Turning Iowa’s current stretch of high unemployment toward a more optimistic path with more jobs, economic growth and prosperity in all 99 counties will require Iowa to become more competitive. In this global economy, we are not just competing against our neighboring states – but with countries from all around the globe.
Several publications and news organizations have recently taken a look at Iowa’s standing compared to the other 49 states. For example, US News & World Report noted that Iowa is 49th in the nation – only ahead of West Virginia – and the very reputable Small Business Survival Index placed us at 41st.
Iowa did receive some better news recently. CNBC released a survey showing Iowa as sixth in the nation overall and first when it comes to ‘cost of business’. They also factored in other important areas like cost of living and quality of life among others.
However, a closer look reveals just how tenuous their ratings of our state really are.
According to CNBC, “Cost is a major consideration when a company chooses a state. We looked at the tax burden, including individual income and property taxes, business taxes, even the gasoline tax.”
On each and every one of these important issues of importance to employers and job creators, Governor Culver and legislative Democrats either succeeded or made a serious attempt to undermine Iowa’s competitiveness and make us less attractive to job creators. Since a year ago, CNBC has already dropped Iowa’s overall ranking.
Here are a few quick examples:
Governor Culver and legislative Democrats made a serious push to end federal deductibility which is a tax on a tax.
Democrats tried to strip away Iowa’s Right-to-Work status and fundamentally gut Iowa’s collective bargaining policies.
Legislative Democrats and Governor Culver knowingly failed to couple Iowa’s tax code with the federal code therefore producing a massive income tax increase especially on flood victims and teachers.
Governor Culver and legislative Democrats opted against fully funding education allowable growth, thus forcing more of the financial burden on to the backs of local property taxpayers while simultaneously authorizing the four largest spending budgets in state history.
Democrats sponsored bills to begin combined corporate reporting of income taxes which would seriously punish job creators.
Legislative Democrats, with the support of Governor Culver, nearly passed a job killing prevailing wage that would have substantially increased the cost of public construction projects and would have lead to even higher property taxes.
Several prominent Democrats in the Legislature made an aggressive attempt to raise gasoline and fuel taxes during the last few years.
CNBC also factored in utility costs, noting that “utility costs can add up to a huge expense for business, and they vary widely by state.”
Democrats were silent when Iowa’s onerous regulations imposed by Governors Vilsack and Culver’s appointees to important commissions and boards caused Iowa to lose a $1.7 billion dollar clean coal energy plant near Marshalltown. This plant would have increased Iowa’s base load capacity, created private sector jobs and stimulated the local economy.
Many legislative Democrats also were vocal opponents and ultimately voted against a study that could lead to the construction of a clean energy nuclear power plant in Iowa.
CNBC “also looked at the cost of wages and state workers’ compensation insurance, as well as rental costs for office and industrial space.”
Like the other important issues of importance to job creators, they also attempted to negatively tamper with Iowa’s superior worker’s compensation insurance system by pushing doctor shopping legislation that punishes job creators, increases business costs and reduces the quality of health care for Iowa workers.
Iowa already has some of the highest property taxes in the nation and Culver’s recent property tax increase is about to hit the pocketbooks of Iowans this September. Those increases will up the cost of renting or buying office and industrial space.
At nearly every turn, Governor Culver and legislative Democrats have tried to systematically undermine every one of these important economic indicators and make our state less competitive and less attractive to entrepreneurs, employers and job creators.
Had Republicans in the Legislature with the assistance of an informed and active public not stood up and stopped much of the wayward Democrat agenda during the last four years, it is scary to contemplate where our ratings could have ended up.
This is why it is important that we begin to renew the promise of a more hopeful and optimistic Iowa and change the direction that Governor Culver and legislative Democrats have tried to take our state the last few years. Higher property taxes, unacceptable levels of unemployment, a quintupling of state debt and a billion dollar deficit on the horizon does not equal progress.
It’s time to get back to making long-term private sector job creation a priority, it’s time to get serious about putting Iowa’s finances back on solid footing and it’s time to end the anti-jobs and higher taxes agenda that are burdening our families and making it more difficult for job creators to invest in our state and workforce.
