The longest serving governor of any state ever in the history of our nation.

A appointed ambassador to China in weeks or months.

Governor Branstad is coming to the convened Iowa assembly with -- in both the house and senate.

In 20 years since republicans controlled the legislature and the executive branch simultaneously and the governor was governor then too.

We'll be listening for indications on how the governor suggests using that political advantage, leverage, if you will, and the agenda he'll be leaving for lieutenant governor Kim Reynolds when, as expected, he leaves for the U.S.

embassy in Beijing, China.

What's on the governor's agenda, limiting $100 million from the current state budget bill.

State tax revenues not living up to expectations somewhat because the bruising agricultural economy.

That also means this legislature -- Mr.

Branstad has said they won't be supporting cutting taxes but legislators may have their even ideas they're controlling in the house and the senate.

The governor mentions these items in the address, republicans are expected to be considering contentious modifications to the state's public employee unions and how they fund K-12 public schools and the universities and the Medicaid programs being managed by private companies and there will be budget cuts and they will weigh in on them too.

What we're seeing now on the floor of the house of representatives ORT members of the senate and the house convened in joint session are the dignitaries who will be ushered in to listen to the condition of the state address.

We'll listen to the sergeant at arms as he announces the arrival.

That's the sergeant at arms, Don weeder KWIS.

He'll be here until we see the governor at the lectern.

[ Applause ] The governor himself, we've said, he's making his 22nd condition of the state address here.

Actually, he's no stranger at all to this house of representatives chamber because he was a representative from Winnebago county before moving on to lieutenant governor, and there is the current lieutenant governor, of course.

Kim Reynolds.

The outer door there.

Next year, she'll be making the condition of the state address if all goes as expected and he's confirmed as ambassador to China.

She's being ushered down into what we call the well, that is, the area in front of the lectern where governor Branstad eventually will be delivering the address.

There's Chris Branstad, the -- being entered in.

>> Please escort governor Branstad's family to their seats.

[ Applause ] >> Chris Branstad, in bright red.

The Branstad family following behind her.

Going down to join Kim Reynolds in the well just in front of the lectern along with members of the Iowa supreme court and the Court of appeals who are already there.

>> The chair recognizes sergeant at arms.

>> Mr.

President, we're permitted to escort -- >> The committee will escort the honorable Terry E. Branstad to the rostrum.

>> That committee that they refer to is a committee composed of both house and senate members appointed to go one floor below the state capitol.

Receive the governor in his office and escort him to the house of representatives chamber.

The governor now approaching the rostrum.

And he'll be introduced by the president of the senate.

[ Applause ] It is an honor and privilege to introduce the longest serving president in the history of the United States Terry Branstad for his condition of the state message to the 87th general assembly.

>>> Madam lieutenant governor, Mr.

Speaker, madam speaker -- let me start over again here.

Madam lieutenant governor, Mr.

President, madam speaker, legislative leaders, legislators, justices and judges, elected officials, distinguished guests, family, friends and fellow Iowans I'm honored and humbled to once again address a joint session of the general assembly.

Delivering the condition of the state for the final time as your governor.

For 22 years, I have addressed this body as governor and today I want to especially welcome the 22 new legislators who are with us from both sides of the aisle who were elected in November.

Your constituents sent you to work hard, to work for them and to help make Iowa a better place.

I hope you're filled with the same sense of excitement and eagerness I had when I first served in the legislature in 1973.

Lieutenant governor Reynolds and I look forward to working with each of you and listening to your ideas on how to make our state an even better place for families to live, work and grow.

In that spirit, I am today extending an invitation to each legislator to meet with me personally during this legislative session.

We also gather again with shared sadness, returning to do our work without our friend senator Joe sang from Davenport.

Joe was a devout Catholic and a true statesman.

We enjoyed his contentious and positive personality and working with him.

[ Applause ] As I look back at my years of public service, I'm thankful to those Iowans who stepped forward to serve their fellow citizens.

In particular, join me in applauding the Iowans who served in the military, law enforcement, and first responders.

[ Applause ] Since taking office in 2011, we've made the necessary changes to strengthen our economy and improve the quality of life across our state.

We made tough decisions to give Iowans a smaller and smarter government.

