THIS WEEK IS A CONSTITUTIONAL AMENDMENT ON TAXATION THAT SAYS IF THE STATE WANTS TO RAISE YOUR TAXES BY A CERTAIN PERCENT, THEY WOULD HAVE TO PUT IT TO A VOTE OF THE PEOPLE. AND THE SENATE PASSED THAT AND HOUSE SPEAKER CHRISTOPHER RANTS HAS SAID IT WAS A PRIORITY FOR HIM, BUT HE NOW HAS SAID WE DON'T KNOW IF WE HAVE THE VOTES RIGHT NOW TO PASS THAT. AND IF EVEN IF THEY DO, IT WOULD HAVE TO GO THROUGH ANOTHER LEGISLATIVE SESSION AND THEN THE PEOPLE WOULD HAVE TO APPROVE THIS AMENDMENT. BUT POINT BEING, YOU'VE GOT REPUBLICANS IN CHARGE AND THEY DON'T EVEN KNOW IF THEY CAN GET IT THROUGH THIS YEAR.
Borg: SO -- KAY?
Henderson: THERE WAS ALSO A FLURRY OF ACTIVITY IN THE IOWA SENATE THIS YEAR. THE IOWA HOUSE HAS ALREADY PASSED A BILL THAT WOULD LIMIT OR CAP THE AMOUNT OF MONEY THAT FOLKS WHO SUE THEIR DOCTOR OR HEALTH CARE PROVIDER FOR MEDICAL MALPRACTICE MAY GET. IT WAS PASSED IN THE HOUSE. WHEN IT CAME OVER TO THE SENATE, THEY COULDN'T PASS IT. THEY SPENT A LOT OF TIME THIS WEEK TRYING TO CHANGE SOME OF THE NO VOTES AMONG THE FEW REPUBLICANS WHO VOTED AGAINST IT. AND THEY WILL NOT BE ABLE TO TAKE THAT ISSUE UP THIS COMING WEEK BECAUSE ONE OF THE KEY SENATORS, ONE OF THE NO VOTES, A REPUBLICAN, SENATOR MILLER, IS BOUND FOR CUBA. AND SO HE WILL NOT BE AROUND TO CHANGE HIS VOTE, SO THAT ISSUE IS ESSENTIALLY DEAD FOR THE YEAR.
Yepsen: YOU KNOW, DEAN, AS THIS TIME OF YEAR, AT ADJOURNMENT TIME, I ALWAYS THINK OF MY OLD FRIEND AND MENTOR GEORGE MILLS, WHO ALWAYS SAID THE WORST THING THEY EVER DID AT THE STATE CAPITOL WAS AIR CONDITION IT BECAUSE THESE GUYS NEVER HAVE ENOUGH INCENTIVE TO GET OUT OF HERE. AND GEORGE WOULD SAY IN THE OLD DAYS IT WOULD START TO GET HOT AROUND HERE AND PEOPLE WOULD WANT TO GO HOME.
Borg: IT STRIKES ME, TODD, THOUGH, THAT THERE ARE SOME CONFIRMATIONS UP THERE THAT ARE PENDING. THEY AREN'T SO CONTROVERSIAL THAT THEY'LL HOLD UP ADJOURNMENT.
Dorman: NO, THEY'LL TAKE VOTES PROBABLY ON MONDAY ON THOSE CONFIRMATIONS, THE MOST CONTROVERSIAL OF WHICH IS DES MOINES ATTORNEY JONATHAN WILSON, WHO THE GOVERNOR HAS NOMINATED TO BE ON THE STATE BOARD OF EDUCATION. MR. WILSON WAS A MEMBER OF THE DES MOINES SCHOOL BOARD FOR TWELVE YEARS, AND HE ALSO HAPPENS TO BE GAY. AND REPUBLICANS ARE DOING AN AWFUL LOT OF DANCING AROUND TRYING TO EXPLAIN WHY THEY OPPOSE HIM AND TRYING TO MAKE PEOPLE CONVINCED THAT IT DOESN'T HAVE ANYTHING TO DO WITH THE FACT THAT HE'S GAY, BUT SOME DEMOCRATS SAY OTHERWISE.
