(DES MOINES) - Branstad and Lt. Gov. Reynolds celebrated the single largest capital investment project in the history of the state and called on lawmakers to turn their focus to income tax reform during the next legislative session. They joined representatives of the Iowa Fertilizer Company to announce their final selection of a Lee County site for their $1.4 billion project that will create 165 permanent jobs and more than 2,000 construction-related jobs.

To successfully compete for this project, Iowa had to offer incentives to overcome its current corporate income tax structure.  The governor used this project as an example of why tax reform is necessary.

"If our income tax structure was more competitive, we would be better able to compete for job and capital investment creation projects like this one. It also will level the playing field for our existing Iowa companies, allowing them to grow and create even more jobs," said Branstad.

Iowa Fertilizer Company is a subsidiary of Orascom Construction Industries, one of the world's largest fertilizer producers.  The new plant would supply needed ammonia and other nitrogen fertilizers to farmers in Iowa and the Midwest.   

Lt. Governor Reynolds added, "In addition to the jobs and massive capital investment this project will mean for Iowa, it also will have a tremendous impact for our ag economy. In fact, when this fertilizer plant comes online, it could save Iowa farmers hundreds of millions of dollars annually."

In February 2012, the Iowa Economic Development Authority (IEDA) Board awarded Iowa Fertilizer Company incentives to locate in Lee County, Iowa. Due to some unforeseen challenges with the original site, the company resumed its search for a suitable location and was pursued by other states to locate outside of Iowa. 

Earlier today, the IEDA Board met to amend its original award to ensure Iowa would win this project. The amendment that was passed includes an increase to the investment tax credit portion of the High Quality Jobs award, increasing the total tax credits to $57.5 million. The IEDA board will also be asked to consider future amendments in FY14 and FY15 to increase the ITC portion of the award by $25 million in each of those years. If the board passes those amendments, the final award to Iowa Fertilizer Co. would amount to $100 million of tax credits. The direct financial assistance award remains unchanged at $1.6 million (half loan, half forgivable loan). 

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(DES MONIES) - Gov. Terry Branstad and Lt. Gov. Kim Reynolds today praised Iowa's management of the Unemployment Insurance Trust Funds, which for the second year in a row will allow a significant savings for Iowa's employers.

This year, Iowa employers will see $100 million in tax savings by moving from tax table four to table five. The average rate will fall from 2.4 percent to 2.0 percent for 2013.

"Our efficient, effective management of this trust fund will allow Iowa's employers more flexibility with their own dollars," said Branstad. "This is $100 million that will be reinvested in Iowa's communities, and is a clear sign that Iowa works to ensure that our valuable employers are successful in building Iowa's economy."

In 2013, over 52 percent of Iowa businesses will experience a zero rate.  Iowa is one of only six states in the country that provides a zero rate within the tax tables. Additionally, the new employer non-construction rate will decrease from 1.5 percent in 2012 to 1.1 percent in 2013.

"This is another positive signal we are sending to Iowa's employers," said Lt. Gov. Reynolds. "The state of Iowa is leading with sound management of our resources, and employers are counting on this stability when considering whether to locate or expand here."

Iowa Workforce Development is the state agency charged with collecting unemployment insurance taxes from employers and operating Iowa's unemployment insurance payment programs for workers. Annually, Iowa Workforce Development identifies the appropriate table for the following year. Unemployment tax rates are based on wages and recent unemployment benefit payments.  In 2013, the tax rate will move favorably to table five.

"This is exciting news for Iowa businesses and the economy," stated Iowa Workforce Development director Teresa Wahlert.  "While states across the country have struggled with the stability of their Unemployment Insurance Trust Funds, Iowa has moved the rates in a positive direction for businesses two years in a row."

"The people of Iowa have our commitment to carefully manage the trust fund in the coming year to continue this beneficial trend for Iowa businesses.  Iowa has one of the lowest UI tax rates in the nation," stated Wahlert.

Due to the design of Iowa's unemployment tax system developed under Gov. Branstad's administration in the 1980's and Iowa Workforce Development's diligent oversight of the UI Trust Fund throughout the national recession and initial recovery, Iowa businesses will benefit with an average decrease in taxes.

Throughout the state, Iowa Workforce Development provides critical services and resources to support the prosperity, productivity, health and safety of Iowans and their communities. Services are available in 15 regional centers, four satellite offices and hundreds of Access Points.

