Tom Wheeler, who was put on paid administrative leave on Friday after problems were discovered in the Film, Television and Video Promotion Program, has been dismissed effective Monday afternoon, the governor said in a statement. Wheeler was in charge of negotiating tax-credit deals with filmmakers and was running the tax credit program single-handedly.

In addition, the governor has accepted the resignation of Vince Lintz, deputy director of the Iowa Department of Economic Development. That department oversaw the Iowa Film Office. The director of IDED, Mike Tramontina, resigned on Friday.

IDED is currently reporting to Richard Oshlo, director of the Department of Management, while new leadership for the department is being considered.

The controversy surrounding the tax credits emerged last week after an internal audit discovered problems in the program such as filmmakers claiming payments for themselves for multiple production jobs and for the purchase of luxury vehicles that were not associated with film production.

The governor’s political rivals are already pouncing on the controversy. In a joint statement to the media, House Minority Leader Kraig Paulsen, R-Hiawatha, and Senate Minority Leader Paul McKinley, R-Chariton, said Culver’s lack of oversight and failure to properly manage the film tax credit has not only put the program in jeopardy “but already wasted millions in taxpayer money.”

The two GOP lawmakers also sent a letter to Senate President Jack Kibbie, D-Emmetsburg, and House Speaker Pat Murphy, D-Dubuque, asking that the Legislative Oversight Committee investigate the tax credit scandal.

Culver asked Attorney General Tom Miller and Auditor David Vaudt to assist in investigating the program Monday morning. No time frame has been set for that probe.

The Des Moines Register reported Monday afternoon that “criminal charges could be forthcoming” in the investigation, citing comments from Jenkins. However, in an interview with the Iowa Independent, Jenkins said his statement was more hypothetical than a prediction.

“When I was talking to the reporter from The Register, we had been involved in this for probably all of two hours,” he said. “The reporter was asking me ‘Where could this go? Could there be criminal charges?’ Basically, I said based upon not really knowing anything about this yet and what is involved, I wouldn’t take criminal charges off the table.”

The idea of criminal prosecution is always on the table when the auditor’s office gets involved in an investigation, Jenkins said.

“If we find something that could be criminal, we will refer it to the county attorney, and the county attorney will make a determination as to whether criminal charges would be filed,” he said. “I certainly would not say it is likely in this situation, but as we go into any investigation, we keep our eyes open and we look for all possibilities.”

Gov. Chet Culver asked Auditor David Vaudt and Attorney General Tom Miller to assist in an investigation of the Film, Television and Video Promotion Program after allegations of misconduct and lax oversight emerged last week.

Jenkins said at this early stage, it is still unclear exactly where the investigation will go and how long it will take to finalize. To start, staff at the auditor’s office will organize a meeting with the attorney general’s office and the Department of Revenue.

“One of the first things is to figure out what has already been done,” he said. “As far as any details, we haven’t been involved long enough to know what’s already been done and figure out where to go from there.”

It’s a question that doesn’t have an easy answer. Social and evangelical conservatives have gained more and more power within the state party for years, slowly building their influence both in Iowa politics and nationally due to the first-in-the-nation presidential caucuses.

The Republican Party of Iowa used to be defined by its moderates and pragmatists, said former Lt. Gov. Joy Corning. Republican Govs. Robert Ray and Terry Branstad helped the party hold on to Terrace Hill for nearly 30 years, she said, but now many who consider themselves centrist Republicans feel abandoned.

“I hear it all the time,” said Corning, who runs the Iowa chapter of the centrist Republican Leadership Council. “I have had so many people say to me personally, ‘I did not leave the party, the party left me.’ What has happened is some moderates have opted out instead of staying and trying to be part of the party structure and make a difference. This started years ago.”

During his four terms as governor, few would have considered Branstad a moderate. But in today’s party, the former governor would certainly fall into that category, showing how far to the right the GOP has drifted, Corning said.

Social and evangelical conservatives have a powerful voice in the Republican Party of Iowa because they participate, said Steve Roberts, a former chair of the Republican Party of Iowa who for many years represented the Iowa GOP on the Republican National Committee.