Yepsen: THE EVANGELICALS AND SOCIAL CONSERVATIVES ARE A BIG PART OF THE REPUBLICAN BASE, AND SO BOTH PARTIES TRY TO TAKE CARE OF THEIR BASE. AND ONE THING THAT HAPPENED EARLIER THIS SESSION WAS THE BAN ON GAY MARRIAGE FAILED IN THE SENATE, SO SOCIAL CONSERVATIVES ARE BEING KIND OF ADAMANT ABOUT SAYING, "WE DESERVE TO GET SOMETHING." AND I THINK THEY'RE GOING TO WANT TO PUT JONATHAN WILSON'S HEAD ON A PIKE AS PART OF WHAT THEY GET. IT'S SORT OF SAD BECAUSE I THINK IT EVOKES SOMETHING OF A HOSTILE IMAGE IN IOWA, BUT IT'S ONE OF THOSE CONFIRMATION FIGHTS WHERE 17 PEOPLE, A MINORITY, CAN DICTATE PUBLIC POLICY IN THIS STATE.
Borg: ANY PREDICTIONS? HAVE ANY OF YOU BEEN COUNTING VOTES UP THERE?
Yepsen: WE'RE TOLD HE'S DEFEATED. WE'RE TOLD BY SENATE LEADERS THAT THERE ARE NOT ENOUGH VOTES TO CONFIRM HIM. NOW, THERE'S GOING TO BE A PRETTY SPIRITED DEBATE OVER THAT, AND SOME PEOPLE MAY CHANGE. THESE ARE EMOTIONAL DEBATES. I THINK SOME PEOPLE ARE THINKING THAT SOME OF THESE REPUBLICANS WHO ARE NOT COMFORTABLE WITH SUCH A CONSERVATIVE AGENDA MAY IN FACT SWITCH OVER AND VOTE TO CONFIRM HIM.
Henderson: BUT THE OTHER NUANCE ABOUT THIS IS THE GOVERNOR IS GOING TO FORCE A VOTE ON THIS. IN SIMILAR INSTANCES WHEN GOVERNORS HAVE DISCOVERED THAT THE FOLKS THAT THEY HAVE NOMINATED FOR BOARDS AND COMMISSIONS OR MAJOR STATE POSTS ARE NOT GOING TO GET THE VOTES NECESSARY IN THE SENATE TO GET THE JOB, THEY WITHDRAW THEIR NOMINATION SO THERE'S NOT A PUBLIC OUTCRY OR FUROR OVER IT. IN THIS INSTANCE, TOM VILSACK AND JONATHAN WILSON WANT A VOTE ON THE SENATE FLOOR ON THIS ISSUE TO PUT REPUBLICANS ON RECORD AS VOTING AGAINST HIM.
Borg: AND THEN THERE WAS, JENEANE, THE ISSUE OF TED STILWILL, WHO HAS BEEN THE DEPARTMENT OF EDUCATION DIRECTOR FOR I DON'T KNOW HOW MANY YEARS, BUT HE ISN'T NEW. HE'S BEEN IN THE DEPARTMENT A LONG TIME.
Beck: HE WAS APPOINTED BY TERRY BRANSTAD. AND SO HE WAS UP FOR, I BELIEVE, HIS FOURTH GO-AROUND TO BE NOMINATED. AND REPUBLICANS SAID, HMM, WE DON'T KNOW THIS YEAR. THEY HAD BEEN CONCERNED WITH TEST SCORES THAT HAD GONE DOWN. THERE'S BEEN A SLIGHT UP TICK IN SOME OF THE TEST SCORES NOW BECAUSE OF SOME MONEY THEY HAD PLOWED INTO LOWER ELEMENTARY GRADES TO LOWER CLASS SIZES AND IMPROVE READING INITIATIVES, BUT THEY'RE STILL NOT SATISFIED THAT IN THE UPPER GRADES THOSE TEST SCORES HAVE NOT GONE UP IN THE WAY THEY'D LIKE TO SEE. AND THEY SAID, YOU KNOW, MAYBE WE NEED A DIFFERENT LEADER, SO THEY BROUGHT HIM IN. THEY HAD A HEARING AND TOM VILSACK WAS VERY UPSET, SAYING THIS MAN IS QUALIFIED AND A NATIONAL LEADER IN EDUCATION. NOW THEY'RE SAYING, WELL, WE BROUGHT HIM IN, WE'VE TALKED TO HIM, HE'S GOT THE VOTES. BUT THEY WANTED TO PROVE A POINT THAT THEY'RE A LITTLE UNHAPPY WITH EDUCATION RIGHT NOW.
