working relationship wit the legislature. and republican parties are here to help. we'll get it all started right now. from the abc9 studio joins as we discuss the hot topics inn siouxland. it's this week in siouxland with tim seaman. > in twowo weeks the eyes of the nation will be laserred in on wa as the state conducts its first of the nation presidential caucuses. already state lawmakers are in s moines piecing the puzzle of state government together. will they follow the direction offered this week offered by terry brenstad. this morning a chance to ask him first hand. this brings us to this morning's's first guest. we're honored to have the governor of the state of iowa terry brenstad. than for joining us. >> great to be with you. thank you.

much work ahead. >> right. i just delivered my 22nd state of the state address to the geral assembly. challenges with the bird flu and the epa has de to reduce the renewal fuel standard. despite that iowa has a recordd number of unemploloyment. down to 3.4% unemployment. more people working than ever in the history. we've e en a l of great capitol investments like cj here in sioux city. and cargill and so, pretty excited about what we're facing. we have our challenges too. >> you are working with splitit legislature once again this year. do you sense there is a workingng establishment there or will it be tough times to row do you think? >> unfortunately, politics has become more devicive in recent years. we see that at the national

i'm proud the fact that in iowa, we have kind of overcomee some of those things. >> school funding and medicaid obviously two of the most talkedd about topics in the state of iowa in the last year. >> the two biggest items in the budget. >> and after your comments fromom the condition of the stateou have added water quality into that mix. almostetting as much attention. that's where i want to start proposing an extension of that state one cent sales tax to 2049 that would guarantee education gets the money it is currently getting plus the first $10 million of that t new tax. $10 million each year in growth. >> the rest would go towards water quality. there have has been bounce back. both houses have luke warmly accepted that offer. how are you going to get this done? >> first of all the idea came from a discussion i had with your superintendent here. paul. siouxland city has the lowest

they changed it to a statewide sales tax that goes for school infrastructure. it is dtributed on a per pupil basis throughout the state. it expires in the year 2029. the problem with the expiration in 2029, for schools like sioux city, they like to be able to use the sales tax, and do a 20 ye bond and pay it back witith sales tax revenue. since it's going to expire in 12 years you can't do that. so, superintendent says we would like to see this extended. i was thinking about that, well welso have a big issue with water quality. what if w we extended it for 20 years and then said the first 10 million in growth every year. right now bringing in $458 mlion statewidede each year. so the extension wld go for 20 years plus, it would be 10 million growth. would go from 4588 now to

and, the 20 year extension plus the 1 million growth per year would provide 20.7 billioned for school infrastructure. having the growth over and above the 10 million per year go for water quality, would also generate nearly 4.7 billion for water r quality over the same period of time. we can do that by just extending the existing sales tax and not raising taxes. >> it's important to note those numbers come from projectionsn the years to come. so there is not a guaranteethose numbers would be there.. >> but the point is, we looked at the experience since 2009, and you remember 2009 was right about the time we're going through the recession. even during those recessionary years, the revenue from this onene cent of sales tax h grown from 374 million the first year, to 458 million this year.

of 2.85% growth annually is a conservative projection and that we wl be able to achieve that. sales tax unlike income tax doesn't ry as much. in a year like this when farm inco is down, farmers aren't paying as much taxes. but, there is still people are still buying things and so the sales tax is a pretty stable reliable source of revenue that's why we feel these projections are conservative and we think that they are obtainable. >> i want to ask you just mentioned taxes and what not. last year you it did propose a rule cnge. consumable supplies used in manufacturing. >> it doesn't takake effect until july 1, but you're right. it has been approved it goes through the legislative rules commite. they approved it once and have to approve it one more time, but, i think there is broad base suort for this because, sales

finished product. and these are things that are consumed in the manufacturing process. so tre has been a lot of appeals and a lot of concern about this, and the department of revenue came up with a modern definition of consumables that coects what think has been an unfaiair burdenut on manufacturing for too long. i was reaeally pleased that that got worked out and i'm confint that it's going to help us grow our manufacturing industry. >> it may be a bit of a stretch, but critics have said you are giving back millions of dollars there, but yet, last year and i don't mean to go back last year we're in a new yea but yet lastear it was hard thehere wasn't enough money in the budget to say we do give one time allegations. a freeze on stunt tuition.. >> remember the administration used a bunch of one time money for education then what did they

devastating blow to schools to iowa and then they also went put the state in debt. i came back as governor to get the state financial house inorder. restore the money previous administration had taken from cash reserve and economic emergency count and i'm proud to say w have done all of t that. we stopped the bad practice of using one time money for ongoing expenses and now iowa is the third best managed state in the country. i want to make sur we stay there. we went through lastt year, the avian flu for birds, weost 30 million birds in ia. we also have suffere from what the epa did reducing renewable fuel standard. despite that, we yh, we have to be careful and our revenue as you might expect, has been reduced from projections. we still have some growth, but it's more modest not as much as we had expected and i have to

