Job creation, education backed by Lt. Gov. Judge

Jan 28, 2010 — Creston News Advertiser

Tyler Ellyson

Jan. 25, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Job creation and retention and investment in the state's youth will be critical for Iowa's future. Both are part of Lt. Gov. Patty Judge's and Gov. Chet Culver's "Moving Iowa Forward" plan.

Judge was in Creston Friday to discuss budget and legislative priorities for 2010 laid out in the plan.

Speaking in front of community members and students at Southwestern Community College, Judge addressed the problems Iowa has seen with flooding and unemployment over the past two years, and provided goals for keeping the state afloat during these tough economic times.

"These are not challenges that we created," said Judge, who compared the current recession to the 1980s farm crisis.

"They are certainly not challenges we would have chosen. I'm very confidence that as Iowans we will meet those challenges together."

A major part of reversing current economic trends in the state involves creating new jobs. This is where the state's infrastructure investment initiative, I-Jobs, is expected to help.

The $830 million, three-year investment was signed into law May 14, 2009, with the intention of creating new jobs statewide while fixing roadways and community infrastructure.

Funding for the initiative comes from a state bonding package that is expected to be repaid with gambling revenue instead of a rise in taxes.

"I-Jobs is not a new concept," Judge told the crowd. "This is not something the governor and I dreamed up on the back of a napkin."

While Judge touted the advantages of I-Jobs, some questioned the number of jobs actually being created.

An unemployed man in attendance Friday said he had seen no signs of additional jobs in the area. Others feel the program has only created temporary construction jobs.

"There is nothing wrong with working construction," Judge said of the temporary or part-time positions. "Those are good jobs and they create paychecks. Those paychecks get spent in Creston, and that helps everybody."

Judge was unaware of the exact number of jobs created through I-Jobs, but said an Iowa Finance Authority and Workforce Development report with these numbers will be available later this month.

Instead, Judge focused on the long-term benefits infrastructure improvements will provide the state while saying she hoped they would also lead to permanent positions in the workforce.

In Union, Adair, Adams, Ringgold, Taylor and Clarke counties, more than $11 million has been awarded to 63 projects through I-Jobs. Of this funding, approximately $9.5 million went to state, county and city road and bridge repair.

When asked about the state's ability to repay bonds issued for I-Jobs despite slumping casino intakes, Judge said they were "very comfortable" with the level of gambling revenue coming into the state, adding there should be money available to repay other funds.

According to figures from the Iowa Racing and Gaming Commission, gambling taxes and fees paid to the state this fiscal year by the 17 state-licensed casinos totaled approximately $143.8 million through December. There have also been recent talks among state lawmakers that could expand gambling within a casino, which could mean millions of more dollars for the state.

About $100 million in I-Jobs funding has yet to be allocated. Part of the "Moving Iowa Forward" plan calls for some of this money to go toward flood recovery. Statistics show Iowa has a long ways to go before reaching pre-recession levels.

According to Iowa Workforce Development, the state's unemployment rate did fall from 6.7 to 6.6 percent from November to December of last year, but 110,800 Iowans in the labor force remain unemployed. Iowa's unemployment rate was 4.4 percent in December 2008.

But, the lieutenant governor didn't stop the job-creation discussion at I-Jobs.

Plans also include funding the Iowa Power Fund to create green-collar jobs in the renewable-energy sector.

"It's making us the nation's leader in renewable energy," said Judge. "We simply must continue that investment and create those renewable-energy opportunities across our state."

Other goals are to help businesses through the Iowa Department of Economic Development's Iowa Values Fund, and fully fund Iowa Workforce Development and community colleges' jobs-training programs.

"It is here that workers are going to learn new skills so that they will be able to compete in the marketplace today," Judge said. "People need more training in virtually any job that they are looking for today. We want to be sure that Iowans have those, and those tools that they need."

This is good news for SWCC, which offers skills-training programs to prepare employees for the workplace, as well as a program that works with employees of companies that are downsizing or closing to discuss future options.

"We've been doing a lot of that," said SWCC President Dr. Barbara Crittenden.

As a result of this program, SWCC saw an 18 percent increase in enrollment between fall 2008 and 2009, according to Crittenden.Judge said she and Culver are committed to "putting everything they can" into the state's community and private colleges and Regents universities.

Additionally, Judge said legislators are being encouraged to fund a $15 million commitment to the quality-preschool initiative and 2 percent allowable growth for school districts, take $100 million from state reserves for use in kindergarten through 12th-grade education and pass "Race to the Top" legislation that could provide $175 million to Iowa schools.

"Our kids success is really what determines the future," said Judge, who answered a question about back-filling the 10 percent state cut to preschools by saying the idea is "very much up in the air."

Legislation has already been signed by Culver requiring Iowa's school districts to use cash reserves instead of raising local property taxes in an attempt to recoup funding lost after an across-the-board 10 percent budget cut in October.

"We're not asking any school district to bankrupt themselves," Judge explained. "There are levels there in place that allow schools to maintain reserves for their essential needs, but there are many schools that have excess reserves that can be spent down."

While saying what happens this fiscal year will define Iowa over the next decade, Judge acknowledged there is a lot of work to do during the 66 days remaining in this abbreviated legislative session.

"We will not stop fighting to move our state forward," said Judge. "We are going to make this century Iowa's century."

Other items in the "Moving Iowa Forward" plan include:

--Children's health-insurance expansion: Continue investment in HAWK-I, which provides discounted or free health insurance for children under the age of 19 in low-income, working families, will be suggested.

"It is our goal that every child in the state of Iowa will be covered by health insurance," said Judge, adding that 52,000 children statewide have benefited from HAWK-I.

--Tax-credit reform: By acting on recommendations made by the Tax Credit Review Panel the state could save up to $55 million.

--Keeping Iowa's roads safe: An attempt will be made to fund the Iowa State Patrol and Department of Public Safety using non-general fund sources.

--State-government reorganization and efficiency: Implementing the remaining recommendations from the Government Efficiency Report could save nearly $1 billion over the next five years. Also, a bill that would reorganize state government using an outline made in the Appel/Mascher proposal could be debated and passed this session.

--Iowa flood recovery: Hopes are to fully fund the Rebuild Iowa Office, which has secured $3.6 billion in disaster-relief funds.

--Supporting Iowa troops: This would involve passing a supplemental appropriation for the Department of Public Defense and providing funds necessary for Iowa National Guard troops to be deployed overseas.

Newstex ID: KRTB-0414-41601616