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.
Layoffs in corrections would include : 83 at the Anamosa State Penitentiary, 79 at the Iowa State Penitentiary in Fort Madison, 46 at the Fort Dodge Correctional Facility, 43 in the Sixth Judicial District, 26 in the Seventh Judicial District, and 21 from the Iowa Medical & Classification Center.
The preliminary Iowa Department of Human Services plan calls for 25 layoffs in general administration, 19 at the Independence Mental Health Institute, 18 at the Iowa Juvenile Home at Toledo, 10 at the State Training School at Eldora, four in the Health Insurance Premium Payment program for people who get Medicaid, and two in the Child Support Recovery Unit.
Plans also show that 53 would be laid off in the Department of Public Safety, including 20 state troopers and 20 gaming-enforcement officers at casinos. Nine would be laid off at the Department of Education, two in the governor's office, and five in the Department of Management.
The governor's office said layoff plans will be processed but not implemented to allow time for ongoing negotiations with the three unions representing state employees. If negotiations succeed, the rules governing the layoff of contract employees will change, and employees in positions identified for layoffs might not lose their jobs.
Iowa Economy Still Struggling
Several reports this week showed that the recession continues in Iowa.
The value of the Iowa Leading Indicators Index dropped to 94.5 in September from 94.7 in August, extending the streak of declines to 18 consecutive months, according to a report from the Iowa Department of Revenue.
In September, three of the eight Iowa Leading Indicators components increased. Positive contributors were the new-orders index, new residential building permits, and average weekly manufacturing hours.
Negative contributors were the agricultural-futures price index, diesel-fuel consumption, unemployment-insurance claims, the Iowa stock-market index, and the yield spread.
Meanwhile, total net receipts into the state's general fund for Fiscal Year 2010 through October 31 decreased $151.4 million (7.8 percent) compared to the same period last fiscal year, according to a monthly revenue memo released by the Legislative Services Agency.
Major contributors included a $19.9-million (16.9-percent) drop in the corporate tax, a $38.7-million (4.1-percent) drop in the personal income tax, a $28.5-million (3.9-percent) drop in the sales and use tax, and a $23.7-million (12.8-percent) drop in other taxes.
And while Iowa's Business Conditions Index bounced above growth-neutral, the October index for the nine-state Mid-America region slumped to 51.8 from September's 56.2, indicating a fragile recovery.
"This month's decline suggests that the economic recovery underway is going to be a disappointing one," said Creighton University Economics Professor Ernie Goss. "The volatility and level of the overall index over the past several months indicates that a double-dip recession is a growing possibility. Downturns in farm income, in addition to legislative uncertainty in Washington, are having negative impacts on the regional economy."
Goss also predicted an increase in Iowa's unemployment rate by the end of the year: "Even though Iowa's unemployment rate has stabilized, based on our surveys over the past several months, I expect the state's jobless rate to climb by another 0.3 percent by the end of the year."
Republicans Upbeat After Election Wins
Iowa Republicans were cheering after Republican governors were elected in New Jersey and Virginia.
Republican Party of Iowa Chair Matt Strawn basked in the glory of Tuesday's election wins, saying, "It's a great day to be a Republican, not just here in Iowa but nationally."
But Democrats downplayed those wins and said they saw signs of Republican infighting in a special U.S. House election in New York; in that race a Democrat defeated a Conservative Party candidate after the Republican in the race dropped out.
Closer to home, voters in Cedar Rapids elected former Republican House Speaker Ron Corbett as mayor over City Council incumbent Brian Fagan, 62 to 36 percent.
The win by Corbett is key because Republicans need to improve their performance in eastern Iowa, Strawn said. "Ron Corbett's election is the latest in a string of GOP victories that indicate a clear trend," Strawn said, following wins in that area by state Represenatives Renee Schulte (R-Cedar Rapids) and Nick Wagner (R-Marion).
