Two new programs developed by the Iowa Department of Economic Development (IDED) were recently approved by the U.S. Department of Housing and Urban Development (HUD). The programs will utilize Community Development Block Grants (CDBG) funds.

The Equipment Reimbursement Assistance Program (ERAP) provides funds to aid in the purchase of equipment for businesses that owned their own building or leased rental space during the 2008 disasters.

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18,400 jobs lost since I-JOBS signed into law

With President Obama and Governor Culver touring the State of Iowa trumpeting their borrowing schemes as the end to the recession and the fuel that will revitalize the struggling economy, unemployment in Iowa and nationally remains abysmal. If the state and country is in recovery mode – as the Governor and President proclaim – it is a jobless recovery.

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As the House adjourned the 2nd session of the 83rd General Assembly, the House Republican Research Staff put together an end of session wrap-up of notable bills in all committees.

2010 End of Session Wrap-up

Having awarded $799 million to Iowa for recovery from the 2008 natural disasters, the federal government performed a routine audit on the use of some of those funds. Specifically, they reviewed the State’s Jumpstart Business Assistance program and the roughly $14.9 million that program spent in Cedar Rapids.

The audit notes that “the Iowa Department of Economic Development (DED) was tasked with administering the disaster recovery activities of the State.” In regards to the Jumpstart program, it was to offer forgivable loans to businesses who reopened their doors within 12 months. The maximum loan was 25% of a disaster loan from an eligible lender, up to $50,000. DED contracted with the City of Cedar Rapids to administer the Jumpstart program. The City ended up subcontracting with the chamber of commerce for administration of the program.

The audit from the Inspector General’s office made two conclusions. First, the State provided disaster assistance fund to businesses without supporting their eligibility for funding. Second, the State failed to check for duplicate benefits before awarding disaster assistance funds.

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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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