Iowa City Area Chamber of Commerce
2011 Legislative Agenda
Sponsored by VETTERS CULLIGAN WATER
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.
State Support for Quad Cities-Iowa City-Des Moines Passenger Rail Connection
Iowa has a unique opportunity to provide Amtrak passenger rail service connecting the communities of Des Moines, Iowa City and Quad Cities to Chicago.
The Iowa City Area Chamber of Commerce urges Governor Branstad and the Iowa Legislature to support passenger rail service to connect Iowa’s most populated corridor with Chicago. No immediate action is required of the Iowa Legislature.
Last fall, Iowa was awarded $79.9 million through a competitive US DOT High Speed Passenger Rail Grant Program (HSIPR) to extend passenger rail service from the Quad Cities to Iowa City.
Economic investment and job creation are critical to Iowa’s economic recovery. According to the recently funded HSIPR application, Iowa’s $2.565 million annual state contract will result in an $11.8 million annual return on investment and create 31 jobs each year. Iowa’s $20 million capitol match will result in $226 million return on investment and create 860 job-years during construction. Coordinating this project with the Illinois rail extension to the Quad Cities will provide significant project savings.
Economic impacts of the Iowa portion are estimated as follows:
- 860.0 job-years (one job lasting one-year during the construction period)
- 31.3 jobs during each year of operation of the passenger rail service
- $125.8 million in additional business output during construction, and
- $6.8 million annually during operation
- $57.9 million in total value added to the economy during construction, and
- $3.2 million annually during operation
- $42.2 million in employment income during construction, and
- $1.8 million annually during operation (all values in 2010 dollars)
Property Tax Reform
The Iowa City Area Chamber of Commerce encourages Governor Branstad and the 2011 Legislature to examine the current taxing structure and initiate comprehensive tax reform that will provide greater equity to Iowa businesses and stability to local government and the State of Iowa.
The current property tax system places a tremendous burden on commercial and industrial businesses and properties due to the residential rollback system. In fact, it has a negative impact on economic development initiatives throughout Iowa. A floor for the residential rollback should be established and it should not be allowed to further decline.