Hopefully the coming attractions will hold the attention of Iowa policymakers and the public as much as the feature now playing.
As the Iowa Fiscal Partnership (IFP) notes in a statement today, Iowans must follow more than the investigation of the state’s film-credit program and a report from a consultant about its operation over about six weeks.
Iowa’s entire tax-credit buffet for businesses demands scrutiny — especially when the Governor is anticipating budget cuts. Any considertion of spending cuts must put all spending on the table, including spending through the tax code. According to IFP:
These are terribly difficult budget times for the state of Iowa. Everything needs to be on the table, including indirect spending through the tax code. The film credit program needs every bit as much scrutiny as other spending, but so do all tax preferences to businesses. We have been heartened by the call of Governor Culver and others, including some of the state’s leading newspapers to seek a full review of more than just the film tax credit. The governor and state legislators must follow through to assure taxpayers are getting a good deal when we tell some firms that they need not pay taxes.
Iowa policy makers must recognize the problems with accountability that this investigation has exposed. We just don’t know enough about what state tax money is being used for, and that’s a problem with more than the film credit. As we have shown, and as Department of Revenue research has confirmed, Iowa hands millions of dollars every year to big corporations through the research activities credit. But the recipients, and the use of the money, have not received scrutiny from the legislators who have allowed this to happen.
We must not miss the overarching policy questions by limiting new oversight only to the film credit. All Iowa tax credits should be on the table with other spending choices, not just the film credit program.
“Follow-through” is the operative concept in the IFP statement. The Governor and the General Assembly took two important steps at the end of the last legislative session to promote better transparency and accountability for tax credits. They approved legislation to (1) cap a package of certain tax credits managed by the Department of Economic Development, including the film credit, at $185 million; and (2) to assure a public report on recipients of Research Activities Credit subsidies of more than $500,000, and amounts, to provide scrutiny while not hindering competitiveness for those recipients.
Taxpayers deserve to know how public money is being spent. Plans for a full review of tax credits is essential for sound fiscal decisionmaking.
A critical problem with Iowa tax credits is a lack of transparency.
Governor Culver acted responsibly Friday by ordering a suspension of the state’s film tax-credit program pending further investigation of irregularities in the management of the program.
A critical problem with the film credit and many other economic development tax advantages offered to industry by the state of Iowa is a lack of transparency. State lawmakers and the public for the most part have no idea whether current tax breaks — which are typically granted as corporate entitlements — are actually performing as intended.
The initial investigation has exposed the film credits, as currently in place, as a boondoggle that is draining our state treasury. Further, this is coming at a time when our state leaders are anticipating budget cuts. All spending — including spending through the tax code — needs to be on the table when considering cuts to the budget.
Those taking advantage of apparent lax management of the film-credits program may indeed be ruining it for other filmmakers who have not done so. Nevertheless, there is no justification for continuing this program while all the problems with it are being sorted out, and while education and fundamental human services are threatened with budget cuts.
[The Iowa Fiscal Partnership is a joint budget and tax policy analysis initiative of two Iowa-based nonprofit, nonpartisan organizations, the Iowa Policy Project in Iowa City and the Child & Family Policy Center in Des Moines.]
It’s a familiar refrain in the office each month when we put together our analysis of Iowa’s latest job numbers: There sure are a lot of numbers!
That’s an understandable reaction. Too many numbers can obscure the message, something we consider in our analysis of public policy issues at the Iowa Policy Project.
So, we try to strike the right balance. How many numbers do we need to tell the story — accurately and in context?
Goodness knows these days, too many people out there will torture numbers to extremes if it helps their message. We prefer to review the numbers and then figure out what the message should be.
This month, as IPP Executive Director David Osterberg noted in his comments in our news release, “Good news is hard to find in these numbers.” There was only a 200-job loss in nonfarm jobs in August — but even that good news came with a major downward revision in the previous month’s numbers. July’s job loss, previously reported at 2,400, is now recorded at 4,400.
Furthermore, those numbers show Iowa:
has lost payroll jobs in 11 of the last 12 months. (See graph at right.)
has shown a net loss of 49,400 nonfarm jobs in that same period — 28,000 of them in manufacturing.
has seen its unemployment rate jump to 6.8 percent in August from 4.2 percent a year earlier (an increase of over 60 percent).
And we could go on, with lots more numbers. And as long as they help to tell the story, we will do that.
But they will only tell the story if we always keep in mind that those numbers represent people — Iowans, our friends and neighbors — and the places they can go to work and support their families.
We can’t wait until those numbers start looking better, month after month. That will make it a little easier when we look at our first draft and say, There sure are a lot of numbers!
As I begin my final year at the University of Iowa’s graduate program for Urban and Regional Planning, I have been fortunate to join the Iowa Policy Project as a part-time research assistant. This opportunity allows me to integrate my interest and experience in public policy with fact-based research and analysis. Given public confusion and misperception regarding such critical issues as health care, taxes and the environment, objective research is vital to ensure government accountability and citizen engagement. I am very pleased to be able to assist in this important work.
As a volunteer at the Iowa Policy Project last spring, I helped former research associate Beth Pearson to determine the benefits of home weatherization for low-income Iowans. Additionally, I helped to compare how alternative versions of climate change legislation could promote or harm public welfare. The research skills I gained from this experience have been invaluable, and I hope to build upon them throughout the coming year.
