Iowa City Area Chamber of Commerce
2008 Legislative Agenda
The Iowa City Area Chamber of Commerce’s Legislative Council and subcommittees have formulated positions on issues to foster a better business environment. The Chamber Board of Directors subsequently approved these statements.
Position statements have been formulated for each of the following categories:
For more information about how to submit an issue for consideration or about the Chamber’s efforts in each of these areas, please contact Rebecca Neades, vice president, public policy at (319) 337-9637 or by e-mail.
2008 Agribusiness/Bioscience
Invest in Iowa’s Resources
Positions in Brief
The Iowa City Area Chamber of Commerce supports expanded production and use of renewable fuels, such as ethanol and biodiesel, and especially supports legislative action to bring new methods of fuel production using new feed stocks, such as cellulose, to Iowa.
The Iowa City Area Chamber of Commerce supports offering incentives to businesses, homeowners and schools, if they use biomass stoves as a fuel-efficient energy source to heat their facilities.
The Iowa City Area Chamber of Commerce supports programs that will study the amount of biomass available for harvest as well as programs that provide tax credits for producers who harvest biomass and deliver it to a processing plant for the purpose of conversion to energy or higher value products.
Background: Iowa as an Energy Leader
In the challenging climate of increasing energy costs, there is an opportunity to further Iowa's lead in the production of renewable fuels. The Iowa City Area Chamber of Commerce encourages a partnership of state, non-profit and private sector research, development and deployment of new energy technologies.
Biofuels Incentives
The Iowa City Area Chamber of Commerce supports the establishment of a tax credit up to 25 percent of the cost of a biomass stove, which is spread over five years for the installation and usage of stoves with at least 40,000 BTUs. The credit should also include stoves that are fueled by corn kernels, wood pellets, switch grass or multiple bio-fuels.
Biomass Incentives
A $10/ton credit would provide adequate support to push farmers to harvest biomass in addition to traditional crops and stimulate the development of cellulosic ethanol transport logistics.
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2008 Economic Development
Fueling Iowa’s Economy
Positions in Brief
The Iowa City Area Chamber of Commerce supports preserving Tax Increment Financing (TIF).
The Iowa City Area Chamber of Commerce endorses a comprehensive economic development fund, such as the Iowa Values Fund, to improve Iowa's competitive business position.
The Area Chamber supports maintaining funding at currently authorized levels for the Iowa New Jobs Training Program (260E), the Iowa Jobs Training Program (260F), the Accelerated Career Education Program (260G), the Workforce Development Fund, and increased funding for the workforce training and economic development fund (260C.18A) all delivered through Iowa’s community colleges.
The Iowa City Area Chamber of Commerce supports increased state funding for the University of Iowa‘s Oakdale Research Park and Center for Advanced Drug Development.
The Iowa City Area Chamber of Commerce encourages the Governor and Legislature to restore Small Business Development Center funding to previously provided levels by increasing financial support to $1.2 million.
The Iowa City Area Chamber of Commerce supports the recommendations contained in the paper entitled, “Meeting Iowa’s Workforce Challenge” prepared by the Iowa Works Campaign.
The Iowa City Area Chamber of Commerce supports additional funding for the Community Attractions and Tourism Fund.
Background
The Iowa City Area Chamber of Commerce encourages economic development in Johnson County and in the state of Iowa. Recruiting, retaining and growing the business and industry sectors are challenging endeavors facilitated by cooperation. The area Chamber’s economic development priorities are preserving Tax Increment Financing, supporting workforce initiatives and investment in Regents' economic development. A sound economic growth policy for the Iowa City area is a sound policy for the Technology Corridor and the state of Iowa.
Iowa Values Fund
The Iowa City Area Chamber of Commerce encourages the Governor and Legislature to preserve the Iowa Values Fund or similar program as an important tool for job creation and economic growth in Iowa. Iowa needs to focus its efforts on encouraging business growth and creating new opportunities. Many economic development programs have been shifted into the Iowa Values Fund and reliable programming is imperative when recruiting business.
