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Position Statements
Iowa City Area Chamber of Commerce
2010 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.
2010 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 programs that will study the amount of biomass available for harvest as well.
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.
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Positions in Brief
The Iowa City Area Chamber of Commerce supports preserving Tax Increment Financing (TIF) as an economic development tool.
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.
Tax Increment Financing
The Iowa City Area Chamber of Commerce supports Tax Increment Financing laws that have made cities and communities more competitive for business and industrial growth. TIF districts stimulate an increase in the tax base for the long term and allow communities to compete for jobs, sales tax and tourism dollars. Any change in the current TIF legislation would further erode the tools local communities use to compete for business growth.
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.
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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.
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.
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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 maintain 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 future.
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 11% of Iowans do not have any type of health insurance 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 such as Health Savings Accounts, 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 clients’ 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 are 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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Position in Brief
The Iowa City Area Chamber of Commerce encourages the 2010 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.
Property Tax/Alternative Revenue Sources
It has been 31 years since the State imposed a residential rollback system, placing a tremendous burden on commercial and industrial businesses and properties. In fact, it has had 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.
The Iowa City Area Chamber of Commerce strongly encourages the Legislature to examine the current taxing structure and diversify available funding sources that will provide greater equity and stability in a revenue neutral manner, to local government and the State of Iowa.
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 effect 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.
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2010 Transportation
Key Infrastructure for Tomorrow’s Iowa
State Support for Quad Cities-Iowa City Passenger Train Connection
Iowa has an opportunity to provide Amtrak passenger train service connecting Iowa City to Chicago.
Last session, Iowa took steps to extend passenger rail service from the Quad Cities to Iowa City.
The Iowa City Area Chamber of Commerce urges Governor Culver and the Iowa Legislature to provide a funding support for the American Reinvestment and Recovery Act (ARRA) grant request supported by the Iowa Department of Transportation for improvements needed for passenger rail to Iowa City. Ridership estimates are projected at 70,000 rides per year. Passenger rail is especially favorable during these times of dwindling energy reserves and rapidly escalating gas prices.
Timing this project with the Illinois rail extension to the Quad Cities will provide great project savings, so immediate action is needed.
Funding Iowa’s Transit Systems
Iowa’s transit systems are in critical need of funds to replace aging fleets. This is an especially critical need in the Iowa City-Coralville and University of Iowa transit systems that accommodated more than 6.5 million trips last year, a number that is growing rapidly with escalating fuel prices. Among the Iowa City, Coralville, and the University of Iowa systems, 45% of their fleet needs replacing. The state needs to significantly increase funding for Iowa’s transit systems to provide transit capital funding.
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