Iowa banker works for smaller government

Northwestern Financial Review, Feb 6, 1999 by Bengtson, Tom

teve V. Kettering, president and CEO of Farmers State Bank, Lake View, became the only banker to hold a seat in the Iowa legislature when he won the 11th District House seat last November. After only a few weeks on the job, Kettering said he is already finding the legislative process slow and cumbersome, but he remains optimistic about opportunities to work campaign themes such as smaller government and less taxation.

Kettering decided to run for the legislature after Rep. Jim Meyer announced he would not seek a fourth term. Kettering had run against Meyer in 1992, losing by 140 votes in a three-way primary for the Republican spot on the general election ballot.

In 1998, Kettering again found himself in a three-way race for a spot on the general election ballot, but this time he won by 240 votes. In the general election, Kettering faced Lenae Sinnott from Ida Grove. There were no formal debates between the candidates during the campaign, but the two occasionally appeared together on panels and in forums.

Kettering said he met with civic groups of all kinds. With his district stretching nearing 100 miles from corner to corner, Kettering wore out a lot of shoe leather during the campaigning - or make that tire tread. Every weekend, he and 40some volunteers traveled to a community in the district and knocked on doors. The campaign also consisted of mailings and ads in the district's 10 newspapers.

Kettering said he particularly enjoyed visiting with voters during the campaign. "You are exposed to some very interesting specific issues when you get out and talk to the people," he said. "Ninety-nine percent of the people" he visited were cordial and friendly.

And apparently, a majority agreed with his ideas about limited government. Kettering won the general election by 600 votes with 53 percent of the electorate. Kettering described Nov. 3 as an anxious night. Election results came in slowly from the three counties that make up the 11th District. First results came in from Sinnott's home county, with the former school board member running ahead. Kettering carried the neutral county, but still trailed overall. Results from Kettering's home county didn't come in until after a glitch with a counting machine was resolved. By then it was 11:30 p.m. and Kettering and his volunteers were exhausted. But the wait was worth it. The advantage he gained from voters in Sac County carried him to the general election victory.

Kettering is one of 56 Republicans in the Iowa House of Representatives. Republicans also control the state Senate, where Republicans hold 30 of the chamber's 50 seats. The state's new governor, Tom Vilsack, however, is a Democrat, a former state senator from Mount Pleasant.

Kettering described the working accommodations for an Iowa legislator as austere. Representatives get the use of a small desk on the House floor, and a twodrawer file cabinet. They have no private office or staff. A typical work week during the session, which runs from January to April, starts at 1 p.m. on Monday and runs through Thursday evening. This gives Kettering time to be in the bank on Fridays. He is in the bank every other Saturday, alternating between informal constituent meetings he conducts with state Sen. Steve King.

Kettering was assigned to serve on four committees: Natural Resources, Environmental Protection, Judiciary, and Oversight and Communications. Although he hopes colleagues will seek his advice about banking issues that come up, he is not serving on any committees that will deal directly with banking. Potential conflicts of interest were a concern, he noted.

Kettering acknowledged that his largest reservation about running for office was the extensive time he would need to spend away from the bank. "I have an excellent staff and I rely on their judgment," he said. Kettering's brother, Mike Kettering who works in an affiliated insurance agency, is also picking up some of Steve's workload while he is in Des Moines.

Kettering, who serves on the board of directors of the Iowa Independent Bankers, said he is paring back some of his volunteer commitments during the session.

What are Kettering's long term political aspirations? "I am totally undecided about the length of service," Kettering said. "I very much support the concept of a citizen legislature."

Kettering already has made progress on issues important to him. He noted the House is set to vote on a bill which would propose a constitutional amendment to cap state spending in relation to projected revenues. The amendment also would require 60 percent of the House and Senate to approve any increases in state income tax. Currently only a simple majority is necessary. If approved by the legislature, Iowans would vote on the constitutional amendment next summer.

Kettering pointed out the state has a $900 million surplus and he will be working to return most of that money to taxpayers.