On September 21, 2010, the Department of Iowa Workforce Development announced that there are 900 more Iowans looking for work than last month, 9,300 more than August 2009. Today, there are 114,200 Iowans, or 6.8% of the civilian workforce, without a job.

From July to August, nonfarm employment in Iowa lost a net total of 2,800 jobs. The sectors of the economy that experienced the biggest hits were government, trade/transportation and leisure and hospitality. If there is anything positive to take away from the latest report it is that Iowa’s manufacturing sector showed a slight increase adding 1,200 jobs in the last month.

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With the national unemployment rate consistently hovering around 10%, and all but acknowledging his economic policies enacted thus far have failed, President Barack Obama has proposed a new “jobs” initiative. Earlier this week, Obama made announcements outlining his latest stimulus plan.

The proposals seek to spend $50 billion on transportation infrastructure to repair roads, railways, runways and modernize the FAA air traffic control system, permanently extend the federal research and development tax credit, and permit businesses to deduct immediately 100% of any new investments they make from now through 2011. Typically, the federal research and development tax credit is extended by Congress on an annual basis and currently businesses are able to deduct capital purchases over a period of three years or 20 years, depending on the investment classification.

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On Thursday, September 2nd, the Department of Iowa Workforce Development announced Iowa’s unemployment trust fund is again in trouble, which means taxes on employers will increase to ensure its solvency and cover unemployment benefit payments.

On January 1, 2010, the mandatory unemployment trust fund contribution rates paid by Iowa employers increased for the first time in eight years. Not even a year later, employers are being told they will again have to open up their checkbooks, because on January 1, 2011, unemployment taxes are scheduled to rise. The increase is a result of the poor economic conditions in Iowa, the driving force behind record high unemployment and unemployment compensation claims.

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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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