February 9, 2012

Republicans call for special session to deal with budget

While Iowa’s Democratic governor and his top budget advisors say there’s no reason to "panic" about state spending, several Republicans are calling for a special legislative session to fix what they characterize as deep holes in the budget.

Governor Culver’s budget chief says despite a decline in tax revenue, the state budget is "manageable" and there’s no need for legislators to reconvene in Des Moines. But Republican Representative Christopher Rants of Sioux City, a likely 2010 candidate for governor, disagrees.

"We absolutely need to have a special session," Rants says. "One: we have a constitutional obligation to balance the budget."

The 2009 state budgeting year ended this past Tuesday, on June 30, and Republicans say it appears to them there’ll be a deficit of at least 43 million dollars that needs to be erased. Rants says beyond that, it’s time to cut spending for the current, 12-month budgeting year that began today, July 1.

"We need to deal with it here, in July — this summer," Rants says, "not take a wait-and-see approach."

Senate Republican Leader Paul McKinley of Chariton has accused Culver of being like the character "Gilligan" in the TV series "Gilligan’s Island" — letting go of the "rudder" and endangering the ship of state.

Rants suggests it’s time for legislators to reconvene so they can make selective cuts rather than an across-the-board reduction in state spending.

"I’m not terribly wild about across-the-board cuts because I think that while they may be easy, they’re not necessarily fair," Rants says. "You need to make smarter decisions."

Rants says former Governor Tom Vilsack, a Democrat, made smart decisions in 2001 and 2002 during the previous recession and called legislators back into special session, twice, to reduce the state spending plan when state tax revenues kept falling. Rants was a Republican legislative leader back then.

Another likely 2010 Republican candidate for governor has challenged Culver’s view of the budget situation, too.

"Chet Culver’s irresponsible, out-of-control spending (has) left state government with a deficit or just pushed it to the very edge. He needs to make a resolution to change his ways," Bob Vander Plaats said today in a prepared statement. "I realize that traditional New Year’s resolutions come on January 1, but the fiscal year starts today. Besides, because of Chet Culver’s irresponsible handling of the budget, we can’t afford to wait another minute for him to start a healthier fiscal regimen."

Sports Illustrated writer talks about Ed Thomas article

Sports Illustrated featuring Ed Thomas. Sports Illustrated is one of the many national media outlets to cover the story of the shooting of Aplington-Parkersburg High School football coach Ed Thomas.

Thomas was shot and killed one week ago and former player Mark Becker is charged with first-degree murder in the crime.

Coach Thomas’ picture is on the cover of this week’s issue of Sports Illustrated –something writer Lee Jenkins says is unusual for a high school coach.

Jenkins says,"I don’t recall that ever happening and I think that’s a testament to Coach Thomas’ life but it’s also kind of a statement about the universality of coaches in small towns and the impact that they can make." He says the cover story is a testament to the tremendous impact Thomas had both on and off the field.

"The circumstances surrounding it obviously are tragic and compelling but I think the main thing is, that I hope people take away, is the compassion of this town, the impact this person made,’ Jenkins says.

Jenkins says he didn’t know much about Thomas before the shooting, other than the school’s history of producing NFL players and his involvement in the recovery from last year’s tornado.

Jenkins says he quickly realized how everybody in Parkersburg seemed to have a positive connection to Thomas. "It seemed like everybody either had a son who played for coach Thomas or their father, or they played for him, or he taught them how to drive, or he filled in as a minister at their church, or he counseled them when their wife or mother was suffering from cancer or M-S. Everybody had a story like that, he clearly was a pillar of the community," Jenkins said.

The cover featuring Thomas’ picture reads, "A Good Man Down, Tragedy in the Heartland, The Murder of a Beloved High School Coach." Thomas was buried Monday in Parkersburg. 

ISU women’s coach on tour with U.S. team

Iowa State women’s basketball coach Bill Fennelly will spend the next month out of state. Fennelly is an assistant coach for the U.S. team that will compete in the under-19 World Championships later this month in Thailand.

Fennelly says a majority of the players have just finished their freshman year or will be entering college next year. Fennelly says several of the players were part of the under-18 U.S. team he helped coach last year.

There are six players back and six new ones following the trials in May. A committee picks the team. Fennelly says he enjoys being part of international competition, as he says you want to coach for your country and representing ISU is a part of it too.

Fennelly says he’s a picky eater, so all the traveling is not the easiest on him. The team will meet in Colorado Springs to begin practice on July ninth. The team will be in Thailand from July 17th through August third.

Fenelly says it impacts his coaching staff and family, but says it’s an opportunity he could not pass up.

Carol Owens from Northern Illinois is the head coach for the team. 

Attorney General marks anniversary of state smoking ban

Attorney General Tom Miller, Jeff Bruning restaurant owner. Iowa’s ban on smoking in public places took effect one year ago today. Iowa Attorney General Tom Miller marked the occasion at a statehouse news conference.

“What it’s done is contribute to an incredible drop in smoking in our state,” Miller said. “I don’t think it’s been highlighted enough, but smoking went from 19% of the adult population (in 2007) to 14% (in 2009).”

Miller, a longtime opponent of tobacco products, believes Iowa may be among the top five states for the percentage of residents that don’t smoke. He says less than one-percent of Iowa’s 82,000 businesses subject to the Smokefree Air Act have been found in violation of the law.

