| Home |  |
| Iowa Democratic Senate Leader Mike Gronstal IOWA PRESS #3214>> Yepsen: THE COUNTDOWN IS UNDERWAY FOR THE OPENING OF THE 81ST IOWA GENERAL ASSEMBLY SCHEDULED FOR MONDAY, JANUARY 10. WE DISCUSS THE AGENDA WITH THE IOWA SENATE'S DEMOCRATIC LEADER, MIKE GRONSTAL OF COUNCIL BLUFFS, ON THIS EDITION OF "IOWA PRESS." FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION; AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. ON STATEWIDE IOWA PUBLIC TELEVISION THIS IS THE FRIDAY, DECEMBER 3 EDITION OF "IOWA PRESS." HERE IS DAVID YEPSEN. Yepsen: NOVEMBER 2'S GENERAL ELECTION BROUGHT ON ITS SHARE OF SURPRISING, AND LOCALLY THE SHIFT IN POWER AT THE IOWA STATEHOUSE IS THE BIGGEST. THERE, REPUBLICAN CONTROL OF BOTH CHAMBERS IN THE LEGISLATURE HAS A NEW DYNAMIC. IN THE IOWA HOUSE, REPUBLICANS HELD A MAJORITY LEAD OF 54 TO 46 OVER THE DEMOCRATS FOR THE PAST TWO YEARS. BUT FOR THE NEXT TWO YEARS, THE MARGIN OF MAJORITY IS JUST TWO SEATS, AS THE DEMOCRATS GAINED A NET OF THREE REPRESENTATIVES. AND IN THE IOWA SENATE, THE NUMBER SHIFT IS EVEN MORE DRAMATIC. THE G.O.P. HELD AN EIGHT-SEAT MARGIN IN THE 80TH IOWA GENERAL ASSEMBLY, BUT COMING UP IN THE 81ST, WE HAVE A DEAD HEAT AT 25 EACH. SO WHEN THE GAVEL GOES DOWN ON JANUARY 10, THEY'LL HAVE A POWER SHARING AGREEMENT THAT CREATES COLEADERS IN THE IOWA SENATE. AND OUR GUEST TODAY IS SENATOR MIKE GRONSTAL, THE DEMOCRAT FROM COUNCIL BLUFFS WHO WILL SHARE THE FLOOR LEADER POSITION WITH SENATOR STEWART IVERSON, A REPUBLICAN FROM DOWS. SENATOR GRONSTAL IS CONSIDERED TO BE ONE OF THE PRIMARY ARCHITECTS OF THE DEMOCRATIC GAINS, AND WE WELCOME YOU BACK TO "IOWA PRESS." Gronstal: THANK YOU. Yepsen: IT'S GOOD TO HAVE YOU WITH US AGAIN, SENATOR. Gronstal: PLEASURE TO BE HERE. Yepsen: ALSO WITH US AT THE "IOWA PRESS" TABLE: JENEANE BECK, THE IOWA STATEHOUSE REPORTER WITH "KUNI PUBLIC RADIO"; AND MIKE GLOVER, SENIOR LEGISLATIVE AND POLITICAL REPORTER WITH THE "ASSOCIATED PRESS." Glover: SENATOR GRONSTAL, NOVEMBER 2 WAS A PRETTY MEDIOCRE DAY FOR DEMOCRATS BY MOST MEASURES. YOU LOST THIS STATE ON THE PRESIDENTIAL LEVEL FOR FIRST TIME IN TWENTY YEARS. FOUR REPUBLICAN CONGRESSMEN GOT REELECTED EASILY. THE REPUBLICAN SENATOR WON A LANDSLIDE. AND YET IN THE LEGISLATURE, YOU HAD A PRETTY GOOD NIGHT. WHAT DID YOU DO RIGHT THAT OTHER DEMOCRATS DID WRONG? Gronstal: I RECRUITED GREAT CANDIDATES. WE PUT TOGETHER A GREAT SLATE OF CANDIDATES THIS TIME. THAT SLATE OF CANDIDATES INCLUDED PEOPLE THAT HAD SERVED IN PUBLIC OFFICE BEFORE. WE ELECTED THREE MAYORS THAT NIGHT. SO THEY WERE PEOPLE THAT HAD SOME IDENTITY IN THEIR COMMUNITY TO START WITH. THEY WERE PEOPLE THAT WERE USED TO LISTENING, PEOPLE THAT -- IF YOU SERVE ON A CITY COUNCIL, YOU'RE FORCED TO LISTEN TO A LOT OF FOLKS. IT'S A GOVERNMENT THAT'S VERY CLOSE TO THE PEOPLE. THEY WERE MULTITERM MAYORS, PEOPLE THAT HAD SERVED, LED, AND SURVIVED REELECTION AND HAD DONE WELL AT THAT -- BUILT BRIDGES WITH A LOT OF PEOPLE IN THEIR COMMUNITY. I THINK THE BIGGEST KEY TO OUR VICTORY, I THINK 80 PERCENT OF IT WAS REALLY GREAT CANDIDATES WE RECRUITED. Glover: WHAT ROLE DID MESSAGE PLAY IN ALL THAT? DID YOU COME OUT OF THIS ELECTION WITH A MANDATE TO DO SOMETHING? DID YOUR CANDIDATES CAMPAIGN ON CERTAIN THEMES? Gronstal: I THINK SOME OF IT -- SOME OF IT WAS MESSAGE AND SOME OF IT WAS, IN SOME RESPECTS, LACK OF MESSAGE BY THE REPUBLICANS. I THINK ABOUT TWO MONTHS AGO, I WAS ON THIS SHOW NOT TOO LONG BEFORE THE ELECTION DAY. AND I THINK IF YOU GO BACK AND REVIEW THAT SHOW, YOU HAD REPUBLICAN LEADERS THAT WERE RUNNING A GREAT CAMPAIGN AGAINST GOVERNOR VILSACK. THEY