The River Cities' Reader asked Iowa state legislators from Scott County to answer two questions related to the national popular vote and the deductibility of federal income-tax payments. The deadline to respond was five days after the questions were sent out. All four Republicans responded. Of the five Democrats, only Representative Elesha Gayman responded.

If you paid attention to the Davenport Promise proposal, the arguments in favor of a 1-percent sales tax for school construction in Rock Island County will sound familiar: This is the way we can be competitive with surrounding areas; this is the way to attract and retain residents; this is what we need for the future workforce.

There are three key differences, however: The Rock Island County proposal - which is on the April 7 ballot - is easy to explain and grasp; the vote will be held in a Democratic and union stronghold; and it involves a new tax, rather than shifting an existing one.

The first two factors should work in favor of the referendum, and it will almost certainly get more support than the Promise, which only garnered 39 percent of the vote on March 3.

But the sour economy hasn't put voters in a giving mood. The Illinois General Assembly in 2007 allowed counties to seek a sales-tax increase for school construction; eight of 10 referenda have failed.

The leaders of the Rock Island County Kids First organization - the primary force pushing for the sales-tax increase - said they are concerned about the Promise results, but they also highlighted the differences.

Pat QuinnThe biggest problem with passing Governor Pat Quinn's tax-hike and budget proposals is not that almost every Statehouse interest group opposes them.

The Illinois Federation of Teachers, for instance, sent out a statement before Quinn had even finished his budget address to say that any state legislator who votes for the governor's proposed "pension cuts" would automatically lose the union's endorsement.

State workers are spitting mad about paying more into the pension plan and being forced to take unpaid days off.

Business groups are beside themselves about the tax hikes.

Mayors hate the idea that they won't get their usual 10-percent slice of Quinn's proposed income-tax increase.

These are very serious, almost insurmountable obstacles, of course. But they're not the worst.

The biggest hurdle, by far, is that the governor focused on a problem that he alone wants to deal with, but that nobody else really cares about.

The governor, you already know, wants to raise the state's personal income tax rate from 3 percent to 4.5 percent, but also triple the $2,000 personal exemption so that almost 5 million people will get a tax cut or pay no extra taxes. Quinn claims this is about "tax fairness" as much as it is about raising new money to close the state's $11.5-billion budget deficit.

But, seriously, when was the last time you heard anybody complain about the Illinois income tax?

At just 3 percent, Illinois has the lowest flat tax in the nation. Quinn has pushed this tax-fairness idea for decades, but almost nobody else has. Tripling the personal exemption is just not something that any legislator has ever cared much about.

Since the governor's tax proposal has no real constituency within the General Assembly, he starts out with almost no legislative allies.

Just about every member of the Illinois General Assembly has fervently campaigned to reduce the property-tax burden and increase spending for schools. Also, suburban Cook County and Chicago legislators are hearing loud and constant screams of anger from their voters about their region's super-high sales tax.

There are some very angry everyday people demanding a solution to these festering problems. Yet Quinn's budget and tax-hike proposals do nothing about any of them.

In fact, the governor's proposals may be making the political situation for incumbent legislators far worse than they would be with a more "normal" tax hike and budget fix.

For one, the governor has proposed a relatively tiny education-spending increase. That pretty much guarantees some local school districts, which are also experiencing serious problems in this economy, will have to raise property taxes even higher.

Local governments are strapped in this economy as well and are dying for money. Without help from the state via their usual share of the income-tax hike, they may also have to raise sales or property taxes.

Quinn wants to expand the state sales tax to cover items such as grooming and hygiene products, sweetened tea, and coffee drinks that are currently exempted from the full sales tax rate. That's not really a big thing, but in this sort of environment it could make for big headlines.

And, not surprisingly, legislators aren't particularly thrilled with voting for Quinn's 50-percent income-tax hike and still having to vote for well over a billion dollars in state budget cuts. Quinn's tax-exemption reform proposal took a tax hike that could've raised almost $6 billion down to only about $2.5 billion.