Medical-Marijuana Hearings Wrap Up; Decision Expected by Year's End
The vast majority of the more than 80 people testifying at the Iowa Board of Pharmacy's public hearings in Des Moines, Mason City, Iowa City, and Council Bluffs have testified in favor of medical marijuana.
The hearings wrapped up Wednesday. Among those who spoke in favor of medical marijuana were state Senator Joe Bolkcom (D-Iowa City); Dr. Stephan Arndt, director of the Iowa Consortium for Substance Abuse Research & Evaluation; and Raphael Mechoulam, the Israeli scientist who in 1964 discovered THC, marijuana's main psychoactive component.
Noah Mamber, a legislative analyst with the Marijuana Policy Project who testified by phone from Washington, DC, said in allowing doctors to write recommendations as opposed to prescriptions, "Iowa can still maintain a doctor's place as the gatekeeper who controls who is allowed to possess medicine while still creating an effective medical-marijuana law."
Before the most recent hearings, the chair of the Iowa Board of Pharmacy told IowaPolitics.com that the board would likely recommend that the Iowa Legislature allow medicinal use of the drug.
"I would say that if all the other three had a similar kind of content that we had, the board would probably be looking at having to digest that information and make a decision that there is probably a legitimate medical use for some people," said Vernon Benjamin, a pharmacist from Argyle.
But even if the board does eventually make that recommendation -- it is expected to vote on the matter before the end of the year -- there is no guarantee legislators will heed that advice.
"This one is a pretty political issue, so I can't say if they're going to follow it or not," said Lloyd Jessen, director of the board.
Jessen said in the past, recommendations haven't been political and have generally been changes to bring Iowa law in line with federal law. "It's anybody's guess if they put any weight in the recommendation or not," Jessen said. "You have to remember Iowa is a pretty conservative state."
Senate Majority Leader Mike Gronstal was noncommittal on the topic, saying he will wait and see what the board's recommendation is, whether a bill comes out of committee, and what other stakeholders have to say.
"I think it's very much up in the air," the Council Bluffs Democrat said. "I'm certain there's a law enforcement side to be heard on this issue."
Pawlenty, Advisers Downplay Presidential Implications in Iowa Visit
Minnesota Governor Tim Pawlenty is aiming to build GOP support with his visit to the Republican Party of Iowa's annual fundraiser. But he may also be laying the groundwork for a 2012 presidential bid after his term as governor ends next year.
Pawlenty has been hard at work on the national political scene over the past couple of months, including speaking at a handful of GOP state-party fundraisers such as the one planned for Saturday in Des Moines.
"In addition to finishing my term as governor next year or so, I'm also going to take time to speak to issues that are important to my state and important for our country," Pawlenty said. "Ways our Republican Party can improve and do better. ... 2006 and 2008 weren't so hot for us, and we need to improve."
Last month, Pawlenty created the Freedom First PAC, leading to national speculation about his presidential aspirations. In a conference call with Iowa reporters before his speech, Pawlenty wasn't yet ready to say he's running for president.
"I haven't made any decisions about what I'm going to do after I'm done with being governor," he said. "I haven't ruled anything in and I haven't ruled anything out."
Pawlenty has a team of political advisers that includes two Iowa natives and former advisers to President George W. Bush. Sara Taylor was Bush's White House political director, and Terry Nelson was political director for Bush's 2004 campaign and also helped out John McCain's presidential campaign last year.
In a recent telephone interview, Taylor was quick to say that Pawlenty is focused on helping Republicans win races next year, not on a bid for president.
"What he's doing is building a PAC that will help him spread a conservative message and elect Republicans in 2010," Taylor said. "He's got plenty on his plate and is focused on those things and those things alone."
But political observers note that Pawlenty, who was elected to serve as vice chair of the Republican Governors Association in July, is taking a series of steps to raise his national profile.
This weekly summary comes from IowaPolitics.com, an online government and politics news service. Reporter Andrew Duffelmeyer and other correspondents contributed to this report.