“The Republican Party, like the Democratic Party, is dictated by who shows up and participates,” Roberts said. “Frankly, the more conservative Republicans, the social evangelical conservatives, not only show up but they are organized. The more moderate folks are frustrated and don’t want to spend the time that it takes to make a difference.”

Roberts has seen the evolution of his party first hand. At last year’s state party convention, Roberts, a relatively moderate Republican, was replaced as a male representative to the Republican National Committee by Steve Scheffler of the Iowa Christian Alliance. The female representative position was won by Kim Lehman, director of Iowa Right to Life. Many saw these moves as the evangelical base asserting its authority within the party.

“There is no question the party has gotten more conservative,” Roberts said. “But that’s because they’ve been the ones showing up and working.”

The problem many within the party point out is that, as the party has grown more conservative, it has seen its numbers dwindle in the statehouse. In the last three election cycles, Republicans have watched as Democrats took control of both chambers of the legislature and the governorship.

A cause for hope

Iowa Republicans have a lot going in their favor as the 2010 elections get closer, Roberts said.

“I think we are in a really good position following the legislative session,” he said. “Issues like spending, the Democratic plan to end federal deductibility on state tax returns, various pieces of labor legislation and gay marriage have put us in a good position in terms of having hope of election success in 2010.”

Republicans successfully fought off several pieces of the Democratic agenda during the legislative session, despite being in the minority, and the Iowa Supreme Court’s ruling on same-sex marriage has energized the social conservatives.

“But we need a strong gubernatorial candidate to articulate our beliefs,” Roberts said. “There have been a lot of names come up, but no one has stepped forward or chosen to pursue it.”

But while the gay marriage issue is an opportunity, it also poses a potential pit fall for the party, Roberts said, if it ends up being the main issue associated with GOP candidates. He cited the 1998 campaign for governor between Republican Jim Ross Lightfoot and Democrat Tom Vilsack. Lightfoot focused his attacks in the closing months on Vilsack’s voting record in the legislature on the issue of restricting or banning nude dancing.

“It backfired on him,” Roberts said. “People had other issues that were more important to them. I think gay marriage is something that is an important issue for a lot of people, but with the economy the way it is, focusing solely on social issues could be a mistake.”

Not holding the governor’s office for more than a decade has contributed to making the GOP more conservative, said Dennis Goldford, a professor of politics at Drake University.

“The more Republicans are a party defined by state legislative districts, which are by nature more homogeneous than the statewide population, so you can ignore people who think differently, the more conservative the party will be,” he said. “With no executive, it’s going to get more conservative.”

Searching for the moderate’s candidate

Civic Skinny, the anonymous gossip columnist for Des Moines alternative newsweekly Cityview, reported rumblings of a group of moderates, headed by Branstad, Ray, Roberts and former GOP gubernatorial candidate Doug Gross, who were trying “to settle on a moderate candidate to run against Bob Vander Plaats and Steve King and Christopher Rants and all those other very conservative Western Iowans who want to be governor.”

Roberts denied being part of a secret plan to choose a gubernatorial candidate.

“That conversation is happening, but is not limited to me, Gov. Branstad, Gov. Ray and Doug Gross,” he said. “There are a lot of people discussing it. Ray, Branstad, Gross and I have no official position in the party, so none of us are out there picking candidates. I find that many places I go the question does come up ‘Who are we going to get for a candidate?’”

However, Gross announced Thursday that he will speak to the press about a recent poll he helped commission that shows “that the Iowa Republican electoral base is large enough and cohesive enough to form the foundation for a winning electoral collation in Iowa in the 2010 election.” He will also lay out a plan for his party to emerge from the political wilderness.

Since last November’s elections, which saw Democrats expand their majorities in both legislative chambers, Gross has been calling on his party to be more inclusive and focus less on social issues that are turning off a younger generation of voters.

“Our party needs to enunciate a message that’s attractive to them,” Gross said during a taping of Iowa Public Television’s “Iowa Press” just after the election. “But when our party has litmus tests associated with abortion and homosexual rights or issues such as this we drive the young people away.”