The governor said on Friday that he hoped he could convince the business lobby to support his tax hike by showing them how he's forcing teachers and state workers to pay more into the pension systems. But it's the height of folly to assume that the business lobby will ever get behind a tax hike.

The only groups that can be counted on to reliably support tax hikes are the very groups that Quinn has gone out of his way to whack. Public-school teachers, state workers, and people such as Chicago Mayor Richard M. Daley are absolutely key, and all of them are firmly in the "no" category.

I still think there will be a state tax increase in our near future. I just don't think yet that it'll be this one. Quinn has a horrific fight ahead of him.

Rich Miller also publishes Capitol Fax (a daily political newsletter) and TheCapitolFaxBlog.com.

More budget cuts are on the way in Iowa after the three-member Revenue Estimating Conference (REC) on Friday lowered estimates of state revenues by $129.7 million this fiscal year and $269.9 million next fiscal year.

"The economy continues to falter," said Holly Lyons, director of the Legislative Services Agency's fiscal services division. "We're witnessing more layoffs. We're witnessing reduced hours and furloughs. We may not even be halfway through this recession."

The lowered revenue estimates, combined with the $700-million budget gap the state already had for Fiscal Year 2010, make for a $1.1-billion gap between expenses and revenues over the next 15 months, according to Representative Scott Raecker (R-Urbandale), ranking member of the House Appropriations Committee.

John Maynard KeynesThe British economist John Maynard Keynes (1883-1946) turns out to have been something of a prophet. He once wrote that "practical men," as opposed to theoreticians, "are usually the slaves of some defunct economist." Ironically, the defunct economist who is influencing Barack Obama, his advisers, and his supporters in Washington is Keynes himself.

Like a ghostly presence, Keynes' ideas are hovering over us. The very notion of a government "stimulus" for the economy originated in Keynes' 1936 book The General Theory of Employment, Interest, & Money. In it, Keynes spelled out his theory that government could offset the economic ups and downs of the business cycle with "contracyclical" policies -- that is, by running surpluses when economic activity is vibrant and deficits during slowdowns.

Listening to the congressional debates over pending legislation is almost surreal in its mind-numbing hypocrisy. Both Republicans and Democrats, whether in the Senate or the House, have the supreme audacity to stand at the podium, one after another, and blame each other for a host of earmarks, excessive spending, and lack of oversight, while simultaneously enacting legislation that has countless earmarks, unprecedented excessive spending, and a complete lack of oversight because any regulatory language has no remedy attached.

Imagine for a moment that somewhere in the middle of Texas there was a large foreign military base, say Chinese or Russian. Imagine that thousands of armed foreign troops were constantly patrolling American streets in military vehicles. Imagine they were here under the auspices of "keeping us safe" or "promoting democracy" or "protecting their strategic interests."

Congressman Ron Paul - 14th District, Texas
Imagine that they operated outside of US law, and that the Constitution did not apply to them. Imagine that every now and then they made mistakes or acted on bad information and accidentally killed or terrorized innocent Americans, including women and children, most of the time with little to no repercussions or consequences. Imagine that they set up check points on our soil and routinely searched and ransacked entire neighborhoods of homes. Imagine if Americans were fearful of these foreign troops, and overwhelmingly thought America would be better off without their presence.

Imagine if some Americans were so angry about them being in Texas that they actually joined together to fight them off, in defense of our soil and sovereignty, because leadership in government refused or were unable to do so. Imagine that those Americans were labeled terrorists or insurgents for their defensive actions, and routinely killed, or captured and tortured by the foreign troops on our land. Imagine that the occupiers' attitude was that if they just killed enough Americans, the resistance would stop, but instead, for every American killed, ten more would take up arms against them, resulting in perpetual bloodshed. Imagine if most of the citizens of the foreign land also wanted these troops to return home. Imagine if they elected a leader who promised to bring them home and put an end to this horror.

