Hollywood won't play Iowans for 'suckers,' Culver says

Iowans “will not be taken for suckers,” Gov. Chet Culver said this morning as promised to get to the bottom of alleged abuses of the state's generous tax incentives to lure film projects.

“Frankly I'm outraged not only that a program involving of millions of Iowa tax dollars was so mismanaged, but that some companies were taking advantage of the situation,” Culver said in a statement he read at a news conference in Cedar Rapids.

Culver froze state funding for the program until all question can be answered and “adequate oversight” has been resumed, he said. He has accepted the resignation of Mike Tramontina, the director of the Iowa Department of Economic Development (IDED) and his deputy. The manager of the film office has been dismissed.

“While we need to make changes to strengthen the management of this program, we are not going to be taken to advantage of,” Culver said. “And if we are, we will claw back and make sure money wrongfully provided is returned to Iowa taxpayers.”

Culver's administration is working to address allegations of lax oversight, potential abuses, administrative “irregularities,” and uncertainty over how much taxpayer money has been obligated for projects that contracted for the incentives – problems that forced the governor to suspend the tax credit program pending further review.

Despite suspending the funding pending further review, Culver predicted a “smooth transition.” His adviser, Richard Oshlo, has been named acting director and a deputy director will be named soon, Culver said.

Later, Culver said an interim director of IDED will be named.

“We won't skip a beat” in economic development efforts, Culver said. “If anything, we will be more efficient.”

Lt. Gov. Patty Judge was meeting with an important economic development prospect Monday, he said.