Branstad: Iowa poised for economic growth, educational transformation

Gov. Terry Branstad used his 17th Condition of the State speech Tuesday to call for bipartisan innovations this legislative session that will make Iowa a leader in job creation and school transformation.

“We must share the urgency of Iowans to revitalize our economy and improve our schools,” Branstad said in addressing a joint convention of the 84th General Assembly that was broadcast statewide and for the first time streamed live online.

“These are not empty aspirations. Rather, they are all part of a grand vision for restoring a healthy Iowa,” he noted.

The governor said the state's “much-improved” financial situation allows policy-makers to set their sights on several goals he established for his fifth term – creating new jobs and careers for Iowans to significantly raise family incomes and adopting “common sense” solutions for schools to give Iowa children a world-class education.

To that end, he proposed allocating $25 million to start a multi-year education reform effort, $50 million to launch a multi-year reduction in commercial/industrial property tax rates, and $25 million in incentives to attract and retain businesses as part of the fiscal 2013 budget plan he submitted to the split-control Legislature. He said the money is needed to make Iowa competitive in a worldwide economy by focusing state government's attention on two critical priorities: jobs and education.

“The combination of our strong agricultural, bio-science, manufacturing, and financial sectors means Iowa is better positioned than most states for economic expansion,” the governor said. “But I believe being better isn't good enough. I say we should strive to be the best.

“I am convinced that Iowa stands at the precipice of a major economic expansion. But that expansion is not guaranteed,” he added. “Our opportunity for unparalleled growth is like the opportunity a good Iowa field affords a farmer, but work must be done before a harvest can be reaped. Our job creators are ready, the question is are we?”

The governor said his four-point solution for developing permanent tools to grow Iowa's economy, create jobs and build careers seeks to reduce commercial/industrial property taxes by 40 percent over the next eight years while limiting growth in taxes for other property classes to 2 percent annually and limiting growth in local government spending to the yearly rate of inflation while providing $50 million annually in state “backfill” to cover potential losses in tax revenue.

“Passing our plan will give Iowa business owners permanent relief and a fighting chance to compete,” the governor told an assemblage where Republicans hold a 60-40 majority in the Iowa House and Democrats have a 26-24 edge in the Iowa Senate.

He also called on lawmakers to invest $25 million in the state's high quality jobs incentive program, help promote small businesses that supply key components to Iowa manufacturers to grow their facilities, and encourage the formation of Employee Stock Option Plans (ESOPs) to enable Iowa-grown businesses to stay in the state when they are put up for sale.

Turning to education, the governor called for more-rigorous testing of students, higher standards for the state's teaching corps, and boosting student reading skills early -- reforms aimed at creating high expectations for students with fair measures for results, instilling innovation that boosts learning, and promoting highly effective teachers and leaders in Iowa's public schools.

“Our state's future depends on whether the quality of our schools matches the best-performing schools anywhere in the world,” he said in launching a decade-long reform initiative. “The bottom line is education must be a greater priority for our state, because if our schools are not the best, then we will fail these young people and all those young Iowans who follow them.”

Included in his reform package was the establishment of a $10 million statewide literacy program aimed at having all students being able to read to learn by the third grade. Students struggling to read in the early grades would get extra help, and those who don't meet the requirements by the end of third grade would be retained.

Other components called for raising standards for entry into teacher preparation programs to include having at least a 3.0 cumulative college grade-point average, passing a pre-professional skills test in the top 75 percent nationally and ending seniority-based layoffs. Branstad also wants to require all 11th graders to take a college entrance exam, and to create end-of-course exams that students would eventually have to pass to graduate or, at least, have them factored into their grades.

“As we work together towards these goals, we must all remember that Iowans are holding us accountable. We have an obligation to exceed their expectations, and begin building on our foundation for growth,” the governor concluded.

“I believe our aspirations for a better tomorrow can and will ignite our capacity to innovate. So, let‘s innovate today,” he said.

HIGHLIGHTS

JOBS CREATION

• Reduce commercial/industrial property taxes by 40 percent over the next eight years
• Invest $25 million in High Quality Jobs Program that returns two dollars in new tax revenue for every dollar invested
• Encourage small businesses that supply key components to Iowa manufacturers to grow their facilities and create new Iowa jobs
• Incent the formation of Employee Stock Options Plans (ESOP) to encourage the sale of local businesses to keep them in Iowa

SCHOOL TRANSFORMATION

• First-year cost $25 million, funded with $17 million new revenue growth and $8 million in reallocations
• Require 3.0 grade-point average for admission into teacher preparation programs
• Require teaching licensure candidates to pass a test demonstrating content-specific and teaching knowledge
• Give all preschool students and enrolled 4-year-olds a kindergarten readiness assessment to determine early literacy and numeracy skills
• Require end-of-course exams in core areas of algebra, English, science and U.S. history for high school students
• Require all 11

  ^th

  grade students take a college entrance exam as pathway to postsecondary studies

• Assure kids can read by the end of third grade; end social promotion
• Base workforce decisions for teachers based on performance more than seniority
• Widen the pathway for starting charter schools
• Task forces to study teacher compensation and lengthy of school day/year issues and make recommendations for 2013 legislative session
• Reform effort likely will span 10 years with largest costs in out years still to be determined

Source: Gov. Terry Branstad's Condition of State address