OSKALOOSA — Incumbent Democrat Tom Rielly faces off against Republican challenger Michael Hadley for the Iowa Senate District 38 seat on Election Day.

Rielly, of Oskaloosa, is finishing his first term as a state senator. Hadley, of Richland, is making his first run at a political office.

Both candidates see the economy and its impact on the state budget as the biggest challenge the state faces.

Rielly believes the state has weathered the turbulent stock market well.

“We’ve done a good job in preparing for a potential downturn in the market,” Rielly said. The state needs to respond in “a prudent fiscal manner.”

He said that some building- or prison-construction projects may have to be delayed out of fiscal necessity.

“We have to be sure to set our priorities right,” Rielly said.

Hadley sees the budget as the state’s greatest challenge.

“We’re facing the unknown,” Hadley said of the economy.

Hadley said the state faces a slight decline in revenue than what was projected and foresees budget cuts in the state’s future.

“It’ll be across the board,” he said.

The cuts would likely be small amounts, like 3 percent, but each department will have to determine what to cut, he said.

Rielly is running for re-election to continue the work he has done at the capitol.

“I want to finish the job I started,” he said.

“We took great steps for health care” with access to health insurance for kids, he said. Rielly also authored legislation that makes it easier for small businesses to obtain health insurance quotes.

“I’m really excited about work on the bio economy,” he said. Rielly said he helped form and shape legislation on renewable fuels.

Rielly has been campaigning on jobs, health care and education.

Rielly would like to put people to work rebuilding the state’s transportation infrastructure. He said the passage of TIME 21 is a good start for dealing with the state’s infrastructure.

“For way too long we’ve let our roads and bridges slide,” he said.

On health care, Rielly said gains have been made with the inclusion of students on their parents’ health care plans until age 25.

“That is going to make a difference in people’s lives,” he said.

Rielly said Oskaloosa’s early childhood education system should be a model for the state. The partnership between the Oskaloosa schools, the Christian school, Head Start and the community makes sure children get on the right track for education.

“We need to step up and support programs like this and follow through,” he said.

Rielly says his biggest achievement in office was his work on TIME 21, since he worked in a bipartisan, bicameral way to get transportation funding. Also, he is proud of his work for uniform health care insurance applications for small business. Applications have been reduced from 15 pages to four, he said.

Hadley is running for office because he now has the time to devote to the job.

“It’s something I’ve wanted to do for several years,” he said. “It’s the right time in my life.”

Hadley has been campaigning hard on the budget.

During the past two years, the budget has grown too much, he said.

Hadley also is a big supporter of biofuels.

“I am totally for biofuels,” he said.

Hadley says that no foreigner owns our land or owns our wind for wind energy. Those are “just about free energy,” he said.

Another issue Hadley touts is the state’s infrastructure.

Hadley said that many county roads across the state are “deplorable” because of potholes caused by a harsh winter and wet spring. He also said much work needs to be done on bridges across the state.

Another aspect of infrastructure that Hadley has campaigned on but does not get much attention is sewage systems. Heavy rains have overloaded many sewage systems and their contents have run into waterways, he said.

Health care for seniors is another issue that Hadley wants to work on. Iowa is ranked 48th on Medicaid funding for the elderly, and he wants to change that.

Herald Editor Duane Nollen can be reached by email at oskynews@oskyherald.com