??The gap between the promises Iowa has made for public employees' retirement benefits and the money set aside to pay for them has grown to $5.7 billion - a 1,643-percent increase over 11 years, State Auditor David Vaudt said Monday.

"We had just a $327-million liability at the end of 2000. That has now grown to $5.7 billion, and that's equal almost to one year's general-fund budget," Vaudt said. "We're going to need substantial resources in the future to improve the funded status of this particular plan."

A report last year by State Budget Solutions, a national not-for-profit advocating for fundamental reform of state budgets, pegs Iowa's unfunded liability as even larger - $21.3 billion as of last March.

Jody Miller played online poker for three to four years before the government cracked down on the practice a couple of years ago.

Before that, Miller said, online poker was technically never legal, but the laws were rarely enforced. Increased government enforcement, he said, made it more difficult to play and caused some online poker Web sites to shut down. Some players saw their assets frozen and become tied up in online accounts.

Miller, 34, of Indianola, said it's time for Iowa to legalize online poker.

"I think it's an opportunity to capture some funding if you can legalize it - for the state to capture the revenue. Now's the time to do it," Miller said. "I think people are doing it anyway."

Iowa Senate State Government Committee Chair Jeff Danielson (D-Cedar Falls) said the federal government has done a poor job of telling Americans what is legal in terms of online poker.

Danielson said he plans to introduce a bill this month that would legalize online poker in Iowa. He said the nation had a tremendous rise in poker activity until 2009. At its peak, he said, Iowans were spending close to $100 million outside the state on online poker.

If students enrolled at Iowa's state universities have to pay higher tuition, university presidents should share the pain, some House Republicans said.

"This is about making accountable a person that is receiving a half a million dollars in tax dollars to run an institution," said state Representative Jeff Kaufmann (R-Wilton). "This is not about denigrating the university. This is about improving it on behalf of the taxpayers and the students of the state."

Especially infuriating some House Republicans was University of Iowa President Sally Mason's hiring of two highly paid assistants during tough budget times. Tysen Kendig was hired as vice president for strategic communication in February 2010 and is paid $280,000; Mark Braun was named Mason's chief of staff in October 2008 and makes $200,000, lawmakers said. Kaufmann called the hirings "absolutely indefensible."

City and county officials expressed frustration and a sense of helplessness January 24 over the lack of money to repair crumbling roads and bridges.

The local-government leaders argued strenuously at a Transportation Day 2012 event at the Wallace State Office Building that it's time for the state to increase the gas tax to upgrade infrastructure. But Republican Governor Terry Branstad insisted the state must first show taxpayers it's being efficient with money it already has.

Keokuk County Supervisor Mike Hadley said his county will have to close five bridges this year - including bridges that connect rural and agricultural areas to market towns - because they're in such disrepair. He said rural America can't grow if it doesn't maintain its infrastructure.

"We can't cut any more pencils and paper clips," Hadley told the governor. "This has gone on too long. We have to act. Nobody wants to do this, but we have to ... . We can't continue to just close down our infrastructure, because it never reopens."

As momentum builds for a measure to increase Iowa's gas tax to pay for the state's roads and bridges, a taxpayer-advocate group is one of the lone voices opposing the plan.

Lindsay McQuarry, policy director for Iowans for Tax Relief - a Muscatine-based not-for-profit that supports reduced state-government spending and lower taxes - said her group won't be alone for long.

"It is an uphill battle, but it's something that Iowans are going to be outraged by once this picks up steam," McQuarry said. "I don't think this is something that has the support that the special-interest groups would like to lead people to believe."

A proposal before the legislature would have the Iowa Department of Transportation find $50 million in savings for the fiscal year that begins July 1. The plan would then increase the gas tax by 8 cents a gallon over the next two years, starting in 2013. It would also increase registration fees for new vehicles from 5 percent to 6 percent of the purchase price. The increase would generate about $180 million a year when fully implemented, lawmakers said.

Iowa business leaders on January 17 urged lawmakers to be bold and reduce commercial property taxes so the state can be more competitive, while local-government officials warned the loss of revenue would increase tax rates for homeowners.

"This problem we all acknowledge exists," said longtime Des Moines developer and property manager Jim Conlin, founder and CEO of Conlin Properties - which manages 7,000 residential units and 250,000 square feet of commercial, retail, and industrial space.

