Governor Terry Branstad and legislative leaders were "a few inches away" Monday from agreeing to a state budget, but were "miles apart" on their competing property-tax plans, according to a key Democratic leader.

The Iowa legislature this week entered its seventh week of overtime, with less than three weeks remaining to come to resolution and avoid a state-government shutdown.

Iowa Senate Appropriations Chair Bob Dvorsky (D-Coralville) announced a key development Monday morning in reaching a budget deal that could bring adjournment to the 2011 legislative session. Senate Democrats agreed to spend less than $6 billion in the budget year that begins July 1, which is nearly $400 million less than they originally proposed.

Former Massachusetts Governor Mitt Romney officially kicked off his 2012 campaign for president Thursday with a speech at a windy farm in New Hampshire, a day after a new poll showed that he is still the candidate to beat in Iowa.

But Iowa Republicans on Thursday cautioned Romney not to skip the first-in-the-nation caucus state.

"I think that this is a very wide-open race," said state Representative Steven Lukan (R-New Vienna). "I think Iowa Republicans look at their candidates extremely hard. This is not a state where rock stars exist. Iowans want to see you in the pancake house, and they want to see you at the VFW steak fry. You have to engage them one-on-one. ... I think anybody that chooses to skip Iowa does so at their own peril."

House Republican leaders said Thursday that they do not support or intend to pass a bill that would allow Iowa to receive $14.5 million in federal money for extended unemployment benefits. Iowa is one of nine states that have yet to request the benefits.

"The Labor Committee is going to look at that, but the House Republican caucus is not interested in making it harder to be an employer in the state of Iowa," said House Speaker Kraig Paulsen (R-Hiawatha). "What's going on with unemployment compensation right now is making it harder to be an employer."

The Iowa Senate approved the measure on a 27-22 vote this week. The money would benefit the more than 7,000 Iowans who have been out of work for more than a year. Democrats urged the House and governor to act on Senate File 303 by March 10, or they said the state will almost certainly lose the $14.5 million in federal help for the unemployed.

In a debate that spanned eight hours, the Iowa Senate voted 48-1 late Thursday afternoon for House File 45, a bill that once made $500 million in budget cuts over three years and would now make a $6-million cut in the current fiscal year.

The near-unanimous vote came only after a party-line 26-23 vote for the Democratic strike-after amendment that pared back the House bill. Senator Jeff Danielson (D-Cedar Falls) said the end result is a bill that increases efficiency; increases transparency by creating a searchable budget database with both tax-expenditure and -comparison information; and deappropriates $6 million this fiscal year.

But Senator Roby Smith (R-Davenport) compared a box of tissues to a tack of 10 office boxes on his desk to illustrate the $6 million of savings in this bill compared to the $500 million in savings over three years in the version approved by the Iowa House. "I just don't understand how we can justify such little savings," he said.

The sponsor of a bill that contains the Religious Conscience Protection Act, which opponents have dubbed the "Marriage Discrimination Act," says currently "there is no intent" to move the bill forward in the legislature this year.

More than 50 people packed the Iowa House lobbyist lounge this week, largely opposing the proposed legislation. Rabbis and key players on the issue from the Iowa Catholic Conference, One Iowa, and The Family Leader were all there.

"The substance of the bill is important to some Iowans," said Representative Richard Anderson (R-Clarinda). "There are issues with the bill. As I said, I have some issues with the bill. We don't intend to move it forward at this time."

House Study Bill 50 would have provided an exemption for religious corporations and others from any requirement to solemnize a marriage, treat a marriage as valid, or provide services, accommodations, advantages, facilities, goods, or privileges for purposes related to the solemnization or celebration of a marriage, if doing so would cause the entity to violate sincerely held religious beliefs.

Pennsylvania Governor Ed Rendell told Iowa Democratic Party faithful Saturday night that he'd rather lose fighting for something he believes in than win standing for nothing - but he doesn't believe Governor Chet Culver will lose to former Governor Terry Branstad on November 2.

"For a moment, don't worry about the other guy," Rendell said. "An incumbent deserves to be re-elected if he's done a good job. Chet Culver has done a very good job."

Rendell also said Culver and other Democrats should stand up and talk about their accomplishments more clearly with voters, but also be honest about the tough times many Iowans and Americans are facing.

"We've got to continue reminding voters, 'Hey, you may be disappointed in the way things are going in the country; you may be disappointed in the president.' In Pennsylvania, they may be disappointed in some of the things I've done. But it's not a referendum; it's a choice," Rendell said.

Sandra Day O'ConnorRetired U.S. Supreme Court Justice Sandra Day O'Connor on Wednesday touted Iowa's merit system of selecting judges and warned against injecting politics into the court system during a speech attended by about 500 business, labor, and civic leaders at the Hotel Fort Des Moines.

"We have to address the pressures that are being applied to that one safe place, the courtroom," O'Connor said. "We have to have a place where judges are not subject to outright retaliation for their judicial decisions. That's the concept. Sure they can be ousted, and that's part of the system, but what the framers of our federal constitution tried to do was establish a system of judicial selection where the judges would not be subject to retaliation by the other branches for their judicial actions."

Iowa Governor Chet CulverGovernor Chet Culver used an appearance at the Iowa State Fair to say mistakes have been made under his watch, and to tell the approximately 100 fairgoers that he takes full responsibility for those mistakes.

"There's been a lot of criticism, there's been a lot of questions about things we've done or we've not done ... and I want to say that some of that criticism is justified and that we have made our fair share of mistakes," Culver said. "And I take full responsibility for those things that have happened in various state agencies, that happened on my watch, and I take responsibility for those mistakes that have been made."

Culver later elaborated, saying scandals in the Iowa Film Office and the Alcoholic Beverages Division are his responsibility, and that he must do all he can to effectively manage government and limit those mistakes. "The thing I feel good about is that we've replaced those individuals that were responsible and as quickly as I learned about those things, I acted, but I still take responsibility," Culver said.

Controversial bills backed by labor unions and opposed by Iowa's business community are at risk of not surviving the legislature's self-imposed "funnel" deadline next week -- a situation exacerbated by the sudden retirement of one Democratic lawmaker.

"We're still working to find consensus on those issues," said House Majority Leader Kevin McCarthy (D-Des Moines). "There are negotiations that are occurring. If there are requisite votes for passage, then that will move forward. But right now, particularly in the wake of one of our members' serious illness ... that's more challenging."

Governor Chet Culver's proposed budget for Fiscal Year 2011 exceeds the state's 99-percent spending limitation and fails to address roughly $400 million in state costs, State Auditor David Vaudt said this week.

"He's actually spending $25 million more than the expenditure limitation, rather than the $61 million under the spending limitation that he presents in his budget document," said Vaudt, a Republican. "The governor's budget numbers just don't add up."

Culver defended his proposed budget, maintaining that it's balanced and spends less in his fourth year in office than when he began his term as governor in 2007.

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