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By Jason Alderman

If you've got a recent high school graduate who's getting ready to head off to college or join the workforce, let me share a few lessons I learned the hard way about managing personal finances that you can pass along to your kids.

Young adults are just starting to build their credit history. In the coming months they'll probably encounter many unfamiliar expenses - and many financial temptations. If they're not careful, a few ill-thought decisions made now could damage their credit for years to come.

Here are several actions your kids can take to build good financial habits and strong credit - and a few minefields to watch out for:

Probably the most fundamental tool to for young adults to help manage their finances is a basic checking account and debit card. A few tips to pass along:

• Look for a bank/credit union that charges no monthly usage fee, doesn't require minimum balances and has conveniently located ATMs so you don't rack up out-of-network ATM charges.
• Enter all transactions in the check register and review your account online regularly to know when deposits, checks, purchases and automatic payments have cleared.
• Don't write checks or make debit card purchases unless the current balance will cover them - many transactions now clear instantaneously.
• Banks must ask whether you want overdraft protection. If you opt for coverage, understand that overdrafts can be expensive - up to $35 or more per transaction.
• Request text or email alerts when your balance drops below a certain level, checks or deposits clear, or payments are due.

Credit cards for young adults can be a useful tool, but they must be used responsibly. By law, people under 21 must have a parent or other responsible adult cosign credit card accounts unless they can prove sufficient income to repay the debt. If you allow your child to become an authorized user or joint account holder on one of your accounts, remember that any account activity, good or bad, goes on both your credit reports, so careful monitoring is critical.

Another way to build credit history is to start out with a "secured" credit card - a card linked to an account into which you deposit money. Typically you can charge up to the amount you've deposited and then replenish the account with more funds.

After they've made several on-time payments, have your kid ask the lender to convert it to an unsecured card, or to at least add an unsecured amount to the account. Just make sure that the lender agrees to report your payment history to at least one of the three credit bureaus; otherwise, the account does nothing to improve your credit.

If they qualify for an unsecured credit card, have your kids follow these guidelines:

• Always make at least the minimum payment - on time - each month.
• Strive to pay off the full balance each month; otherwise, the accumulated interest will add significantly to your repayment amount.
• Avoid using credit cards for cash advances, which often incur upfront fees and begin accruing interest immediately.
• Look for a card with no annual fee and also compare cash advance, late payment, balance transfer, over-the-limit and other fees.

For more tips on building and maintaining strong credit, visit What's My Score, a financial literacy program for young adults run by Visa Inc. (www.whatsmyscore.org).

Voters to Demand That Representative Schilling Backs an Economy That Works for the 99% -- And An End to Outsourcing, Healthcare Cuts and Corporate Tax Breaks

(Quad Cities, IL) - On Thursday evening, as Mitt Romney accepts the Republican party's presidential nomination, local citizens who are calling themselves "99% voters" - low wage workers, seniors, community activists, students and more - will roundly reject the Romney Economy.

Cynthia Rivers and Sandra Leathers are best friends and among the laid-off and low-wage workers who have just returned from protesting the Romney Economy at the Republican National Convention in Tampa, Fla.

"I tried to meet and speak with my Congressman Bobby Schilling about these severe Medicare cuts, but was never granted a face-to-face meeting," says Rivers. "I've been to his office twice. I want him to stand with me and the 99% instead of his wealthy friends and colleagues."

As part of a nationwide movement rejecting "Mr. 1% -- and any members of Congress who also cater to the 1% at the expense of the 99% -- these citizens will speak out against the elements of the Romney Economy that are dangerous to the working and middle class. They will call on Romney and other Republicans - especially Representative Bobby Schilling - to reject outsourcing, tax breaks for the rich coupled with take hikes for the middle class, cuts to education and healthcare funding.

"I marched in the street and rallied at the RNC event in Tampa. Now I want to speak with Congressman Bobby Schilling about how to make the economy work for everyone, not just the richest 1%," explains Leathers.

WHAT: Say No to a Romney Economy

WHERE: Republican GOP Headquarters

1721 5th Avenue #100 in Moline, Illinois

WHEN: 5 p.m. to 7 p.m. Thursday, August 30, 2012

WHO: The 99%: low- wage workers, community activists, students and more

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