With the right leadership in place, a flourishing future for Iowa can be achievable. Senate Republicans stand ready to offer that leadership in order to move our great state forward.
The Iowa Farm Bureau has put out a video discussing the growing costs of property taxes and the out-of-control spending happening at all levels of government.
I would encourage you to watch this video and share it with all of your friends and family.
No issue is more important to Iowans right now than the issue of jobs and the health of our economy.
With unemployment in Iowa at the highest level in nearly a quarter century, tens of thousands of people are underemployed and many families are adjusting to wage and benefit reductions, Iowans are looking for a clear, broad based and realistic plan to grow Iowa’s economy and put more of our fellow citizens back into long-term sustainable private sector jobs.
Unfortunately, that kind of vision and leadership has not existed with Chet Culver in the governor’s office and Democrats in charge of the Legislature. There has not been a plan to move our state forward when it comes to permanent private sector jobs. Instead, they’ve created an eye-popping legacy of irresponsible spending and generational debt now known as I-JOBS which has amounted to spending $1.7 billion dollars of borrowed money over 30 years to create temporary government make-work.
When the plan was introduced in 2009, Culver promised it would create 30,000 jobs. A year later, Governor Culver told reporters with The Des Moines Register it would create “hopefully hundreds if not thousands” of jobs. Then earlier this week, the Iowa Democratic Party released a statement reversing Culver’s revised prediction by guaranteeing the program “will create 30,000 jobs and secure Iowa’s economic future.”
None of that has happened and I-JOBS is an expensive failure. Since the plan was unveiled, numbers from Iowa Workforce Development show Iowa has actually lost over 30,000 jobs. In 2009 alone, 222 factories closed their doors.
As it turns out, none of the promises or predictions have been based on reality and such instances have developed into an alarming trend with this administration. Culver continues to be in denial about the health of Iowa’s finances and fails to recognize that Iowa faces a billion dollar deficit next year. Our savings accounts have been depleted to dangerously low levels, our state debt has quintupled and property taxpayers face massive tax increases this fall.
I think you will agree: it’s time for fresh leadership.
When it comes to private sector job creation and getting Iowa’s finances back on solid ground, Senate Republicans believe it is time to offer real time-tested solutions that will move Iowa forward and open the doors of renewed prosperity in every Iowa community. Many Senate Republicans are current and former employers who know first-hand what it takes to create jobs and provide opportunities.
Here are 5 big ideas that will make Iowa again a state where jobs and prosperity can flourish:
Stability and Commitment
§In these challenging and uncertain economic times, Iowa employers, small businesses and entrepreneurs need stability and commitment from policymakers that they will not impose massive tax and regulatory changes that will substantially affect their bottom line. Simply put, they need to be confident that government will not “rock the boat” and imperil their financial security and ability to hire more people. Economic growth is dependent on certainty and we have not had that since Democrats took control.
Responsible Budgeting
§We cannot afford to continue to have more government than our economy can support. For four years, we have violated the state’s 99 percent spending limitation by spending more money than our state has taken in. It leads to unbalanced budgets, record deficits, generational debt and higher taxes and fees. All of which stymie job creation. The record during the last four years under Governor Culver and legislative Democrats is a past we cannot afford to repeat.
Property Tax Relief
§Iowa already has some of the highest property tax rates in the nation and that is about to get much worse thanks to Governor Culver. His property tax increase will take effect in September will hit families and employers hard. Even if you rent property, it’s a good chance your landlord will pass that added expense on to you. We believe we need real property tax relief to help stimulate job creation in Iowa.
End the Anti-Jobs Agenda & Remove the Barriers to Job Creation
§In this global economy, we are not just competing against our neighboring states – we are competing with countries from around the globe. Iowa must become more competitive but that will not happen if we adopt much of the anti-jobs agenda that has been discussed during the last four years. Whether it be the repeal of federal deductibility, radically changing our workers compensation system, altering collective bargaining or allowing a price-fixing prevailing wage, all of these ideas make Iowa less attractive. Even discussing these bills and others like them in the Legislature has sent the wrong message and had a chilling effect on job creation.