WEREN'T RUNNING AGAINST OUR CANDIDATES BECAUSE THEY HAD LITTLE TO SAY AND LITTLE TO CRITICIZE OUR CANDIDATES. OUR CANDIDATES WENT OUT THERE AND TALKED ABOUT THE ISSUES. FIRST OF ALL, THEY WENT OUT THERE AND KNOCKED ON DOORS AND HEARD FROM PEOPLE ABOUT WHAT THEY THOUGHT THE ISSUES WERE, AND THEN THAT'S THE KINDS OF ISSUES THEY TALKED ABOUT DURING THEIR CAMPAIGNS. JOBS, EDUCATION, HEALTH CARE, THOSE WERE THE TOP THREE ISSUES THAT WERE IDENTIFIED BY THE VOTERS TO OUR CANDIDATES, AND IT'S WHAT THEY TALKED WITH PEOPLE ABOUT. Beck: SENATOR, CONSIDERING YOUR GAINS IN THE SENATE, YOU'VE GOT NEW PROMINENCE WITHIN THE PARTY, NEW LEADERSHIP ROLES. TALK ABOUT WHO SHOULD NOW CHAIR THE DEMOCRATIC PARTY. WHO WOULD YOU LIKE TO SEE BE THE VOICE OF THE PARTY IN IOWA? Gronstal: YOU KNOW, I HAVE TALKED WITH A LOT OF PEOPLE ABOUT THIS AND HEARD FROM A LOT OF PEOPLE ABOUT IT. BUT I WOULD TELL YOU MY PICK, MY PERSONAL PICK -- AND SHE HASN'T ASKED ME; I'VE KIND OF ASKED HER -- IS THE LIEUTENANT GOVERNOR. I THINK SHE WAS BROADLY AND DEEPLY COMMITTED. I SAID 80 PERCENT OF OUR RACES WERE GOOD CANDIDATES. THE OTHER 20 PERCENT WAS ONE HECK OF A LOT OF COOPERATION AND HARD WORK BETWEEN OUR ALLIES. AND THERE WAS NO STRONGER ADVOCATE FOR US THAN THE LIEUTENANT GOVERNOR IN TERMS OF WINNING BACK LEGISLATIVE SEATS. SO I'D REALLY LIKE TO SEE SALLY PEDERSON TAKE THIS ON. I HOPE SHE'LL CONSIDER IT. Beck: AND SHE CAN DO BOTH? Gronstal: I THINK SHE CAN CERTAINLY DO BOTH. I THINK SHE'S A VERY TALENTED PERSON. Glover: HAVE YOU HEARD ANY OTHER NAMES? Gronstal: I'VE CERTAINLY HEARD SOME OTHER NAMES. THAT'S THE STRONGEST NAME IN MY BOOK, AND THAT'S WHAT I'M HEARING FROM COUNTY PARTY CHAIRS THAT I'VE TALKED TO AROUND THE STATE. Beck: IS SHE INTERESTED? Gronstal: WE'RE HOPING SHE'S INTERESTED. WE'RE HOPING SHE'S INTERESTED. Yepsen: FOLLOWING UP ON JENEANE'S QUESTION, IS THERE ANY LEGAL IMPEDIMENT THAT WOULD PREVENT A SITTING LIEUTENANT GOVERNOR FROM SERVING AS A STATE PARTY CHAIR? Gronstal: NONE, NONE. Yepsen: I WANT TO FOLLOW UP MIKE'S QUESTION ON THE QUALITY OF YOUR CANDIDATES. I NOTICED DEMOCRATS IN A NUMBER OF LEGISLATIVE RACES RECRUITED PRO-LIFE CANDIDATES. IS YOUR PARTY TRYING TO REACH OUT, BROADEN THE TENT BY ACTUALLY GOING OUT AND RECRUITING SOME PRO-LIFE DEMOCRATS TO RUN FOR THE LEGISLATURE? Gronstal: I WOULDN'T SAY WE RECRUITED PRO-LIFE CANDIDATES. I'D SAY WE WENT INTO DISTRICTS, WE ASKED PEOPLE IN THOSE DISTRICTS IN OUR RECRUITMENT EFFORTS WHO ARE THE KIND OF FOLKS THAT YOU THINK WOULD BE ABLE TO WIN HANDS DOWN IN THESE RACES. AND I WOULDN'T SAY IT KEYED AROUND -- IT KEYED AROUND US SAYING WE'VE GOT TO GO TO THIS AREA AND FIND A PRO-LIFE CANDIDATE. IT KEYED TO US GOING INTO THOSE COMMUNITIES, ASKING FOLKS TO THINK OUTSIDE THE BOX, NOT THE COUNTY CHAIR WHOSE TURN IT IS TO RUN THIS TIME, WHO ARE SOME OF THE PEOPLE WHO HAVE SOME STATURE IN THE COMMUNITY, THAT ARE WELL CONNECTED TO THE COMMUNITY, AND ACCEPT WHAT THOSE DISTRICTS COME UP WITH. AND SO THAT -- I DON'T THINK WE ACTIVELY SAID HERE'S THE DYNAMIC, HERE'S HOW WE SEE THIS DISTRICT ON A FEW KEY ISSUES, AND NOW WE'RE GOING TO GO IN AND FIND THAT CANDIDATE. WE WENT IN AND ASKED THE PEOPLE IN THOSE DISTRICTS WHAT KINDS OF CANDIDATES WOULD BE THE BEST. Glover: LET'S TALK ABOUT THE DIRECTION THE DEMOCRATIC PARTY TAKES FROM HERE. IF YOU TALK ABOUT THE QUALITY OF YOUR CANDIDATES, IF YOU LOOK AT THE CANDIDATES YOUR PARTY IS PUTTING FORWARD AT THIS POINT TO RUN FOR GOVERNOR, A LOT OF PEOPLE THINK IT'S A PRETTY WEAK FIELD. WHICH DIRECTION SHOULD THE DEMOCRATIC PARTY BE HEADING IN THIS STATE? Gronstal: I'M