Job Training Programs
The Iowa City Area Chamber of Commerce supports efforts being made to overcome Iowa’s shortage of an available and skilled workforce and encourages legislators to give priority to the development, funding and promotion of workforce development initiatives. The Skills 2006 Technology Corridor Report conducted in 2003 and scheduled to be updated this year continues to underscore the urgent and long-term need for an available and skilled workforce in our region. Investment in Regents Economic Development and Technology Infrastructure, The University of Iowa‘s Oakdale Research Park and Center for Advanced Drug Development are essential for growing and recruiting new business ventures in the Iowa City – Cedar Rapids Technology Corridor and are core elements of the Regents’ Universities program to stimulate economic growth in Iowa. Small Business Development Center Funding The Iowa City Area Chamber of Commerce supports Small Business Development Centers (SBDC) as a valuable foundation in the growth and support of Iowa's entrepreneurs. The Grow Iowa Values Fund, along with continuing legislative support, has strengthened this important resource across Iowa. The Iowa City Area Chamber of Commerce recommends that the Grow Iowa Values Fund dollars be directly allocated as a budget line item addition for the Iowa SBDC network. SBDC Center Directors should use valuable counseling time for existing and would-be business owners instead of the current requirement for SBDC Center Directors to fundraise for local support.
Workforce Development
“Meeting Iowa’s Workforce Challenge” calls for the implementation of broad, coherent, and well-integrated workforce investment and systems change strategies that target high-growth, high-skill industries and provide access to education and training that leads to good jobs for all Iowans.
Community Attractions and Tourism Fund
The Iowa City Area Chamber of Commerce supports a fund that encourages creative economic stimulus opportunities by improving community infrastructure and quality of life expenditures. Communities need resources to build community attractions that will enhance the quality of life for their residents, encourage relocation into the area and make them more attractive places for people to visit.
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2008 Education
Educating Tomorrow's Workforce
Positions in Brief
The Iowa City Area Chamber of Commerce urges the Governor and Legislature to support an increase in Allowable Growth.
The Iowa City Area Chamber of Commerce urges the Governor and Legislature to provide additional resources to the University of Iowa for academic programming.
The Iowa City Area Chamber of Commerce urges the Governor and Legislature to fully fund an Iowa intermediary network to be replicated across the state.
Allowable Growth
The Iowa City Area Chamber of Commerce endorses legislation that would establish an adequate and reliable percentage for allowable growth for schools in the state. Allowable Growth is NOT a proportional increase in state aid. Allowable Growth is only a measure of the increase in the per pupil revenue a district receives. The actual cash to fund Allowable Growth is provided from both property taxes and state aid.
Iowans depend on a strong public education system. Expecting high student achievement with inadequate resources is unrealistic. Allowable Growth is the primary vehicle that provides revenue to pay for salaries and benefits, utilities, textbooks, and school supplies. Our public schools require the resources necessary to provide our children with the best possible education so they are prepared to be productive citizens in our communities. An increasingly competitive global economic market demands that we continually work to improve educational opportunities for Iowa’s students.
Support for University of Iowa Academic Programs
The Iowa City Area Chamber of Commerce supports the Board of Regents request to provide additional resources enabling the University of Iowa to meet its goal of maintaining and improving academic programs. The University of Iowa has been identified as one of the best values in higher education in America. It is an essential resource to the State.
Iowa’s Intermediary Network
In the 2005 Legislative Session, Rep. Dave Jacoby introduced a bill that became HF 858 and was unanimously passed and signed into law. This bill created the policy framework and a fund to enable the model of intermediary work, known as The Workplace Learning Connection, to be replicated as a peer network of practice across the state. The convening of potential partners began in November 2006 and was funded by the Iowa Departments of Education, Workforce Development, and Economic Development, as well as several major corporate partners. The creation of a funding stream, per the description in HF 858, in the 2008 Legislative Session would provide the necessary funds to truly bring the Iowa Intermediary Network to scale and capacity. The amount requested is $600,000, which would provide $1 per child in kindergarten through 12th grade to be used to develop the program in each community college region plus additional system-building funds for technical assistance, training, and convening.
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2008 Health and Human Services
Caring for Iowa
Positions in Brief
The Iowa City Area Chamber of Commerce supports legislation to make health care more accessible and affordable to businesses and their employees. The Iowa City Area Chamber of Commerce urges the state to increase its Medicaid reimbursement rates.
Background
The Iowa City Area Chamber of Commerce believes that to maintain a healthy and productive workforce and to preserve vibrant communities in Iowa, it is imperative to address health and human service needs. This includes assuring both financial and geographic access to services. The Governor and the Legislature must adequately fund their fair share of these services as well as facilitate affordable opportunities for private sector solutions. The future of Iowa depends on the people who live here. Investments in health and human services are an investment in Iowa’s futures.