Gross is both anti-abortion and against same-sex marriage but said he believes a person’s stance on those issues alone should not disqualify them from the party. It’s a position that has won him no friends in the social conservative community, as many in the conservative blogosphere have labeled him a a “RINO,” or “Republican in Name Only,” and conservative talk radio host Steve Deace saying he “doesn’t think about [evangelical voters] any differently than the Democrats do.”

“We all know what Mr. Gross’ poll is going to say — that the Republican Party needs to free itself of Christian influence if it wants to win elections,” Deace said Thursday on his drive-time program on Iowa’s largest radio station, later adding that many are going to believe the polling is simply a way for Gross and his cohorts to regain control of the party apparatus “that they lost a long time ago.”

Deace went on to predict that because of the same-sex marriage issue ,the 2010 GOP gubernatorial primary would be one of the ugliest in memory.

But with the right candidate at the top of the ticket, the GOP can overcome any differences and be in a good position to win in 2010, Corning said.

“We need a gubernatorial candidate who embraces the big tent and is not focused on the divisive issues but on the main issues Iowans care about,” she said. “Iowans care about education, the economy, the environment and fiscal responsibility. I think a Republican candidate who runs on those issues could be elected.”

The party can’t win without social conservatives, she said. “But it can’t win without moderates either.”

The key, Roberts said, is to find someone who can bridge the gap.

“We used to say the conservatives in the Republican Party and the radicals in the Democratic Party don’t have anywhere else to go,” he said. “You can’t lose them cause they aren’t going to go vote for the other side. But they do have a place to go. They can stay home and not work to get out the vote. We saw that in 2000 when Bush and Gore virtually tied versus 2004 when Bush got out the conservative vote and won. “

While it would appear a strong social conservative candidate would easily win in the GOP primary, which is dominated by those voters, it all depends on who exactly enters the race, Roberts said.

“That’s how Bob Ray got in 40 years ago,” he said. “He was running against two conservatives, and either one of those two individuals would have won the nomination if they both hadn’t been running. They split the vote and Governor Ray went on to win.”

The bill, which will be debated before a Senate subcommittee Thursday afternoon, would limit individuals from contributing more than to $2,000 to a candidate for statewide office, $500 to an Iowa House candidate and $1,000 to an Iowa Senate candidate during an election campaign cycle or the time period between elections.

Political committees and parties would be limited to a $4,000 contribution to a statewide candidate, $1,000 to an Iowa House candidate and $2,000 to an Iowa Senate candidate.

A similar bill was introduced in the House State Government Committee last month, however it’s limits are much higher. Individuals could donate $10,000 in cash and an additional $10,000 of in-kind donation to statewide candidates for both the primary and general election; $1,000 of cash and $1,000 of in-kind donation for state Senate candidates for both the primary and general election; and $500 cash and $500 in-kind donation for state House candidates for both the primary and general election.

State Reps. Chris Rants (left) and McKinley Bailey

Former House Minority Leader Christopher Rants (R-Sioux City) wrote on his blog Wednesday that Democrats have found their 51st vote for a bill that would establish a prevailing wage on public projects. However, at least one of the legislators he says switched their position said Rants is incorrect.

The prevailing wage bill would set minimum standards for wages and benefits paid to workers on public projects. Labor unions have advocated for several years for its passage, saying it would assure that public projects do not go to companies that win bids based on cheap labor.

Opponents say the bill would increase costs for public projects and would keep small contractors out of the running for them because they can’t afford to pay for benefit packages.

The bill was passed out of the House Labor Committee on a 10-7 party-line vote after a two-hour public hearing Monday night. It is scheduled to be debated Thursday in the full House.

Rants said with the GOP at a 56-44 disadvantage in the Iowa House, Republicans were relying on “the Sovereign Seven – the ‘conservative pro-business’ Democrats who were going to block” union backed legislation like prevailing wage. He lists Reps. Brian Quirk, Doris Kelly, Roger Thomas, Geri Huser, McKinley Bailey, Delores Mertz, and Larry Marek as the seven Democrats who have voiced opposition to the bills.

From Rants’s blog:

Well, it appears that two of them, Reps Thomas and Bailey have decided that “the common good” requires that public projects financed by Iowa taxpayers must pay a “prevailing wage” as described in HF 333.