We've stayed the course with an unwavering commitment to create jobs, increase family incomes, reduce the size of government and give Iowa students a globally competitive education.

We provided significant tax relief for Iowans the past five years, especially for commercial property taxpayers.

And last month lieutenant governor Reynolds and leaders of the economic development authority and the department of transportation unveiled Iowa's most comprehensive energy plan.

The plan was development in collaboration from the private sector, the public sector, educators, nonprofits and utilities.

Iowa is already a leader in low cost and renewable energy.

The comprehensive new energy plan will help build on our past energy successes and reaffirms our commitment to maintaining Iowa's energy leadership for the future.

[ Applause ] I'm proud we made government smaller and is smarter.

Our unemployment dropped to 3.8%.

The state helped to track $13.5 billion in private sector capital investments which translated to great paying jobs across Iowa.

More Iowans have been employed the past few years than any other period in our state's history.

We've also made the tough decisions to ensure government lives within its means, like Iowa families must do.

We've accomplished this with a relentless focus on fiscal discipline, demanding budget predictability, fully restoring our Iowa reserve accounts and reducing the state's debt liability.

Together, we've made progress towards our goal of restoring Iowa schools to best in the nation, to a series of landmark reforms and innovative policies.

To improve Iowa's education standing, we needed to make sure more is done to help our hard working teachers make sure they have the tools necessary to succeed given higher expectations for all students.

So we created the new teacher leadership system that better utilizes the expertise of top teachers to improve education, instruction and Foster collaboration.

I'm proud to say that every public school in Iowa today is participating in the teacher leadership system.

To ensure that our children are prepared for the 21st century, we advanced a nationally recognized S.T.E.M.

initiative that gives the confidence and skills for rewarding careers.

The S.T.E.M.

initiative is led by lieutenant governor Kim Reynolds and the industry president CEO it's seen outstanding growth and success.

Sustaining the measures over time is critical to get the right results for our students and our state.

The ability of Iowans to overcome challenges bolsters my optimism about the future of our state.

When faced with challenges Iowans consistently seek opportunities.

Some of the challenges we've overcome, like the farm crisis of the 1980s, tore at the very fabric of our communities.

In 1980s, bloom field, Iowa, a community in Davis county in southeast Iowa, struggled like many others across the state.

An uninsured bank there closed in 1983 and caused great loss for area families and businesses.

And area farmers were straddled with debt and limited market opportunities for their crops.

However, through a persistent focus on economic diversification and entrepreneurial spirit to rebuild its community, bloomfield has new manufacturers that are growing alongside innovative startups.

And to continue their effort to stay on the cutting-edge, community leaders are instituting aggressive strategies to become Iowa's first energy independent community by the year 2030.

I visited bloomfield last year and was impressed with their Main Street revitalization.

A new hardware store and M-3 manufacturing plant.

And woodbine, Iowa is another example of a community that took future into their hands.

It showed an approach that focuses on historical preservation and community sustainability and can redefine a struggling small rural community.

They had a bank close in the 1980s.

It turned it into future growth Andy verse I have indication.

Lieutenant governor Reynolds and I visited there and were impressed with their Main Street program.

Waterloo, Iowa, after experiencing economic challenges throughout the previous three decades, embraced the challenge of reshaping its industrial heritage to succeed in modern times.

Cedar valley tech works has made Waterloo a nationally recognized leader for manufacturing innovation.

And John Deere continues to be a leading manufacturer and innovator in Waterloo.

In the balcony today are leaders from bloomfield, woodbine and Waterloo.

Please join me in congratulating them on their accomplishments and supporting their future success.

[ Applause ] Iowa's industries are increasingly high tech, including advanced manufacturing.

In total, Iowa has over 6,100 manufacturers that contribute over $31 billion to Iowa's economy and employ over 200,000 Iowans.

Over the next year, the Iowa economic development authority will work with Iowa manufacturers to advance a year of manufacturing to help grow this important part of Iowa's economy.

We should also be proud that Iowa remains an agriculture powerhouse that feeds and fuels the world.

Thanks to the hard work and innovation of Iowa's farmers and agriculture producers.

We just set an all-time record for ethanol production.

We set a new record for biodiesel production by adding an additional 55 million gallons and we lead the nation in the percentage of electricity generated by wind.

