Our second week at the State House and we are busy getting organized and settling into a routine.  Lots of Committee meetings and lots of people coming into Des Moines to visit their Legislators, so this is a busy place.

                 I have some things I think will be of interest to the people back home in Southeastern Iowa.  The first one is regarding Economic Development. 

                 A leader in animal biotechnology, TransOva started as a large animal veterinary practice in Ireton, Iowa.  The focus of the business changed over the years, especially within the last five to eight years, as the company started focusing on the growing biotechnology field.  The company began utilizing the “cluster concept” and divided into nine separate businesses (seven in Iowa, two in South Dakota) with each company focusing on different areas.  TransOva now employs over 300 individuals in the biotechnology field, employing mostly Iowa college graduates.  Over 85 percent of employees have a four-year college degree, with 30 percent of those employees having advanced degrees (PhDs, masters)

TransOva wants to not only help retain Iowa college graduates, but also help attract college graduates back to Iowa.  It hopes to do this by establishing a PhD research center, where PhD students from around the United States can come to complete research.  Many students can complete their research in six months compared to two to three years at other sites due to the resources available at TransOva.  The company also hopes to expand on its relationship with private colleges and encourage undergraduate students to go into the biotech field, along with establishing a regional center with Iowa State University for graduate students.

Iowa will likely always be viewed as an agriculture state.  TransOva is embracing that reputation as a strength and is using it to become the leader in animal biotechnology.  Iowa will never be a Silicon Valley with computer technology; however, it can become a Silicon Valley of plant and animal biotechnology.  TransOva is the type of organization that political and economic development leaders have been hoping to attract to Iowa.  It is a high-tech company with a highly educated workforce that produces high paying jobs in an industry that plays to Iowa’s strengths.  Bio-technology and bio-pharmaceuticals are growing industries that Iowa can embrace use to help grow the state’s economy.

1. And second – that subject we all love – Property Tax. 

 What causes taxes to increase or decrease?

 Basically, three variables must interact to decrease or increase your property taxes:

• The combined budgets of the taxing authorities
• The total value of all the property in the taxing unit
• The value of your property

 Property taxes increase if..

• The budgets increase and the value of all properties remain the same.
• The budgets and value of property in the entire government unit remain the same but the value of the individual’s property increases.
• The budgets and value of the individual’s property remain the same but the value of the property in the entire government unit decreases.

 Property taxes decrease if... 

• The budgets decrease and the values of all properties remain the same.
• The budgets and value of property in the entire government unit remain the same but the value of the individual’s property decreases.
• The budgets and value of the individual’s property remain the same but the value of the property in the entire government unit increases.

In conclusion, Republicans will examine everything we do this Session based on the following three questions:

1. Does it foster the creation of wealth in Iowa?
2. Does it improve student performance in Iowa?
3. Does it put Iowa on sound financial footing for the future?

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• Republicans promised to restore the cuts to property tax credits made during 2002 special session and Republicans promised to take property tax increases off automatic pilot.

 

• The property tax credits bill stipulates that the counties which passed along the cut (in the form of reduced credits) to taxpayers give the taxpayers an additional credit in FY 04.  The counties which used cash reserves or other funds to give the credit can keep the money. 

 

• Within the past week, some county officials claimed that no taxpayers were denied the credit.  That claim is refuted by a press release sent out by the same county officials last summer blaming the Legislature for the higher property tax bills due to the reduction in the property tax credits.

 

• Either the counties were not telling Iowans the truth last summer or they aren’t telling the Legislature the truth now regarding property tax credits.

 

• The bill which takes property taxes off automatic pilot is also drawing some opposition from local government officials.  After years of blaming the Legislature for property tax increases, it shouldn’t be a surprise that they are resistant to an idea which forces them to take a clear vote to raise property taxes.

 

• TransOva is the type of high-tech business with a highly educated workforce that Iowa needs to nurture and encourage.

 

• Bio-tech and bio-pharmaceuticals are industries which play to the natural strengths of Iowa and Republicans are not afraid to invest in these industries to make Iowa a magnet for further growth.

 

• TransOva and the bio-tech/bio-pharmaceutical fields help foster the creation of wealth in Iowa and help put the state on solid financial footing for the future by creating jobs and income in Iowa.

 

I know this is lengthy – but these are very important things for all of you to know.

So long until next week.