TEMPTED TO -- I'M TEMPTED TO ASK WHAT'S SO STRONG ABOUT THE REPUBLICAN FIELD, TO ASK THE REVERSE QUESTION. JIM NUSSLE HAS PRESIDED OVER THE BIGGEST BUDGET DEFICITS IN HISTORY. I'M NOT SURE THAT'S THE DIRECTION WE WANT TO SEE IOWA GO IN. SO I'M TEMPTED TO ANSWER THE OTHER QUESTION. I THINK WE POTENTIALLY HAVE A VERY STRONG FIELD OF CANDIDATES. A LOT OF PEOPLE OUT THERE ARE CERTAINLY CONSIDERING THIS RACE. Glover: WELL, GIVE US SOME NAMES. THE ONES WE HEAR MOST OFTEN ARE SECRETARY OF STATE CHET CULVER -- Gronstal: CHET CULVER. Glover: DEPARTMENT OF ECONOMIC DEVELOPMENT HEAD MIKE BLOUIN. WHO ELSE? Gronstal: MIKE BLOUIN. BOTH OF THOSE ARE -- BOTH OF THOSE ARE VERY CREDIBLE POTENTIAL CANDIDATES. BUT WE HAVE PEOPLE -- PEOPLE THAT ARE ALSO CONSIDERING -- I WON'T GIVE YOU ANY NAMES, BUT WE HAVE PEOPLE SIMILAR TO BOB VANDER PLAATS, SOMEBODY THAT'S NOT BEEN IN THE POLITICAL ARENA BEFORE. I KNOW HE RAN LAST TIME BUT HE DIDN'T COME OUT OF, KIND OF, A POLITICAL WORLD. WE CERTAINLY HAVE OTHER PEOPLE IN IOWA CONSIDERING IT. Glover: BUT IF YOU CAN'T EVEN GIVE US THEIR NAMES, HOW SERIOUS ARE THEY? Gronstal: YOU KNOW, EIGHT YEARS AGO -- NINE YEARS AGO YOU GUYS, I THINK DAVID WAS REFERRING TO GOVERNOR VLASIC -- Yepsen: PEOPLE MISPRONOUNCED HIS NAME, YEAH. Gronstal: GOVERNOR PICKLE, YEAH. SO THAT WAS NINE YEARS AGO. I THINK -- THERE'S PLENTY OF TIME FOR PEOPLE -- Glover: BUT THAT WAS THE TIME HE WAS CONSIDERED A LONG SHOT AND WAS A MEMBER OF THE STATE SENATE AND HE HAD A POLITICAL BASE. YOU CAN'T EVEN GIVE ME ANY OTHER NAMES? Gronstal: I COULD GIVE YOU NAMES, YES. I WON'T GIVE YOU NAMES. Beck: WILL YOUR NAME BE IN THE MIX? Glover: YOU'RE TELLING US WE SHOULDN'T TAKE THOSE PEOPLE SERIOUSLY BECAUSE YOU'RE NOT WILLING TO TALK ABOUT THEM PUBLICLY. Gronstal: I THINK THOSE PEOPLE HAVE TO DECIDE WHEN THEY'RE GOING TO TALK ABOUT IT PUBLICLY, AND I THINK THAT'S A JUDGMENT THEY HAVE TO MAKE, BUT THERE ARE OTHER PEOPLE OUT THERE TALKING ABOUT RUNNING FOR GOVERNOR. Yepsen: WELL, SENATOR, HOW ABOUT YOU? AT ONE TIME YOUR NAME FLOATED AROUND AS A POSSIBLE CANDIDATE FOR GOVERNOR. Gronstal: WELL, YOU KNOW, IT IS SOMETHING THAT I HAVE NOT RULED OUT AT THIS POINT BUT -- LISTEN, I REALLY WANT TO TAKE THIS SESSION, THIS COMING SESSION IN PARTICULAR, AS AN INCREDIBLE OPPORTUNITY TO LOWER THE PARTISAN TENSIONS, FIND A WAY -- I MEAN THIS IS WHAT THE VOTERS WANT. THEY WANT CANDIDATES THAT WILL GO OUT THERE AND TRY AND SOLVE PROBLEMS, NOT DEMOCRATIC SOLUTIONS, NOT REPUBLICAN SOLUTIONS. IF I CAN PULL THAT OFF AND ACTUALLY MOVE THE LEGISLATURE TO BIPARTISAN COMPROMISE AND COOPERATION ON A HOST OF VERY SERIOUS ISSUES THAT FACE THIS STATE, THAT'S THE KIND OF THING THAT, IF I'M SUCCESSFUL AT THAT, I THINK THAT MIGHT PAVE THE WAY FOR ME TO CONSIDER RUNNING FOR GOVERNOR, BUT I'M NOT PREPARED TO ANNOUNCE THAT TODAY AND THAT'S NOT MY GOAL. MY GOAL IS TO MAKE THIS SESSION WORK. Yepsen: YOU SAID -- THE SENATE DEMOCRATIC LEADER HAS JUST SAID HE'S CONSIDERING A RACE FOR GOVERNOR. IT'S AN OPTION. WHAT'S YOUR TIME LINE? Gronstal: MY TIME LINE IS TO GET THROUGH THIS SESSION, TO TRY AND PUT TOGETHER A GROUP OF LEGISLATORS TO CHANGE THE ATTITUDE UP THERE ABOUT DEMOCRATS REJECTING EVERY REPUBLICAN IDEA AND REPUBLICANS REJECTING EVERY DEMOCRATIC IDEA AND ACTUALLY GET PEOPLE TALKING TOGETHER LIKE WE HAVE IN TEN, TWENTY YEARS IN THE LEGISLATURE. Beck: SO WE'LL HAVE YOU ON AGAIN IN APRIL, BUT UNTIL THEN LET'S TALK ABOUT THIS LEGISLATIVE SESSION. THE IOWA SUPREME COURT CHIEF JUSTICE LOUIS LAVORATO CAME OUT YESTERDAY ASKING FOR MORE MONEY FOR THE COURTS, NOT JUST FOR NEXT YEAR BUT MIDYEAR. COMING