Access to Health Care
Healthy Iowans 2010 (Iowa Department of Public Health) reported that the proportion of persons without health care coverage is a strong measure of access to health care. Estimates indicate that approximately 9% of Iowans do not have any types of health care coverage. While Johnson County has the greatest proportion of licensed health care professionals per capita of any county in Iowa, some providing uncompensated care, there remain many persons who cannot afford to access the services available. There are some safety net services available, such as the Iowa City Free Medical Clinic, but their patient load has more than doubled since the mid-1990s and they are not nearly able to meet the existing and emerging need.
While positive steps have been taken, vulnerable populations remain uninsured. Assisting business in meeting health care needs of their employees and families will provide an overarching benefit to our communities. Establishing an effective mechanism to provide access to care to all persons in Iowa will save financial and human resources that can be applied to other areas of need.
Medicaid Payments
Iowa’s Medicaid program exists to provide access to health-related services for needy Iowans. In many cases, it permits people to grow up to be or remain healthy and productive members of society. In all cases, it reflects the commitment Iowa has for caring for the citizens of our great state.
Funding for Medicaid comes from both the Federal and State government. For every dollar Iowa puts into the program, the Federal government puts in approximately two. Hence, unlike most State expenditures, Medicaid permits Iowa to extend the benefit of every dollar it invests.
The providers who serve Medicaid clientele care deeply about meeting their needs. This becomes increasingly difficult, however, when Medicaid payments consistently fail to keep pace with increasing costs. These same providers also employ thousands of workers within Iowa who rely on their paychecks to make purchases and support Iowa’s tax base. While the amount Medicaid can pay for services is capped, Iowa is not at the limit, even though the Federal government will subsidize every dollar Iowa invests to get to the limit. Iowa needs to take advantage of bringing additional dollars into the state by increasing its Medicaid reimbursement rates to preserve access to services for needy Iowans and to reduce the cost-shifting that falls on others to make up for Medicaid’s low rates.
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2008 Local Government
Comprehensive Tax Reform Now
Position in Brief
The Iowa City Area Chamber of Commerce encourages the 2008 Legislature to initiate comprehensive tax reform.
The Iowa City Area Chamber of Commerce supports a revenue neutral tax reform with the elimination of federal deductibility and a decrease in the marginal rate.
Background
Property tax is the principal source of revenue for local governments. The need for a more consistent and stable property-tax system that will allow local governments to practice sound financial planning is past due.
It has been 29 years since the State imposed a residential rollback system, placing a tremendous burden on commercial and industrial businesses and properties. A floor of 50 percent for the residential rollback should be established immediately. This would allow the Legislature some time to examine the strengths and failures of the current system. The present method of coupling the taxable value of residential with that of agricultural land has not kept pace with the growing economy. In fact, it has had a negative impact on economic development initiatives throughout Iowa. For the past several years, the Chamber has been told by the Legislature that change is needed and the entire taxing structure needs to be examined, yet nothing moves forward. The Iowa City Area Chamber of Commerce strongly encourages the Legislature to examine the current property taxing structure and make appropriate changes that will provide greater equity and stability to the State of Iowa.
The Iowa City Area Chamber of Commerce supports a revenue neutral tax reform with the elimination of federal deductibility and a decrease in the marginal rate.
Income Tax Reform
Communities in the State of Iowa are hampered by Iowa’s marginal tax rates being higher than neighboring states. The actual taxes paid are not necessarily higher, however, because of the federal tax deductibility on the Iowa tax return. Economic development professionals feel that their recruiting efforts are hampered by the higher marginal rate. It is difficult to explain the affect of federal deductibility. The Iowa City Area Chamber of Commerce encourages the governor and legislature to eliminate federal deductibility and decrease the marginal rate to better depict Iowa’s tax rates.
Preserve Tax Increment Financing
Position in Brief
The Iowa City Area Chamber of Commerce supports the use of Tax Increment Financing as an economic development tool.
Background
The Iowa City Area Chamber of Commerce supports preserving Tax Increment Financing (TIF) as a flexible local economic development tool. The use of TIF can be a catalyst to add millions of dollars in property value for taxing jurisdictions and it can spur economic growth at the local level. Additional benefit from economic activity includes increased state revenue collection through sales and payroll taxes. TIF must be preserved as a flexible tool because economic development projects are site specific and companies select a specific site or building for their project. Actions by the legislature on TIF that are restrictive in nature will severely impact the ability of cities to expand and attract businesses.
