Where is the Republican Outrage over the IDED Scandal?
- Wednesday, September 23, 2009, 4:24
- Iowa, News Center, Top Story
- 1,465 views
- 12 comments
Governor Chet Culver is in the midst of a scandal, the likes of which the state of Iowa has never seen in its history. The scandal involving the Iowa Department of Economic Development (IDED) will likely dwarf the CIETC scandal from 2006. The CIETC scandal centered on state employees who lined their own pockets with nearly $1.8 million dollars. The IDED film tax credit scandal deals with state government’s inability to manage a program. The Culver administrations incompetence could coast Iowa tax payers $300 million.
With a scandal of this magnitude unraveling on the heels of the announcement that the state employees retirement system (IPERS) has suffered huge losses (much of it due to fraud on the part of third parties), one might think that legislative Republicans, the GOP’s gubernatorial candidates, and the Republican Party of Iowa would be all over the Culver administration’s gross negligence and incompetence. However, besides being quoted in a handful of articles and TV news stories asking for their reaction, Republican leaders in Iowa have been invisible on the subject.
Not one of our gubernatorial candidates has sent out a press release about the Culver administration’s incompetence regarding the IDED film scandal. Maybe more disturbing is the fact that the Republican leaders in the House and Senate have also failed to comment on the trouble at the Iowa Department of Economic Development offices. One can always count on Sen. Paul McKinley to send out a press release when the unemployment rate goes up each month, but I’ve gotten nothing from him or Rep. Kraig Paulsen regarding IDED in the last five days.
The only thing that would be worse than not saying anything would be trying to change the subject. Sadly, that’s exactly what the Republican Party of Iowa, Rep. Linda Upmeyer, and Sen. David Johnson hope to do today when they roll out their Iowa Health Care Initiatives plan across the state. I’m sure the Republican Party of Iowa has been planning their health care roll out for some time, but in politics, you must remain flexible. I’m not saying that they should cancel the press conference, rather, they should change the subject that they are going to speak about.
Republicans need to join the media in asking the tough questions to try to figure out how this happened. They also also need to demand accountability and sound fiscal stewardship of our tax dollars. The scandal surrounding IDED is expansive and is likely to make the state’s budget crisis worse, which will cause the state government to cut services and/or raise taxes to make ends meet.
The fiscal note attached to the legislation (HF 892) that created the Film Promotion Program & Tax Credit program assumed that qualified film expenditures would equal $1.33 million per year, and qualified film investments would equal $1.50 million per year. The Legislative Services Agency (LSA) estimated that the Film Promotion Program & Tax Credit program would reduce net general fund revenue by $201,000 for FY 2008, $536,000 in FY 2009, and $786,000 in FY 2010.
According to Sunday’s Des Moines Register, Iowa’s investment in films will top $300 million after movie producers rushed to get over $208 million in tax credits before a new spending cap was put in place this past July. How does a program that the LSA thought will cost the state $786,000, multiply in size without anybody noticing? It is obvious that lawmakers and the governor knew that the program was costing the state more than expected. Why else would they have placed a cap on the tax credits during the past legislative session? Why did it take a scandal for this information to be unearthed?
The Register also points out that the $300 million that will go to help produce movies in Iowa equals the total amount of all other tax credits the state hands out in a year. Iowa is spending more money to help produce movies than it awards in tax credits to help those getting a higher education in our state. The state of Iowa could have eliminated all corporate income taxes for the same amount of money that it is going to end up giving the film industry. In these tough economic times, wouldn’t we be better off as a state to do something that will help all businesses rather than just one niche industry? The former Director of the Iowa Film Office admitted that not enough skilled laborers existed in Iowa to fill the needs that would be created under the new program, and the Iowa Motion Picture Association said that the film office was under staffed, yet they forged ahead anyway. Now Iowa taxpayers are left with a huge tab for money that is primarily benefiting lot of people who don’t even live in our state.
In addition to the unbelievable costs associated with this scandal, Iowans also deserve to know why the State Auditor’s office was left in the dark when the Culver administration sought a third party audit of the program. Not only do Iowans deserve to know who this third party auditing firm is and why it was selected, but we also need to know when the decision was made to audit the program. Governor Culver said yesterday that he received a full briefing from former IDED director Mike Tramontina a week ago Tuesday, but there were discussions about the movie producers purchasing luxury cars before that, and that is what triggered the audit. Yet, we still don’t have a clue about when the IDED knew that the costs of this program were spiraling out of control and that the funds were being mishandled.
Iowans demand answers, and Iowa Republicans should be doing everything in their power to help find them. Republicans should be demanding better accountability and stewardship of the taxpayers’ money, yet outside of a few quotes here and there, there is no Republican leading the charge against the complete incompetence of the Culver administration.
Iowans are desperate for competent leadership. However, thus far, there hasn’t been one Republican candidate who has stepped up and shown the people of this state that he or she is capable of leading on this issue. Who among us is willing to step up and demand that Governor Culver be held accountable for his administrations mistakes? Sadly, that is a question that remains unanswered.
If legislative Republicans fail to show signs of leadership now, their chances of making gains in the Iowa House and Senate are slim. If our gubernatorial candidates don’t think the IDED scandal deserves their attention, then they have no business being in the race. If our state Republican Party would rather spend the next few days talking about health care reform instead of the fiscal mess Governor Culver has created by his incompetent lack of leadership, then they are not interested in winning elections.
About the Author
Craig Robinson has written 700 stories on this site.
