Rod RobertsA New York Times article this week listed Iowa's 2010 gubernatorial race as one of eight "highly competitive races" in the nation.

The competition continues to grow in the Republican primary, as state Representative Rod Roberts (R-Carroll) announced the creation of his exploratory committee for governor to about 100 people in a Statehouse conference room. Roberts, 51, promoted himself as a "new face" and as a fiscal and social conservative who is friendly and approachable.

He has been in the legislature for nine years and is the fifth Republican to form an exploratory committee. The others are Christian Fong of Cedar Rapids, Senate Minority Leader Paul McKinley of Chariton, Representative Christopher Rants of Sioux City, and Bob Vander Plaats of Sioux City. Senator Jerry Behn of Boone is also expected to form his committee soon.

For the fewer than 10,000 people of Lyon County (in far northwest Iowa), the Iowa Racing & Gaming Commission's decision to accept applications for new casino licenses for the first time since 2005 was life-changing.

"This is so huge that no one can appreciate how important this would be to our growth," said Jeff Gallagher, president of the Lyon County Riverboat Foundation. "We think that the casino, through the resort, through the golf course, through the convention center, is going to reshape life in Lyon County. ... We're just terribly excited about what can happen over the next 10 years."

Two recent studies concluded that Lyon County is the most compelling site for a new casino, with high incremental impact and low cannibalization.

Governor Chet Culver said Thursday he's "very confident" the state can balance its budget for Fiscal Year 2009 with no special session but warned that it's "very possible" he'll have to order an across-the-board cut in state government as early as next month for Fiscal Year 2010, which started July 1.

Culver said he'll likely ask the Revenue Estimating Conference to meet early - in August instead of September - so he can make any necessary cuts as early as possible.

"Based on what they tell us about the first quarter of fiscal year 2010, we will have nine months to react," Culver said. "It is very possible that I'll have to do additional cuts, and we're going to take that step as quickly as we know the facts."

When asked if an across-the-board cut was his preferred approach to a budget shortfall, Culver said: "I think that's fair to say. That is certainly a tool that we have. ... The more that we can do early in Fiscal Year 2010, the better. The less pain, if you will, that we'll have to implement in '11."

Mississippi Governor Haley Barbour said Thursday in Iowa that he didn't think South Carolina Governor Mark Sanford's disappearance and extramarital affair would have any effect at the polls, downplayed the prospect of a run for president in 2012, and said he thinks Iowa's chances are good to elect a Republican governor next year.

"What happens in these races this year and next year will be what really matter to the party," Barbour said when asked about a 2012 run. "If after that it seems like a reasonable thing, I will consider it. I have no plan to run for president; I have no intention to run for president. But I've been around long enough to say, 'Never say never.' And we'll just see where we are after '10. But I would be very surprised if I turned out to be a candidate for president."

More than two dozen Iowans including farmers, health-care providers, small-business owners, retirees, and faith and labor leaders were in Washington, D.C., this week for what they called "a massive mobilization for reform" organized by Health Care for America Now.

The rally included Teresa Cooley, a Des Moines nurse for 30 years; Sandy Doerring, a registered nuse and member of the Service Employees International Union; Mike Draper, owner of a Des Moines retail store called Smash; Amy Logsdon of the Iowa Citizen Action Network; retired Des Moines resident Virginia Rowen; and Don Rowen of the Iowa Alliance for Retired Americans.

Meanwhile, U.S. Health & Human Services Secretary Kathleen Sebelius was this week joined by 22 state legislators including Iowa state Senators Jack Hatch (D-Des Moines) and Joe Bolkcom (D-Iowa City) as she announced the establishment of State Legislators for Health Reform and called the legislators an "incredible asset as we work to make reform a reality."

Former Arkansas Governor Mike Huckabee, the first potential 2012 presidential candidate to make more than one visit to Iowa since the November 2008 general election, denied Wednesday that he's running for president but said he came to help and endorse a friend, Republican gubernatorial candidate Bob Vander Plaats.

"People are reading too much into my being here," Huckabee said. "That's a decision that is way, way off. Right now, the answer is no. I'm helping some other people that are running for offices locally all over the country. My plate's full doing Fox News on the weekends and radio on about 500 stations three times a day, five days a week the rest of the time."

In a week that brought hundreds of layoffs and two new reports showing a continued economic downturn, Iowa Governor Chet Culver tried to reassure Iowans that the state was on sound financial ground.