We now generate over 35% of our electricity from wind.

We expect that number to exceed 40% by the year 2020.

[ Applause ] This we love wind.

Over the last 30 years, we've significantly added to our agriculture commodities.

We've diversified the economy by expanding exports and supporting growth in biofuels, wind energy, data centers, fertilizer plants, biorenewable chemicals, advanced manufacturing, insurance and financial services.

These newer industries employ hundreds of thousands of Iowans in rewarding careers.

And while I'm pleased with this progress and optimistic about our future, I believe there's more work to be done.

We must seize the opportunity that is before us.

This new general assembly brings new dynamics, new expectations and new opportunities to deliver positive results for Iowans.

[ Applause ] Our state is in a position -- many states are strapped with crushing debt, poor credit ratings and a bleak economic outlook.

But I Iowa is a shining example of what hard work and smart tough choices can do for growing business and nurturing families.

While the December revenue estimate is lower than previous projections, the estimate still shows a modest increase in state revenues.

Although we faced a headwind out of Washington, D.C.

that is stifling our agriculture economy, we still have positive revenue growth.

We must proceed with caution and not repeat the mistakes of the past.

With that prudence in mind, I propose my adjustments to the current fiscal year budget to you today.

These adjustments are required by law.

My proposal does not include across the board cuts.

Does not reduce funding for K-12 education, does not reduce property tax credits and does not include furloughs to state employees.

The budget reductions I'm recommending for this fiscal year are difficult, but they maintain our funding, mutual -- they do maintain funding for mutual priorities.

I'm committed to working with legislative leaders and with all of you to implement these adjustments for the coming biennium, I am presenting a complete two-year budget that is balanced each year and meets our five-year projections for a sustainable future.

This budget is based on the principles laid out by the Iowa taxpayers association.

It prioritizes, education, health care, economic development and public safety and it redirects family planning money to organizations that focus on providing health care for women and eliminates taxpayer funding for organizations that perform abortions.

[ Applause ] On my first trip to China in 1984, I learned that the Chinese word for danger and opportunity is one and the same.

Today America and Iowa exist in a challenging world.

We must seize the opportunity to make it a better place.

In 2010 lieutenant governor Reynolds and I promised to reduce the size and scope of government.

I'm proud to report that we do have a smaller, smarter government with a steady focus on improving services for our citizens and a more timely and efficient manner.

Yet, while the size of government is smaller, the benefits for public employees at the state and local level have increased.

Unfortunately, the cost of these benefits have grown dramatically.

Because of our antiquated collective bargaining system that led to over 500 health care plans, many of which are inFISHTS and way too costly through public employees and Iowa taxpayers.

Under the present system, just a few adverse out -- by replacing the system with one comprehensive statewide contract, we can spread the risk and dramatically reduce the cost.

Using a uniform health care benefits system similar to the program for retirement, we can provide quality health care at a significantly lower cost and give local governments more flexibility to provide better wages and meet other needs.

The statewide health care contract also needs to reward employees who takes ownership of their own health by conducting health risk A SEMTs and taking actions to improve their own health.

We've made a commitment to examine each and every dollar of revenue and expenditure in order to maximize efficiency and respect our hard-working taxpayers.

We're committed to a smaller and smarter government that seeks innovative ways to provide services rather than blind adherence to the way things have always been done.

I'm asking this general assembly to take a comprehensive review of all of Iowa's state boards and commissions to address unnecessary barriers that prevent competition and raise costs.

I encourage you to ask the tough questions that challenge the status quo.

[ Applause ] >>> In Iowa, 90% of our general fund budget is spent on three items.

K-12 education, Medicaid and employee benefits.

The state increased funding for education since 2011.

Amounting to $654 million additional.

Education and job training are the foundation for our future economic growth.

Growing our state's talent pipeline needs to be a top priority even with modest revenue growth.

My recommendations $78.8 million for K-12 education for fiscal year 2018 and an additional $63.5 million for fiscal year 2019.

It equates to roughly 2% growth each year.

So this year let's show Iowans we can make these decisions early and meet the legal requirements of setting supplemental state aid for fiscal years 2018 and '19 in the first 30 days.

[ Applause ] The second big driver in the state's budget is health and human services spending.

