Iowa business leaders unveil 2011 legislative wish list

Key business leaders from Iowa's largest cities Wednesday called for transforming state government and the way it spurs economic growth by enlisting private-sector concepts to streamline programs and regulations that will enhance Iowa's business environment and job creation.

Representatives of the Iowa Chamber Alliance – a non-partisan coalition representing 16 chambers of commerce and economic development organizations in Iowa – unveiled their policy proposals and initiatives they hope the Legislature and Governor-elect Terry Branstad will consider during the 2011 session to encourage business growth and create jobs while stimulating local economies and revenue growth in the process.

“This is clearly a challenging time and Iowa must be more innovative,” said Alliance President Ken Anderson, who also serves as president of the Marshalltown Area Chamber of Commerce, during a Statehouse news conference where officials detailed their 2011 legislative wish list.

“If we change our approach to economic development and fix some specific areas of legislation that stymie business growth, it can spur economic growth,” he added. “When local businesses are doing well and hiring, other companies looking to expand will seek out Iowa communities. It creates a snowball effect when companies are generating revenue that can be reinvested in programs that strengthen businesses and further educate the workforce.”

The alliance's plan for stimulating economic growth included calls for easing commercial property tax burdens, simplifying state income taxes, reducing state corporate income tax rates, reshaping the distribution formula for road use tax fund proceeds, promoting the expansion of passenger rail service in Iowa, strengthening Iowa educational system and links to career paths, and scrutinizing all state budget expenditures to maximize efficiency and effectiveness.

“All across our state we're seeing change, change, change,” said Robin Anderson, executive director of the Mason City Area Chamber of Commerce, however, she noted that many aspects of state government continue to function the way they did 20 years ago. She said government at all levels must analyze their operations and fundamentally transform the way they deliver services using collaboration and focusing on results while maintaining transparency.

Ken Anderson said a number of the proposals mirror the goals of the incoming Branstad administration and the newly configured Legislature, but he conceded “the devil is in the details” as far as transforming policies into practice.

“We've very encouraged that we can have a very proactive session which can lead with some success that lines up with our agenda. We do feel like the climate is more conducive and lines up with our agenda,” said Anderson, following a Nov. 2 election in which Republicans took control of the Iowa House with a 60-40 majority and closed Democratic control of the Iowa Senate to a 26-24 majority.

The alliance likely will have strong allies within the new administration given that the group's outgoing executive director, David Roederer, is helping guide the transition of executive power and is Branstad's pick to be his director in the state Department of Management, and Branstad's choice as his economic development director is Debi Durham, currently the president of the Sioux City Chamber of Commerce and the Siouxland Initiative.

“I think they're going to have a good year next year,” Roederer said of the alliance's planned legislative agenda, but he noted there “could be some difference on tactics” to achieve their desired outcomes.

Dan Culhane, president and chief executive officer of the Ames Chamber of Commerce, said his organization supports Branstad's approach to making economic development a partnership of leaders in the public and private sectors looking to identify and remove barriers to growth, why improving returns on investments and focusing more on regional outreach. At the same time, he said the alliance would like to see the new administration maintain the current “tool box” of state incentives that insist in keeping, expanding and attracting businesses and jobs that may be subject to a cost-benefit analysis by Branstad officials.

Branstad has not yet indicated whether he will proceed with plans to bring passenger service to Iowa that will connect Chicago to the Quad Cities, Iowa City and eventually Des Moines, but Nancy Quellhorst, president and chief executive officer of the Iowa City Area Chamber of Commerce, said she remains hopeful the proposals will become a reality.

“We're appreciative for the study that Governor-elect Branstad will undertake and we think that once he sees the data, the data will be there to make a solid case for this,” she said. “This is a one-time opportunity to leverage a very small amount to realize a gain for the good of the state. It will not only connect us to the city of Chicago but it will connect us as Iowans.”

The alliance initiatives also called for continuing funding and removing caps on Vision Iowa funding sources for community attractions, tourism and river enhancements, as well as continuing to fund the Great Places program and strengthening workforce training efforts.

Roederer said the Branstad administration is encouraged by interest among House Republicans to provide tax relief for commercial property owners without negatively impacting other property classes.

“The problem is we need to come up with a system that is not shifting, and therein lies the problem,” he said. “If you take the current system and then just try to readjust it, somebody's going to have to pay more. What we're saying is there another way of looking at this where you may be able to phase something in with new construction for commercial and we're not sure.”

The alliance members include chambers and economic development organizations in Ames, Burlington/West Burlington, Cedar Falls/Waterloo, Cedar Rapids, Council Bluffs, Des Moines, Dubuque, Fort Dodge, Iowa City, Marshalltown, Mason City, Muscatine, the Quad Cities, and Sioux City.