Enable Local Governments to Serve Their Citizens
Position in Brief
The Iowa City Area Chamber of Commerce urges the Governor and Legislature to pass legislation that permits local control of smoking in public places.
Background
Numerous studies have found that tobacco smoke is a major contributor to indoor air pollution, and that breathing secondhand smoke causes disease, including heart disease, stroke, respiratory disease, and lung cancer, in healthy nonsmokers. Secondhand smoke (also known as environmental tobacco smoke) is a Class A carcinogen containing more than 4,000 chemicals, of which 200 are known poisons and 50 are known to cause cancer. Secondhand smoke kills 50,000 to 60,000 Americans every year from heart disease and lung cancer. The U.S. Surgeon General has determined that there is no safe level of exposure to these products, and in many instances the damage caused is irreversible. The U.S. Centers for Disease Control and Prevention has issued a warning that anyone at risk for heart disease should avoid entering smoke-filled environments, and employees should not be forced to risk their health through exposure to dangerous and deadly toxins in their workplaces. However, at present, neither cities nor counties in Iowa are permitted to enact regulations to protect their citizens.
Throughout the rest of the country, local and state governments have successfully passed smoke-free air laws, and these actions have resulted in declines in disease and deaths related to exposure to smoke.
Permitting local control of smoking in public places will enable individual communities to implement ordinances and regulations supported by their citizens.
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2008 Transportation
Key Infrastructure for Tomorrow’s Iowa
Positions in Brief
The Iowa City Area Chamber of Commerce urges the state legislature to fund the TIME-21 initiative and follow the recommended distribution plan to repair and enhance Iowa’s highway infrastructure.
The Iowa City Area Chamber of Commerce recommends that $5 million in capital funding be provided annually to the Iowa Department of Transportation for distribution on a need-based formula to Iowa’s transit systems
The Iowa City Area Chamber of Commerce believes the legislature should also provide significantly more funding in support of other non-highway passenger and freight transportation networks in Iowa. This should include money for enhanced passenger train service, freight railroad infrastructure, commercial and general aviation airports and multi-use trails.
Background
Iowa’s transportation network will be the key to future growth and economic vitality for our community and the rest of Iowa. A comprehensive, multi-modal systems approach on local, regional, state and federal levels is essential to ensure continued prosperity for our communities and their businesses. All forms of transportation have a significant role in serving the transportation needs of our citizens and our visitors. The Iowa City Area Chamber of Commerce believes the private sector must work in partnership with governing bodies to provide for appropriate long-term transportation infrastructure needs.
Transportation Investment Moves the Economy in the 21st Century (TIME-21) Funding
The Iowa Legislature required the Iowa Department of Transportation to conduct a study of the current Road Use Tax Formula (RUTF) revenues and projected construction and maintenance needs. The December 2006 study found Iowa on the verge of a transportation crisis. Flattening revenues, dramatically increasing construction costs, aging infrastructure, increasing usage and deferred maintenance all are causing the state’s transportation needs to grow exponentially. The report recommends that current revenues use the existing RUTF while new transportation funds should be found and distributed through a formula (60% state, 20% cities, 20% counties) that better enhances and supports Iowa’s rural and urban economies. The report recommends that the minimum amount of new funding required to meet the most critical needs to Iowa’s economy is $200 million per year.
Funding Iowa’s Transit Systems
In addition to Iowa’s highway infrastructure needs, the state’s transit systems are in critical need of funds to replace aging fleets. This is an especially critical need in the Iowa City-Coralville area where more than 5.7 million trips were made last year, a number that is growing rapidly with escalating fuel prices. The increase in the average age of fleets is caused in part by the fact the state currently provides no transit capital funding.
Funding Additional Non-highway Transportation Networks
This additional financial support is especially critical during these times of dwindling energy reserves and rapidly escalating prices. Iowa needs to be a place where travelers have choices of modes, including modern, timely, common-carrier services. Expanding our trail network increases livability for residents and enhances tourism opportunities. Support of the freight system helps Iowa companies remain competitive in shipping costs. If the State of Iowa continues to underfund these areas, we will be short-changing future Iowa residents.
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