Branstad to kick off second term with limited goals

DES MOINES, Iowa (AP) - Gov. Terry Branstad is kicking off his sixth term with a limited list of goals, most notably increasing roads funding, but so far without any major legacy project on the horizon.

Branstad will give the annual condition of the state address Tuesday, laying out his policy and budget priorities. He is expected to renew support for expanding broadband Internet and cracking down on bullying, as well as offering a pledge to secure more funding for Iowa's bridges and roads, many of which are considered deteriorating or deficient.

"Generally speaking, we're not looking at any big surprises," Branstad said when asked about his speech. "We came back to restore fiscal stability and get the state budget in order and focus on jobs and economic development and education reform and we want to stay on that track. "

This is different than four years ago when the Republican Branstad had just been elected to a fifth term after time away from office. He ran then with an ambitious plan to create jobs and reform government.

"I think you'll have a session here where anything goes," said longtime Branstad adviser Doug Gross, who noted that Branstad appears to be cautiously approaching road funding and a potential increase in the state fuel tax. "The governor is a very adept politician. He may be making a calculation that the real goal is to get road funding done. He's going to try to low-key it rather than up-key it. This is a situation that's very volatile. "

Tyler Olson, who briefly ran for the 2014 Democratic nomination for governor before dropping out for personal reasons, said he'd like to hear a bigger vision from Branstad.

"The job market is changing. Economic development is changing. How we educate our kids should be changing. I would love to one, hear some acknowledgment of that and two, how the state is going to respond to that," said Olson, a former legislator and Democratic Party chairman.

Road funding may require a big push from Branstad this year. He has been careful not to publicly commit to a course of action, though one option is to raise the state's fuel tax, currently at 22 cents a gallon, including fees. That has not been raised since 1989.

Branstad has said the agenda he laid out in 2010 was always meant to take five years, so he's still working to meet those targets. When Branstad ran in 2010 he was attempting a political comeback against an incumbent Democrat and pledged to create 200,000 new jobs, increase family incomes and reduce the cost of government.

Branstad said he is delivering on those goals, though the details are complicated. On employment, Branstad counts the number of jobs added during his tenure, but not the jobs lost. By his count, the state has added over 160,000 jobs since January 2011, but the net gain in jobs has been about 82,500, according to data from Iowa Workforce Development.

Government spending has increased since Branstad took office, but his aides said that expenses have been held down compared to the previously projected costs. And on family income, Branstad's staff cites federal data that shows a jump in the overall personal income in the state, though Census data shows little change in the median household income in Iowa in recent years.

"I think we're on track," Branstad said, of his goals. He also noted that he passed major initiatives in 2013 - a significant property tax cut and new education spending - that the state is still paying for.

"I think we have to be realistic," Branstad said. "I would rather under-promise and over-deliver."