Are Iowa’s economic development efforts appropriate?
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It was an unprecedented year for economic development efforts in Iowa, with the state paying out tens of millions of dollars in tax benefits and loans to nearly 70 companies that promised to create about 2,000 jobs.
The deals included two huge fertilizer projects, each involving capital investments exceeding $1 billion. Companies receiving state incentives overall pledged to spend $3.7 billion in the state to build new facilities or expand existing businesses, but critics question whether the money spent per job created is an efficient use of taxpayer money.
The state spent about $12 million on loans to companies expanding or locating in Iowa during the year, according to Iowa Economic Development Authority records. The agency did not immediately have a breakdown of tax credits awards offered this year alone, but said it made more than $151 million in tax credit awards in 2011 and 2012.
Read the story linked above for more details. In 2012, did the state of Iowa pay too much, not enough or about the right amount of taxpayer-backed incentives to new or expanding companies who promised to add jobs?
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What planet is the Gazette from, this isn’t even a question that requires any thought at all. Obviously, the millions of dollars being spent are not going to insure decent long term employment for anyone. They are political plumbs being plucked by the party in power much the same as the Brain Dead deal to bring IBP to Iowa, then complain about the illegal immigrants who populate those work forces. Not to mention, use it to go after voters who possibly might be illegal and at the same time disenfranchise many who are legal and of voting age who quite possibly would vote for the other side!
What planet, Mr Hanken? Quite possibly Planet Branstad where running an auto race through downtown Des Moines is considered “economic development”.
It was the “Ruan Grand Prix” and it was a disaster. And if you recognize the name then you know exactly why this counter productive waste of taxpayer money got dumped on Des Moines.
I’m from Chicago and quite frankly I find Iowa shocking. Back home, our crooked politicians end up in jail. Here they get re-elected
Bah humbug
“Back home, our crooked politicians end up in jail. Here they get re-elected”
Ha ha ha ha ha ha ha. Oh you crack me up. IL is the home of corruption and guys getting re-elected without any problems. We should question what planet you’re currently residing on.
I’m sorry, but with the amount of taxes being charged by IL right next door, we should be spending very little to get companies to re-locate here.
You do understand, Mr Abernathy, that your second post contradicts your first post.
If Branstad is spending way too much luring Illinois companies over the river, then either Branstad is a crook and taking kickbacks, or Branstad is very very very stupid
Roberta, I am with you (again). It seems that John A will defend “anything” any repub ever does even if it involves hurting every Iowan. He rarely ever says anything that is actually going to help our great state or country. Keep up the good stuff.
Deasy,
Thanks.
I really think Iowans are at a disadvantage when it comes to political corruption. Iowans have convinced themselves that political corruption doesn’t happen here so when it does happen, they don’t recognize what they’re looking at and they don’t know what to do.
As far as Branstad is concerned when it comes to cronyism, he’s running with the best. And if you want a shocker of a story, check out the sale of WOI-TV (ABC Des Moines) from twenty years ago. WOI (set up in 1950) was one of the first commercial TV stations in Iowa. It was owned and operated by Iowa State and was the foundation of ISU’s broadcast journalism program, rated as one of the best in the nation. Marvin Pomerantz, appointed president of the Board of Regents by Branstad, decided the station should be sold. His motive was widely seen by locals (I was living in Ames at the time) as spite. He had tried to buy the station but Robert Parks, then president of ISU, told him in no uncertain terms no.
Cut to the chase, there was massive opposition. But the sale went through. The station was sold for less than it was worth, the broadcast journalism program was destroyed, and Marvin Pomerantz became, as the result of a massive petition drive and lawsuit, one of the very few, if not the only, member of the Regents not to be reappointed by Iowa’s Senate.
I watched this whole mess unfold and I could not believe what I was looking at. The other thing Branstad did at about that time was try to ignore a negotiated contract with AFSCME. Like the peons who work for the state don’t matter. He got sued and lost big time.
Back home this jerk would never have gotten a second term. IBP alone would have been enough to sink him