City officials in Memphis, Tenn., are so fired up they’ve filed a lawsuit charging Wells Fargo &Co. with discriminatory lending practices.The allegations they are making are almost identical to those leveled here in Iowa, where a study found that minority homeowners in Des Moines were three times more likely to receive high-cost subprime mortgage loans from the mortgage giant than white homeowners.

The New York Times reports:

The lawsuit, filed in federal court in Tennessee, marshaled a raft of statistics to argue that Wells Fargo offered one lending reality for whites and another for blacks. In Shelby County, which includes Memphis, one of every eight Wells Fargo loans in predominantly black neighborhoods resulted in foreclosure, compared with only one in 59 such loans in white neighborhoods, the lawsuit said.

Such charges, if proven, amount to reverse redlining — marketing expensive loan products specifically to black customers.

For anyone who’s been following the reporting of The Washington Independent’s Mary Kane on Wells Fargo, this should come as no surprise. First, there was that Cleveland case in which Wells was found to be violating public nuisance laws by failing to clean up its foreclosed properties. Next came the charges from the state of Illinois that Wells had targeted Latino residents for subprime loans, even in cases when potential borrowers could afford less expensive options. Then came the California-based class-action lawsuit alleging subprime discrimination against the bank. And finally, Mary uncovered the bank’s alleged strategy of hiring high-profile black figures such as Tavis Smiley to lure potential black borrowers to “Wealth Building” seminars, where Wells employees would be waiting to sign attendees up for more expensive subprime loans, according to a lawsuit filed by the Illinois attorney general.

So far, there has been no legal action taken against Wells Fargo in Iowa.

Mike Lillis covers Congress for The Washington Independent, a Center for Independent Media site.

The ruling could have bigger ramifications down the road, as several filmmakers who have been denied tax credits weigh legal action against the state.

Iowa Eye Entertainment LLC sued the Iowa Department of Economic Development earlier this month alleging the state breached its contract regarding issuing tax credits to finance their work. The company received initial approval from the state to receive tax credits, but after Gov. Chet Culver suspended the film credit program in the wake of alleged misconduct, the filmmakers were told they were never under contract to get the credits.

District Judge Glenn Pille agreed with the company’s assertions and said he will hold a hearing Friday before he orders the state to issue the credits.

“The court finds that the underpinning facts surrounding plaintiff’s request are relatively undisputed,” Pille’s ruling said.

The state contends that the projects are among 109 that received initial approval but were not under contract to receive funding. Therefore, because there was no contract, the state is not required to provide funding. Iowa Attorney General Tom Miller has said that may not be true.

Miller’s spokesman, Bob Brammer, said the attorney general’s office is “considering all our options, including whether to ask the Iowa Supreme Court to review the decision.”

The suit, filed Oct. 28 and scheduled to go before Polk County District Court Monday, was filed by a group of filmmaking companies that had received initial approval from the state to receive tax credits from the state.  After several instances of misconduct were discovered regarding the film tax credit program, Gov. Chet Culver suspended it until an investigation can be completed.

The filmmakers — Daedalus Film AG, C-Films France Sas, Clean Out Productions, Clean Out Film Services Inc. and Iowa Eye Entertainment — demand in their lawsuit that the tax credits be provided as promised so the projects can proceed. The state contends that the projects are among 109 that received initial approval but were not under contract to receive funding. Therefore, because there was no contract, the state is not required to provide funding. Iowa Attorney General Tom Miller said that may not be true.

The companies provide letters from IDED that confirm credit award amounts, which they used in their decision to film in Iowa.

“The public interest in the state honoring its legal obligations and allowing production to move forward in Iowa, so as to provide jobs, support the local economy and restore confidence in Iowa’s tax credit programs, supports granting the injunction,” the lawsuit says.

The attorney general’s office, which is representing the state in the civil legal action, had no comment on the lawsuit.

Gov. Chet Culver

The audit, released the same day as an audit of the state’s film tax credit program, focuses mostly on four years in which Gov. Chet Culver oversaw Iowa’s elections as Secretary of State.