Craig Robinson serves as the founder and Editor-in-Chief of TheIowaRepublican.com. Prior to founding Iowa's largest conservative news site, Robinson served as the Political Director of the Republican Party of Iowa during the 2008 Iowa Caucuses. In that capacity, Robinson planned and organized the largest political event in 2007, the Iowa Straw Poll, in Ames, Iowa. Robinson also organized the 2008 Republican caucuses in Iowa, and was later dispatched to Nevada to help with the caucuses there. Robinson cut his teeth in Iowa politics during the 2000 caucus campaign of businessman Steve Forbes and has been involved with most major campaigns in the state since then. His extensive political background and rolodex give him a unique perspective from which to monitor the political pulse of Iowa.
12 Comments on “Where is the Republican Outrage over the IDED Scandal?”
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Pump em up, Craig, attaboy.
In 1971 Norman Lear directed “Cold Turkey,” a movie about a small Iowa town that took a $25 million challenge to quit smoking for a month. The comedy starred Dick Van Dyke, Jean Stapleton, Tom Poston and Pippa Scott and Edward Everett Horton. Most of the film was shot in Greenfield, Iowa with some background shots done at Terrace Hill.
Seems like Iowa’s movie making days may go cold turkey for a bit while this whole matter gets sorted out. Excellent, excellent article TIR!
I thought Chuck Larson and his Lincoln Strategies Group were calling the shots at the IDED. Isnt that what he sold out for? Didn’t Krusty or somebody write a story about that a while back?
Craig,
There’s a major rule in politics you’re overlooking here: Never fire all your ammunition at once.
The scandal involving IDED is just starting to unravel…and quite frankly…there’s probably a lot more that we have yet to learn.
Firing off a huge salvo now might be great for a short term bump but, the election is still a year away. People aren’t going to remember a year from now a press blitz about this..
However, as this thing at IDED begins to unravel, much like CIETC, public outrage will begin to build up pressure….and the outrage will be directed towards one person: Chet Culver
The Republican leadership in the House and Senate have already officially called for the Legislative Oversight committee to immediately call for hearings to start to investigate the whole thing. If the Democrats refuse to hold hearings….that’s going to be a big hit against them.
Culver has been giving himself more than enough rope to hang himself with over the past few weeks….When your opponent is doing the damage to himself…stand back and watch the carnage.
I think we should let them swing and twist a week before getting to much involoved!
I agree (politically) with hcr1 that it is too early yet for ginning up outrage. Sure Craig, you get paid (I assume this based on my perception that you are a political professional) for being political and would logically want to be appearing to be active, but not this matter, not yet.
If it (the scandal) really has some scandal in it, you’ll have more and better ammo as time goes on.
HawkCR1- I hear you but, there is another reason for our party to get its shit together and that is tackling this issue is the right thing to do. Lets not be so worried about how to best drag out a democratic scandal and lets try to be a little more focused on correcting it, holding those responsible accountable and then using it as a campaign issue. Not in reverse. That is what makes us better than the Dims. Secondly, WTF is our state party doing talking about healthcare today?!?!?!? Who thought that was a good idea? And lastly while I’m on a rant here, for the love of God can the state party be about the state party and not all about Matt Strawn? If he is anymore of an opportunist we shall have to make him an honorary member of the Lincoln Opportunist Goup.
Drama..
Nice rant..but little in the way of constructive stuff there. Let me deal with your Drama point by point.
1. Does this issue need to be tackled? Of course. However, this whole thing is just starting to unravel. We don’t know all the details..who authorized what, who let things get out of control, etc etc.
2. Should we hold people accountable–absolutely. However, go back to point 1…we don’t know ALL the details yet. That’s why you need a full, complete public investigation..public hearings at the Statehouse..the whole 9 yards. If we go off now, fire off a hugo salvo now…as I stated, people are just going to forget about it come November of next year.
The best thing we can do is to like CIETC, let things unravel here with IDED…let public pressure build over this. Outrage will be directed towards ONE person here…Chet Culver.
3. WTF is our party doing talking about healthcare today?? Um, don’t know if you’ve seen, but Obama and his party are trying to engineer a massive government takeover of our healthcare system. We simply can’t sit back and stomp our feet and pout. We need to be putting out ideas of our own based upon the free market principles the Republican Party has been based upon.
4. Matt Strawn is the Chairman of the Iowa GOP..that means he’s the face of our party, Drama. He’s the guy that needs to be out there leading our efforts….or would you rather have him sit in an office all day?
Craig, I was wondering if you would be willing to comment on your young and very attractive bloggers contention that the des moines register’s polling is crap. Do you hold the same opinion, or do you think emily is full of crap??? Just curious as you are a pollster yourself.
Silence
now is the time to start legislation on fixing this, republicans should be at the forefront and get rid of these transferable tax credit schemes along with TIF’s
ls writes: “now is the time to start legislation on fixing this, republicans should be at the forefront and get rid of these transferable tax credit schemes along with TIF’s”
Boy, do I ever agree with eliminating those. Corporate Welfare at its most flagrant!
This is a good article and I thought I might see how our candidates have responded to the charges that they are not on the ball about this matter. I was surprised to find that Craig’s statements are only partially correct. Yes, one candidate did kind of respond yesterday. Chris Rants sent a related release out on 9/22 suggesting that Culver should be looking for a seasoned economic development replacement for Tramontina. Close enough, Craig, to be considered responsive. Today, Rants and Fong both have good, thought-provoking (not fluffy) articles about the scandal posted on their websites. Nothing on Roberts and Bob’s sites. Can’t find Behn’s site. BVP did post today a bunch of perky videos featuring pictures of pulled pork sandwiches at the Iowa Family event a week or to ago. Craig, do you think that the mainstream media just isn’t covering our candidates releases any more and that is the problem?