Tramontina resigns DED post

Des Moines Bureau

DES MOINES – The state's economic development director has left his job effective immediately.

Gov. Chet Culver's aides said Friday afternoon that Mike Tramontina has tendered his resignation as director of the state Department of Economic Development and that the governor has accepted the immediate termination.

Given the sudden change, DED officials have been directed to report to Richard Oshlo, the interim director of the Iowa Department of Management while new leadership for the economic development agency is being consider, according to the governor's office.

Also Friday, the governor asked the chairman of the DED regulatory board to halt the approval of tax credits or other incentives for the film, television and video promotion program.

In a letter to Robert Bocken, leader of the state Economic Development Board, Culver said “I am also very troubled by information very recently received by our office that there have been insufficient procedures in place to assure a full and accurate accounting of expenditures made to enable persons to qualify for tax credits under the program.

“Therefore, until all reasonable questions about the administration of this program are answered, I ask that no further schedules of qualified expenditures be approved nor any further tax credit certificates be issued,” Culver said in the letter to Bocken.

The governor said he was confident Culver administration officials “can resolve pending issues efficiently and effectively, allowing us to move forward with this important program in a manner that is both consistent with the intent of this legislation and that protects the interests of Iowa taxpayers.”

Lawmakers, concerned over various state tax credit outlays, placed a $185 million cap on economic development program tax credits. Within that cap, DED officials agreed to limit tax incentives for the film, television and video program to $50 million in the current fiscal year.