WHEN YOU COME IN, IN JANUARY, THEY THINK THEY NEED AN INFUSION OF CASH, A MILLION AND A HALF DOLLARS. ARE YOU GOING TO GIVE THEM THAT? ARE THERE OTHER AGENCIES THAT ARE GOING TO SAY, HMM, I NEED A MIDYEAR INFUSION OF MONEY: DEPARTMENT OF CORRECTIONS, DEPARTMENT OF HUMAN SERVICES, IS THE MEDICAID BUDGET GOING TO BE SHORT? ARE THERE OTHER GROUPS COMING FORWARD, AND WHAT DO YOU DO ABOUT IT? Gronstal: THE MEDICAID BUDGET WAS SHORT WHEN WE PASSED IT, AND THAT'S PROBABLY THE BIGGEST LOOMING PROBLEM WE HAVE TO DEAL WITH IS TO COME UP WITH A WAY TO FINANCE THE SHORTFALL IN MEDICAID. IT WAS DELIBERATELY UNDERFUNDED. THERE'S THIS TEAM OUT THERE THEY CALL THE MEDICAID CRISIS INTERVENTION TEAM. IT'S A SELF-IMPOSED CRISIS. WE KNEW WHEN WE PASSED THE BUDGET, THE REPUBLICANS KNEW, THE MAJORITY PARTY KNEW, THAT THEY WERE SIGNIFICANTLY UNDERFUNDING -- Yepsen: WHAT DO YOU DO ABOUT IT? Gronstal: I THINK WE -- I THINK WE HAVE TO WAIT UNTIL THE END OF NEXT WEEK, WHEN THE REVENUE ESTIMATING CONFERENCE -- WE HAVE TO GO BY THE LAW AND GO THROUGH THE PROCESS. AT THE END OF NEXT WEEK, THE REVENUE ESTIMATING CONFERENCE WILL MEET, THEY'LL IDENTIFY HOW MUCH MONEY WE HAVE AVAILABLE TO US, AND THAT'S WHEN WE WILL START TO LAY OUT AND FIGURE OUT HOW WE'RE GOING TO SOLVE OUR BUDGET PROBLEMS. THERE IS GOOD NEWS. I LOOKED AT REVENUES YESTERDAY. REVENUES ARE UP 7.03 PERCENT YEAR TO DATE. IF YOU ACTUALLY LOOK AT THE REFUNDS, IF YOU LOOK AT THE WHOLE STORY IN THE REVENUE PICTURE, WE'RE UP OVER 9 PERCENT BECAUSE REFUNDS ARE DOWN. SO THERE'S -- THERE'S POTENTIALLY GOING TO BE SIGNIFICANTLY MORE MONEY WHEN THE REVENUE ESTIMATING CONFERENCE MEETS. THEN WE'VE GOT TO GO THROUGH AND PRIORITIZE WHAT WE NEED TO DO. SO WE'RE WILLING TO -- IT'S NOT TIME TO MAKE ANY PROMISES, BUT WE'RE CERTAINLY WILLING TO LOOK AT THE PROBLEMS IN THE JUDICIAL BRANCH. BUT AS YOU SAID -- Beck: ARE YOU WILLING TO SPEND SOME OF THAT ENDING BALANCE AND NOT SAVE IT FOR NEXT SESSION? Gronstal: I THINK WE'RE WILLING TO TAKE A LOOK AT OUR BUDGET PROBLEMS JUST AS THE MAJORITY PARTY DID OVER THE LAST COUPLE YEARS AND MAKE SOME JUDGMENTS ABOUT WHAT WE CAN AFFORD TO PUT IN THE RESERVE ACCOUNTS, HOW MUCH WE CAN AFFORD TO SPEND. SO JUST STAY TUNED. Glover: STEP BACK FOR A SECOND -- Gronstal: I MEAN WE'VE GOT TO WORK THROUGH THAT PROCESS. WE HAVE A BUNCH OF NEW MEMBERS. DEMOCRATS HAVE A NEW VOICE OF POWER INSIDE THE LEGISLATURE. WE'VE GOT TO MOVE OUR FOLKS TO SOME CONSENSUS. REPUBLICANS HAVE TO MOVE THEIR FOLKS TO SOME CONSENSUS, AND THEN WE'VE GOT TO MAKE SURE THEY'RE TALKING TOGETHER. SENATOR IVERSON AND I ARE WORKING VERY HARD TO COMMUNICATE IN EVERY WAY POSSIBLE TO OUR MEMBERS. WE BOTH KNOW, BOTH OF US KNOW WE'RE NOT THE MAJORITY PARTY. VOTERS ERASED THAT TITLE. BOTH OF US KNOW THAT. TO PASS A BILL, YOU NEED 26 VOTES. PEOPLE HAVE TO WORK TOGETHER. Glover: SENATOR GRONSTAL, STEP BACK FOR A SECOND AND TAKE A LOOK AT THE STATE BUDGET. WHERE ARE WE? HOW MUCH IN THE RED ARE YOU? WHERE DOES THE BUDGET STAND? Gronstal: ROUND NUMBERS THE ESTIMATES SHOW US WITH A SHORTFALL OF ANYWHERE FROM 250- TO THE HIGHEST ESTIMATES ARE PROBABLY ABOUT HALF A BILLION DOLLARS. Glover: SO IF YOU TAKE THE ENDING BALANCE YOU'RE GOING TO HAVE AT THE END OF THIS YEAR, THE NEW REVENUES YOU GET, AND SPEND ONLY WHAT'S ALREADY ON THE BOOKS, YOU'RE IN THE RED BY MORE THAN $200 MILLION. Beck: EXPLAIN THAT TO PEOPLE BECAUSE THEY HEAR THAT NEW MONEY IS COMING INTO THE STATE, THAT REVENUES ARE PICKING UP, BUT THE STATE IS IN THE HOLE. THAT'S HARD FOR PEOPLE TO UNDERSTAND? Gronstal: WELL, FIRST OF ALL, THERE'S AN UNDERFUNDING OF