Yepsen: THE GOVERNOR DID NOT LIKE THE HEARING FOR TED STILWILL, BUT HE WANTED ONE FOR JONATHAN WILSON, SO THERE'S SOME POLITICAL THEATRICS GOING ON HERE. LOOK, THE GOVERNOR USUALLY GETS THE PEOPLE HE WANTS TO RUN HIS STATE AGENCIES. LEGISLATORS, INCLUDING STATE SENATOR TOM VILSACK, USED TO USE THE CONFIRMATION PROCESS TO KIND OF JERK THOSE NOMINEES AROUND, SEND THEM A MESSAGE, AND THEY'D CONFIRM HIM. BUT GOING BACK TO WHAT I WAS SAYING EARLIER, CONSERVATIVES ARE SAYING, OKAY, WE'RE ROLLING OVER ON TED STILWILL, GOVERNOR, WE'RE GOING TO GIVE YOU HIM, BUT THIS IS ANOTHER REASON WHY JONATHAN WILSON HAS TO GO.
Borg: TODD, IS THERE SOME LEGISLATION THAT HAS BEEN PASSED BUT MAY NOT BECOME LAW BECAUSE THE GOVERNOR WILL VETO IT THAT YOU CAN SPECIFICALLY IDENTIFY RIGHT NOW?
Dorman: WELL, I BELIEVE IF LEGISLATION THAT'S CURRENTLY MOVING THROUGH THAT WOULD AGAIN ADDRESS THE HELP AMERICA VOTE ACT, THE FEDERAL LEGISLATION DESIGNED TO REFORM VOTING IN THE UNITED STATES, IF THAT LEGISLATION PASSES, WHICH IT APPEARS IT'S LIKELY IT WILL, IT ALSO INCLUDES SOME LIMITS ON ABSENTEE BALLOT VOTING THAT DEMOCRATS DON'T LIKE. JUST LIKE LAST YEAR, I THINK THE GOVERNOR WILL VETO THAT LEGISLATION, AND THAT WILL AGAIN CALL INTO QUESTION WHETHER FEDERAL FUNDING FROM THAT HELP AMERICA VOTE ACT WILL POUR INTO THE STATE OR NOT.
Yepsen: I GUESS I DISAGREE A LITTLE BIT WITH TODD. I THINK THAT THE GOVERNOR AND LEGISLATORS ARE GETTING CLOSER AND CLOSER ON THIS HELP AMERICA VOTE ACT. THEY'RE REACHING SOME COMPROMISES. YOU'RE RIGHT, TODD, I MEAN THERE IS A LOT OF MONEY AT STAKE HERE. BOTH PARTIES HAVE A STAKE IN THIS. THE REPUBLICANS WANT SOME RESTRICTIONS ON ABSENTEE BALLOTS AND WHO COLLECTS THEM. YOU KNOW, THEY HAD 44 BALLOTS THAT DIDN'T GET VOTED IN JOHNSON COUNTY BECAUSE SOME STAFFER LEFT THEM IN HIS CAR. WELL, THEY WANT TO CLEAN THAT UP A LITTLE BIT, AND THEY'RE GOING TO TRY TO DEVISE A SYSTEM OF COURIERS AND GIVE THEM A LITTLE TRAINING AND GIVE RECEIPTS. I THINK THE GOVERNOR WOULD LIKE THAT MONEY, AND SO I THINK THEY MAY REACH A COMPROMISE ON THAT.
Borg: I KNOW THE COUNTY AUDITORS AND COMMISSIONERS OF ELECTION THROUGHOUT THE STATE ARE LOBBYING HARD FOR THAT MONEY BECAUSE THAT GOES FOR NEW VOTING MACHINES AND OTHER TECHNOLOGY; DOES IT NOT, JENEANE?
Beck: IT DOES AND THEY'RE REQUIRED TO PUT THOSE VOTING MACHINES AND NEW TECHNOLOGY IN PLACE REGARDLESS OF WHETHER THEY GET THE FEDERAL MONEY. SO IF FOR SOME REASON THE LEGISLATURE AND THE GOVERNOR COULDN'T FIND THE MATCHING FUNDS BECAUSE THEY COULDN'T AGREE ON THESE ABSENTEE BALLOTS, THEN THE COUNTIES WOULD HAVE TO PAY FOR THIS THEMSELVES. THAT WON'T HAPPEN. I MEAN SOMEHOW THIS MIGHT -- LAST YEAR HE DIDN'T GET THE MONEY FROM THE LEGISLATURE, SO HE TRANSFERRED IT. HE'LL DO THAT AGAIN IF HE HAS TO.
