Business leaders seek lower property taxes, investments in rail

DES MOINES – A statewide alliance of business leaders is asking state lawmakers to scrutinize state government spending, lower commercial and industrial property taxes and invest in Iowa's rail system.

Those were some of the highlights of the Iowa Chamber Alliance's legislative agenda, which they laid out a news conference at the Statehouse Wednesday.

The alliance represents 17 chambers of commerce and economic development organizations in the state.

Debi Durham, chairwoman of the alliance and president of the Siouxland Chamber of Commerce, urged state official to scrutinize all expenditures and use principles used by businesses to reduce costs.

Durham cited a report by the Legislative Services Agency that predicts a roughly $1 billion gap between spending commitments and revenues in fiscal year 2011.

“Previous government reform committees have utilized both private- and public-sector expertise to develop recommended efficiencies which realize substantial savings without compromising needed services,” Durham said.

Lawmakers will begin crafting the 2011 budget when they convene in January.

Durham also outlined the chamber's position on labor issues, including its opposition to mandating wage rates for public construction projects or adding to the list of things that public-employee unions can negotiate in collective bargaining.

Bob Mundt, president and CEO of the Council Bluffs Area Chamber of Commerce, said Iowa's commercial and industrial property tax rates are not competitive.

He cited a report showing Iowa's urban commercial property tax rates were the second-highest in the nation in 2008. Mundt said Iowa should explore allowing counties and regions to develop a system that meets their specific needs and allowing voters to approve any changes.

Another option would be to form a commission to redesign Iowa's property tax system, allowing lawmakers and the governor to accept or reject it.

Dan Culhane, president and CEO of the Ames Chamber of Commerce, urged an investment in passenger rail service.

“We believe passenger rail service will foster economic development and provide energy-efficient, environmentally friendly motor transportation that will benefit all Iowans,” Culhane said.

He also called for an increase in funding to expand rail service to industrial parks, calling it critical for Iowa's economic development.

“More and more companies, as they work to trim costs, are seeking rail service to move raw materials and finish goods,” Culhane said.

The alliance is encouraging a revision of the formula allocating road use taxes so that a greater share is spent on Iowa's primary road system, allowing high-traffic areas to be funded first.

More information on the alliance can be found at www.iowachamberalliance.com.