Wednesday, January 28, 2009

Featured Freshman Legislator: Renee Schulte

Name: Renee Schulte

District: 37 NE Cedar Rapids

Committee assignments
Human Resources, Judiciary, Education, State Government, Human Services budget sub

Hometown and current town
Born Centrailia, IL Raised in Danville, IL live in Cedar Rapids Iowa

Your family
My husband Brent and chow chow Rio (former foster parent of teen girls)

Education and Cyclone or Hawkeye affiliation Cyclone
Husband attended ISU

Brief description of any military experience
Husband was Air Force making me an Air Force wife

Occupation when not in session
Adjunct professor of psychology at Mt Mercy College

Why you ran for office?
My passion is working with children and families. While working as a therapist, I became aware of policy issues that needed to be addressed at the state level in order to strengthen families in Iowa. Economic Development is the biggest thing we can do in Iowa to strengthen our families. Second, families need to keep the money they make in order to provide for their family. Third, I believe that before policy decisions are made, government officials should consider the full effect. Sometimes well meaning people make laws that have unintended consequences on constituents. Being a voice for children and families in Iowa is my reason for running for office.

What do you think are the three most important things the General Assembly needs to accomplish this session, and describe each briefly
1) Flood recovery- As a citizen of Cedar Rapids, I have labored with my community since the flood in June working to rebuild our community. Now that we did not have a special session to address this issue, we need to do everything in our power to provide resources as soon as possible.
2) Fiscal responsibility- We face a large spending gap/deficit in the current 2009 budget and in the projected FY 2010 and FY 2011 budget. We need to be honest and transparent in the process so Iowan’s can understand the gravity of the situation.
3) Shrinking government- We need to look for ways to streamline and make government more efficient. We also need to look at the 2600 new full time employees added to state government in the past two years to determine if they are necessary in this current fiscal climate.

What has been your impression of the legislature thus far?
I am honored to make history as a member of the 83rd General Assembly of Iowa. I am amazed every day at the beauty of the chamber in which I work. I have met the most wonderful public servants- legislators, lobbyists, capitol employees and staff-all working toward the common good.

The food you most look forward to at the Iowa State Fair
Anything on a stick

Anything else you would like readers to know about you?
I come to the state house with a unique background. As a therapist, foster parent, and professor of psychology, I am energized by the relationships with others. I am excited to be able to help my constituents. I wake up early every day, knowing that today I can make a difference. One thing I hope to accomplish as a legislator is being a positive role model for young women in Iowa.

Work Underway to Restore 403(b) Relations

Last year destructive changes were made in the way teachers get financial advice and plan for retirement. Public school teachers have the option of paying part of their salary directly into 403(b) tax-advantaged retirement savings plans. School officials got tired of writing out checks to multiple insurance carriers, and decided they could reduce their workload if they only had to write out checks to a couple different insurance carriers.

This forced teachers/clients to leave their personal financial advisors to go with advisors mandated by the state. It had the effect of breaking up relationships that had been in place for years and forcing relationships with new advisors who may not have known what is in the teacher’s best interest. This has been particularly destructive in our current market climate, and transfers of plans have resulted in huge losses for some.

Yesterday, Senator Steve Warnstadt (D-Sioux City) and Representative Tyler Olson (D-Cedar Rapids) requested bill drafts in each chamber to repeal last year’s 403(b) changes. Senator Warnstadt warned that he could make no promises but was interested in hearing “horror stories” from disgruntled teachers.
The same is true regarding Representative Tyler Olson. He has already been contacted by TIAA-CREF and they are flying in a big player to meet with him.

Right now, CSG’s focus will be providing real life examples of damage that has been caused.

In addition, NAIFA (National Association of Insurance and Financial Advisors) will need to consider a fallback position should it become necessary. CSG will need to leave this to our team, but one suggestion would be to protect all relationships moving forward from this point. If the state changes carriers, the client would be able to retain his or her advisor.

Monday, January 26, 2009

Monday Mania

The fire alarm went off this afternoon, and while all the newbies grabbed their jackets and headed for the exits, Statehouse veterans stood their ground recalling the regularity of pranksters past.

