The fertilizer plant under construction in southeast Iowa was a major point of contention during this evening’s debate between the two major party candidates for governor. The incumbent, Republican Terry Branstad, defended his administration’s decision to award $110 million worth of state incentives to the Egyptian company that’s building the plant near Wever.
“We’re very proud of it and the CEO of the company recently said they’re just getting warmed up,” Branstad said. “When they complete this, they’re looking at expanding it.”
Democratic challenger Jack Hatch said that’s $700,000 worth of state incentives per job and that’s a “bad deal” for taxpayers.
“The state has the responsibility to invest in our communities and our small businesses, not the big, undeserving corporations like we have,” Hatch said.
The debate was held in Burlington — about 14 miles away from the construction site in neighboring Lee County. Branstad called the development a “great deal” and, over time, Branstad said local southeast Iowa governments will reap millions.
“The net result is the Fort Madison School District and Lee County are going to get net plus of $2.9 million additional tax revenue every year and the State of Iowa is also going to gain revenue,” Branstad said. “If it hadn’t located here, we wouldn’t get those additional tax revenues.”
Hatch said rather than giving $110 million worth of incentives to one company, there would have been greater economic impact if that money had been spread out among businesses statewide.
“The top-down approach that Governor Branstad has been using, where Des Moines picks winner and losers, is the wrong approach to use when we’re recovering from a recession,” Hatch said.
The two candidates quarreled over Branstad’s job creation claims and each questioned the other’s commitment to raising the minimum wage. The conduct of the campaign was a simmering issue during Saturday’s debate as well, with Hatch complaining about Branstad’s ads that criticize Hatch’s property development business.
“Governor, I’d like to ask that you take the key from one of your political heroes, Ronald Reagan and he said…’You stop lying about me and I’ll stop telling the truth about you,'” Hatch said, to applause from his supporters in the crowd.
Branstad didn’t back down.
“If he wants to disprove our claim that he has gained substantially and made millions of dollars at the taxpayers’ expense, I would challenge Senator Hatch to release four more years of his taxes,” Branstad said. “He’s only done one. I’ve done 24. I’m willing to do another four of the previous four before I came back as governor if he’s willing to do that.”
Branstad served four years as Iowa’s lieutenant governor, then 16 years as Iowa’s governor and left office in January of 1999. In 2010 he won a fifth term as governor. The political culture of Illinois was cited during Saturday’s hour-long debate. Hatch listed a number of controversies that have popped up over the last four years, including Branstad’s order to close the Iowa Juvenile Home and the disclosure that some state employees were being paid extra to stay quiet about their exit settlements with the state.
“This is the kind of leadership you’d expect from the governor of Illinois, not the governor of Iowa,” Hatch said.
Branstad responded.
“This is Iowa, not Illinois. Most of the former governors of Illinois are in prison. I’m back in office ’cause the people of Iowa trust me,” Branstad said, drawing applause from his supporters in the room. “They know me. They can rely on me.”
Tonight’s debate was sponsored by the Greater Burlington Partnership — an alliance of local chambers of commerce and by the Burlington Hawk Eye and WQAD television. The third and final debate between Branstad and Hatch will be held in Sioux City on October 20.