John Deere announced it will lay off nearly 700 at its Ottumwa plant; Principal Financial Group, the state's largest private employer, announced it is eliminating 220 jobs, including 140 in Des Moines; and the University of Iowa Hospital will cut an unspecified number of positions.

The value of the Iowa Leading Indicators Index decreased by 0.9 percent in April from 99.9 to 99.0, the sixth consecutive monthly drop of 0.9 percent or greater, according to a report from the Iowa Department of Revenue. During the six-month span through April, the index dropped 6.3 percent, reflecting "widespread weakness in the Iowa economy with all eight components experiencing a 0.5-percent or greater decrease over the last half year," the report said.

And a report by the Legislative Services Agency showed general-fund receipts fell $161.4 million over the past two months, and the state's ending balance will be $44.6 million. State fiscal experts said cash year-to-date growth is $90.4 million below the official estimate and warned that it's possible this year's revenue shortfall will be more than the $94.6 million available from the projected ending balance and economic-emergency fund.

A number of Iowa court fees increased Wednesday as a result of Governor Chet Culver's signing of Senate File 478, the standings budget bill, late Tuesday night.

It now costs twice as much to file for divorce with a stipulation attached -- $100 instead of $50. The fee for filing a small-claims case increased from $50 to $85, while the fee for filing a civil petition including a petition for dissolution of marriage went from $100 to $185.

Other fees more than doubled: The fee for filing a statutory lien, as well as the fee for a change of title in real estate, went from $20 to $50. The criminal-penalty surcharge increased from 32 percent to 35 percent of the amount of the fine or forfeiture imposed.

In an interview Thursday, Culver maintained he did not increase taxes this year. But a number of court-fee increases, a franchise fee that cities are now authorized to charge, and a nonresident hunting- and fishing-license fee increase were in the standings budget bill he signed into law.

"There were no new taxes, and I remain opposed to an increase to the gas tax; that would be have been a direct tax on every Iowan that drives a vehicle," Culver said. "It's common for agencies to have the authority to raise revenue on their own. We feel good about the fact that we were able to stop any major tax increase on Iowans."

Meanwhile, the Iowa Supreme Court was expected to issue an order late this week canceling the June 5 and 19 court-closure days and restoring public hours of all clerk-of-court offices effective June 1, following Culver's signing the standings budget bill.

Senate File 478 includes a $760,000 supplemental appropriation to the judicial branch for the current fiscal year. It also decreased the judicial-branch budget shortfall in fiscal year 2010 from $15.4 million to $4.2 million.

Policy Bills Among Those Signed by Midnight-Tuesday Deadline

Culver signed into law 15 policy bills just before the midnight-Tuesday deadline.

Policy bills signed at the last minute include one that requires gender balance on local boards, another that gives Iowans the right to sue those who defraud them, and a third that bans farmers from applying manure on frozen and snowy ground during a specified period.

Iowa Attorney General Tom Miller on Tuesday hailed Culver's signing a bill that allows Iowans to sue for consumer fraud. "Iowans now finally join the citizens of every other state in having the important right to be able to go to court to protect their rights as consumers," said Miller, whose office pushed for the law for years.

AARP said its top legislative priority this year was to remove Iowa's dubious 10-year distinction of being the only state in the country that did not allow consumers to have an individual legal remedy against consumer fraud.

"While AARP sought a broader law with fewer exemptions, this bill will provide necessary protections in key areas where consumers have been especially vulnerable to dishonest business practices such as unscrupulous and predatory home-mortgage companies, home-improvement contractors, and auto dealers," said Bruce Koeppl, AARP Iowa senior state director.

But Iowa CCI said House File 712, the Private Right of Action for Consumer Fraud Act, was watered down with numerous exemptions for certain businesses as a result of "the many corporate interests" that lobbied against the bill.

"It makes me wonder whose voices were being listened to by our legislators -- big business or their constituents," said Adam Mason, community organizer for Iowa CCI. "In a time of bank bailouts, credit fraud, mortgage fraud, and other corporate fraud, one would think the political will would have been there to stand up to these corporations and say enough is enough. Hopefully they revisit this legislation next session and take a more principled stand for our consumers."

Budget Bills Line-Item-Vetoed; Executive Order Issued

Culver line-item-vetoed cost-saving measures in seven budget bills and instead signed an executive order to promote greater transparency and efficiency in state government late Tuesday night.

Executive Order 13 requires every executive-branch department to institute cost-effective and transparent practices to track reimbursements paid to state employees for meals, travel, and other work-related costs. Culver vetoed similar language in seven budget bills, which he called piecemeal. He said the executive order is more comprehensive and applies to all state departments.

