As a businessman, David Greenspon owns four buildings in the Des Moines metro area and says he pays more than $387,000 a year in property taxes.

"They're expensive," said Greenspon, president of Competitive Edge Inc. in Urbandale, which manufactures promotional products. "When you pay a lot of tax, somebody else is paying it. It's going to cost my customers; it's going to cost me profits that I could put into hiring people."

Greenspon said he loves Iowa and has been in business here for 29 years. But he said the high taxes discourage businesses from locating in Iowa when they can find lower taxes elsewhere.

Employees are also affected. Greenspon said he's had a "relatively tight control on wages" for the past three years and hasn't been able to give the kind of pay raises, profit-sharing, and 401(k) contributions that he would have liked.

"I've got 150-plus employees," he said. "If you take a quarter-million dollars and give it back to me, I would distribute a big chunk of that in bonus checks. They'd have more money to spend, and their lives would be better."

Governor Terry Branstad and the Iowa legislature on January 9 renewed efforts to overhaul the state's property-tax system. If they can do it, it will be the first time in more than 30 years that property taxes have been reformed in the Hawkeye State.

In a move intended to bring evangelical voters behind a single candidate, Iowa social-conservative leaders on December 20 endorsed former Pennsylvania U.S. Senator Rick Santorum for the 2012 Republican presidential nomination.

"I believe he is ready for a January 3 surprise," Bob Vander Plaats, president and CEO of the Family Leader - which opposes gay marriage and abortion - said of Santorum. "Hopefully, this gives him a stamp of credibility that some people are waiting for."

Governor Terry Branstad and Iowa lawmakers will have $6.25 billion in state revenue to work with for the Fiscal Year 2013 budget, and state law allows them to spend up to 99 percent of that amount.

That's $251.3 million, or 4.2 percent, more than what's available in the current fiscal year, but only a slight uptick from previous projections.

"Very little has changed in the national or the Iowa economy" since October, said Holly Lyons, director of the fiscal services division of the Legislative Services Agency - the nonpartisan support arm of the legislature.

Iowa business groups, undeterred by the lack of success this year in getting state lawmakers to lower property taxes, will make the issue a top priority once again in the 2012 legislative session.

The Iowa Chamber Alliance, a nonpartisan coalition representing 16 chambers of commerce and economic-development groups statewide, on November 30 released its 2012 legislative priorities. Property-tax relief topped the list.

"The table is set for a substantive dialogue," said John Stineman, executive director of the Iowa Chamber Alliance. "All the right people are talking, and they're talking about the right things. We just have to make sure that at the end of the day, they can reach an agreement."

In the nation, Iowa has the second-highest urban commercial property taxes and rural commercial property taxes, according to the National Taxpayers Conference. Its 50-state property-tax study is often cited by Governor Terry Branstad.

A law aimed at slashing the number of supervisors overseeing the work of Iowa state employees has never been fully implemented.

Lawmakers learned November 16 that Senate File 2088, the government reorganization bill signed into law in 2010, has languished because of a lack of feedback.

The law was designed to save the state money by finding efficiencies in government. It called for a "span of control," with a goal of one supervisor for every 15 workers.

But Jeff Panknen, chief operating officer for the Iowa Department of Administrative Services' Human Resources Enterprise, on November 16 told a panel of lawmakers that the Iowa Department of Management never gave feedback on a draft policy to implement the law in April 2010, so nothing was formalized.

Four Republican presidential candidates called Tuesday for phasing out federal energy tax credits, including those for wind energy and ethanol, the corn-based fuel additive.

The calls came despite Iowa being the nation's top producer of corn and (according to the American Wind Energy Association) ranking second in the nation for wind-energy capacity.

"I believe we have to get rid of all tax incentives for all energy," said former Pennsylvania U.S. Senator Rick Santorum. "I think we have to have a level playing field. ... I don't think we should create a heart attack for any industry, but we should phase them out over a period of time."

Five candidates spoke at the manufacturing forum attended by roughly 550 people, televised nationally by PBS, and hosted by the National Association of Manufacturers - the nation's largest industrial trade association, representing 12,000 manufacturing companies in all 50 states.

Widespread economic uncertainty and the possibility of another recession led a state panel on October 14 to adjust Iowa's projected state revenue downward slightly for the current fiscal year.

The panel, however, still is predicting slight growth over last year.

The Revenue Estimating Conference (REC), a three-member panel that makes the state's official prediction of state revenue, lowered the Fiscal Year 2012 estimate to $5.97 billion, which is $17.5 million less than the panel's projection in March. The new estimate paces growth at 1.3 percent, or $75.9 million, from last fiscal year.

Governor Terry Branstad on October 3 unveiled a 10-year plan to transform Iowa's education system that would end promoting third-graders who read poorly, change the pay system for teachers, and require students to pass end-of-course exams to graduate.

"Instead of spending all of our time fighting over the issues of the past, we really want to focus on the things that will ... systemically reform and improve Iowa's education system," said Branstad, who added that earlier debates over ending state-funded preschool and zero-percent allowable growth in school funding will not be revisited.

"This is a plan for the next decade," said Iowa Department of Education Director Jason Glass, who noted that the plan is intended to be a comprehensive package and should not be viewed as a list of options to be cherry-picked. "This plan ... should be the blueprint for where our resources now and in the future go into education."

But Democrats were skeptical, especially because Branstad and Glass declined to set a price tag for the proposal and don't plan to do so until shortly before the legislature reconvenes in January.

While Iowa Democrats point to the irony of the state's job-finding agency issuing pink slips to its own workers, Iowa Workforce Development Director Teresa Wahlert says the move isn't surprising.

"Ironically, when these one-time [federal] funds to stimulate the economy were injected into Iowa's economy, Workforce Development hired about 100 people, knowing that those funds were [only for] 12 to 18 months," Wahlert said September 6 in an interview with IowaPolitics.com.

Iowa Workforce Development (IWD) in late August closed 31 part-time field offices intended to help unemployed Iowans find jobs, and on September 1 laid off 47 people who worked in those offices. Another five offices - including in Clinton and Muscatine - will close October 31, leaving another 30 people without jobs.

Iowa Workforce Development is shutting down 37 field offices statewide, despite top legislators from both political parties saying they oppose the plan.

The plan is expected to most affect rural parts of the state. Lawmakers say it would force some unemployed Iowans to drive 80 miles to one of 16 regional workforce-development offices, rather than having a satellite office that's closer to home.

It also would spur the layoff of 85 state employees and the elimination of another 40 vacant positions, according to the department. However, most of those who would be laid off are union members, and collective-bargaining agreements would allow them to use their seniority to bump workers with less experience.

"Maybe they should change their name to Workforce Un-Development," said state Senator Bill Dotzler (D-Waterloo), co-chair of the legislature's Economic Development Appropriations subcommittee. "Everything they've been doing has reduced services to dislocated workers. I'm very disappointed."

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