From Republican Leader Kraig Paulsen:

The House Economic Growth Committee concluded its final committee meeting of the session by inviting Iowa businesses to testify on Iowa’s business climate. This idea was included in the House Republicans’ job creation plan rolled out last fall. The meeting marked the first time the Economic Growth committee engaged in an in-depth discussion with the private sector on the struggles facing Iowa businesses as they work to jumpstart the economy and create jobs.

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On Wednesday, February 24, 2010, the House Economic Growth Committee concluded its final committee meeting of the session by inviting Iowa businesses to testify on Iowa’s business climate. The meeting marked the first time this session the committee engaged in an in depth discussion with the private sector on the struggles facing Iowa businesses as they work to jumpstart the economy and create jobs.

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80,000 Iowans were out of work at the beginning of 2009. Currently, we’re approaching 115,000 Iowans out of work. In 2009, runaway state government passed budget-busting ideas and bonded its way into debt all in the name of “job creation”, only to end up with even more Iowans out of work.

Throwing taxpayer money at the problem didn’t work.

This year, Republicans have proposed a four-point plan for job growth.

• Create a favorable climate for job growth
• End the assault on employers
• Stop property tax increases headed for families and businesses
• Ensure tax credit reviews don’t result in tax increases

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On November 3, 2009, Governor Chet Culver released his second campaign ad of the year titled: “Stronger than Ever.” The ad highlights the “tough” decisions Governor Culver has made throughout his first term in office and proclaims that “Iowa is one of the best states to do business.” However, a recent survey of the business climate here in Iowa by a nonpartisan organization reports otherwise.

Earlier this month, the nonpartisan, nonprofit Small Business and Entrepreneurship Council released its 14th annual analysis of the public policies affecting the business climate in each state and the District of Columbia. After collecting their data they then ranked each state on 1 – 51 scale (one being the best business climate and 51 the worst). “The 2009 Small Business Survival Index: ranking the policy environment for entrepreneurship across the nation” has ranked Iowa 41st.

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The House Republican Staff put together analyses on the Governor’s Across the Board cuts. They can be found under their respective committees in the Bill Analysis section of the site or clicked on from the list below:

10% Across the Board Cut Analyses
Administration and Regulation ATB Cut Analysis
Health and Human Services ATB Cut Analysis
Economic Development ATB Cut Analysis
Natural Resources ATB Cut Analysis
Transportation ATB Cut Analysis
Education ATB Cut Analysis

In order to implement a Fiscal Year 2010 10% across the board cut, the Governor has once again asked his agencies to compile a list of items they can do without. Fortunately for Iowa taxpayers and the state legislature these ideas have been published online. A few of these new ideas can be found in last year’s House Republican plan. Others seek to eliminate jobs, consolidate responsibilities and reduce services.

A summary of the cuts submitted by agencies to comply with the 10% across the board reduction in the Economic Development bill include cuts for the following: Iowa Workforce Development, Cultural Affairs, Economic Development, and the Office of Energy Independence (Power Fund). The cuts are as follows:

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House Republican Leader Kraig Paulsen (R-Hiawatha) issued the following statement in response to the program review of the Iowa Film Office:

“It is outrageous that the executive branch has been administering this program for two years in violation of the laws passed by the Legislature.

“Regular Iowans are not allowed to sidestep the law and state government cannot be allowed to either.

“This is another example of why House Republicans offered proposals last year to provide a more open and transparent state government. Regrettably, these were defeated in the Senate.”

A few weeks ago, the Department of Iowa Workforce Development announced Iowa’s unemployment trust fund is running low. As a result, mandatory contribution rates from Iowa’s employers will increase for the first time in 8 years beginning January 1, 2010. Iowa Workforce Development estimates 60 percent of Iowa’s 80,000 employers will be affected by the change.

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Today House Republican Leader Kraig Paulsen (R-Hiawatha) joined Sen. Paul McKinley in requesting the Government Oversight Committee address the Iowa Film, Television and Video Project Promotion Program at their upcoming meeting on Thursday, September 24th. The Republican Leaders sent a formal request to the House Democrat leadership as well as the Oversight Committee leadership.

“The governor’s lack of oversight and failure to properly manage the film tax credit has not only put the program in jeopardy but already wasted millions in taxpayer money. Republicans will work to bring more transparency and openness to this initiative, ” said House Republican Leader Kraig Paulsen.

The full letter is available after the break…

Iowa’s Jobless Rate: It’s Getting Worse!

Four months ago the Democrat controlled legislature approved the largest spending package in Iowa’s history in addition to borrowing over $800 million leaving Iowa taxpayers with a bill a little under $2 billion. It was sold as the answer to Iowa’s economic troubles. Now that the dust has settled and the Governor’s reckless bonding scheme “I-JOBS” is underway, Iowa’s economy continues to tank as unemployment climbs.

On August 21, 2009, Iowa Workforce Development announced Iowa’s unemployment rate has increased yet again, reaching its highest level since 1986. The jobless rate in Iowa is now 6.5%, up from the 6.2% reported last month. Last year at this time Iowa’s unemployment rested at 4.1%. Today, over 109,000 Iowans are out of work, 5,600 more than last month and nearly 40,000 more than one year ago a 57% increase. The manufacturing sector continues to bear the brunt of the impact, shedding 4,800 more jobs in July. Iowa’s manufacturing industry has lost more than 30,000 jobs in the last year. All this announced just prior to the unfortunate news that Cummins Filtration will eliminate 400 filter assembly jobs in Lake Mills and send them to Mexico. While Iowa’s private sector is forced to tighten its belt during these difficult economic times, state government continues to grow adding 700 positions in the last year, 200 last month alone.

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