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Get moving on broadband access
Staff Editorial
Jan. 6, 2015 12:20 am, Updated: Jan. 6, 2015 7:51 am
Few statewide initiatives hold as much promise for rural economic development as broadband. For that reason alone, the simple foundation of Gov. Terry Branstad's proposal should be a priority for lawmakers.
Final action on the proposal, however, will be in Branstad's hands. The Governor and his staff must be willing to make the proposal more appealing to local governments.
Last year's initiative, Connect Every Iowan Act, would have resulted in estimated revenue declines for local governments of about $6 million per year. While potential economic development as a result of the improvements could offset these declines, the trade-off would not be immediate.
It remains to be seen if the executive branch is willing to modify this year's proposal, dubbed Connect Every Acre, to garner additional support, or guarantee at least a temporary state backfill of the missing revenue.
At issue last year were previous state revenue commitments resulting from property tax reforms, and we can't find fault in lawmakers who are intent on watching the bottom line.
We do argue, however, that reclassification of the property tax from multifamily dwellings (like apartment complexes) from commercial to residential is not a proven economic development strategy. Meanwhile, an abundance of evidence points to quality and affordable broadband as necessary for public and private sector growth.
In this instance, the possibility is worth cracking open the rainy day fund - or reverting or downsizing previously passed long-term revenue commitments.
To not find a way forward is unacceptable, and ensures Iowans will continue to experience a digital divide - something that hinders and handicaps the agricultural sector that drives nearly 30 percent of the state's economy.
Incentives - property tax related or otherwise - may or may not be a part of the final deal. Frankly, in this particular case we are more interested in achieving the ends than we are in debating the means; more interested in seeing progress forward than we are with driving the particulars of the debate.
Broadband is vital to Iowa's rural sectors, and it is obviously not something that can or will be accomplished without government intervention. So, if there is no room left in the budget for an incentive, tie rural expansion through a mandate to other telecom expansion.
Just get it started.
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