Yepsen: AND, DEAN, THAT'S WHERE REPUBLICANS ARE BEING POLITICALLY STUPID ABOUT THIS. THOSE NEW MACHINES WILL COUNT A VOTE AT THE PRECINCT. IN URBAN COUNTIES, IN DEMOCRATIC COUNTIES IN IOWA -- POLK, LINN, JOHNSON -- WHEN YOU VOTE AND IF YOU MESS UP YOUR BALLOT, IT SPITS BACK OUT AND YOU GET TO VOTE IT AGAIN. YOU GET A LOT OF THESE RURAL, I.E., REPUBLICAN COUNTIES, PEOPLE MESS UP THEIR BALLOTS, THEY DON'T GET A CHANCE TO VOTE THEM AGAIN. THEY GO TO THE COURTHOUSE, THEY GET COUNTED, THEY'RE THROWN OUT AS SPECIAL BALLOTS. IT HURTS REPUBLICANS IN STATEWIDE ELECTIONS TO HAVE A LOT OF SPOILED BALLOTS.
Borg: IS THERE ANY SIGNIFICANCE TO THE LEGISLATION THAT IS PENDING RIGHT NOW THAT WOULD PREVENT THE GOVERNOR OR PUT A LID ON THE AMOUNT THAT HE COULD TRANSFER WHEN THE LEGISLATION -- LEGISLATURE IS NOT IN SESSION. TODD, YOU KNOW, THE BILL THAT I'M TALKING ABOUT?
Dorman: YEAH, THE LEGISLATURE HAS BEEN VERY ANGRY IN RECENT YEARS. THEY PASS A BUDGET, THEY LEAVE, THE GOVERNOR BEGINS TO TRANSFER SEVERAL MILLION DOLLARS HERE AND THERE, AND THEY'RE NOT HAPPY ABOUT IT. THEY'RE GOING TO TRY TO -- THEY'RE GOING TO PASS A BILL THAT LIMITS HIS AUTHORITY, AND OBVIOUSLY THE GOVERNOR ISN'T GOING TO SIGN THAT, SO A STALEMATE WILL CONTINUE ON THAT.
Beck: AND THEY'RE WORKING AROUND THAT IN ANOTHER WAY TOO. HE CLAIMS THE MEDICAID BUDGET IS UNDERFUNDED. REPUBLICANS SAY IT MIGHT BE BUT LAST YEAR, WHEN THEY OVERFUNDED THE MEDICAID BUDGET, HE TRANSFERRED MONEY LATER AND PUT IT TOWARD STATE WORKER SALARIES. AND THEY SAID, OH, I DON'T THINK SO. SO IF IT'S UNDERFUNDED, THEY CAN COME BACK AND TRANSFER MONEY. THEY CERTAINLY DON'T WANT HIM TRANSFERRING MONEY.
Borg: IT WOULD SEEM TO ME THAT WITH THE TIGHTNESS OF THE STATE BUDGET AS IT HAS BEEN IN THE RECENT YEARS THAT THERE HAS TO BE SOME FLEXIBILITY AT THE LAST MINUTE TO DO THOSE TRANSFERS.
Yepsen: THAT'S CORRECT, DEAN. I THINK WE'RE HEADED IN THE FUTURE TO MORE LAWSUITS OVER THIS VERY QUESTION. IF REPUBLICANS KEEP CONTROL OF THE LEGISLATURE AND VILSACK KEEPS MOVING THIS MONEY AROUND LIKE THIS, WHAT WAS ENVISIONED TO BE A RATHER MINOR AUTHORITY A GOVERNOR HAD TO MAKE SMALL TRANSFERS IN EMERGENCY SITUATIONS, THE GOVERNOR HAS AGGRESSIVELY EXPANDED THAT TO INCLUDE, AS JENEANE MENTIONED, MOVING MEDICAID MONEY FOR HEALTH CARE FOR THE POOR INTO SALARIES FOR STATE WORKERS, THAT SORT OF VIOLATES THE LEGISLATURE'S PREROGATIVE TO MAKE APPROPRIATIONS. AND I THINK YOU COULD SEE SOME -- I THINK THIS ISSUE WILL GO TO THE SUPREME COURT IN OUR STATE SOMEDAY.
Borg: LET'S GET BACK -- YOU MENTIONED EARLIER GOVERNOR VILSACK HAVING A GREATER PROMINENCE ON THE NATIONAL STAGE, KAY. YOU ARE UP THERE EVERY DAY. HOW MUCH TIME IS THE GOVERNOR ACTUALLY SPENDING AT THE STATEHOUSE THAT YOU CAN DISCERN?
