Approval of the $790-billion economic-stimulus bill in Congress and a signature by President Obama will set the stage for the Iowa legislature to establish its budget targets and determine how much will still need to be cut, Democratic leaders said Thursday.

"We believe it will, in fact, provide some flexibility for state budgets and that will need to be taken into account before we make final judgments on our budget," said Senate Majority Leader Mike Gronstal (D-Council Bluffs). "All of us knew from the start that that was a moving target. None of us made any kind of judgments and now, once we get those numbers from the feds, we can start to make those judgments."

miller.jpgGovernor Pat Quinn's choice of Jerry Stermer as his new chief of staff tells us a lot about what's going to happen soon.

As the head of the advocacy group Voices for Illinois Children for the past 22 years, Stermer has been a tireless advocate for progressive tax reform and expansion of human-services and education programs.

If this were anybody else working for any other governor, you might think that Stermer would be the perfect choice to deliver the bad news to Medicaid providers, education lobbyists, and liberals of all stripes that their agenda just wasn't affordable in the face of Illinois' horrific budget-deficit mess. But almost nobody believes that will be Stermer's role.

The lion statue at Davenport's Sudlow Intermediate School

For the sake of argument, let's say that the Promise program will be the panacea for Davenport that its backers claim it will be. People will flood into the city because they've been promised college tuition, vocational training, or (if they're in the military) a homestead grant. Enrollment in the Davenport Community School District will reverse its nearly-two-decade-long trend of decline - thus ensuring a greater amount of state education funding, which is distributed on a per-pupil basis. And the increased aggregate property value will bring new riches to city government and the school district through property taxes, thus allowing them to lower the property-tax rate.

Even if all that is true, the backers of the Davenport Promise have structured the program all wrong.

miller.jpgThe chickens are coming home to roost.

In fact, more chickens are on their way than we've ever seen before.

And they're mad.

Former Governor Rod Blagojevich spent years ignoring and exacerbating the state's structural budget deficit. What that means is he did a lot of one-time budget fixes with one-time revenue sources to stem the tide of red ink, while at the same time expanding state spending exponentially.

chet_culver.jpgIncome guidelines prevented Shannon and Jeff Gardemann from qualifying for assistance from the state's Jumpstart program after the flood destroyed their home in Cedar Rapids, so they're hoping a $56-million disaster-relief bill signed into law this week by Iowa Governor Chet Culver will provide them some much-needed help.

"We basically are paying for two places now. We've got the damaged property in Cedar Rapids, and then the new home," Jeff Gardemann said. "The passing of this bill will help people like us pay help pay down SBA loans and get back on track in life and just get Iowa moving again ... and we're grateful. All we can say is thank you. Appreciate it."

Culver and Lieutenant Governor Patty Judge hailed the unanimous legislative approval of the relief bill, calling it a "bipartisan success story" and "one more step forward to our state's disaster-recovery efforts" as Culver signed the bill into law.

The Federal ReserveFebruary 4, 2009's  cover story - The Future of Money?: With the Economy a Wreck, Alternative Currencies Could Gain Traction - explores local and national currency systems that have emerged as alternatives to Federal Reserve Notes - commonly known as U.S. dollar bills. It is my firm belief that the Federal Reserve system - with its fractional reserve lending, lack of accountability to the people (via Congress) and the market (via price fixing of interest rates) - is going lead to the total devaluation our currency and the destruction of our nation's economy. What will fill that vacuum, without these alternative currencies, is subject for another column.


[June 5, 2009: Since this was published the Federal Reserve Transparency Act of 2009 has been introduced by Congressman Ron Paul and co-sponsored by over 180 House members from both sides of the duopoly, Republicans and Democrats. Even if the bill passes the house it faces a royal battle from the Senate, who is even more so in the pockets of the banksters on Wall Street,with such senate luminaries in finance as Chris Dodd and Chuck Grassely.]

John W. WhiteheadThe Commonwealth of Virginia is in the throes of a massive budgetary crisis, with a current shortfall of just under $3 billion. As a result, a reduction in services, job losses, and funding cuts for secondary and higher education are expected. Lawmakers, officials, and state employees also face the difficult task of paring down their budgets in the face of dwindling financial support from the Commonwealth. As Delegate Terry G. Kilgore stated, "Everyone needs to be concentrating on the budget this year. The budget transcends everything."

miller.jpgBefore Rod Blagojevich came along, Pat Quinn was often ridiculed as a camera-hungry huckster with lots of ideas and little follow-through.