The House Rebuild Iowa & Disaster Recovery Committee met this afternoon to discuss HSB54 the local option sales tax bill. This bill allows a city or unincorporated area located in a county in which the president of the United States declared a disaster to exist at any time during 2008 to impose a local option sales tax pursuant to Code chapter 423B using an expedited procedure. The bill requires the question of the imposition of a local sales and services tax to be submitted to the registered voters of a city or to the unincorporated areas of the county. The bill itself doesn’t add new taxes; it just accelerates the implementation date of a vote for more taxes.

Amendments were introduced which would make five changes to the original bill. One of the changes adds a second set of implementation dates. The amendments passed though the Republicans voted together against them.

A vote on the whole bill yielded 11 “ayes” and 6 “nos” with Republicans voting together against it. The bill passed and will move to Ways & Means.

The House may be debating the local option sales tax bill as soon as tomorrow afternoon.

Governor Culver’s Budget is expected to come out tomorrow. The rumor circulating earlier today was that he’s going to do a 10% across the board cut and let legislature figure out the rest. It turned out to be a little high as the Des Moines Register is now reporting at 6.5% budget cut affecting 205 of the state’s 280 programs. Click here to read the article.

Friday, January 23, 2009

Meeting the Newbies

With the new legislative session comes many new legislators – 27 in fact. Scott Weiser and I for the last two weeks have been calling out the freshman legislators to introduce ourselves, our clients and to give them a little advice. “Calling out” the legislators involves sending a note into the House or Senate Chamber requesting an impromptu meeting with them in their respective lobby. Weiser has been at the Capitol for awhile so he gives the advice while I mostly listen and promote my blog.

We start out by telling them about our clients and the key issues they face. If a bill comes up with the legislator’s name on it that a client is interested in we will call out that legislator to discuss it. Our job is to provide the legislators with information about the issue and tell them where our client stands on it. We will also provide the other side of the issue, but argue that our side is superior. The newbies will soon find out who they can trust to provide valuable information, and those who get the most information will ultimately be the most successful.

The other bit of advice we give is for them to make constituent work a priority. If the legislators allow it, there will be lobbyists in front of them all day long. They must devote a little time each day to constituent work and even plan to bring their campaign committees and neighbors down to the Statehouse for a tour and pictures with the Leaders. Keeping the voters happy is essential to ensuring one’s return to office.

We’ve been very pleased so far with the new legislators we’ve met with. Many bring new energy and enthusiasm and all have a desire to do well. Weiser recognizes that there are a couple days that stand out in the life a legislator: the day they send out their friends and family letter telling everyone they are going to run for office and sticking their neck out there, and the first day of session when they walk in and wonder just how they are going to do a good job after they’ve told everyone they will. Part of our job is to help them do well.

Wednesday, January 21, 2009

Funeral Held Today for Former Senator Mary Lundby

The House and Senate gaveled in today, but most committee meetings were cancelled in anticipation of the absences of those legislators attending former Republican Senator Mary Lundby’s funeral today in Marion. Senator Lundby died last Saturday at age 60 after a long fight with cervical cancer. She served 22 years in the Iowa Legislature.

Another notable death occurred on Monday. Former Republican State Representative Rosmary Thompson of Marion died at age 73. Thompson was elected in 1995 to fill Mary Lundby’s seat after her election to the senate and retired from the House in 2000.

Tuesday, January 20, 2009

New Legislators Exemplify Energy and Enthusiasm Needed in the Republican Party

The Conservative Breakfast Club met early this morning at the Republican Party of Iowa Headquarters. The Republican Party of Iowa’s new State Chairman Matt Strawn had just begun to speak before being interrupted so everyone could move their cars to avoid getting parking tickets from the State Trooper knocking at the door.

Chairman Strawn resumed giving an eloquent speech emphasizing the need for Republicans to stand up and band together to preserve our freedoms and our way of life. He noted the irony of Governor Culver’s plan to rebuild Iowa by going into debt during a world-wide economic crisis. Chairman Strawn also pointed out Culver’s idea of economic development is getting on a plane and flying to Washington to beg for table scraps. As Republicans, it is our job to stand up for fiscal responsibility and to protect Iowa’s economy.

Representative Annette Sweeney from Buckeye, Iowa and Senator Kim Reynolds from Osceola, both freshman legislators, spoke briefly about themselves and their runs for office.