Among the reports findings include:

· There were errors in computing interest on state matching funds.

· Interest on HAVA funds on deposit at the counties was not deposited for the credit of HAVA.

· Equipment inventories at the sampled counties did not include required information or include all HAVA equipment acquired.

· Capital improvements paid from HAVA funds were not approved by the EAC.

· There was a lack of competitive bidding for procurements and services.

· HAVA funds were used for promotional activities, unrelated to educating voters.

· HAVA funds were used for radio commercials that did not provide voter education.

· Supporting documentation was not provided to support personnel charges to HAVA.

· An equipment lease payment was made with HAVA funds for which no tangible benefit was received.

· There were errors in the financial reports filed with the EAC.

In particular, the audit questions the spending of $118,000 in 2005 as part of a celebration of the 40th anniversary of the Voting Rights Act, the 85th anniversary of the 19th Amendment to the Constitution and the legacy of voting rights in Iowa. The events included numerous events from August to November. The audit concluded the allocations were not allowed under the law.

Another $885,573 was paid for salaries and benefits without proper documentation, the audit said.

An official with the EAC told The Des Moines Register that the Secretary of State’s office would have the opportunity to refute the audit’s findings, so it is too early to tell if the state will be forced to repay the money.

One of Culver’s GOP gubernatorial challengers, Rep. Chris Rants of Sioux City, pounced on news of the audit, saying that on the heals of the film tax credit investigation this is further evidence that Culver hasn’t managed Iowa’s money well beyond his term as governor.

“The US Election Commission’s audit shows highly questionable activities from no-bid contracting, to salaries paid without documentation,” Rants said.

The Help America Vote Act was signed into law by President George W. Bush in 2002 in reaction to the controversy surrounding the 2000 U.S. presidential election. It’s goals were to replace punch card voting systems; create the Election Assistance Commission to assist in the administration of Federal elections; and establish minimum election administration standards.

In short, King is quoted as saying that his “best vote” was the one he cast against relief for victims Hurricane Katrina:

…Q: What vote would you like to redo?

A: I don’t really go back and re-live that sort of thing. Some of the big votes that I’ve thought about, some of the jury’s still out. And at this point, maybe I’d answer that question another way, probably with the singular vote that stands out that went against the grain, and it turns out to be the best vote that I cast, was my “no” vote to the $51.5 billion to [Hurricane] Katrina. That probably was my best vote…

It should come as no surprise that The Times-Picayune staff — many of whom felt the direct and personal wrath of Hurricane Katrina even as they attempted to cover the storm and its aftermath — wouldn’t take kindly to King’s point.

… Rep. King was one of 11 House members to vote against this urgently needed help for an area that, at the time, was still under water. But opposing relief for a devastated region of this country is hardly an act of political courage. The fact that he considers it a point of pride is appalling…

Even now, officials in Des Moines are complaining about a slow and inadequate response to their flood recovery — including the lament that FEMA is underestimating the amount of money needed to replace public buildings. That’s something that South Louisianians can understand, and in fact, we feel for Iowans.

Unfortunately, when it counted, Rep. King didn’t feel for us.

The money, part of the $830 million program designed to help the state rebuild after last year’s tornado and flooding disaster, includes $20 million for projects in Cedar Rapids, one of the cities that was hit hardest by the 2008 floods.

“This is only the beginning, and I look forward to working with all Iowans as we rebuild this state, create good-paying jobs, and build a brighter future for all Iowans,” Culver said in a statement.

The I-JOBS Board, which will oversee $165 million of the infrastructure and flood relief money, will begin accepting applications for the remainder of the money later this week. The program is being paid for with bonding, with the state paying it back over the next 20 years with gambling revenues.

The projects approved today were:

City of Cedar Rapids, Cedar Rapids Public Library ($5 million)
The Cedar Rapids Public Library was more than 50 percent damaged during last year’s floods. I-JOBS funds will help the library rebuild its main facility and expand the library’s Westdale Mall branch.