But after six years of Blagojevich's bomb-throwing, empty promises, flat-out lies, needless political wars, and miserable failures, finally topped off with a shocking display of corruption and self-immolation, our new Governor Quinn looks like a statesman by comparison.

A long-simmering dispute between Governor Rod Blagojevich's lawyers dramatically spilled out for everyone to see last week, with one claiming that no lawsuit would be filed to stop the Illinois Senate's impeachment trial of the governor and another claiming that a lawsuit was possible. It all culminated with the disastrous resignation of the governor's top defense attorney, Ed Genson.

Insiders say that Genson, the senior member of the governor's legal team and a crack criminal defense attorney, had retained a high-priced lawyer from Boston who was an expert in impeachment issues. That attorney was preparing a case to be filed with the state Supreme Court this week to at least delay the Senate trial.

The ultimate goal reportedly was to force the Senate to agree to abandon the trial in exchange for the governor stepping aside and handing power over to Lieutenant Governor Pat Quinn. The governor would then still receive his paycheck until at least the end of the fiscal year, which ends in June, and would also likely retain some of his state-police body guards.

But Sam Adam Jr., who has known Genson literally since the day he was born, reportedly convinced the governor to reject the idea.

Adam and Genson have been at odds for weeks, insiders claim. Adam was the governor's emissary to Roland Burris regarding his U.S. Senate appointment. Genson had said in public that the governor would not appoint a replacement for Barack Obama and privately told Adam that he shouldn't become involved in the ordeal.

Adam also reportedly convinced the governor to make the controversial decision to boycott the state Senate impeachment trial, apparently without consulting Genson in advance.

Governor Blagojevich loves nothing more than people who agree with him, and Adam has reportedly played that role since signing on to the legal team in December. Genson, on the other hand, is accustomed to calling the shots for his clients. Genson hates nothing more than a client who won't listen, and he apparently didn't realize what he was getting into with Blagojevich. The governor is infamous for his refusal to listen to anyone who doesn't agree with whatever the voices in his head are saying at the moment.

The tension became so intolerable that Genson threatened to resign from the legal team entirely after Blagojevich made the decision last week week to drop the carefully prepared court case against the impeachment trial and instead embark on an intense publicity blitz of national and local TV and radio programs.

Genson gave a couple of interviews last Thursday that more than just hinted at his discontent. Genson, for instance, told the Associated Press that he wasn't involved in impeachment decisions. "I should be," he said, "but I'm not."

A couple of hours later, Sam Adam told the AP that the lawsuit to block the Senate trial might still be filed, but Genson denied that any suit was imminent. Genson then told the Chicago Sun-Times, "I don't know anything about it." A day later, he resigned. As I write this, Genson is also reportedly refusing to refund any of the $500,000 legal retainer he received from Blagojevich's campaign fund.

The governor kicked off his ill-fated publicity blitz by appearing on a Chicago radio show last Friday morning. Blagojevich claimed that the impeachment process was in reality a removal from office so that Quinn could raise taxes. Amazingly enough, the hosts let him get away with this crazy talk. Blagojevich made the same claim later in the day to reporters, who weren't so accepting of his silly theory.

Blagojevich also said he was still hopeful that the Senate would change its impeachment-trial rules to allow him to call witnesses such as White House Chief of Staff Rahm Emanuel. Emanuel has said that no untoward or illegal offers were made by Blagojevich regarding Barack Obama's vacant U.S. Senate seat.

But the Senate Democrats said last week that nobody from the governor's office has contacted them formally or informally about the trial rules. Blagojevich's trial boycott meant that he missed the deadline last week to ask that witnesses be subpoenaed.

In other words, he's just throwing verbal bombs on his way off the cliff, and Ed Genson refused to jump with him.

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

Every businessperson and every citizen wants to win with new residents and with economic development, all for good reasons.

As a member of the initial River Vision committee, I and hundreds of people talked about the visions of both Rock island and Davenport, and the riverfront they share. I listened and put forth my ideas for the Armory. Those ideas were a few years ago and not 2009. Armory Park is a wonderful concept in its time. Unfortunately, this is not the time. With fiscal responsibility to its citizens a primal concern of all mayors and city councils, we now must be diligent and closely monitor Rock Island in a troubled economy and be able to crunch down and maintain the status quo as necessary.

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