Together we've transformed our mental health system to a community-based model.

We've obtained a federal waiver for Iowa HELTS and well necessary plan which reduced charity care for Iowa hospitals.

Like 39 other states, we've modernized our Medicaid program.

As a result, we've created a new system where more Iowans have access to mental health services closer to home than ever before, more Iowans have health insurance than ever before and more than 80 new value-added services are now being offered under our modernized Medicaid program.

We've also replaced the old Medicaid system with a coordinated team of health care professionals to ensure that patients see the right provider at the right time.

As a result of these reforms and innovations, we have improved the focus on health outcomes and saved taxpayers $110 million.

Our increase in education funding last year was made possible because of our modernized Medicaid efforts.

Without these vital reforms, the budget choices before us today would be twice as hard.

In order to grow Iowa, we must also look at policies and reforms that will continue growing family incomes.

One way to do that is to close the skills gap, which in many ways is the biggest challenge facing us in the next decade.

That's why lieutenant governor Reynolds and I set the future ready Iowa goal that 70% of Iowa's workforce should have education and training beyond high school by the year 2025.

Today less than half the workforce has that.

Accomplishing this ambitious goal will create unprecedented opportunities for Iowans and better position our state to compete in the increasingly knowledge-based digital economy.

That's why we established the future ready Iowa alliance which is co-chaired by lieutenant governor Reynolds and Dan Houston from principal.

They will make recommendations by October 31st, to 17, to assure that more Iowans have the careers they deserve and employers can hire the skilled workers they need to grow and innovate.

Even with a tight budget, we should continue to prioritize initiatives that will grow Iowa's talent pipeline.

Like the S.T.E.M.

initiative, registered apprenticeships and work-based learning for Iowa students.

Please help me recognize students here from Jackson elementary school in Des Moines, middle school and walk EE high school which has one of the premiere work-based learning programs in the state.

[ Applause ] Students -- thank you.

[ Applause ] >>> The students in the gallery represent children from across Iowa who are counting on all of us to modernize the schools for the 21st century.

That's why lieutenant governor Reynolds and I launched the comprehensive computer science initiative.

We're encouraging every high school to offer at least one high-quality computer science course.

Every middle school to provide exploratory computer science and every elementary school to provide an introduction to computer science.

All students need to learn how computers operate because it's fundamental to their life and work.

Computer science will provide students a chance to join one of the best growing and best paying fields.

No student should miss out on this opportunity because of where they live.

This is another step to better align education and training with essential workforce needs.

We all care deeply about the safety of our families, our friends and our neighbors.

However, troubling trend has begun to emerge that threatens Iowa's safety on our roads.

Traffic deaths were 315 in 2015.

It jumped to 402 in 2016.

That is unacceptable.

Earlier this year, I called on the department of public safety and the governor's traffic safety bureau to lead a working group to study this disturbing trend.

The group with key stakeholders, including law enforcement, made recommendations that are worth your consideration.

I'm asking you to take a hard look at these recommendations and evaluate which can be put into law to make our roads safer.

Unfortunately, too many innocent bicyclists, motorcyclists, pedestrians and passengers have lost their lives on our roads.

Last year I received a handwritten note from Christine and Darryl harkin, parents of grace harkin who live near riceville.

They wrote our daughter Gracie's life was sadly ended on July 29th, 2015, by someone who was driving and texting.

Grace was biking safely and lawfully when a driver who was texting struck and killed her.

They went on to write, grace would have forgiven the driver and moved forward.

That's what we've chosen to do.

But we miss her so.

Grace harkin's life was tragically ended way too early.

Modern technology should come with new responsibilities.

I ask all Iowans to join the Iowa law enforcement community first responders to lead the cities, all of our major cell phone carriers, the insurance industry and the medical community in demanding real change in the laws for distracted and impaired drivers.

[ Applause ] Last year I called on the legislature to send me a water quality improvement bill.

I was pleased with the bipartisan progress made on this front here in the house of representatives with the passage of house bill 2541 last session.

This bill was approved by the agriculture ways and means and appropriations committees and passed with 65 votes.

This bill provided long-term, dedicated growing source of revenue to help implement projects to improve habitat and water quality directed by the Iowa nutrient reduction strategy.

