Gov. Vilsack has said he is
compromising as much as he can on the impass that has prevented his boondoggle Iowa Values Fund from going back into effect after it was thrown out by the Iowa Supreme Court several weeks ago.
State House Majority Leader Christopher Rants indicates that he is wary of Vilsack's proposal because it does not actually give any concessions. The Governor has just promised to set up some boards or commissions to look into making changes to the work comp and punitive damage issues.
Mr. Rants should be wary of the Governor, and frankly, he shouldn't give up any ground at all. Here's why.
The issue originally came to a head when Vilsack, in order to get the half-billion dollar Iowa Values Fund established, agreed to sign and bills with not only the Values Fund but also bills containing regulatory changes to worker's compensation rules and rules limiting lawsuit punitive damage awards. The legislature, fearing that they couldn't trust Vilsack, sent the bills to him in one omnibus bill rather than in separate bills. Vilsack responded by proving the legislature had been correct to smell a rat; he tried to line-item veto the regulatory changes to workers comp and quarter-million dollar punitive damages cap.
The legislature took him to court, where they eventually sort of won. Well, at least they didn't lose. The legislature had thought that the Supreme Court would follow existing precedent and reinstate the items line-item vetoed, enacting the regulatory changes. The Supreme Court didn't follow precedent and just tossed the whole bill out, Iowa Values Fund and all.
So, now, the legislature and the governor need to reach an agreement, again. From my perspective, the legislature should stick to its guns and demand every last dot and squiggle of their original regulatory proposal. Moreover, they should demand extra stuff now. They are in the driver's seat.
1.) Vilsack needs the legislature more than the legislature needs the governor. The Iowa Values Fund is his baby. He's proud of it and he brags about it. The fact that it isn't in business is an embarrassment to him. However, it isn't an embarrassment to the legislature. The majority never wanted it and shouldn't feel any need to reinstate it. It's too late to get the regulatory changes in effect for this year, anyway, so unless you can get the whole ball of wax, or even more, just hold out until you can just start fresh next year.
2.) Vilsack has already shown that he will go back on his word. He already stabbed the legislature in the back once. Why trust him this time? They've got no reason to, go back to item one.
3.) The legislature is diffuse. It's hard to place blame on any one individual it it for failing to get a the deal done. On the other hand, Vilsack is one person. It's easy to point the finger at him.
4.) But I don't think that the electorate will blame anyone. The voters aren't clamoring for this. It doesn't affect basic services like street lights or police patrols. It isn't a shiny new service like health care or prescription drugs. The general population won't notice it if this doesn't go into effect.
All in all, there is no reason for the legislature to compromise one iota. The legislature isn't likely to pay a price for thwarting the governor. They have no reason to trust him anyway. And, most importantly, the regulatory changes might actually make Iowa a better place to do business, which is the real key to attracting new businesses.
Stick to your guns, legislature. Stick to your guns.