MEDICAID BY DESIGN. CONSCIOUSLY, UP-FRONT LAST YEAR, THEY UNDERFUNDED MEDICAID. AT THE TIME THE ESTIMATE WAS $65- TO $85-MILLION SHORTFALL. TODAY IT'S PROBABLY MORE 80 TO 130 SHORTFALL. THE NUMBER OF ELIGIBLES HAS GONE UP IN THE MEDICAID SYSTEM. I DON'T KNOW WHAT NUMBER YOU WANT TO PUT ON THAT, BUT ROUND NUMBERS, MAYBE $100-MILLION SHORTFALL THERE. COMMITMENTS ON SALARIES PROBABLY ANOTHER $80-, $90 MILLION COMMITMENTS ON K-12 EDUCATION. FOUR-PERCENT ALLOWABLE GROWTH, REAL ROUND NUMBERS, ANOTHER $100 MILLION. THOSE THREE TOGETHER, MAYBE $300 MILLION. THAT'S THE BAD NEWS. THE GOOD NEWS IS WE ENDED LAST FISCAL YEAR WITH $120 MILLION TO SPARE, MORE REVENUE THAN PROJECTED. THERE'S $120 MILLION. REVENUE ESTIMATING CONFERENCE, WE'VE CURRENTLY PROJECTED A 2.2-PERCENT GROWTH, WHICH IS ABOUT $100 MILLION IN NEW MONEY FOR NEXT YEAR, SO THERE'S 100 MILLION. THAT'S PROBABLY GOING TO BE GREATER THAN THAT, MAYBE BY ANOTHER 100 MILLION, MAYBE EVEN A LITTLE BIT MORE THAN THAT. SO YOU START TO SEE WE'RE NOT THAT FAR OFF FROM SOLVING THE PROBLEMS. THERE ARE STILL FUNDS WE HAVE TO REPAY AND BEGIN -- BUT DO WE HAVE TO REPAY ALL OF THOSE FUNDS IMMEDIATELY? Yepsen: WELL, SENATOR, ANYBODY WITH A PENCIL COULD SEE YOU'RE STILL NOT THERE. YOU'VE STILL GOT A SHORTFALL BETWEEN WHAT YOU'RE GETTING IN AND THE COMMITMENTS YOU'VE GOT OUT THERE. YOU SAT IN THIS CHAIR DURING THE CAMPAIGN AND SAID DEMOCRATS DO NOT SUPPORT TAX INCREASES. IS THAT STILL THE CASE? Gronstal: THE DEMOCRATS REMAIN VERY SKEPTICAL WITH TAX INCREASES. YES, THAT'S VERY MUCH SO -- Yepsen: WHAT ABOUT THE CIGARETTE TAX? THAT MEDICAID TASK FORCE YOU JUST MENTIONED HAS RECOMMENDED A DOLLAR-A-PACK INCREASE IN CIGARETTE TAXES, ALCOHOL TAX INCREASES. DO DEMOCRATS -- WILL DEMOCRATS IN THE IOWA SENATE VOTE FOR THOSE? Gronstal: LET ME REPEAT, DEMOCRATS REMAIN SKEPTICAL ON TAX INCREASES. Yepsen: THAT'S KIND OF A LOOSE PHRASE, SENATOR. WHAT DO YOU MEAN "SKEPTICAL"? Gronstal: AND IT'S THE SAME PHRASE I HAVE USED SINCE THE GOVERNOR PROPOSED A TAX INCREASE -- Yepsen: BUT DURING THE CAMPAIGN, SIR, YOU CAME OUT HERE AND SAID NO TAXES. Gronstal: NO, I SAID DEMOCRATS REMAIN SKEPTICAL OF TAX INCREASES. THAT'S A PHRASE, DAVID, I'VE BEEN USING CONSISTENTLY. AND THAT'S NOT WHERE WE'RE GOING, AND YOU'RE NOT GOING TO SEE A $1-INCREASE IN THE CIGARETTE TAX. Beck: BUT WILL WE SEE "AN" INCREASE, BECAUSE THERE'S GOING TO BE AT LEAST ONE DEMOCRAT WHO PROPOSES INCREASING THE CIGARETTE TAX? Gronstal: AND THERE'S -- AND LET'S FACE IT, IF THERE ISN'T AT LEAST ONE REPUBLICAN, YOU CAN'T PASS IT IN THE IOWA SENATE. SO THAT'S THE KIND OF THING WHERE OUR CAUCUS HAS TO MEET -- Beck: WELL, THERE ARE ONE OR TWO REPUBLICANS WHO WOULDN'T MIND DOING THAT. Gronstal: OUR CAUCUS HAS TO MEET, EVALUATE THE BUDGET, WHERE WE ARE, WHAT THE SITUATION IS. THE REPUBLICANS HAVE TO MEET, MAKE THAT SAME EVALUATION. AND THEN WE HAVE TO GET THEM TO WORK TOGETHER. Yepsen: YOU SAID -- EXCUSE ME. YOU SAID A BUCK A PACK WILL NOT HAPPEN. BUT SOMETHING LESS THAN THAT COULD HAPPEN? Gronstal: I THINK IF THERE'S A CRITICAL MASS OF LEGISLATORS THAT ARE WILLING TO SUPPORT THAT, I THINK THAT'S POSSIBLE. BUT LET ME REPEAT, THAT'S NOT WHERE WE'RE GOING. THAT'S NOT WHERE WE'RE STARTING OUT. WE'RE STARTING OUT WITH NEXT WEEK'S REVENUE ESTIMATING CONFERENCE, THEIR NUMBERS. AND THE FIRST THING I WANT TO DO WHEN WE COME INTO SESSION IS START TO MOVE ON RE-CREATING AN IOWA VALUES FUND SO WE CAN BE GROWING OUR ECONOMY TO MEET THE NEEDS OF THE STATE TREASURY, GROWING OUR ECONOMY -- Yepsen: YOU CAN DO THAT WITHOUT RAISING TAXES -- STILL BEING SKEPTICAL ABOUT TAXES? Gronstal: I'M VERY SKEPTICAL ABOUT TAX INCREASES. Glover: SENATOR GRONSTAL, LET'S STEP BACK AND LOOK AT THE BIG PICTURE FOR A SECOND. THIS IS AN EVENLY DIVIDED LEGISLATURE. THE SENATE IS DEAD EVEN. THE HOUSE IS ALMOST DEAD EVEN. WHY SHOULD WE EXPECT ANYTHING MUCH OUT OF THIS LEGISLATURE AT ALL? I'M HEARING FROM BOTH SIDES OF THE AISLE THE TERM "LIMITED AGENDA," WHICH TELLS ME DON'T EXPECT MUCH. Gronstal: BECAUSE I THINK THERE'S ACTUALLY AN OPPORTUNITY WHEN BOTH SIDES CARRY THE RESPONSIBILITY AND BOTH SIDES WILL CARRY THE BLAME IF YOU DON'T DO THINGS. SO I THINK IN AN EVENLY DIVIDED SENATE, WE CAN TAKE ON SOME THORNY, KNOTTY ISSUES LIKE PROPERTY TAXES. WE CAN TAKE THOSE ISSUES ON, AND IT WON'T BE THE REPUBLICAN -- THE REPUBLICAN MAJORITY THAT DID "X," "Y," AND "Z," AND HERE ARE THE BAD RESULTS THAT ENDS UP WITH SOME IOWANS. IT WILL BE THE EVENLY DIVIDED SENATE. YOU WON'T BE ABLE TO BLAME THE DEMOCRATS, YOU WON'T BE ABLE TO BLAME THE REPUBLICANS, OR YOU'LL BE ABLE TO BLAME BOTH OF THEM. THAT'S THE TIME FOR US TO START WORKING TOGETHER. IT'S, IN ESSENCE, WHAT THE VOTERS DEMANDED. Glover: BUT LET'S LOOK AT -- LET'S LOOK AT WHAT'S ACTUALLY HAPPENED SINCE THE ELECTION. THERE WAS A PROPOSAL THAT WAS AGREED TO BY BOTH SIDES TO ALTERNATE THE SENATE PRESIDENCY ON A ONE-YEAR/ONE-YEAR BASIS. YOU COULDN'T AGREE WHO GOT THE ELECTION YEAR, SO YOU ENDED UP ALTERNATING ON A WEEKLY BASIS. IF YOU CAN'T REACH AGREEMENT ON THAT -- Gronstal: WAIT, WE DID REACH AGREEMENT! Glover: YEAH. Gronstal: WE'VE REACHED AN AGREEMENT THAT'S GOING TO WORK FOR EVERYBODY. WE'VE REACHED AN AGREEMENT THAT'S GOING TO COMMUNICATE -- I DON'T KNOW WHAT'S WRONG WITH THAT. THERE WERE SOME OF US THAT THOUGHT CONTROLLING IT IN THE ELECTION YEAR WOULD BE BETTER. THE OTHER SIDE HAD SOME RECOGNITION THAT MAYBE THAT IS AN ADVANTAGE, AND SO WE SAT DOWN AND CAME OUT WITH SOMETHING THAT -- I MEAN THE SYMMETRY OF THIS SESSION, WHEN IT'S A DEMOCRAT IN THE CHAIR, IT'S GOING TO BE A REPUBLICAN FLOOR LEADER. AND WHEN IT'S A REPUBLICAN IN THE CHAIR PRESIDING, IT'S GOING TO BE A DEMOCRATIC FLOOR LEADER. THE MESSAGE WE'RE SENDING IN EVERY WAY WE CAN TO OUR MEMBERS IS YOU'VE GOT TO WORK WITH THE OTHER PARTY. Yepsen: SENATOR, HOW OPEN WILL THE LEGISLATURE BE? ARE WE GOING TO SEE BACK-ROOM DEALS JUST DECIDING EVERYTHING THAT YOU, STEWART IVERSON, SOME OTHER LEADERS GET TOGETHER, WHATEVER YOU CAN AGREE UPON IS WHAT HAPPENS? IS OPENNESS GOING TO BE A CASUALTY OF THIS LEGISLATURE? Gronstal: NO, I THINK THE OPPOSITE -- Yepsen: WELL, WE CERTAINLY SEE A LOT OF WORKING GROUPS OVER THE YEARS THAT HAVE TAKEN THE PROCESS BEHIND THE SCENES. Gronstal: AND THOSE WORKING GROUPS WERE IN THE ATMOSPHERE OF ONE MAJORITY PARTY, MAKING SOME ATTEMPTS TO TAKE SOME ISSUES THAT THEY WERE HAVING TROUBLE WITH AND TRYING TO FIND SOME BIPARTISANS -- Yepsen: SO CITIZENS WILL HAVE AN INPUT INTO THE DECISIONS YOU GUYS ARE MAKING? Gronstal: I'M HOPEFUL THAT WE WILL BE MORE OPEN -- MORE OPEN TO THOSE KINDS OF THINGS. Beck: LET'S GO BACK TO THE BUDGET A BIT. YOU TALKED ABOUT THE MONEY THAT'S COMING IN. AND WE'RE CLOSE TO MEETING THE PROPOSALS WE'VE ALREADY GOT ON THE TABLE, BUT THERE ARE OTHER PROPOSALS OUT THERE. TEACHERS JUST ANNOUNCED THEY'VE DROPPED IN THE RANKING OF NATIONAL SALARIES. THEY'RE DOWN TO 38. THEY'RE GOING TO WANT MORE MONEY FOR TEACHER PAY. THE GOVERNOR HAS AN AGGRESSIVE EARLY CHILDHOOD EDUCATION PROPOSAL ON THE TABLE. THERE'S NO NEW MONEY FOR THOSE THINGS. SO WHAT SUFFERS IF YOU DO NEW THINGS IN EDUCATION, OR DO YOU JUST KEEP EVEN KEEL WITH EDUCATION? Gronstal: I DON'T THINK WE CAN KEEP AN EVEN KEEL. I