The bill provided funding for community conservation practices and improvements for wastewater and drinking water facilities.

By leading on this issue together, we have the opportunity to modernize Iowa's agricultural infrastructure, create jobs in rural Iowa and promote collaboration between urban and rural communities.

I believe our discussion should begin with the house passed bill from last session.

I hope we can work together to perfect and improve the legislation that will provide a long-term dedicated growing source of revenue for water quality improvements.

[ Applause ] I have been so blessed to serve as your governor, serving the state I love for 22 years.

I'm confident Iowa will continue to move forward.

Because Iowans care deeply about their neighbors, their communities and creating an even better future.

I'm extremely thankful for perhaps the most patient person in the state.

My wife Chris.

As she has served as first lady with grace, she's welcomed Iowans and visitors from around the world to terrace hill and she's volunteered to help in many ways, including reading to students from Jackson elementary school.

She, Chris and my entire family, thank you for your sacrifice during my time of service, public service.

Thank you very much.

[ Applause ] Chris told me she felt bad on missing out on reading to kids at Jackson elementary this morning.

Honey, I appreciate you being here.

I'm also thankful for the friendships that we made in all 99 counties, friendships that we will always cherish.

I'm grateful for the prayers from Iowans that have encouraged me along the way.

There's no better job in the world than being governor of the state that you love.

But sometimes we're called to serve in ways that we never imagined.

As I approach the U.S.

senate confirmation process, my priority continues to be serving the people of Iowa with the same energy and passion that I brought to this office each and every day.

Thank you.

God bless you and all the people of Iowa.

[ Applause ] >>> On the lectern.

Governor Branstad concludes this 27th condition of the state address unprecedented for any governor in the United States.

Standing ovation here at the joint session of the Iowa house and senate.

Governor Branstad, I think, emotionally moved as he looks out over the standing ovation applause.

>> Will the committee please come forward and escort governor Branstad and his family from the house chamber.

>>> So the formalities continue.

Governor Branstad now going to be escorted back to his office at the state capitol.

Passing now and shaking the hands of members of the Iowa supreme court and the Iowa court of appeals as he leaves the chamber down to the area where his wife and lieutenant governor Kim Reynolds, son-in-law, daughter embracing.

There's Chris Branstad, a kiss.

An embrace for lieutenant governor Kim Reynolds who will be up there delivering the condition of the state message.

The governor exiting the chamber.

And shakes the many people reaching over into the aisle, to shake his hand as he walks from the chamber where he came as a freshman legislator from Leland, Iowa.

Now he's completing his term as governor of the state of Iowa.

Longer than any other in the United States.

The governor significantly mentioned lieutenant governor Kim Reynolds countless times in that address and I don't think that was an accident.

That was to imply that lieutenant governor Kim Reynolds has been by his side almost constantly during these terms -- excuse me as lieutenant governor.

Also highlighting the fact that she's been involved in the initiatives that he was mentioning here and I think that was by design to indicate that it was going to be a seamless transition as she takes the helm and to give her the credibility of taking over as governor of the state of Iowa.

Standing applause many times throughout this condition of state address.

Once with a chuckle he said, after getting standing applause about talking about Iowa now getting 35% of its energy from wind, he said we love wind in Iowa.

The governor adding that as an ad lib in his speech.

Significantly, he's again pushing for that water quality bill that made it through the Iowa house of representatives last year and in a briefing this morning for members of the media we were told that the governor still continues to push for better control of what pulls into the farm drainage tiles and ultimately into Iowa rivers.

That's called the Iowa nutrient reduction strategy.

Significantly, too, I thought he did not, in this address, as has been the case with not only governor Branstad in the past, but other governors who have not specifically mentioned controversial issues in this condition of the state address, but this time he was right out front in talking about revising collective bargaining with state employees to negotiate a statewide health insurance contract to better spread the risk over a larger pool of employees in the state.

Advocating tougher penalties for drivers who hit pedestrians and bike riders, redirecting again controversial here, redirecting family planning tax money, a way, as he said from organizations providing abortions.

Not often did things be mentioned in the state address.

Going to be talking in just a moment here with two people in the Iowa senate who are going to be instrumental in seeing how these proposals that we heard here in the governor's condition of the state address, how they make it through the Iowa legislature, yet understand that what we hear and what was being proposed and this is the budget book and the governor's condition of the state message that was delivered.

