Iowa must look toward consolidating state agencies, school districts, and counties as a way to help balance the state budget, a key legislator said at a recent IowaPolitics.com forum in Davenport.

"What we're going to have to do is consolidate," said Representative David Jacoby (D-Coralville), chair of the economic-development budget subcommittee. "We're going to look at consolidation, streamlining, and at the same time improving services."

Jacoby said legislators are working to consolidate the Department of Economic Development, Iowa Workforce Development, and the Department of Cultural Affairs. "It makes sense to me that we move these three agencies together under the same roof," he said. "It saves an administrative cost and it saves in rent that we're paying. That is a big leap I think we'll take at the state level."

The issue of housing accused terrorists in the Midwest was at the forefront this week as Thomson Correctional Center, in Illinois just over the Mississippi River from Iowa, is considered as a potential landing spot for Guantanamo Bay detainees after they leave Cuba.

Iowa Republicans spoke out against the possible transfer, while Democrats said they'd be open to the option.

Governor Chet Culver said that the transfer could create much-needed jobs.

Preliminary plans to lay off 792 Iowa state employees show that while some would be laid off in November and December, the bulk would be laid off in early January.

Layoffs have been proposed by 15 of the 36 state agencies as an element of their plan to implement a 10-percent across-the-board budget cut ordered by Governor Chet Culver in October.

The bulk of layoffs would occur in the Department of Corrections under a plan not yet approved by Culver. An initial plan called for 515 layoffs in corrections. The latest plan shows 377 layoffs would occur on Janurary 1, 4, or 7.

Governor Chet Culver this week approved plans by 34 state agencies to cut $520 million, lay off 180 workers, and eliminate 229 vacant positions.

Culver also announced that he has asked the three labor unions for state workers to reopen contract talks in an effort to prevent the layoffs of 571 people in corrections and 54 in public safety.

Culver has withheld approving budget-cutting plans for corrections and public safety until he hears back from the unions, who have until November 6 to let Culver know if they will agree to re-open their contracts.

Two-thirds of proposed state-worker layoffs spurred by a 10-percent, $565-million across-the-board budget cut would be in the Iowa Department of Corrections, but Governor Chet Culver -- who gets the final say on the cuts -- said he wants to mitigate that before the plans become final.

"I disagree with some recommendations that cut services to children and vulnerable adults, as well as in areas of public safety," Culver said. "These cuts have a very disproportionate impact on public safety, an area I vowed to protect. ... I want to find a way to mitigate that situation."

The leader of Iowa's largest union for state workers declined immediate comment on the proposed layoffs, saying that AFSCME Iowa Council 61 is still reviewing the plans released by the governor's office.

"We want to reiterate our expectation that going forward, the state of Iowa should treat this current situation the same as it would a major plant closing, and provide all appropriate support to workers who are being laid off that is available to them," said Danny Homan, president of AFSCME Iowa Council 61.

Former Republican Governor Terry Branstad broke his silence Friday about his 2010 gubernatorial campaign.

After months of speculation, Branstad used a Friday press conference to announce his retirement from Des Moines University, where he served as president for six years.

During that press conference, Branstad also announced his intent to fully explore a run for governor next year. He said he was "very touched and humbled" by the thousands who have asked him to run.

Earlier in the week, the 16-year governor hired top GOP strategist Jeff Boeyink as his campaign manager. The week before that announcement, Branstad formed an exploratory committee for governor.

"We're going to move fast," Boeyink said in an interview. "My job is to build the infrastructure and campaign to make his decision easy. ... It will happen very quickly now that we've moved from a volunteer organization, to secure a professional staff. We will be ramping up our efforts."

Governor Chet Culver said Thursday that hundreds of Iowa state workers will be laid off, some government programs may be eliminated, and services to even the most vulnerable of Iowans will be affected as a result of the 10-percent across-the-board cut he ordered a day after state revenue estimates were lowered $414.9 million for the current budget year.

"We are preparing for some of the toughest times this union has ever seen," said Danny Homan, president of AFSCME Iowa Council 61, which represents approximately 20,000 state workers. "A 10-percent across-the-board cut will be devastating to state workers and the people they serve, no matter how necessary that cut is."

Following a meeting of the Revenue Estimating Conference on Wednesday, Iowa state-government workers and legislative leaders are bracing for what they predict will be at least a 3-percent across-the-board budget cut.

"I can't imagine a scenario that there's not going to be an across-the-board cut," said House Minority Leader Kraig Paulsen (R-Hiawatha). "I think it's going to be higher than 1 percent. I don't anticipate the governor is going to call us into special session."

State revenues in the current fiscal year, which began July 1, continue to fall.

A report released by the Legislative Services Agency (LSA) showed year-to-date Fiscal Year 2010 total net receipts decreased $141.1 million (9.1 percent) compared to the first quarter of fiscal 2009. Key to the decline was a $26.5-million (27.5-percent) drop in receipts from the corporate tax.

The scandal surrounding the Iowa's film-tax-credit program was a hot topic at a meeting this week of the legislature's Government Oversight Committee, with lawmakers and the media eager to get answers but leadership saying committee discussion now could impede the investigation.

"If the leadership was different, we'd be taking it up today," said Representative Ralph Watts (R-Adel).

Representative Vicki Lensing (D-Iowa City), co-chair of the Government Oversight Committee, said this isn't a political issue and agreed that the panel has a responsibility to taxpayers and the legislature to find out what happened.

Colin PowellAmerica is starting to pay too great a price for the increased security since the September 11, 2001, terrorist attacks, and anger has become too much a part of public life, retired General Colin Powell said at a motivational seminar Thursday attended by approximately 15,000 people in downtown Des Moines.

"We are starting to pay too much for our security," said Powell, a four-star general, former U.S. secretary of state, and former chair of the Joint Chiefs of Staff. "Foreign students who normally come to our universities are not coming. It's too hard to get a visa ... so we are losing this contact with the rest of the world. We are losing money, also."

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