“There was a series of bars that were resistant, that didn’t comply, but by taking the approach that they would lose their (liquor) license at least for a period of time, I think has worked,” Miller said.

“I think the message has gotten through.” State officials say just over one-thousand businesses have been sent Notices of Potential Violation of the law since it took effect last year. The owners of at least two bars are hoping to challenge the law in court.

Jeff Bruning, who co-owns several bars and restaurants in downtown Des Moines, says the smoking ban hasn’t hurt his businesses.

“Some say that the Smokefree Air Act has hurt their business, but we have not found that to be true over the last year,” Bruning said. “Much larger issues over the last year have affected businesses. We had record floods, record rain and snow and don’t forget about the downturn in the economy.”

Bruning admits that bars in smaller Iowa towns have likely lost more revenue because of the smoke ban than those establishments in larger cities. But, Bruning says some of the business he lost was replaced. “Something that came out of (the smoking ban) that we weren’t really expecting…we’ve all seen an increase in the people coming to our bars that previously stayed away because of the smoke,” Bruning said.

“We have seen more families at our businesses and have purchased high chairs and child seats for all our businesses. Those are things that we hadn’t had in the past and were surprised to find that we needed to.” In addition to the smoking ban, the Iowa Legislature increased the state’s tax on cigarettes by one dollars a pack in 2007. 

Creighton survey sees positive growth in Iowa economy

The latest economic survey of business leaders and supply managers across Iowa and the Midwest region shows improvement. Creighton University economist Ernie Goss compiles the numbers each month and says for the first time since September, we’re seeing positive growth.

"The index from that survey, which is a leading economic indicator, increased for the sixth time in the past six months and it’s slightly above growth neutral," Goss says.

"What this is telling us is the economy in the nine-state region has bottomed out and we’re likely to see the economy move out of this recession no later than the 4th quarter of this year." He says June’s economic index for the Midwest region is continuing to rise.

"This is the highest index we’ve seen since September of last year when the regional economy went into a nosedive at least from a job standpoint," Goss says.

"I have to say even with the upturn in the index, the leading economic indicator, we’re still seeing job growth lagging behind. The job index, the employment index, is still not very good. It has inched up but still well below the overall index." Even with the good news, Goss says job loss will remain a problem for the next year.

"I don’t expect to see job grow in the nine-state region until the first half of 2010 and maybe even toward the middle of 2010," Goss says. He says the state and the region will continue to see rising unemployment rates, although he expects to see those jobless figures top out in the next few months and then they’ll likely plateau for a few more months.

Iowan says stock market will continue upward trend

Stocks opened in positive territory on this first day of the third quarter. Jim Tausz, a financial advisor in Clarion, says the second quarter, which ended June 30th, proved to be a period of optimism for the market. "We needed this quarter, we needed a quarter to get confidence back into the marketplace and I think we’ve got it," Tausz says.

"We’re seeing credit flowing to the banks, we’re seeing a lot of good statistics starting to emerge and the last thing to effectively will do well is going to be the unemployment numbers." Tausz predicts the market will continue its upward trek in the next three months, for a moderate third quarter.

"Moderate is good, considering what we’ve experienced," he says. "Moderate means that we could be somewhat positive but I don’t think it’s going to be a fantastic ride up. I don’t think we’ll see that — yet." Tausz predicts there will be better prices on stocks and bonds, in addition to a strengthening of the real estate market, with an improved employment picture by year’s end. 

Arson arrests made in Lamoni and Lacona cases

The state fire marshal’s office today announced arrests in two arson cases. Four people have been arrested in connection with a fatal fire back on October 18th of 2008 in Lamoni. Firefighters found the body of 72-year-old Donald Royce Reed of Shannon City inside a home after putting out a fire.

The owners of the home 49-year-old Wayne Slycord and 45-year-old Susan Slycord are charged with arson. Authorities have also charged 73-year-old Donna Lee Tapscott, and 73-year-old Lyle Perry Osborne. Decatur County Attorney Lisa Jeanes says she cannot release information on the connection of the four to the victim or any possible motive until the case goes to trial.

Ann Marie Hoffman In the other case, the former city clerk of the south-central Iowa town of Lacona is charged with first degree arson and first degree theft. Fifty-two-year-old Anna Marie Hoffman is accused of setting a fire in the records area of city hall. She is also accused of improperly disbursing nearly 42-thousand dollars.

Iowa Division of Criminal Investigation spokesperson, Jessica Lown says there is definitely enough evidence to charge her with both crimes and Hoffman was arrested this morning at eight o’clock. Lown says they’re confident Hoffman started the fire at the city hall and she is being held in the Warren County jail.

The fire on August 4th of last year heavily damaged the building that housed the Lacona fire department, library and city hall. City officials requested an audit after the fire. State auditor Dave Vaudt says the audit found the $42,000 in improper disbursements that included over $16,000 of improper pay for Hoffman.

Vaudt says the audit also found nearly $6,000 of purchases made at Wal-Mart and over $5,000 in unsupported charges to the city credit card. The audit details undeposited collections, water meter deposits and hook-up fees. See a copy of the audit report on the link below.

 


Audit report for the city of Lacona. PDF