This is only the executive branch and its proposals.

Then that has to go through the Iowa legislative process.

Now, here is rob HOLG who will have a lot to say.

You're going to have a lot to say about how at least you project these things to the people of Iowa.

First of all, I'd like, senator, as you control the minority democrats now or at least lead them, not control but lead the minority democrats in the Iowa senate, what's the thing that you heard in the governor's condition of the state address and the proposals you've been briefed that have more detail in them, what's the thing that encourages you the most?

>> Two things, dean.

I will tell you, we haven't gotten very much briefing yet.

But the two things I thought were positive were his call for traffic safety.

That's a very big issue.

I hope we can have a bipartisan response on that and second on water quality.

I think we can make a lot of progress on that, especially as we transition from governor Branstad to governor Reynolds at some point during this session.

I think we'll be able to work with them and make progress on water quality.

>> Is that significant that you said as we transition to governor Reynolds and got governor Branstad.

What's the significance of mentioning that?

>> I just think lieutenant governor Reynolds is going to start with an opportunity to define herself and distinguish herself and water quality is an issue where she might be in a better position to get things done than governor Branstad has been.

He's vetoed a lot of clean water initiatives in the last six years.

It's not credible coming from him.

I think she has a fresh start there.

>> This past year in the house and came to the senate and died here, if I remember correctly.

So you're saying that it may get a better reception in the senate this year from democrats.

>> Yeah.

Well, I think she's got a fresh opportunity and there's a fresh opportunity this year.

Look, last year they were scooping money from all over the place.

They didn't have any accountability measures in it.

It was not the water quality solution we need.

We're going to work on that.

I'm hopeful that the bipartisan area we can have success.

The big thing today, dean, is the budget cuts he's making midyear.

That's the biggest concern democrats have is -- but required by state law.

>> Here's the deal.

Number one, it doesn't add up.

He says we've got smaller government, a better economy.

Why are we doing this hundred-plus million dollar cut midyear?

It's because what he said isn't true about our economy.

People's incomes haven't gone up and our economy is being outperformed by other states now.

We're lagging behind other states.

So that's part of the answer.

Second, I know he didn't want to talk about the bad news in his speech.

But there's going to be bad news that wasn't transparent much we need to see what the details on the bad news are.

I will tell you -- >> Let's go further on that.

Bad news where?

>> Look, we're very concerned about what this is going to do to public safety.

He talked about public safety going forward.

This $113 million in the middle of the year is a major midyear cut.

That money has to come from somewhere.

We're worried about what it does to higher education.

Our universities, our community colleges.

>> K-12 is immune.

He's not going to cut that.

He's saying state universities will take cuts.

>> He's going to have to get the money from somewhere.

Let's say it's $25 million from universities.

That's $400 per student at the university system.

We're talking about really big cuts in the middle of a budget year and his staff said this morning, these cuts are going to be permanent cuts.

We have real concerns about that.

Iowans need to pay attention and speak up.

>> Your colleague here in the senate is bill Dix, he's joined us now.

Thank you, senator for coming up.

You are in east Iowa talking about the transition to lieutenant governor Reynolds later on in the session.

Senator HOGG says he believes that that can be be a seamless transition and that governor Branstad is maybe carrying baggage, particularly on water quality, that lieutenant governor Reynolds won't have.

>> I certainly look forward to working with lieutenant governor Reynolds.

I think she's demonstrated in her teamwork with governor Branstad over the last several years that she's clearly capable and ready to lead our state.

When that transition takes place, I expect it to be seamless and one that we're ready to go to work.

On water quality specifically, I appreciate the overview you've given about the transition.

But on water quality specifically, do you think that has a better reception in the Iowa senate?

It didn't get a good reception last year.

>> We'll look at whatever proposals are put forward and there's a process in place I see moving forward positively.

I see no reason one way or the other.

Things will work well.

>> What disappointed you the most about the condition of the state and message this morning and briefing that you've had on other details that weren't in the speech?

>> Nothing comes to my mind as far as the disappointment, dean.

I think governor Branstad clearly laid out an agenda we're ready to go to work on.

