Branstad hears ideas to spur jobs, economy

Help in getting small businesses started and better connected with export markets, relief from taxes on commercial property, and scaling back perks for part-time legislators were among the suggestions Governor-elect Terry Branstad got from Iowans Tuesday as he shapes his 2011 legislative agenda.

About 80 people showed up at the local library to present ideas on jobs and the economy to Branstad and future Lt. Gov. Kim Reynolds during the second day of their fact-finding tour to get Iowans help on achieving their goals of creating 200,000 jobs, raising Iowans' income by 25 percent, boosting educational performance and easing corporate and commercial property taxes over the next five years.

One participant told the governor-elect that it was fitting he chose the “darkest time of the year” to conduct his Dec. 21 hearing because the outlook is dark for many Iowans struggling through the recession and high unemployment. Branstad said it was “just a coincidence” that the meeting took place on the first day of winter when the daylight hours are in short supply.

The incoming governor, who is slated to start his fifth term when he is inaugurated Jan. 14, offered some bright news by telling the gathering that Iowa's jobless situation at 6.6 percent is “getting modestly better” and he said he already is getting contacts from business prospects looking at creating jobs in Iowa even before he takes the oath of office.

“We are making a number of calls and we do have a number of prospects. We're very excited about that. We're trying to hit the ground running,” he said.

Branstad said some of the uncertainty for businesses was eased with the federal tax compromise that was recently struck, noting that “the timing is good for us to really move aggressively forward on our economic development program.”

Larry Miller, a retired businessman, expressed concern that there was less emphasis in Iowa in connecting small companies with potential foreign markets, something Branstad said he hoped to rekindle with the help of a new trade agreement with South Korea and his plans to lead a trade delegation there next year to tap that “tremendous potential.”

Branstad said he hopes to spur small business development by waiving state corporate taxes on start-up businesses for their first three years and providing tax credits to employers who defray some of the college costs of prospective employees to help fill “skill gaps” in some job areas. He also said he was concerned about slipping test scores in math and science among Iowa's students.

Former state Rep. Betty Grundberg, R-Des Moines, said Iowa Workforce Development needed to do a better job of training and retraining Iowans with disabilities and worried that Branstad's plans for means-tested preschool assistance would hurt middle-class families that may not be able to afford both preschool and day-care services. She also questioned whether benefits for state legislators could not be scaled back given that their main work period spans four to five months given their part-time status.

Branstad and Reynolds planned to shift their focus by starting a series of issue briefings with policy experts beginning Thursday with sessions on agriculture and Medicaid.