Branstad, Hatch trade charges in second debate

BURLINGTON - Accusations of mismanagement and impropriety flew between Republican Gov. Terry Brantad and Democratic challenger Jack Hatch on Saturday night as the two exchanged blows during a debate over misused state tax credits, campaign attacks and government openness.

Hatch argued that Branstad has been governor for too long and has mismanaged an administration beset by lawsuits challenging his actions and bad practices. He listed confidential 'hush money” settlements with former state workers, 'do-not-hire” lists, questionable employment practices and problems with bidding, purchasing and contracting policies as examples.

'It is the most scandal-ridden administration in the history of the state,” Hatch said.

Branstad countered that he has been honest and open with Iowans while his opponent has made 'outlandish attacks.” He said Hatch has opposed state tax credits for businesses but benefited himself from tax credits on his real estate developments.

Branstad said Hatch also refused to release more than one year's worth of personal tax records so Iowans can determine how much money he made from government tax credits and how much taxes he paid while he served as a state senator.

The debate between Hatch, 64, a three-term state senator from Des Moines, and Branstad, 67, the state's longest-serving governor, was sponsored by the Greater Burlington Partnership with The Hawk Eye and KWQC TV-6. The focus was on economic prosperity and job creation. The one-hour event took place in a Burlington middle school before 500 spectators and a statewide television audience via C-SPAN.

Hatch promoted his proposed middle-class tax cut and supported raising the state's minimum wage to $10.10 an hour, saying it would benefit 216,000 Iowans. Hatch also said he envisions a regional approach to economic development that would create jobs 'from the community up,” not from top-down with state government 'picking winners and losers” such as in the Orascom fertilizer plant deal in southeast Iowa.

'It would be a mistake to divide the state into four regions,” Branstad said in response, noting it would dilute the state's ability to attract business prospects.

Hatch said he did not oppose the $1.4 billion Orascom project, but he believed the Branstad administration went overboard in its negotiations with Iowa Fertilizer Co., a subsidiary of Orascom, by providing state tax incentives that equated to nearly $700,000 for each of the permanent jobs that would be created by the Egyptian-based conglomerate.

'It was a reckless deal, it was a bad deal, it was a terrible deal,” Hatch said.

Branstad defended his administration's handling of the Orascom deal, which he said is expected to create 1,900 construction jobs and 240 permanent jobs. He said that will lower unemployment in southeast Iowa, as well as save Iowa farmers about $740 million a year over the cost of importing fertilizer when the plant opens by the end of next year. He also believes the project will be expanded in the future.

'You can't be against the incentives and for the jobs,” Branstad told Hatch.

Branstad touted the Orascom project as an example of the success his administration has had in creating jobs and attracting more than $9 billion in business investments since he began his fifth term in January 2011.

Branstad said he is well on his way to fulfilling the promises he made during the 2010 campaign to create 200,000 jobs, raise Iowans' personal income by 25 percent, reform education and cut the size of government. He said his administration already has created more than 150,000 jobs with income growth the fifth best in the country, has education reforms underway and reduced state employment by 1,400 workers.

Branstad said his plan is to continue to build on those successes while setting ambitious goals for a sixth term that include connecting every acre in Iowa to equip farmers with the high-speed Internet they need for precision agriculture, closing the skills gap for workers and employers, and making college more affordable and helping students reduce their debt loads.

Hatch countered that Branstad is using trumped-up job creation numbers that don't factor in job losses since 2011, and most Iowans know their income has not increased by 25 percent under Branstad's leadership.

The Democratic challenger said he would bring fresh ideas and innovation in contrast to an executive branch that is coasting on the successes of previous administrations - making repeated references to former Democratic Gov. Tom Vilsack.

'We saw tonight a governor that had no vision, has no ideas, he's run out,” Hatch told reporters after the debate.

Branstad told reporters he enjoyed the debate and felt good about his performance.

'I trust the people of Iowa,” he said. 'I've got nothing to hide. I'm proud of what we've done. We've got a record to be proud of but we're not done yet.”