City of Cedar Rapids, Paramount Theater ($5 million)
I-JOBS funds will help repair the historic Paramount Theater, returning it to its original condition. Additional renovations include enhancing the sound system, expanding the backstage area and adding a pre-function bar/café.

City of Cedar Rapids, Public Works Building ($5 million)
The city of Cedar Rapids will use I-JOBS funding to rebuild the Public Works Building, including its mechanical and electrical systems.

City of Cedar Rapids, Steam System Customer Relief ($5 million)
The floods of 2008 rendered Cedar Rapids’ steam system inoperable and extensively damaged the steam distribution system. Temporary boilers and rudimentary repairs meant customers were able to take advantage of steam service through the winter but at a drastically increased cost. I-JOBS funds will help steam system customers convert to more affordable individual heating or steam supply systems.

City of Elkader ($500,000)
The city of Elkader will use these funds to build a new fire station. Their existing fire station has flooded several times – including in 2008 – and has fallen into disrepair. A new fire station will be built on donated land outside the flood plain and will include adequate space for equipment and training, a helo-pad, a tornado shelter, a post-disaster shelter and room for possible expansion.

Linn County, Human Services Campus ($10 million)
The floods of 2008 displaced several nonprofit service organizations in Cedar Rapids. I-JOBS funds will be used to build a new Human Services Campus in downtown Cedar Rapids that will provide space for seven to 10 nonprofit organizations that provide services to more than 13,000 people annually.

Linn County, Options Building ($5 million)
Last year’s floods meant Linn County lost 80 percent of its county infrastructure, including the Options and Witwer Buildings that housed several public services. I-JOBS funds will be used to construct a new building to replace the two that were damaged. The new building will house Linn County Community Services, General Assistance, Mental Health and Developmental Disability Services, Veterans Affairs, Home Health and Youth Services.

National Czech & Slovak Museum & Library ($10 million)
The National Czech & Slovak Museum & Library in Cedar Rapids will use I-JOBS funds to build the museum’s operations. The project includes four components: restoration of an historic building in the Czech Village that will serve as administrative offices, restoration of two historic homes, construction of an exhibition center and research library and construction of a permanent exhibit that focuses on the Czech and Slovak American immigrant experience.

Phil Roeder, Culver’s deputy chief of staff, said making sure people across the state understand how the money can be used, how it is being used and what sort of impact it’s having is something the governor and his staff are taking very seriously.

“Transparency is at the top of the list of priorities with this program,” Roeder said. “The purpose of I-JOBS is to strengthen the economy and improve the state’s infrastructure, but at the same time, a key priority has got to be openness. We have to be an open book so the public can see how the funds are being spent.”

The first step to that will be ensuring the I-JOBS board, scheduled to meet Wednesday afternoon for the first time, will adhere to open records and open meetings laws. The board will decide how Iowa spends $118.5 million of the money, and Roeder said it would move quickly to establish rules for distributing the funds and keeping the public informed.

“Everyone in the administration understands that with I-JOBS, time is of the essence,” Roeder said. “In order to have impact on the economy, we have to move quickly.”

The next step, Roeder said, will be establishing a Web site to allow citizens to track the money from start to finish.

“The ultimate goal is to set up a site that lets people follow the money from application for funds to how decisions are being made to distribution all the way down to how many jobs it is creating,” Roeder said.

The program’s Web presence is currently under construction, but Roeder said it will be modeled after the federal economic recovery program, which has set up Web sites in all 50 states in order to track funds.

Bill Allison, a senior fellow with the non-profit government transparency watchdog the Sunlight Foundation, said the key for Iowa is to ensure there is one spot where citizens can go to follow the money.

“One of the things that make it difficult to follow on the federal level is that there are all kinds of places that are reporting information,” he said. “There are multiple sites reporting different things.”

Despite years of experience working with open records and government spending, Allison said it’s still difficult for him to find information he’s looking for.

“If it’s hard for me, someone who makes a living doing this and has done it for years, then for the average citizen it will be hard to find information they need,” he said.