Representative Annette Sweeney from House District 44 is a former teacher who returned Buckeye to manage her family’s farm after her father’s death when she was just 24. Representative Sweeney is the face of hardworking conservatives and the can-do attitude that is the heart blood of the Republican Party. To this, she credits her success as well as maintaining a positive campaign and emphasizing conservative values.

Senator Kim Reynolds is from Senate District 48 – geographically the largest senate district in Iowa – is comprised of 7 counties in Southwest Iowa. Senator Reynolds credited her success in the race in part to tireless door knocking in all corners of the district as well as maintaining a public presence at every opportunity. She also credited her experiences and contacts she made as the Clarke County Treasurer for the past 13 years to help her connect to voters in all counties.

Governor Branstad added that the party needs enthusiastic and energetic legislators like Representative Sweeney and Senator Reynolds, and that we must start now to recruit them.

Thursday, January 15, 2009

Horse Study Says Races Good for Iowa Economy

An expansion of horse racing at Prairie Meadows should be considered as a way to increase revenues at the racino, according to a study presented to the Iowa Racing and Gaming Commission at their meeting on January 15th at the Stoney Creek Inn in Johnston.

Dr. Richard Thalheimer of Thalheimer Research Associates in Lexington, Kentucky presented the results of a new study commissioned by Iowa’s horse industry that details the economic impact that horse racing has at the track, at county fairs, and on the farm. The study follows a previous report from Thalheimer Research Associates confirming an increase in slot machine revenue at the track when live horse racing is being conducted.

“We are very pleased to be able to provide the positive details of horse racing’s economic impact here in Iowa,” said Wm. Leroy Gessmann, President of the Iowa Horsemen’s Benevolent and Protective Association, one of the study’s sponsors. “These are hard numbers that confirm the need for and the positive impact that additional horse racing opportunities will provide for Prairie Meadows’ bottom line and that of Iowa’s horse industry.”

According to the study, the Iowa horse racing industry generated a total direct and indirect economic impact of $123 million in expenditures and 2,180 full time equivalent jobs in Iowa in 2007. Owner and trainer direct expenditures around the state include labor, feed and bedding, veterinarian care, transportation and boarding. Breeder expenses in Iowa include labor, stud fees, registration expenses, feed and bedding, veterinarian expenses, investment, and other fees.

Future success for Prairie Meadows and the Iowa race horse industry is dependent on many factors and how success is defined by the stakeholders, according to the study. Policy makers should consider the following as they proceed:

An increase in race days and/or horses in training per day results in:

- Increased pari-mutuel revenue both on-track and from simulcasts of live races to other state and national betting locations
- Increased slot machine revenue from the relationship of live racing to slot machine wagering
- Increased spending and employment by the race horse industry
Increases in purses result in:
- Increased wagering revenues
- Increased value and supply of race horse breeding stock with associated “green space”
- Increased spending and employment by the race horse industry.

The study was commissioned by the Iowa Thoroughbred Breeders and Owners Association, the Iowa Horsemen’s Benevolent and Protective Association, the Iowa Quarter Horse Racing Association, and the Iowa Harness Horse Association.

Rebuild Iowa Committees Convene

The House and Senate Rebuild Iowa Committees met for the first time separately this afternoon and again jointly early this evening.

Representative Tom Schueller (D-Maquoketa) chairs the House committee and Senator Rob Hogg (D-Cedar Rapids) is the chair of the Senate committee. The committees are stocked with lawmakers from regions hit hard with disasters and others who have experience to take on the challenges presented. Representative Schueller is no stranger to rebuilding as he has his own reconstruction business. Representative Kerry Burt (D-Waterloo) is a firefighter who personally manned the rescue efforts in his area as a firefighter. Representative Mark Kuhn (D- Charles City) was singled out for the exceptional recovery efforts in his district and will be counted on to provide leadership and guidance in finding state-wide solutions.

The Rebuild Iowa Office (RIO) presented a detailed progress report to a joint meeting of the House and Senate committees. Overall, RIO was disappointed in the amount of funds they have received thus far from federal agencies including FEMA and the Department of Housing and Urban Development. The majority of funds necessary to rebuild will come from the feds and state funds will be used to fill in the gaps. Of the 500 people living in FEMA trailers after the floods, only 39 have moved out. The rest have 18 months from the time they moved in to find replacement housing. Where they rebuild and how they will pay for it are some of the key challenges the committees will address. Solutions are expected to arrive in the form of two bills proposed by the Rebuild Iowa Advisory Office.

