Iowa Taxpayers Association

ECONOMIC DEVELOPMENT IDEAS AND MEA CULPA...

Yesterday, Former Governor Terry Branstad rolled out an ambitious plan to scrap the current Iowa Department of Economic Development and convert the agency to public/private partnership that will be named the Iowa Partnership for Economic Progress. The new partnership would be led by a Board of Directors. The Board of Directors would be chaired by the Lieutenant Governor under Branstad’s plan. If this plan has the “right” business model it could put Iowa in a position to more quickly compete for economic development projects, especially in a globalized economy.

See Des Moines Register article here

http://tinyurl.com/2a8lggt



Also see what other states have done in this area…

Sampling of public-private programs
The Iowa Taxpayers Association outlined these examples of quasi-government economic development private partnerships. The association is a nonpartisan research group representing more than 150 businesses.

INDIANA ECONOMIC DEVELOPMENT CORP.
It is Indiana’s lead economic development agency, established in February 2005 to replace the former Department of Commerce. The intention is for the corporation to operate like a business to respond quickly to the needs of businesses.

It is organized as a public-private partnership and is led by Indiana Secretary of Commerce and Indiana Economic Development Corp. CEO E. Mitchell Roob Jr. The partnership is governed by a 12-member board of directors chaired by Gov. Mitch Daniels. Membership reflects the geographic and economic diversity of Indiana. The organization focuses its efforts on expanding and retaining businesses in Indiana and attracting new business to the state.

OHIO THIRD FRONTIER
The nine-member Ohio Third Frontier comprises a commission of three state officials and six regional representatives appointed by the governor. The commission is responsible for allocating funds appropriated by the Ohio General Assembly.

There is also a 16-member Ohio Third Frontier Advisory Board that provides guidance to the commission. Members of the board represent industry, academia and government, and they advise on strategic planning, general management and coordination of Ohio Third Frontier programs.

RHODE ISLAND ECONOMIC DEVELOPMENT CORP.
The corporation is the full-service, official economic development organization for the state. A quasi-public agency, the corporation serves as a government and community resource to help streamline business expansion in, and relocation to, Rhode Island. The agency assists companies with commercial real estate, business financing, work-force training and other issues.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP
The Virginia General Assembly created the partnership in 1995 to better serve those seeking a prime business location and increased trade opportunities, fostering increased expansion of the commonwealth’s economy. As a state authority, the partnership is governed by a 21-member board of directors, made up of business people from around Virginia. Each is appointed by the governor and the General Assembly.

WYOMING BUSINESS COUNCIL
Creation of the council in 1998 dramatically changed Wyoming’s approach to economic development. Unlike the state’s previous economic development efforts, this organization has more of a corporate structure, incorporates private business practices to drive programs and has instituted regional offices throughout the state.

The state created the council to focus public and private efforts to build a strong job creation base with manufacturing and technology as core competencies, while strengthening existing business and industry groups under energy, agriculture, tourism and travel. The Business Council is part of state government, but its structure resembles a corporation, with a CEO and a board of directors. Each member of the board is a business owner from Wyoming.





This week has been interesting as the State Fair is in full swing here in Des Moines and the two gubernatorial hopefuls find themselves showcased.


Last week Former Governor Branstad visited The Des Moines Register Soapbox and on Monday Governor Culver visited the soapbox and gave a mea culpa on “mistakes” he has made while in office. Governor Culver specifically mentioned his lack of attention to scandals in the Iowa Film Office and the Alcoholic Beverages Division. Culver mentioned that he has “learned” from his mistakes.

See Kathie Obradovich’s blog post from the Des Moines Register

http://tinyurl.com/2ax2czq


ITA appreciates Governor Culver mentioning the detrimental affect that the Film Tax Credit Scandal had on overall economic development (and further categorizing it as a “mistake” to be learned from). However, we strongly believe that putting a strong emphasis on a budget blue print for the legislature to follow is important. For FY 2011, the ITA Committee on Accountable Government released its finding suggesting that the legislature work on its own because of an overreliance on an out of state consultant’s recommendations that provided undeterminable cost savings. See report below.

http://tinyurl.com/2ecfab6

There is no question that the 84th General Assembly (which meets in January of 2011) must work through some challenging budget scenarios. It is most important that the Executive Branch and Legislative Branch work together with all statewide stakeholders to ensure that Iowa’s priorities are being met while also streamlining the delivery of services by state government.