DON'T THINK WE CAN CONTINUE TO LOSE GROUND ON TEACHER SALARIES AND EXPECT STUDENT ACHIEVEMENT TO IMPROVE IN THIS STATE. Beck: SO WHAT GETS CUT TO INCREASE TEACHER SALARIES? Gronstal: WELL, FIRST OF ALL, WE'VE GOT TO STEM -- STEM THE TIDE OF IT GOING AGAINST US. WE'VE GOT TO QUIT LOSING GROUND. WE'VE GOT TO MAKE SURE WE'RE NOT LOSING GROUND. NOBODY EVER THOUGHT OUR TEACHER SALARY PROBLEMS WOULD BE SOLVED IN ONE YEAR. EVEN WHEN WE PASSED SOMETHING IN GOOD TIMES THREE OR FOUR YEARS AGO, NOBODY BELIEVED THAT WAS THE FINAL SOLUTION. SO WE'VE GOT TO EMBARK ON A STRATEGY THAT OVER TIME IS GOING TO MOVE US TO THE NATIONAL AVERAGE ON TEACHER SALARIES. WE'VE JUST GOT TO DO THAT. FALLING FROM 34TH TO 38TH IN TEACHER SALARIES SAYS TO THE GRADUATING CLASS OF OUR BEST AND BRIGHTEST AT UNI, GO ELSEWHERE BECAUSE THERE IS NO FUTURE IN IOWA. WE'VE GOT TO TELL THOSE KIDS THERE IS A FUTURE IN IOWA WHEN IT COMES TO EDUCATION, AND IT'S NOT GOING TO BE A DECLINING FUTURE. Glover: POLITICALLY, HOW DO YOU HANDLE THAT? YOU'VE GOT A DEMOCRATIC GOVERNOR WHO WANTS TO SPEND A LOT OF MONEY ON EARLY EDUCATION PROGRAMS. YOU'VE GOT A MAJOR DEMOCRATIC INTEREST GROUP, THE TEACHERS UNION, WHICH WANTS MORE TEACHER SALARIES. HAVE YOU GOT THE EDUCATION COMMUNITY PITTED AGAINST EACH OTHER? Gronstal: NO, I DON'T THINK SO. I THINK YOU'LL SEE THE EDUCATION COMMUNITY COME TO THE STATE WITH VERY MUCH WHAT WE'RE FORCED TO DO, COME WITH A SHARED AGENDA ABOUT BOTH OF THESE THINGS ARE IMPORTANT AND HOW DO WE BEGIN THE PROCESS TO ADDRESS THAT. Beck: BUT IF THE EDUCATION PIE -- OR PIECE OF THAT PIE GROWS, THEN WHAT ELSE SHRINKS? I MEAN SOMETHING IN STATE GOVERNMENT HAS TO GIVE THEN, CORRECT? Gronstal: AND THAT'S OUR SYSTEM. THAT'S HOW WE ARE SET UP. WE'RE SET UP TO DEAL WITH EDUCATION FUNDING FIRST IN EVERY LEGISLATIVE SESSION SO THAT IT REMAINS THE TOP PRIORITY. SO WE'RE GOING TO COME INTO THIS SESSION AND WITHIN THIRTY DAYS OF THE GOVERNOR, WE'RE GOING TO DO OUR BEST TO MEET THAT TIME LINE TO THE BEST OF OUR ABILITY. Glover: AND YOU'VE SAID OFTEN DURING THE CAMPAIGN THAT ONE OF THE PRIORITIES FOR DEMOCRATS WAS HEALTH CARE. REALISTICALLY, GIVEN THAT YOU'RE GOING TO SPEND EXTRA MONEY ON EDUCATION, THAT'S GOING TO BE YOUR TOP PRIORITY, HOW DO YOU DEAL WITH HEALTH CARE, 18 PERCENT OF THE NATION'S ECONOMY? HOW CAN A STATE DEAL WITH THAT WHEN YOU'VE GOT TOP PRIORITIES ABOVE IT? Gronstal: YOU KNOW, THERE ARE ANECDOTAL STORIES OUT THERE. THERE'S A PUBLIC AGENCY IN SOUTHWEST IOWA THAT THIS YEAR WAS ABLE TO FIND A WAY TO REDUCE THEIR HEALTH INSURANCE PREMIUM COSTS BY 18 PERCENT. THERE ARE -- SO THERE ARE EFFORTS I THINK THE STATE CAN ENGAGE IN THAT WILL ENCOURAGE AND PROVIDE BETTER OPPORTUNITIES FOR PEOPLE TO PRICE HEALTH CARE IN THE MARKETPLACE, GIVEN BETTER INFORMATION. I ALSO THINK THERE'S SOME OPPORTUNITIES TO DO SOME THINGS ON PURCHASING POOLS, WHERE WE CAN BRING SMALL GROUPS TOGETHER AND HELP THEM POOL THEIR MEMBERSHIPS AND BUY DOWN CHEAPER INSURANCES. IN EFFECT BUY DOWN -- WILL THIS BE A MAGIC SOLUTION? NO. ARE WE GOING TO END INCREASES IN THE HEALTH INSURANCE PREMIUMS? NO. BUT CAN WE DO SOME THINGS THAT WILL HELP, IN PARTICULAR, SMALL EMPLOYERS BE ABLE TO AFFORD IT? YES, I THINK WE CAN. Glover: LET'S SET SOME EXPECTATIONS. WHAT NUMBER DO YOU USE FOR THE NUMBER OF IOWANS WHO DON'T HAVE HEALTH INSURANCE, AND WHAT WILL THAT NUMBER BE WHEN YOU'RE DONE? Gronstal: WHAT NUMBER DO I USE? I DON'T HAVE A NUMBER OFF THE TOP OF MY HEAD. PROBABLY -- I MEAN THE NUMBERS I'VE SEEN OUT THERE IS A SIGNIFICANT INCREASE IN THE NUMBER OF UNINSURED IN IOWA. Glover: AND HOW MUCH -- Gronstal: