Democratic lawmakers on Thursday unveiled a long-awaited tax-credit-reform package that they said would reduce Iowa's tax-credit liability by $115 million a year; Republicans and business leaders were quick to criticize the legislation and said it sends the wrong message.

"We have listened to the public's anger at abuses and we are responding with historic reforms," said Senator Joe Bolkcom (D-Iowa City), chair of the Senate Ways & Means Committee. "We are ending some tax credits, cutting many remaining credits, and dramatically increasing accountability for all tax-credit spending."

The unveiling of House Study Bill 738 came two weeks before the targeted March 26 adjournment of the legislature.

With hundreds of bills dying this week in the Iowa legislature's self-imposed second "funnel deadline," lawmakers will now move into shutdown mode with the goal of adjourning in three weeks after an 80-day session.

"Several hundred bills are dying today," House Majority Leader Kevin McCarthy (D-Des Moines) said Thursday. "Next week, the legislative leaders will meet and start to map out shutdown strategy."

Lawmakers in both the House and Senate will work on floor debate in the week ahead, finishing up policy bills in the next week and a half before diving into budget bills.

A gambling bill that Iowa House leaders are pushing quickly to the floor could generate roughly $80 million in revenue for the state, a key legislator said Thursday.

About $70 million of that will likely be contained in an amendment allowing Iowans to play in live poker tournaments online, something state Representative Brian Quirk said an estimated 80,000 in the state already do illegally.

Quirk (D-New Hampton) said he wants to create a safe, regulated environment for those players, many of which are currently using offshore gambling Web sites that offer little protection to users.

Governor Chet Culver received a standing ovation at the Iowa State Building & Construction Trades Council convention and shook the hand of almost everyone in the room after signing an executive order that presumes state agencies will use project labor agreements (PLAs) whenever possible.

"It adds stability and structure to a job site that could be chaotic," said Bill Gerhard, president of the Iowa State Building & Construction Trades Council.

"There's a thousand people working big jobs, 17 different unions, all have different work rules, all have contracts that expire at different times," Gerhard said. "It sort of ensures that there's going to be some stability that people, if they go on strike on their contract, they'll keep working on the project. ... The state should have this tool in their toolbox to use."

Governor Chet Culver has proposed a $5.3-billion state spending plan for Fiscal Year 2011 that uses more than $200 million from the state's cash reserves and $48 million in federal stimulus money, while reducing tax credits by $52.5 million and saving $341 million from state-government reorganization.

Culver said the budget would leave an ending balance of $117.3 million and would leave $265.2 million in the state's cash reserves.

"We have achieved this lower budget by continuing the 10-percent across-the-board budget cut made last fall in Executive Order 19 for most of the General Fund budget," Culver said. "Only 31 percent of programs or agencies would receive any increases over the revised FY 2010 budget ... reflecting the need to reduce state-government spending while preserving critical services for protecting vulnerable adults and children."

Culver's budget recommendations include a $6.9-million increase for the Department of Public Safety to prevent potential layoffs of up to 122 people, and a $25-million increase for the Department of Corrections to avoid layoffs at state prisons.

Iowa Democratic legislative leaders on Thursday promised to act "extremely quickly" to maintain the state's ban on corporate contributions to campaigns, following the U.S. Supreme Court's 5-4 decision to strike down the central part of the McCain-Feingold campaign finance law and allow corporations to spend as much as they wish to support or oppose candidates for president and Congress.

Former Republican Governor Terry Branstad raised $1.55 million in the two and a half months after the start of his campaign and had $1.36 million left at the end of the year, while Democratic Governor Chet Culver raised $2.15 million in the past 12 months and ended the year with $2.59 million in his campaign chest.

"These fundraising numbers posted by the two governors forebode a very vigorous and spirited statewide campaign ahead," observed Pete Jeffries, senior counsel for Republican Jim Nussle's 2006 gubernatorial campaign.

Iowa is likely to retain its first-in-the-nation presidential caucuses in 2012, Iowa Attorney General Tom Miller -- a member of the Democratic Change Commission -- announced following the December 30 report of the commission.

The 2012 Iowa caucuses will be held in early February 2012, along with caucuses or primaries of Nevada, New Hampshire, and South Carolina, Miller said at a Statehouse news conference.

January

January 10: Matt Strawn becomes chair of the Republican Party of Iowa, defeating former State Representative Danny Carroll of Grinnell by a vote of 10-7 to replace Stewart Iverson. Strawn, the Iowa Barnstormers co-owner and former state director for John McCain, takes his dark-horse candidacy on the road in the months after the November election. Members of the Republican State Central Committee attributed Strawn's win to his ability to use fresh approaches to bring in new members and said his state listening tour helped him gain credibility in his quest for the position.

The 2010 legislative session will be dominated by budget cuts, government consolidation, and reorganization when state lawmakers return in January with what some say is a $1-billion shortfall and a midterm election just 10 months away.

Rather than a 100-day session, lawmakers will aim to have an 80-day session to do their part to cut spending. Shortening the session will save about $40,000 a day.

During a recent IowaPolitics.com legislative forum, Senate Majority Leader Mike Gronstal (D-Council Bluffs) warned that it will be a painful session as lawmakers work to realign state government with revenues. House and Senate Democratic leaders have vowed not to increase taxes in 2010 but have repeated that everything is on the table for cuts.

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