We also have our priorities as Iowa senate republicans that we intend to move forward with as well.

You know, this is a great starting point.

Governor is optimistic about the future of Iowa and so are we.

>> Back to my question, what's going to have the toughest -- in the Iowa legislature, maybe specifically the senate where you are leading the majority of republicans?

What's going to have the toughest sledding that you've heard?

>> It's too early to tell what those are.

We need to get the details of what the governor is proposing right now.

Clearly, he has Iowans' best interests at heart.

We'll do everything we can to work with him.

>> Can you move toward a biennial budget?

I'll ask you first senator Dix?

>> Up to now, the legislature is having trouble coming up with even an annual budget.

>> Sure.

As long as we're conservative in our revenue estimates and are thoughtful as we pursue that, the goal and the principle of that makes perfect sense.

It allows for thoughtful, long-term planning.

That's a concept that we embrace and we look forward to working with the governor to accomplish as much there as we possibly can.

>> Senator HOGG?

>> Obviously, we have a concern about a big transfer of power from the legislature to the governor's branch.

Once we make that two-year budget, it takes away the checks and balances in the second year.

If that's what house and senate republicans want to do and just sort of CEDE that authority, that's not something we've favored when the senate democrats have been in charge and that's why.

Because we think it's important to have that annual review.

>> What did you hear this morning, both of you, that you think could be the first legislation passed by the senate that is significant legislation?

What did you hear this morning that you senator, Dix, will be -- that you in large amount control, being the majority?

>> The governor laid out reviewing our policy on boards and commissions, changing the way we do business in our state.

>> Just to let our viewers know that boards, we have dozens of boards and commissions in the state of Iowa.

>> Exactly.

>> The governor this morning said we need to examine whether or not some of those are needed, whether some are costing us money and unnecessary regulation.

>> It's exactly right.

There are so many, dean, that it becomes difficult to find people to even serve on some of these boards.

I think we've got to be careful.

Clearly, that provides us with input and what the public is feeling about key important issues.

But at the same time, Iowans expect us to, as I've said numerous times, kick the door in how we do business.

This is a good first step in the rye direction.

>> Comment on that senator HOGG, do we have too many boards and commissions and are you in favor of working together with republicans in streamlining?

>> Two things.

First of all, I know senator Dix likes to use the line.

I think it's inappropriate to talk about kicking in the doors.

That's not the type of state and country we want to live in.

We want to use lawful processes here.

Look, senate democrats and the budget crisis of 2009, due to the global recession, we took a look at boards and commissions, I think we're open to that.

Last year we eliminated some of the safe regulation dealing with natural hair braiding.

We can look at those things.

You talked about what issues could be passed soon.

We passed legislation in the senate to address traffic safety that had 44 -- we've got legislation ready to go.

I hope that's something we could do earlier in the session rather than later.

>> Going to take a while to deal with collective bargaining and a statewide contract on health care.

>> That's an enormous issue.

I know that governor Branstad this morning called it antiquated.

It's not antiquated.

It was passed by republican legislature and governor in 1970s.

>> Under governor ray.

>> Is has served our state well.

The people I speak with in cities and counties and schools say labor management relations have never been better.

There were very, very few school districts last year that had to go to arbitration.

We've got a system that works.

It is not a problem.

Health benefits for public employees is not the problem in the economy.

>> Senator Dix how will you approach that in leading republicans in the senate?

>> Governor Branstad, I think he recognizes that if we're going to re -- give more opportunities to Iowans, we look at the way state government does business.

This is clearly one that will move through the committee process, look at the details of that and try to find a way to advance better opportunities for local governments, more flexibilities, our schools as well and enable them to do the best that we can.

>> Senator bill Dix from Butler county and northeast Iowa and also from eastern Iowa, rob HOGG, senator from cedar rapids.

Thanks for your ideas here and giving us a preview of what might be happening this session.

>> Thank you, dean.

>> Thank you much.

>>> Thank you.

We'll be discussing the upcoming session this Friday on Iowa press.

Governor Branstad will be joining us at that time from our on-site studio here.

That will be Friday at 7:30 and Sunday at noon.

So for our entire Iowa public television crew here at the state capitol in Des Moines and our producer, executive producer, thanks for joining us today.