"I respect and appreciate your wrestling with it, but we've been wrestling with it for 35 years. It's time to make a decision," Conlin said. "I think we need a bold approach to create jobs, to move the state forward."

Iowa's commercial property taxes are among the highest in the nation. Conlin said the high taxes affect about 80 percent of the population, including people who rent and those who work inside commercial buildings.

Meaningful education reform is always fraught with political peril. By definition, it challenges the status quo. There are also disparate vested interests - from teacher unions to parents to school administrators, districts, and boards. Depending on the approach, reform can be onerous on schools, teachers, or taxpayers (or all three). And, of course, children and their futures are at stake, and by extension so is the long-term health of the state itself.

So education reform is inherently difficult. Consensus education-reform is even more challenging, but that hasn't stopped the administration of Iowa Governor Terry Branstad from trying. Even with Democrats controlling the state Senate, the Republican governor is trying to get his 26-element education-reform package through the legislature this year.

The final proposal was unveiled January 6, and the draft legislation followed on January 11. It has three thrusts: "great teachers and leaders," "high expectations and fair measures," and "innovation." In broad terms, the proposal aims to: improve the quality of classroom teachers (increasing selectivity, allowing nontraditional pathways into the teaching profession, and giving school districts more flexibility in personnel decisions); evaluate student progress more consistently and add new requirements - such as third-grade reading proficiency and end-of-course exams for high-school students; and remove barriers to new educational approaches. (See sidebar.)

Jason E. Glass, the director of the Iowa Department of Education, told the River Cities' Reader last week that some education-reform efforts add too many requirements without the funding to meet them. Others increase funding without accountability. "With this proposal, we're trying to get to the right balance of pressures and supports," he said.

As a businessman, David Greenspon owns four buildings in the Des Moines metro area and says he pays more than $387,000 a year in property taxes.

"They're expensive," said Greenspon, president of Competitive Edge Inc. in Urbandale, which manufactures promotional products. "When you pay a lot of tax, somebody else is paying it. It's going to cost my customers; it's going to cost me profits that I could put into hiring people."

Greenspon said he loves Iowa and has been in business here for 29 years. But he said the high taxes discourage businesses from locating in Iowa when they can find lower taxes elsewhere.

Employees are also affected. Greenspon said he's had a "relatively tight control on wages" for the past three years and hasn't been able to give the kind of pay raises, profit-sharing, and 401(k) contributions that he would have liked.

"I've got 150-plus employees," he said. "If you take a quarter-million dollars and give it back to me, I would distribute a big chunk of that in bonus checks. They'd have more money to spend, and their lives would be better."

Governor Terry Branstad and the Iowa legislature on January 9 renewed efforts to overhaul the state's property-tax system. If they can do it, it will be the first time in more than 30 years that property taxes have been reformed in the Hawkeye State.

It was an Iowa-caucus night that came down to the wire, with former Massachusetts Governor Mitt Romney and former Pennsylvania U.S. Senator Rick Santorum running neck-and-neck for first place in the first official contest leading up to the Republican presidential nomination.

At 1:36 a.m. Wednesday, the Republican Party of Iowa declared Romney the winner by just eight votes over Santorum, the dark-horse candidate who ran his campaign on a shoestring budget. With all of the state's 1,774 precincts reporting, Romney received 30,015 votes to Santorum's 30,007; both men received 25 percent of the vote.

Texas U.S. Representative Ron Paul finished third with 21 percent of the vote, followed by former U.S. House Speaker Newt Gingrich (13 percent), Texas Governor Rick Perry (10 percent), and Minnesota U.S. Representative Michele Bachmann (5 percent).

Since 1972, no candidate who has finished worse than third in Iowa has gone on to win a major-party presidential nomination. Bachmann dropped out of the race on Wednesday after her sixth-place finish.

In a move intended to bring evangelical voters behind a single candidate, Iowa social-conservative leaders on December 20 endorsed former Pennsylvania U.S. Senator Rick Santorum for the 2012 Republican presidential nomination.

"I believe he is ready for a January 3 surprise," Bob Vander Plaats, president and CEO of the Family Leader - which opposes gay marriage and abortion - said of Santorum. "Hopefully, this gives him a stamp of credibility that some people are waiting for."

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