Under the guidance of Peter Fisher and other members of the wonderful IPP staff, I will look at the effects of the American Recovery and Reinvestment Act on Iowa’s economy. I also plan to take a hard look at Iowa’s budget allocations throughout the year and the rising cost of living within our state. It is my hope that this research will help to spark good ideas and influence important public policy. As the challenges and prospects facing Iowans evolve during this time of economic uncertainty, the Iowa Policy Project’s work is more important than ever. I am both honored and excited to be a part of the IPP at such an exciting time, and I look forward to my year here.
IPP bids farewell to outeach coordinator Kristi Lohmeier, who brought our good research into view for advocates and policy makers across Iowa. Good luck toward your Ph.D., Kristi!
Lily French is taking over outreach coordinator duties for IPP. She may be reached at (319) 338-0773 or firstname.lastname@example.org.
“All my bags are packed I am ready to go….”
I can’t help having this song running through my head right now, as I prepare to leave the Iowa Policy Project and my fantastic job as Outreach Coordinator.
As the inaugural Outreach Coordinator for the Iowa Policy Project and its umbrella organization, the Iowa Fiscal Partnership, it is with mixed emotions that I pack my office up and drop off the keys. I am leaving the organization that has given me so many incredible experiences, so many wonderful friends and colleagues and so much knowledge of the remarkable state I live in.
My sadness comes from departing the world of policy analysis and making the work relevant and digestible to an audience we rely on to carry our messages of fairness and equity.
My happiness, however, comes from knowing what will become of the position I have worked so hard to create. That position, and those responsibilities, will be all the more improved with Lily French taking the reins.
Lily has been working at the Iowa Policy Project since April of 2008 and in her time she has been in the role of Research Associate, doing ground-breaking research that has had her traveling all across the state discussing policy analysis around economic opportunity issues for low- and moderate-income working Iowans. She will take over my duties officially as of July 30, 2009. Please contact her at email@example.com to become a part of this exciting transition at IPP! She would love to talk to you!
My appreciation is never ending for the staff at the Iowa Policy Project who took a chance on a hire with a steep learning curve relating to analysis of tax and budget policy, and energy and environmental policy. I couldn’t have had the amazing experiences I have this last 2 1/2 years had it not been for a forbearing, supportive work environment that allowed me to thrive, explore new things and develop a fire for policy analysis and advocacy in Iowa that will carry me through my next great adventure: working toward my Ph.D. at the University of Iowa’s School of Social Work.
It has been a pleasure representing the Iowa Policy Project and working with a whole community of constituents to get good ideas made into great policy. I am sure our paths will cross numerous times in the future, so until then, best of luck to you all!
Give people access to higher education and a myriad of benefits will surface for individuals and the state of Iowa.
Our new report on the return on investment of workforce education shows the benefits and potential benefits from such investments.
At each level of education beyond high school, Iowans work and earn more. For example, those with a bachelor’s degree earn on average $7.26 more an hour than those with only a high school diploma. Families headed by a parent with a college education are also much less likely to live in poverty — and better set to recover in hard times from a job loss.
So, whether you look at unemployment rates, wages, or poverty, it is undeniable that education pays for Iowans. It also pays for the state, because better-educated people on balance earn more, and pay more in taxes, which benefits the state budget.
Our analysis finds that investing in postsecondary education for low-income adults returns tax revenue more than double the state’s program costs. The return: $3.70 in increased tax revenue for every dollar invested in an associate’s degree for low-income adults, and $2.40 for every dollar invested in a bachelor’s degree.
Other strong reasons support investments now in workforce education:
First, the declinine in wages for less-educated workers means more Iowa families are struggling to cover basic living expenses;
Second, Iowa will face a labor shortage in the future due to our state’s slow population growth and the impending retirements of the baby boom generation; and
Third, employers in Iowa had already identified a shortage of a skilled workers as a problem before the recession, and the top 10 fasting growing occupations in our state all demand workers with postsecondary education.
To summarize, Iowa needs an increase in skilled workers to grow our economy after the recession ends and families in Iowa need higher wages to fully support themselves.
With forward-thinking policy moves now, Iowa can increase education and training opportunities for low-income adults, improving their futures and those of all Iowans who will benefit from a stronger economy.
Wow, what an event. Friday afternoon, the Iowa Policy Project hosted an open house and FRIENDraiser at our new office in Old Brick.
We packed the office with friends and supporters. Guests had the opportunity to meet and talk with IPP staff, old IPP staff greeted longtime friends and new staffers were able to meet many of IPP’s friends and supporters.
The event was an opportunity for IPP to show off our new, spacious office. The organization has increased from five to nine staff members in just two years, so our old space was getting a bit cozy.
Our new space has several private offices, a research room and a separate conference room which was dedicated in honor of IPP co-founder Mark Smith.
Mark helped found IPP in 2001 in collaboration with IPP’s Executive Director, David Osterberg. Mark is perhaps best known as former president of the Iowa Federation of Labor, AFL-CIO. For 34 years, Mark worked tirelessly in education, organizing and advocacy for Iowa’s working families.
A short presentation included remarks by David about IPP history and Mark’s contribution to the organization as well as Mark’s remarks about the founding, work and expansion of the Iowa Policy Project.
The event was open to the public. Attendees included past and present members of the IPP board, friends and supporters of IPP’s work and several of our nearby elected officials: Congressman Dave Loebsack, State Senator Joe Bolkcom of Iowa City, State Representative Nate Willems of Mount Vernon, and Johnson County Supervisor Rod Sullivan.
Many, many thanks to those of you who took the time to come and speak with us, see our new offices and make donations in support of our work. We truly appreciate it.