Henderson: WELL, HIS PUBLIC LINE ON THIS IS THAT HE'S NOT CONCERNED ABOUT THAT, HE'S NOT PAYING ATTENTION, THAT REPORTERS ARE MORE INTERESTED IN THE SUBJECT, AND HE'S COMMITTED TO IOWA. BUT HE IS DOING A FAIR DEAL OF TRAVEL. HE IS, WHEN THE KERRY CAMPAIGN ASKS, GETTING ON THE PHONE, GETTING ON THE HORN WITH REPORTERS AND TALKING ABOUT HOW BAD GEORGE BUSH IS. SO HE IS SPENDING A FAIR AMOUNT OF TIME CAMPAIGNING IN THE SAME WAY THAT TERRY BRANSTAD CAMPAIGNED ON BOB DOLE'S BEHALF IN 1996. SO THIS IS SOMETHING GOVERNORS DO; WHEN THE NOMINEE OF THEIR PARTY SAYS PLEASE CAMPAIGN FOR ME, THEY DO IT. BUT HE IS DOING IT ON A LITTLE LARGER SCALE, OF COURSE, AS WE PREVIOUSLY MENTIONED, BECAUSE HE IS LISTED ON THAT POTENTIAL VICE PRESIDENTIAL LIST.
Yepsen: AND ONE OF THE THINGS THAT THIS DOES IS, THE FACT THAT GOVERNOR VILSACK IS BEING TREATED SERIOUSLY AS A NATIONAL DEMOCRATIC LEADER, AS THE WORD COMES BACK HERE TO REPUBLICANS FROM WASHINGTON, "HEY, YOU BETTER SCUFF THIS GUY UP, DON'T DO ANYTHING TO MAKE HIM LOOK GOOD," IT'S JUST ONE MORE REASON WHY VERY LITTLE WILL HAPPEN IN THIS SESSION OF THE LEGISLATURE.
Borg: ONE LAST QUESTION HERE, TODD. MAYBE OTHERS WANT TO WEIGH IN. YOU'RE LOOKING FOR ISSUES THAT WOULD PROMPT A SPECIAL SESSION? IN THE PAST COUPLE OF YEARS, WE'VE HAD THOSE.
Dorman: WELL, THE BUDGET IS ALWAYS A POSSIBILITY, IF HE WOULD DECIDE NOT TO ACCEPT THEIR BUDGET BASED ON AN EDUCATION FUNDING DIFFERENCE. BUT IT'S REALLY HARD TO SEE RIGHT NOW WHAT KIND OF LEVERAGE HE HAS. SHORT OF SHUTTING DOWN THE STATE GOVERNMENT, WHICH I DON'T THINK IS A POSSIBILITY, I'M NOT SURE HE COULD MAKE REPUBLICANS SPEND MORE MONEY ON EDUCATION.
Yepsen: AND HE WILL LOOK BAD IN A SPECIAL SESSION IF THEY DON'T HAVE AN AGREEMENT GOING INTO IT. HE DID THE LAST TIME. THE LAST THING TOM VILSACK WANTS GOING INTO THE DEMOCRATIC NATIONAL CONVENTION IS A BRUSH FIRE BACK HOME.
Borg: THANKS FOR YOUR INSIGHTS. A PROGRAM REMINDER AS WE CLOSE THIS WEEK: SEVERAL HIGH-PROFILE LEADERS IN THE NATION'S FINANCIAL INDUSTRY MEET IN DES MOINES THIS WEEK TO ANALYZE RURAL AMERICA'S FUTURE, INCLUDING, OF COURSE, THE RURAL ECONOMY. HARVARD LAW PROFESSOR ARTHUR MILLER WILL LEAD A SOCRATIC DIALOGUE WITH A BLUE RIBBON EXPERT PANEL. AND IOWA PUBLIC TELEVISION, AS YOU MIGHT EXPECT, WILL BE THERE FOR YOU. YOU'LL SEE "CAPITALIZING ON RURAL AMERICA" THIS COMING THURSDAY EVENING AT 7:00, AND IT WILL BE REBROADCAST AT 6:00 SUNDAY EVENING, APRIL 25. I HOPE YOU'LL WATCH. I'M DEAN BORG. THANKS FOR JOINING US TODAY.
CAPTIONS BY: MIDWEST CAPTIONING DES MOINES, IOWA.
FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION;
AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS;
AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA, THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.
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