revenue estimate.. but e evenn that basis, we are recommending $145 million more for k through 12 public education. including the third phase of the teacher leadership compensation program which is over 50 millioned plus 2.45% supplemental state aid. that is all state aid it used to be called allowable growthhich included property tax. forr a school like sioux city, it really hurts because you have very low property valuation per pupil. this change we made is i think a big improvement. >> i want t get to medicaid. much talked about still out there on the table. roroll back r the 60 days until we get things rolling. i want you to update ussn that. the one thing i hear from peoplee on a regular basis if the state was losing money on this

reasons you talked about, it's's been expensive. that was one of the reasons. papart of wh it was the privatization was so important. i think a lot of people agree with that. but, if it is tgh financially that way, why would a private agency not be even tougher on the finances and making money on that prospect? >> well, first of all, the old system of delivering medicare, medical coverage has been based on a procedure basis. so the more times go to the doctor the hospital, the more they get paid. the problem is a lot of the health issues we have today are chronic thingngs like diabetes and congestive heart failure. if those are well managed, through a managed care system, you keep people from going back theospital. so, that saves money, and italso keeps a person healthier. so our goal here is, to hav

as many people going back to the hospital. plus, right now, you don't have anybody coordinating the service so you have one specialist that is prescribing one thing another one another thing. they may be in conflict with each other and that sends them back to the hospital. the whole goal is to coordate the care, ando make sure that we're focusing on things that are going to help people be healthier. what i'm proud of is that w are looking at the experience of most of the rest of the country. most of the states the big states, california, new york, florida, tas they have all done this. and so, we think it's about timee we modernize the delivery system inowa. the old system is unaffordable and unsustainable. it's growing at theost even with managed care, our costs for medicaid go up $46 million next year. without it it will go up $150 million.

growth we have in revenue. so if we don't do this, there is virtually nothing available for education or anything else in the budget. it's imperative we do it. for the health of the people of iowa, but also to prevent medicaid from eating up virtually all of the growth in state revenue. there appreciate that response. we'll ta a quick break then we'll come back. want to talk about his legacy over the 6 terms and what else you u see out there. i kn you're not eats as many sweets we'll talk about a few lighter things.

after the break. we're back witith me this week in siouxlaland. >> we're pleased to have t governor of the state of iowa terry brenstad thanks for being with us this morning. i recently red the senate appropriations chair said the sky is n falling with you talk about the economy and iowa. how concerned are you right now it's been a rough year. 18 months for farmers in the state. are you concerned that that is going to s slide and continue or how do you see it? >> it all depends upon where farm commodity prices go.

reoccurrence of the avian influenza that would be devastating. we have come through that and a lot of the poultry birds are being reblt, but it's takingg some time. corn and soybean prices are below the cost of production. that's why i'm such a strong supporter of the renewable fuel standard and the opportunity for us to convert corn to renewable fuels and other products. we have a proposal for a biorenewable tax credit that would give us tax credit, businesses taxax credits for otherproducts they make from the process where we maketh 23408. -- ethanol. we're already the leading state in terms of renewable energy.y. we can build on that for the future. deb where durham has made that her top priority. the house passed it twice last year, i'm hopeful the senate will approve that this year.

that's one ofhe things one of our presidential candidates ted cruz has been pinpointed on not necessarily in support of that. have youeen able to talk to him about that at all? we have been very disappointed and m son, eric has be working with therenewable fuel alliance. cruz has been asked these questis by farmers and people that workn ethanol plants att almost every stop he has the worst record. he introduced the bill to repeal the renewable fuel standard.this could be devastating to iowa because we have a lot of jobs that are dependent on renewable energy. be it ethanol, biodiesel or wind energy. i don't think that, he has gotten he comes from tex he has gotten a lot of money from oil, but he has been very opposed to renewable fuel and i'very concerned. i can tell you there is going to be a big meeting on the 19th

ar coming, but because of his unwillingness to support neble enerergy he is not going to be there. >> some lighter points here you have got the women leading the legislate this year just briefly. >> first time in history.. >> airst for you. >> f first time in history of the spear of the house is a woman, and linda her father is a former speaker so that's another unique thing. then of course, we have pam is the president of the senate. my lt. governor kim reynos is a woman. we have a woman auditor, mary. we have a woman senator from iowa now. so, iowa has more women in leadership than anytime in our ste's history. i think we can be proud of that and these are very cable people i'm looking forward and proud to work with them. >> you have mentioned sever times you're eatating better these days not eating sweets. you're very busy these days. te us a little bit about being

>> well you know it's an interesting thing. after visiting with my doctor he says you're going to have to get focused on watching the diet. a lot of diabetes in my family. i don't want to become a diabet. so, what i did is lt year i said i i'm going to give up sweets. >> we're a couple w weeks away from the iowa caucus. concerned at all that the caucuses have lost some of their position this time of year? we're gting a lot of activity. we haveore republican candidates than we have ever had.d. i hope we get a record turnout. my advice for candidates is come to iowa early and often in all 99 counties. counties many have done that,

iowa can be a reaboost for any candidate.i know there are a lot of states that are jealous would like to take this away from us, b as governor i want to do everything i can to work with both partiesto keep iowa first in the caucuses. it's a battle every four years, but it's been a good thing for us. iowans take the responsibility very serusly. >> are you r readyo put your supporort behind a candidate ors that something you will not do? >> i want to ab be a good host a i want everyone to feel they have a level field. i don't plan tondorse anybody before the caucuses. >> spend a lite money while in town too. >> yeah that too. >> we to appreciate your time. riously. and anyme you're in westerniowa know you're always welcome here to come in and let us know what i is on your mind. >> stayith us bececause after

upcoming iowa caucuses and what

can participate.e.we'll be right bk.