Imagine if that leader changed his mind once he took office.

The reality is that our military presence on foreign soil is as offensive to the people that live there as armed Chinese troops would be if they were stationed in Texas. We would not stand for it here, but we have had a globe straddling empire and a very intrusive foreign policy for decades that incites a lot of hatred and resentment towards us.

According to our own CIA, our meddling in the Middle East was the prime motivation for the horrific attacks on 9/11. But instead of re-evaluating our foreign policy, we have simply escalated it. We had a right to go after those responsible for 9/11, to be sure, but why do so many Americans feel as if we have a right to a military presence in some 160 countries when we wouldn't stand for even one foreign base on our soil, for any reason? These are not embassies, mind you, these are military installations. The new administration is not materially changing anything about this. Shuffling troops around and playing with semantics does not accomplish the goals of the American people, who simply want our men and women to come home. 50,000 troops left behind in Iraq is not conducive to peace any more than 50,000 Russian soldiers would be in the United States.

Shutting down military bases and ceasing to deal with other nations with threats and violence is not isolationism. It is the opposite. Opening ourselves up to friendship, honest trade and diplomacy is the foreign policy of peace and prosperity. It is the only foreign policy that will not bankrupt us in short order, as our current actions most definitely will. I share the disappointment of the American people in the foreign policy rhetoric coming from the administration. The sad thing is, our foreign policy WILL change eventually, as Rome's did, when all budgetary and monetary tricks to fund it are exhausted.

Orginally published March 9, 2009 at Congressman Ron Paul's House website blog entitled Texas Straight Talk.

Bill Brady

Republican State Senator Bill Brady kicked off his new gubernatorial campaign the other day by claiming that Illinois' horrific budget deficit can be "managed." But a new report by the governor's office makes that claim even less realistic that it already was.

As you already know, Democratic Comptroller Dan Hynes has estimated the state's budget deficit could reach $9 billion next fiscal year, not including aid from the federal stimulus package. We can toss those numbers out the window now, but this is all Brady had to go on when he announced his campaign, so let's look at it anyway.

Brady told WGN Radio the day before his official campaign kickoff that the budget deficit was about $4 billion to $5 billion "on an annual basis." That's pretty much exactly what Comptroller Hynes projected. Hynes included $4 billion or so in unpaid bills from this fiscal year in his $9-billion deficit projection for next fiscal year, which begins July 1.

But Brady insisted that the budget deficit could be managed. "The first thing we need to do is to deal with that $4- to $5-billion deficit. And you can manage that. When you've got a $53-plus-billion budget, you need to manage it," Brady said.

The number of unemployed people in Iowa increased to 80,600 in January, surpassing the 80,000 mark for the first time since September 1987, Iowa Workforce Development announced this week. That's up from 73,700 in December, and 64,900 a year ago.

Elisabeth Buck"Jobless claims remain very elevated, and continue to point to large payroll losses," said Elisabeth Buck, director of Iowa Workforce Development. "The major share of Iowa's job losses since January 2008 occurred during the final four months of the year."

The state's seasonally adjusted unemployment rate increased to 4.8 percent in January, up from December's revised rate of 4.4 percent and last year's rate of 3.9 percent. The total number of working Iowans dropped to 1,592,100 in January from 1,602,900 in December.


Deadline for New Iowa Urban Neighborhood District Designation Brings Focus to the Campus to Campus Plan in Central Davenport

The city's news release stated that the Campus to Campus Plan is an "effort to continue the revitalization of the corridor between St. Ambrose University and Palmer College of Chiropractic."

The news release continued: "Representatives from various businesses and institutions within the area have been invited to begin the process by first defining the project area and sharing initial thoughts about how stronger connections can be created. Invited participants include the anchoring institutions of St. Ambrose University and Palmer College of Chiropractic, Davenport Schools, [and] businesses and organizations of the Hilltop area. Wider public participation will be sought once the project's parameters are further defined through the input gathered at this initial meeting."

