Conditional Random Fields (CRFs) are often estimated using an entropy based criterion in combination with Generalized Iterative Scaling (GIS). GIS offers, upon others, the immediate advantages that it is locally convergent, completely parameter free, and guarantees an improvement of the criterion in each step. GIS, however, is limited in two aspects. GIS cannot be applied when the model incorporates hidden variables, and it can only be applied to optimize the Maxmimum Mutual Information Criterion (MMI). Here, we extend the GIS algorithm to resolve these two limitations. The new approach allows for training log-linear models with hidden variables and optimizes discriminative training criteria different from Maximum Mutual Information (MMI), including Minimum Phone Error (MPE). The proposed GIS-like method shares the above-mentioned theoretical properties of GIS. The framework is tested for optical character recognition on the USPS task, and for speech recognition on the Sietill task ...