ABOUT A 25-PERCENT INCREASE IS WHAT I'VE HEARD IN THE NUMBER OF PEOPLE UNINSURED. I DON'T REMEMBER A TOTAL NUMBER. Glover: AND HOW MUCH WILL THAT DROP BECAUSE OF WHAT YOU DO THIS SESSION? Gronstal: I THINK WE CAN HAVE A MARGINAL EFFECT ON THAT. I THINK WE CAN IMPROVE THAT 10, 15 PERCENT. I MEAN, YOU KNOW, I DON'T KNOW. THAT'S PART OF WHAT A LEGISLATIVE SESSION IS ABOUT IS BRINGING A BUNCH OF PEOPLE TO THE TABLE AND SAYING WHAT ARE SOME OF THE SOLUTIONS, WHAT CAN OUR EXPECTED OUTCOMES BE. Beck: WHAT IS YOUR SOLUTION THEN -- I'M SORRY, WE'RE RUNNING OUT OF TIME -- FOR ECONOMIC DEVELOPMENT AND FOR THE IOWA VALUES FUND? WHERE DOES THE MONEY COME FROM? IT'S ABOUT TO RUN OUT OF MONEY, SAY, IN JANUARY OR FEBRUARY. WHERE DO YOU GET NEW REVENUE FOR THE IOWA VALUES FUND? Gronstal: WELL, I THINK, FIRST OF ALL, WE PUT IN -- WE GO BACK AND PUT IN PLACE THE IOWA VALUES FUND. AS YOU KNOW, IT SUNSETS ON JULY 1 OF THIS COMING YEAR AND RUNS OUT OF MONEY MIDYEAR. I THINK WE GO BACK AND REENACT THE IOWA VALUES FUND. I THINK AT THIS POINT, WE PROBABLY PUT TOGETHER GENERAL FUND APPROPRIATIONS TO KEEP IT GOING. AND THEN WE'RE GOING TO HAVE -- THERE NEED TO BE SOME ADJUSTMENTS MADE TO IT. I THINK THERE ARE SOME OF THE -- SOME OF THE OVERLAPPING BOARDS AND COMMISSIONS THEY HAD, WE MAY NEED TO TAKE A LOOK AT THAT. THE BATTELLE STUDY OUT THERE SUGGESTS IN OUR FOCUS ON LIFE SCIENCES, WE PROBABLY NEED TO NARROW OUR FOCUS. NOT SO MUCH OF A SHOTGUN APPROACH TO LIFE SCIENCES AS A MORE TARGETED APPROACH FOR WHAT WILL FIT AND WORK IN IOWA. BUT I THINK WE THEN ENACT THAT, AND WE TRY AND ENACT THAT BY MID FEBRUARY. Glover: WHEN YOU SAY YOU ENACT THAT, HAS THAT BEEN SOMETHING YOU'VE DISCUSSED WITH REPUBLICANS? IS THERE BROAD AGREEMENT YOU WILL DO THAT? Gronstal: I'VE OPENLY MADE THAT SUGGESTION TO SENATOR IVERSON THAT WE WANT TO MOVE FORWARD WITH AN IOWA VALUES FUND. Glover: AND WHAT'S HIS RESPONSE? Gronstal: THEIR CAUCUS IS CERTAINLY GOING TO CONSIDER THAT. I THINK IN THEIR CAUCUS, SOME OF THEIR BIGGEST CRITICS OF THE IOWA VALUES FUND ARE NO LONGER THERE. SO I THINK WE HAVE A CHANCE TO DO THAT. BUT THEN LET ME ADD, I ALSO THINK THERE'S SOME REAL INTEREST IN PURSUING SOME ISSUES ON INFRASTRUCTURE IN THIS STATE. AND I THINK THERE MAY BE AN OPPORTUNITY LATER IN THE SESSION TO PUT TOGETHER A BONDING BILL THAT WOULD PROVIDE FOR SOME PUBLIC INFRASTRUCTURE MONEY. AND AT THE SAME TIME, WE MIGHT THEN DECIDE TO REPLACE THAT GENERAL FUND MONEY THAT WE HAD ESTABLISHED WITH SOME BONDING MONEY. SO I THINK THAT'S A REAL POSSIBILITY. BUT I DON'T WANT TO WAIT UNTIL APRIL 15 TO REESTABLISH THE IOWA VALUES FUND. Yepsen: SENATOR, WE DON'T HAVE ANYMORE TIME. WE'LL HAVE YOU BACK AND FINISH THIS DISCUSSION. Gronstal: WOW, THIS WENT FAST. Yepsen: THANKS FOR BEING WITH US. WE APPRECIATE IT. NOW, ON OUR NEXT EDITION OF "IOWA PRESS," WE TURN TO A TOPIC THAT WILL BE CLOSELY SCRUTINIZED IN THE UPCOMING SESSION: THE STATE OF IOWA'S DRUG PROBLEMS. JOINING US IS IOWA'S DRUG CZAR, MARVIN VAN HAAFTEN, WHO SITS AS DIRECTOR OF THE GOVERNOR'S OFFICE OF DRUG CONTROL POLICY, COORDINATING THE STATE'S EFFORTS IN PREVENTION, TREATMENT, AND DRUG LAW ENFORCEMENT. MARV VAN HAAFTEN JOINS US AT OUR REGULAR "IOWA PRESS" AIRTIMES: FRIDAY AT 7:30 AND SUNDAY AT NOON. DEAN BORG RETURNS WITH US AT THAT TIME, AND I HOPE YOU WILL AS WELL. I'M DAVID YEPSEN OF "THE DES MOINES REGISTER." THANKS FOR JOINING US HERE ON STATEWIDE IOWA PUBLIC TELEVISION. CAPTIONS BY: MIDWEST CAPTIONING DES MOINES, IOWA FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION; AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. |
|