The ideal Web site would allow citizens to search spending by ZIP code or legislative district, Allison said. Doing so would attract “more eyeballs to the process, which would help catch any potential fraud or abuse.”

Another key, Allison said, is that when the prerequisites for receiving funds are formally established they must be easily understandable to the general public.

“Making them easier for people to understand and more transparent will lead to more participation in this,” he said.

Kathleen Richardson, director of Iowa Freedom of Information Council, said a Web presence is key, but ensuring the I-JOBS board follows state open meetings laws is just as important to ensure the program is transparent and accountable.

“Certainly, in this day and age, any type of government transparency should have an online component that allows citizens to track spending,” she said. “Making sure the government is accountable also involves making sure decisions take place in public, too.”

Iowa boards have not always had the best record when it comes to openness.

Nearly a decade ago, former Gov. Tom Vilsack appointed a 13-member board to negotiate with cities vying for Vision Iowa grants from the state. In 2001, the board was the center of controversy when it was discovered that it held closed-door negotiations with officials from Des Moines and Davenport using a loophole in Iowa’s open meetings law unofficially known as a “walking quorum.” The loophole occurs when elected officials rotate fewer than half of their board or council members in and out of meetings to avoid reaching a quorum and open meetings laws.

Roeder said that with the historic size and scope of the I-JOBS program, a greater emphasis on being as open as possible is necessary for its success and to gain the public’s approval.

“The more people know about I-JOBS, the more supportive they become,” he said. “The more people understand how it works, the more access they have to information, then the more appreciation people will have of how much this means to the state. So there really is an obligation and a commitment to make sure that everything is available to the public and easily accessible.”

In ceremonies in Marshalltown and Iowa City, Culver signed Senate Files 376, 477, and 474, all aimed at upgrading state infrastructure, creating jobs and flood recovery.

“Passing the legislation was the easy part,” Culver said. “Now, we must get to work creating good jobs and revitalizing our communities.”

The plan, which Culver discussed during his Condition of the State address, establishes an 11-member board within the Iowa Finance Authority to oversee payment of the bonds and ensure the projects fit into the program’s criteria, which include the number of jobs created, the project’s readiness to proceed immediately, and the project’s energy efficiency, among other things. Culver is expected to appoint six of the 11 members, although the time frame of the appointments is not clear. The other members of the board are the directors of several state departments.

The state is expected to sell bonds to pay for grants this summer, with the first grants being awarded soon after the bonds are sold. All money is required to be spent within three years.

Before the measure passed, Culver called on county, city and school officials to submit projects they believed could benefit from I-JOBS money. More than 4,000 projects were submitted, however governments will have to officially resubmit applications to be considered.

Below is a complete breakdown of the I-JOBS spending targets, according to the governor’s office:

Veterans home, community colleges and other public improvements: $285 million

·         $185 million to improve public facilities across Iowa, such as the Iowa Veterans Home, correction facilities, and our community colleges.

·         $100 million for further investments in state public infrastructure, including state parks.

Flood recovery and rebuilding: $165 million

·         $118.5 million in competitive grants available for reconstruction of local public buildings and flood control prevention in communities hit by last year’s disasters.

·         $46.5 million in grants targeted for help to Linn County, Cedar Rapids, and to rebuild fire stations in Palo, Elkader, and Charles City.

Transportation infrastructure: $115 million

·         $50 million to improve the safety of Iowa’s bridges.

·         $55 million to cities and counties to improve local roads, including many roads still damaged by last year’s natural disasters.

·         $10 million invested in airports, rail and trails.

Iowa’s universities: $115 million

·         $100 Million to rebuild 10 buildings destroyed by flooding at the University of Iowa, which will allow the use of nearly $500 Million in federal funds

·         $15 Million to build a veterinary hospital lab at Iowa State University

Environment and water quality: $80 million

·         $35 million to help construct sewers in communities under 10,000.

·         $20 million in competitive grants for communities of any size for water improvement projects.

·         $25 million to water-quality projects, including flood prevention, as well as soil conservation practices.