Wednesday, January 14, 2009

State of the State

"The condition of the state is strong because the people of Iowa are strong."

Tuesday morning Governor Chet Culver gave his State of the State address. Last year Iowans survived relentless natural disasters and 4000 Iowa National Guardsmen were deployed making it the largest deployment from Iowa since the Civil War proving that Iowans are strong. Though I was France when the blunt of the floods ravaged Iowans the television footage of it was broadcast on the BBC and around the world. Iowans are strong and resilient and known for it world-wide.

Governor Culver stated that this “legislative session must be to rebuild this state which we all love.” With a projected $779 million budget shortfall this may seem like an unattainable task. However, as the Governor pointed out, Iowa has an AAA bond rating and he intends to use it. An ironic statement after he explicitly pointed out the relative strength of the State’s economy due to the lack of debt compared to states like California.

As the Governor proposed, Rebuild Iowa Investment Bonds will be sold to raise the funds necessary to rebuild and repair roads bridges, trails, railroad, public buildings, water treatment plants, sewer treatment plants, the utility grid and telecommunications. On the one hand, investment in infrastructure and roads will create and maintain jobs. State issued bonds are subject to tax exemptions as well.

On the other hand, Iowa has not traditionally sold bonds to fix infrastructure. Bonding is currently done for major buildings but is very limited. Over time it can become difficult to make the massive bond payments. Depending on how long the bonds are for, we would likely need new roads before the bonds issued for the old ones have even been paid for. At a time when the rest of the country is in dire financial straits as a result of over spending and taking on too much debt, do we really want to fall in line behind them?

The Governor also stated that he will not tax our way out of this budget shortfall. However, many Iowans would not be opposed to a gas tax increase if it meant improved roads. In the long run, this may be the more fiscally responsible solution and the time to do it is now while the price of oil is low and before we’re hit with a national gas tax increase.

Tuesday, January 13, 2009

On Lobbying

As a second year student at Drake Law School I opted to take the Legislation class last semester. It was taught by famed agricultural law expert and lobbyist Professor Neil Hamilton. As part of the course we studied the art of lobbying, and Professor Hamilton brought in a panel of lobbyists to discuss their experiences and answer questions. The following day, Professor Hamilton asked the class for our opinions on the panel and the overall consensus was that the panel was informative and should be kept on the schedule for next year. There was however one student who was adamant about never wanting to be exposed to the influence of a lobbyist again.

This student, though highly educated and halfway through law school failed to realize the true role and responsibility of a lobbyist. A lobbyist not only has the job of representing his or her clients’ interests but also has the job of educating legislators. Often it seems that people forget that legislators are generally average folks who are not experts on all issues that arise in the hundreds of pieces of legislation placed before them. The lobbyist must provide the legislator with information that enables him or her to make educated decisions about issues that will affect the clients.

But who are these clients? The clients are Iowans – they are the People with narrowly tailored interests represented by the lobbyist in the People’s House. Nearly every interest arguably has the opportunity to be represented (with the exception of Tobacco interests) by a registered lobbyist. Those without a registered lobbyist are not without recourse. Individuals are free to contact legislators about issues affecting them, and the legislators listen.

The most effective lobbyists have reputations for being impeccably honest and resourceful. Iowa ethics and campaign laws also regulate lobbyist activity and, at least in Iowa, lobbyists strictly adhere to them. In the event a lobbyist has their reputation tarnished by some other than honest act, they may as well pack up and go home because they can no longer be relied upon to provide legislators with accurate and honest information.


The student in my Legislation class generally offended by lobbyists suffers from a preconceived, gross misconception of the necessity of lobbyists in the legislative process and our system of representative government. Lobbyists provide a much needed service in educating legislators and representing clients’ specific interests. The art of lobbying is capable of being mastered by a select group of individuals in possession of the personality, persistence, and patience to persuasively communicate their client’s needs in the audience of legislators.

The 83rd General Assembly gaveled in on Monday and the lawmaking process has begun.