Stop state corporate giveaways

By Joe Bolkcom

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When it comes to creating jobs, Gov. Terry Branstad's favorite tactic is providing bigger and bigger tax giveaways to mega corporations. All too often, Iowa taxpayers and existing Iowa businesses are big losers.

The governor and his Economic Development Authority recently made the worst economic development deal in state history even worse. A few days ago, the governor's appointees handed out another $25 million in state tax dollars to the Lee County project for the ORASCOM fertilizer plant.

Total federal, state and local taxpayer support for this 165-job project is now at more than $500 million. That's more than $3.3 million per job!

Enough should be enough. Unfortunately, that's not the case here. Branstad is angrily defending his terrible decisions with name calling, inaccurate claims and promises of more handouts.

Iowa was never really in competition with Illinois for the ORASCOM plant. Only the Iowa sites had access to federal disaster bonds worth about $300 million to the company.

But then ORASCOM, one of the largest corporations in the world, bluffed the Branstad administration. In that original deal, the state of Iowa tossed in $110 million in state tax credits. Lee County added another $130 million by agreeing not to collect the plant's property taxes for the next 20 years.

Now, almost a year after the project was announced, the governor has thrown another $25 million in state tax dollars into the pot and is promising another $25 million next year!

Here's a better economic development strategy, one that focuses on helping Iowa businesses and Iowa workers. This spring, Democrats in the Iowa Senate led the successful, bipartisan effort to address the No. 1 concern of Iowa businesses: Iowa's shortage of skilled workers.

We invested $60 million in helping Iowa's community colleges work with local businesses so Iowans can fill existing job openings for skilled workers. We are helping Iowa businesses expand and grow while helping Iowa families move into the middle class.

There is plenty of agreement on what works with regard to economic development. Branstad should promote the fact that Iowa is a well-run state where businesses can find hardworking, intelligent employees and stable communities with good local schools, high-quality health care, safe communities and a balanced approach to taxes.

In the 2014 session of the Iowa Legislature that begins in January, a good start toward building a stronger state economy would be putting an end to the governor's colossal corporate tax giveaways.

 Joe Bolkcom, D-Iowa City, is a state senator. Comments: Joe.bolkcom@legis.iowa.gov