Several dozen people including business owners, city staff, and aldermen met from 4 to 5:30 p.m. on Thursday, March 5, at J.B. Young Junior High School Cafeteria, 1702 Main Street in Davenport.



What emerged at the meeting was the city's application for a Main Street Iowa designation as an Urban Neighborhood District Program (UNDP) was due in three weeks, and some decisions on project boundaries needed to be made.

The UNDP provides for technical assistance from the state and funding assistance for a full-time project director for three years. The literature provided at the meeting stated that there could be up to four urban neighborhoods accepted into the program in 2009. The program fully adopts the four-point focus of "The Main Street Approach": Organization, Promotion, Design, and Business Improvement.

A paid program director selected by the community is paid for by the Iowa Main Street program, within the Iowa Downtown Resource Center and administered by the Community Development Division of the Iowa Department of Economic Development.

Everyone needs deadlines though, right? And many of these groups have been around for a while; it's time they got coordinated, and this might be the catalyst to make some real progress between three major stakeholders: St. Ambrose, The Hilltop Association, and Palmer College, as well as the several public and private schools within the discussed areas.

The program director would live in the area and help plan and implement the Campus to Campus Plan in conjunction with existing revitalization and beautification entities such as the Edmond Gaines group and the Hilltop Association.

What was at stake were the geographic boundaries of the "Urban Neighborhood." St. Ambrose was the north anchor and Palmer was the southeast anchor, with many schools in between, as well as the Hilltop Association on Harrison Street just north of Central High School.

After breaking everyone up into smaller groups with color-coded maps of the central city, staff were working toward consensus on a geographic area from the stakeholders. The discussion included whether residential neighborhoods were included in these designations. Pam Miner said that it might be necessary to remove residential from these plans, depending on the way the grant is given.

Third Ward Alderman Bill Boom advocated a two-tiered approach, with a contingency for a residential component. The Hilltop Association was identified as a potential source for some matching funding for a full-time project director.

The Main Street application is due April 1. There is a presentation to the state on April 28. Funding announcements will happen between May 18 and 22. The one-sheet issued by the city states that the Next Campus Town Strategy Meeting would be the week of May 25.

Pam Miner, City of Davenport Planning & Economic Development Director
"It's not a pot of money they are going to throw at us. It's technical assistance and more resources as far as help. The community is putting in their efforts either in cash or by donating an office space, computer, or telephone. Those kind of things count. The Edmund Gaines project that is already organized to do some lighting -- that can be somehow be creatively put in there as well."

Matt Flynn, City of Davenport Planning Senior Manager
"When you have organizations in place, there are a multitude of different programs that look [and ask], 'Well, where is the capacity to move forward?' I think it will give the Hilltop an advantage."

Ron Franz, Hilltop Association and Property Owner
"When I sat down, I listened to what was said, and it was strategic gateway and 90,000 vehicles per day. If there's 90,000 vehicles every day over there, I'm going to be excited.

"The next thing I wrote was Urban Main Street designation. To keep focused when I sat down in here, that's what was told to me. So I just want to argue a bit ... we're getting too loud and going to miss our focus if we don't keep to what was told a strategic gateway. I've seen plans for a long time. I'd like to see something happen. A little narrower focus would probably make it happen."

Bruce Berger, Development Senior Manager
"Regardless of the grant, I think, if all of you are in favor of these things, this probably needs to happen anyway. It's a lot easier if you have a staff person, and this thing can bring it together. But I think the Hilltop and each organization here has been saying,'Tthis is the kind of thing we need to be doing to get everyone moving forward in a direction.' Our suggestion would be regardless if the money comes through or not, let's keep this momentum going -- keeping the lines of communication going and discussing the improvements and existing ideas and how we can best get them implemented."

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