Provide Immediate Economic Adrenaline and Plan for the Long-Term
We know we can experience a 99 county resurgence. Iowa is filled with promise because we have wonderful people in welcoming communities who have a burning passion to build a better Iowa for their families, friends and neighbors. We must begin to change direction, reignite the entrepreneurial spirit of the private sector and welcome the new economy of tomorrow. Let us again put our faith in the people to move Iowa forward instead of allowing government to hold us back.
Before we can run, we must learn how to walk.Before we can walk, we must learn how to crawl.
Governor Culver, late last week, issued a declaration claiming the actions utilized last winter to re-organize state government through an executive order, legislative action and an early retirement program would save $298.8 million over two years instead of his original estimation of $270 million.
Unfortunately, there was little evidence to substantiate his claims since he did not utilize numbers produced by the non-partisan Legislative Services Agency. Instead, he chose to use figures produced internally by his own office. Given the serious financial mess the state is in – we can only hope his new estimates are accurate and not heightened for political purposes.
Make no mistake, the efforts taken this year to re-organize state government are only just a small first step – you might say we have begun to crawl. Unfortunately there is a long road yet to travel. Because of too much spending during the last four years by Governor Culver and legislative Democrats, Iowa still faces a $1 billion dollar deficit next year.
A recent report by State Auditor Dave Vaudt shows why we are in the alarming predicament that we find ourselves. Prior to Governor Culver and legislative Democrats coming into power, the state was spending approximately $1.01 per $1.00 that was coming into the state. Since Governor Culver and his fellow party members have taken over, the state has been spending approximately $1.13 for every dollar coming in.
Clearly Iowa does not have a revenue problem – we have a spending problem. During the last four years, we have seen the four largest spending budgets in state history. We have seen hundreds of millions of dollars in property tax increases and a quintupling of state debt. Without fundamental and systemic reforms, Iowa could become like California with serious structural deficits.
So where do we go from here?
First, we must stop spending beyond our means. This has become a serious problem during the last four years and it is simply unsustainable. Much of this year’s spending was one-time dollars used for ongoing expenses and now Iowa’s savings accounts are dangerously low. Unless President Obama and Congressional Democrats opt to pass another bailout for the overspending states, Iowa will not be able to continue spending at the rate we have been.
Secondly, we must continue to take steps to trim the size and scope of state government and continue to remove the waste and duplication that exists. We should start by adopting the over $300 million in additional savings offered by Senate and House Republicans during the last two years. Legislative Democrats either ignored the ideas or simply voted them down during debate.
Next, we must stop pushing more of the burden on to the taxpayers. Iowans all over the state will see hefty property tax increases courtesy of Governor Culver this fall. Even if you only rent your property, the person or business that owns it will likely pass that extra expense on to you. Iowa already has some of the highest property taxes in the nation. We cannot afford not to be competitive if we are to grow our economy.
Perhaps most importantly, we must focus on job creation and growing our economy. Right now, we have far more government than our economy can support. Creating an environment where small businesses and employers can thrive, succeed, grow and therefore hire more people is absolutely essential. Unbalanced budgets leading to higher taxes and the constant onslaught of anti-jobs legislation promoted by Governor Culver and legislative Democrats have not moved Iowa’s economy forward and instead have held it back.
The good news is that the debate in Iowa is slowly beginning to change. For the past few years, the liberals in charge of state government have only focused on spending more money, raising more taxes and fees, adding record levels of debt and promoting job killing legislation.
Finally, the discussion is slowly beginning to change. At last, we are starting to see some dialogue about actually reducing and reorganizing government – even if it is only just a small first step.
It’s time to speed up the process but that will take new leadership.
As soon as we begin to act on the Senate Republican priorities like job creation, reducing property taxes, really limiting the size and growth of state government and eliminating wasteful spending, it will be exciting to see the success our state and our citizens can attain.
We have 99 counties worth of potential and with the right priorities, the right leadership in the governor’s office and in the Legislature, it won’t be long until we can turn our current crawl into a walk and then a run.