"As governor, I am committed to ensuring that state government uses taxpayer dollars wisely," Culver said. "Under Executive Order 13, we are ensuring that state employees are only reimbursed for the expenses they incur. This will help manage tax dollars wisely, and is one more sign that the Culver/Judge administration's commitment to sound budgeting practices will not waiver."

Budget bills affected include those for administration and regulation (House File 809), health and human services (House File 811), agriculture and natural resources (Senate File 467), economic development (Senate File 469), education (Senate File 470), justice (Senate File 475), and standings (Senate File 478).

Culver also vetoed several provisions in budget bills such as those dealing with vehicle costs, Department of Human Services reorganization, and elimination of a Department of Corrections chief security officer. He said those moves would have infringed upon the executive-branch authority.

He said the same about legislation that would have required the departments of elder affairs, human services, and veterans affairs to develop plans for a 5-percent reduction in their budgets and report those cuts to the legislature by December 15. "A budget process is already delineated in law that starts with the executive branch, and this language infringes on the executive branch's duties to develop the state budget," Culver wrote.

In the administration and regulation budget bill, Culver vetoed a measure that directed departments to keep vehicles longer to reduce motor-vehicle-fleet operation and purchasing costs by 7.5 percent -- an expense much talked about by Republicans this year.

"I agree with the goal of decreasing state-fleet costs, and that is one reason I disapprove of this section," Culver said. "Maintaining vehicles beyond their useful lifetime may actually increase fleet costs."

Republicans Criticize State Spending

Republicans this week ramped up their criticism of state spending practices as Culver signed the final bills of the 2009 legislative session into law, including 10 budget bills.

"This governor just finished signing significant overspending and what amounts to the largest general-fund spending in the history of Iowa," said House Minority Leader Kraig Paulsen (R-Hiawatha). "Furthermore, it raises multiple fees and will definitely result in Iowans paying more in property taxes."

Senate Minority Leader Paul McKinley also criticized Culver: "Instead of using his line-item-veto authority to make needed and necessary budget cuts to the largest budget in the 163-year history of the state, Governor Culver used his veto pen to strike the rare cost-saving measures enacted by this legislature that would have provided more transparency and reformed state government."

But Culver, a Democrat, maintained in an interview Thursday that the state spent 2.2 percent less in the general fund and cut $135 million over the past two years.

"They are on their political, partisan, negative talking points; we're balancing the budget," Culver said. "They want to play games. We're cutting budgets. ... Look, we'll have an election next year. We just had a fantastic legislative session, and that's what we're celebrating right now."

Statewide Preschool Will Take Longer Than Expected

It will likely take Iowa longer than the anticipated four years to meet Culver's goal of having 90 percent of the state's four-year-olds enrolled in preschool programming.

Culver's goal was to reach that goal of "universal preschool" in his first term, or by 2011. But Judy Jeffrey, director of the Iowa Department of Education, acknowledged Thursday that it may take longer given current economic conditions. The program got $11.5 million instead of an anticipated third installment of $15 million this year. The money is expected to add 3,247 children to those attending preschool, for a total of 12,923 four-year-olds in 172 school districts.

"We felt very fortunate that we got 11.5 million new dollars at a time when they struggled," Jeffrey said. "Now, we've got to slow down a little bit because of the economic conditions, so it may take us five or six years, depending on the economic conditions, depending on what they can afford next year."

Field of Republican Gubernatorial Candidates Likely to Grow to Four by June

Three Republican state legislators are close to formally announcing a run for governor -- a move that political observers say has to be made by this summer or early fall to mount a viable candidacy in the June 2010 primary and November general election against Culver.

"I am seriously giving consideration to entering the race," Representative Rod Roberts (R-Carroll) said Thursday. "At some point in early summer, I would make my mind up as to whether I would establish that exploratory committee. ... I am two to three weeks from making a final decision."

Senator Jerry Behn (R-Boone) also said he's definitely thinking about it. "I'm leaning towards it but I haven't made a full decision yet," he said. "There's no exact date, but I'd like to get things lined up as soon as possible. I'm testing the waters to see what kind of support I get."

And state Representative Christopher Rants (R-Sioux City) has been traveling the state, speaking to interest groups and gauging support. The former House speaker has already logged more than 5,000 miles, gives his followers updates on Twitter, and reportedly stated Tuesday night at a meeting of the Polk County Republican Central Committee: "I'm running for governor."

