Next Big Thing Feels Like Same Old Game

We're on the brink of trading the Iowa Department of Economic Development for the Iowa Partnership for Economic Progress. It's the next big thing.

Still, it's tough to shake a feeling of been here, done that. Or, actually, haven't done that.

We've seen I-JOBS not create 30,000 jobs, and watched the Iowa Values Fund not create 50,000. We witnessed the Iowa Power Fund not transform this state into the “Renewable Energy Capital of the World.” Oh, the things we haven't seen.

Now, we're about to see IPEP not create Gov. Terry Branstad's promised 200,000 jobs and not raise incomes 25 percent. Sorry, but I've grown pretty cynical about government's ability to buy, bribe, “incentivize” or plead for jobs using our money. Every governor brandishes a shiny new gun, loaded, they insist, with the magic bullet of growth and prosperity. Then, they pulle the trigger and that little flag pops out of the barrel. “Bang.”

What's new is that IPEP will spawn a private, non-profit corporation to raise private dollars for development efforts. And at the top of IPEP's complex organizational chart is a seven-member, corporate-style board of business leaders, chaired by the governor, that will direct state development policy.

There's a lot of angst about the private entity. Backers say it will be more agile than government and better able to take risks on startups. State development Chief Debi Durham told me that private bucks can help these firms clear “the valley of death” between a good idea and financing.

I appreciate the valley, but what about the shadow? Durham was less than certain that donors to the non-profit would be made public. “I certainly don't have an issue with that. But I guess I'm not the one to really call that,” she said. “But I will make some inquiries about the most likely individuals who would be donating and see if they're willing to do that ...”

Transparency is a big worry, but it's also disappointing how much big new looks like same old. Taxpayer-funded programs like the Values Fund will simply be folded into IPEP. An influx of private cash will not mean a reduction in the use of tax dollars for incentives. Durham promises streamlining and innovation. But later. Not now.

It's still a highly centralized, top-down economic development approach dependent on incentives, tax credits and other pricey enticements. Its goal is new century agility, but its structure looks more like a diagram of the Titanic. I'd rather empower community and regional development efforts. Let local leaders decide how best to grow their regions.

As an Iowan, I hope IPEP is a smashing success. But I'm not spending my 25 percent raise just yet.