Housing needs: $35 million

·         $20 million invested in affordable housing for elderly, disabled, and low-income Iowans.

·         $10 million to construct or improve shelters for domestic abuse, emergencies, and the homeless.

·         $5 million to repair homes damaged by last year’s floods.

Telecommunications and renewable energy: $35 million

·         $25 million invested in improving access to technology throughout Iowa.

·         $10 million to create a revolving loan program to support alternative energy projects to support both new jobs and energy independence.

The plan, which he first laid out during his Condition of the State address, is a 3-year investment to “create jobs, strengthen the state’s economy, and rebuild several critical areas of the state’s infrastructure,” the governor said.

“There are currently hundreds of millions of dollars in unmet infrastructure needs in every part of the state. Addressing this issue is critical to rebuilding Iowa and our economy,” Culver said, adding: “There is no time to waste in rebuilding Iowa and, most importantly, creating jobs.”

It includes:

·        $250 million for transportation projects, especially road and bridge safety, including $200 million for roads and bridges and $50 million to other modes of transportation

·        $175 million to complete important projects already scheduled, such as improvements to the Iowa Veterans Home and our Community Colleges (This portion was approved by the Senate Wednesday night)

·        $150 million for public buildings, disaster relief, mitigation projects, housing and other flood-related infrastructure not covered by FEMA, CDBG or other sources

·        $100 million for water quality and waste water improvement projects

·        $75 million for local infrastructure, broadband technology, and alternative energy infrastructure

The bonds would be paid back with up to $56 million a year in gambling revenue.

An 11-member Iowa Jobs Board will be appointed to develop rules, review applications and make grant decisions.  Five members of the public will serve on the board in addition to the directors of the Iowa Finance Authority, the Department of Economic Development, the Department of Transportation, Iowa Workforce Development, the Rebuild Iowa Office and the Office of Energy Independence. The Iowa Finance Authority will provide staff and administrative support for I-JOBS.

The Iowa Republican called the National Council of La Raza a “pro-amnesty organization” and said “the last thing Congress should be doing is handing out cash to apologists for immigration law breakers.”

“American taxpayers do not support La Raza’s agenda or its position in support of amnesty for illegal aliens,” King said in a statement.

La Raza has been a focal point of conservative criticism over the years, ranging from claims that it encourages illegal immigration to the United States to accusations that it is exclusionary in its approach to civil rights.

In an open letter to the public entitled “The Truth about NCLR,” the group’s president tried to put those rumors to rest, pointing out that immigration legislation La Raza has supported in the past, the McCain-Kennedy Immigration Bill, called for comprehensive reform, including improved border security.

The money in the omnibus bill is for “nationwide community development activities,” according to Taxpayers for Common Sense, a group that has combed through the bill and listed all the earmarks it contains.

La Raza points out that any federal money it receives for housing and community development projects is directed to its subsidiary, the Raza Development Fund. That organization’s job is to bring private capital and development assistance to local organizations serving Latino families in areas such as affordable housing, primary health care and educational facilities. No money from earmarks goes to advance La Raza’s public policy efforts on immigration.

King is not alone in his criticism of certain earmarks in the omnibus bill. Many conservative lawmakers are calling on President Barack Obama to demand the extra spending be eliminated from the bill now before the U.S. Senate, but Democrats are quick to point out Republicans have requested their fair share of earmarks, too.

Taxpayers for Common Sense counted more than 8,500 earmarks in the bill with a cost of $7.7 billion, up 3.4 percent from last year. Democratic leadership estimates that the total earmark value is about $3.8 billion. In the Transportation/Housing & Urban Development portion of the omnibus bill, which is where the La Raza earmark is included, King has requested nearly $2.3 million worth of earmarks, mostly for road and bridge projects in his western Iowa district.

While King’s only public statement on the omnibus bill has been critical, his House Republican counterpart, Rep. Tom Latham of Ames, released a statement Thursday praising the bill for including millions of dollars for a “wide range of projects at Iowa State University,” which is located in his hometown.