As the field of Republican candidates for governor takes shape, it appears that there may be at least four candidates in the race by June. The three legislators would join three-time candidate Bob Vander Plaats of Sioux City, who has been campaigning since January.

A handful of others are considering a run, including former Iowa Senate President Jeff Lamberti of Ankeny, U.S. Representative Steve King of Kiron, Bettendorf businessman Mike Whalen, Iowa Agriculture Secretary Bill Northey, and Senate Minority Leader Paul McKinley of Chariton.

"If someone is going to get into this race, they'd probably want to get into it this summer or early fall," McKinley said, calling the timeline conventional wisdom. "With the rigors of modern-day campaigns at this level, it's going to require that amount of time for people to do those things necessary to run for office."

State-government spending, leadership, and marriage appear to be three key issues that Republicans will base their platforms on. Many Republicans point to state spending for fiscal year 2010 being the highest in history, and say the state will have nearly a $1-billion shortfall heading into next year. Most sharply criticized is Culver's pushing for the $830-million I-JOBS bonding-for-infrastructure plan.

"I think with the current state of affairs ... Iowans are outraged," McKinley said. "They believe government's too big, too out of touch, too out of control. It's little wonder that Republicans are stepping up. We will field a very good candidate."

Behn, a Boone farmer elected to the Iowa Senate in 1996, said he's been thinking about running for governor since 2006. He decided against it at that time when Jim Nussle, a U.S. Representative with good name recognition, got into the race. But the economy and state spending under Culver may lead Behn to enter the race this time around.

"His philosophy as governor is to tax and spend, [get] bailout money and spend, borrow money and spend. Do you see a common theme? His whole concept is to spend, spend, spend," Behn said. "His plan to pay it back is to use gambling revenues and depend on an economic recovery. That's not a plan. That's gambling with our children's future."

For Roberts, a development director with Christian Churches/Churches of Christ in Iowa who is serving his fifth term in the Iowa House, the 2010 gubernatorial race is all about leadership. He said Iowans have been yearning for a leader with the kind of temperament of former Republican Governors Bob Ray and Terry Branstad, and he believes he fits the bill.

"People are hungry for leadership, where the individual is transparent enough so people can know who you are, understand what you bring," Roberts said. "They want you to be respectful, civil, collegial. They want you to practice the golden rule -- watch your tongue and be civil, respectful of others. That's one thing that people are finding appealing about me."

Roberts, who is opposes abortion and supports a traditional definition of marriage, said his inspiration to run for governor came when Culver decided not to push for a gay-marriage-ban constitutional amendment after the April 3 Iowa Supreme Court ruling in Varnum V. Brien.

"Many of us were amazed at the 180 the governor did in terms of his previous public statements that he would be right out front leading the charge for traditional marriage. He didn't do what he said he would," Roberts said. "In that moment, that's where the question for me considering entering the race prompted me to say, 'I'm going to look at this carefully.' If I hear from others and there was strong encouragement to do so, I'll respond to that."

This weekly summary comes from IowaPolitics.com, an online government and politics news service. IowaPolitics.com staff contributed to this report.

David VaudtSaying that "I don't want my voice diminished" as the independent watchdog of state finances, State Auditor David Vaudt announced this week that he will not run for governor in 2010.

"I'm flattered that Iowans would come forward and encourage me to run, and I have seriously considered that over the last several months," the Republican said during a Statehouse press conference about the state budget. "As you are aware, I have been very concerned over Iowa's long-term finances."

Two new statewide studies on Iowa's gaming market and areas that are under-served by the state's 20 casinos were released this week and will be presented June 4 to the Iowa Racing & Gaming Commission, possibly paving the way for more casinos to be licensed in the state.

"It's a huge amount of information. We'll have to see where that takes us," said Commissioner Kate Cutler, a Council Bluffs Democrat who's the legal counsel for West Asset Management in Omaha. "I don't have a position already. When we voted for the four [Worth County, Waterloo, Riverside, and Emmetsburg in 2005], we wanted to really give the licensees an opportunity to get up and running. As a whole, they've been very successful."

Release of the studies by GVA Marquette Advisors and The Innovation Group is the first step toward commissioners deciding whether they'll grant new casino licenses for the first time since May 2005. Voters in five counties -- Wapello, Webster, Franklin, Tama, and Lyon -- have approved referendums and hope to be granted a license to open a casino.

The GVA Marquette Advisors study doesn't provide much hope for new casino licenses. It points out that most of Iowa's significant population centers have access to one or more casinos within a driving distance of one or two hours.

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