this week in siouxland. welcomeme back. as i mentioned at the start of the show we're not two weeks awayrom caucus night. to make sure everyone is ready for that. stfers are taking time to join me. on my left rick mullen formerr state office holder a long time member of the democratic party and staffer here in w wood bury county. his side tom middle, the current secretary of the republicans knee-deep in caucus time. thanks for being with us this morning. e spotlight is a as bright as ever because of those races. but also, because iowa really needs to get it right this y year. the last tim the caucuses were heldld four years ago the numbers we jumbled we didn't know who won until after the fact. rick i will start with you important to make sure we do this on the grand stage? >> absolute and the democrats have done a lot of practice

it to do the caucus math and to report the results on a very timely basis. there same f the republicans. >> it is actually the same app that you talked about. that was a joint effort between the two parties to get that app deveped so the recordings more accurate. >> numbers probably going to be recordrecord breaking with the guys like donald trump and bernie sanders stirring up a new group now in the process. >> wre expecting record turnouts. we're planning for at least a 25% increase over 2012 which was aig year in itself.so, i hope we're guessing it right because that's all it is right now is a guess. >> we'll find out on the first that's for sure. bernie sanders has been doing the same thing drawing new faces. >> that's going to be the wild card. we suspect it won't b as as we had in 2008 when they had the huge battle between mr. obama and clinton and edwards, but it

in 2012 when it was just president obam as we continue to talk we'll show you the different sites where ccung will be held. not necessarily your voting precincts. you will s the precincts that will attend, 1, 6, 7 for the democrats will all be there. can you look at these as we talk. what will people expect as they get there. there may be long lines first off you have got to be a registered voter. >> that's correct. you have to be a registered republican for the precit that caucuses at the site you g to. you have t to be cautious about where you go because le you said it's not necessarily the same place you vote. we have c combined precincts into one location. we also have a couple of them where we're having a caucus at site that was a voting location, but,he voting location iscaucusing some place else. unfortunately we dididn't cch that until last minute and it was too late to change it. attention.

website in the j journal f sure and the different websites for both parties. if folks get there the doors open at 6:00 0 and 6:30rom what i have seen. 7:00 caucuses begin.if they a there before 7:00 are they guaranteed to partrticipate? >> absolutely if you're in line by 7:00 you will get to participe. we want everyone to have a chance to come. even if you're not registered as a voter or democrat you can still come and register at the caucus. as lonas you're he eligible to te by november 8 you can register. >> plan to be there a little extra early it will help you out. before caucus night if you would like to be educated there is a program. it is going on at morning side. morning side, western iowa tech, along with league of women voters in both political parties are putting this effort on andit's going to be education session to inform people of what the caucuses are all about.

so they will understand. we'll actually have a mockk caucus for both the democrats and the republicans. there are some minor differences in the way they are handled so people will understand what the differences are. >> we do t things differently. ththe democts literally show up and go to a group with your other fololks thatupport your candidate. i know the republicans do things by written ballot. >> secret ballot. >> it's different, but quite similar. sml town iowa stuff. >> what is important it is easy. you will be able to participate. you will enjoy that it's very easy. we'll continue to get the information out between now and that night. best of luck on ccus night.. >> we're going to need it i think. >> thanks tim appreciate it. before we let you get off to the rest of your sunday here's this week's nine things to know including a performance by charles kelly january 24.

music trio ly antebellum. and if you like theatre you will like fiddler on the roof jr. runs january 23 through the 31st. here in sioux city. cool outdoors show and river city anglers swap meet saturday january 23 at the sioux city convention center. lunch with the chargers friday the 22nd at 11:00 in the morning. coaches and athletes all proceeeeds go toward scholarships for charger athletics. saturday the 23rd the siouxland holtic health expo from 10:00 to 5:00. bull riding the 22nd and rd. dona trump has a rally a the auditorium at sioux center coming up as well. at the top of the nine things to

comes up saturday and sunday, the 23 and4. 50 years of basketball at briar cliff univerty. they will be remembering long time coach as part of ts year's 50 years of basketball at briar cliff unity. ke note i should say of those thing and have a great we. make sure to circle next sunday we'll be back one last preview of the iowa caucuses next sunday on this week in siouxland. (music) >>amanda: the president expresses regret and makes a challenge. can't we all just get along? even governor branstad is talking that way as the statehouse session kicks off. >>sabrina: plus we go in-depth with the new leader of the iowa house and the republicans debate again as a birther battle rages between the two frontrunners. (music) >>sabrina: thanks for joining us for this week in iowa. i'm sabrina ahmed. >>amanda: i'm amanda krenz. in his final state of the union address this week, president obama did a little legacy building. he highlighted his

against his critics.