Rants said the deal was struck by changing the bill so that it only applies to projects that are funded 50 percent or more in state dollars. That would exempt many projects funded by local governments.

However, Bailey said Rants’ statement just isn’t so.

“I have not reached an agreement on prevailing wage legislation,” Bailey said in an e-mail to the Iowa Independent.  “Mr. Rants is mistaken.”

Thomas could not be reached for comment.

Thursday’s debate on prevailing wage is expected to last well into the evening.

Culver said raising the gas tax during a recession would not be “a prudent thing to do” but stopped short of committing to veto an increase. He said, “If 150 legislators want to keep talking about it, they have that right.”

“[Culver] hasn’t said ‘no’ in my presence,” said Senate President Jack Kibbie, D-Emmetsburg, Thursday morning.  Kibbie argued for a gas tax increase during his opening remarks to the legislature.

House Majority Leader Kevin McCarthy said legislators think that based on Culver’s public statements there is a willingness to listen to the legislature on this issue.

House Speaker Pat Murphy, D-Dubuque, said it would be closer to the end of the session before legislators tackle the issue.

The gas tax issue seems to be driven by a feeling that the next Revenue Estimating Conference, which will take place in March, bring more bad economic news. Most believe revenues will be down further than expected, which would mean more spending cuts on top of those already proposed by Culver or increased taxes.

Supporters say truckers driving along the state’s interstate system would pay the majority of a gas tax increase.

The Sioux City Republican will make the announcement official on today’s Jan Mickelson show on WHO Radio.

Vander Plaats finished third in a three-way primary in 2002. In 2006, he withdrew his from the primary in favor of being Jim Nussle’s running mate in the general election.

Anonymous conservative blogger Krusty Konservative got his/her hands on an e-mail the Vander Plaats campaign sent out over the weekend. It discusses today’s announcement in the past tense for some reason.

Welcome to Team VP 2010!

Today is an exciting day! Perhaps you tuned in to the Jan Mickelson show on WHO Radio this morning, saw the news on television, read it in the newspaper, or heard it from a friend. Allow me to tell you personally. Today, we are excited to announce the formation of Team Vander Plaats 2010, a Candidate’s Committee for a run for governor. Iowa needs leadership and we need your help to take back Terrace Hill.

UPDATE at 11:17 a.m.: Vander Plaats has hit the ground running, launching his gubernatorial Web site today as well.

Lundby died Saturday after a long battle with cancer. She seved in the state legislature for 20 years.

Legislators will change the portrait of George W. Bush located behind House Speaker Pat Murphy’s chair to a portrait of Obama. Leaders of both parties said in press conferences last week that they would be in attendance.

Democrats plan to adjourn to private caucus to watch televised coverage of Obama’s inauguration, have lunch, and then hold the ceremony replacing the portrait.

Week two of the 83rd Iowa General Assembly starts Tuesday.

In his Condition of the State address last week, Culver asked the legislature to appropriate the money out of the state’s $155 million economic emergency fund to bolster the rebuilding efforts after floods and natural disasters last year. The first $20 million would be used to create a funding source for communities to help replace lost revenue and property taxes. The rest would be used for assistance grants to home and business owners, non-profit assistance and skills training.

Democratic leaders in both chambers said last week that committees will begin discussing the proposal with the goal of getting a bill to the full legislature by early next week.

House Minority Leader Kraig Paulsen, R-Hiawatha, said he expects the bill to have smooth sailing.

“Yes, there is disagreement on how that will be split up, but we’re not at an impasse,” Paulsen said. “I think you’re going to see a bill that once it moves, it’s going to move quickly, it’s going to be meaningful and it’s going to have broad-based support. I expect it to be if not unanimous, a very close to unanimous bill once it finally moves.”

However, the second week of the General Assembly will be interrupted several times.  The legislature will not convene on Monday due to Martin Luther King Jr. Day. Tuesday is President-elect Barack Obama’s inauguration, and a special ceremony is scheduled in the afternoon to commemorate the occasion. Several members will also be in Washington to attend the historic event.

Cedar Rapids Gazette columnist Todd Dorman also points out that Sen. Mary Lundy’s funeral will be held on Wednesday, which will mean legislation work will “be on the back burner” that day as well.