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| Director of Economic Development Michael Blouin
IOWA PRESS #3145>> Borg: IOWA'S ECONOMIC DEVELOPMENT CORNERSTONE, THE MONEYBAGS VALUES FUND, REMAINS PINCHED IN AN ELECTION-YEAR IMPASSE. PERSPECTIVE FROM DIRECTOR OF ECONOMIC DEVELOPMENT MICHAEL BLOUIN ON THIS EDITION OF "IOWA PRESS."
FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION; AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. ON STATEWIDE IOWA PUBLIC TELEVISION, THIS IS THE FRIDAY, JULY 2 EDITION OF IOWA PRESS. HERE IS DEAN BORG. Borg: THE TERM "ECONOMIC DEVELOPMENT" MAY BE INTERPRETED DIFFERENTLY ACCORDING TO CIRCUMSTANCES AT THE TIME. BUT IN ELECTION-YEAR CAMPAIGNING, ECONOMIC DEVELOPMENT CREATES THOUGHTS OF JOBS AND BETTER LIVING. WHO WOULD DARE TO OPPOSE THAT? WELL, THAT'S WHY IT'S SO AWKWARD RIGHT NOW FOR IOWA'S DEMOCRATIC GOVERNOR AND REPUBLICAN LEGISLATIVE LEADERS TO BE NEGOTIATING A COMPROMISE THAT PREVIOUSLY ELUDED THEM. THE FIRST TIME AROUND, THE REPUBLICAN-CONTROLLED LEGISLATURE HANDED DEMOCRATIC GOVERNOR TOM VILSACK THE VALUES FUND THAT HE WANTED, ALONG WITH OTHER PROVISIONS THAT THE REPUBLICANS THOUGHT WOULD STIMULATE BUSINESS BUT THE GOVERNOR DIDN'T. WELL, LAST MONTH THE IOWA SUPREME COURT RULED VILSACK'S CREATIVE VETOES TO CARVE OUT WHAT HE DIDN'T LIKE EXCEEDED EXECUTIVE POWER, AND THE COURT VOIDED THE ENTIRE PACKAGE, INCLUDING THE VALUES FUND THAT'S ALREADY DISBURSING MONEY TO PROMISING IOWA BUSINESSES. WHILE THE GOVERNOR AND REPUBLICAN LEGISLATORS TRADE COMPROMISE PROPOSALS, IOWA'S ECONOMIC DEVELOPMENT MAY BE HOBBLED. WE'LL TEST THE ACCURACY OF THAT ASSERTION WITH IOWA'S ECONOMIC DEVELOPMENT DIRECTOR MICHAEL BLOUIN. WELCOME BACK TO "IOWA PRESS," MR. BLOUIN. Blouin: IT'S GOOD TO BE HERE, DEAN. Borg: AND ACROSS THE TABLE: "RADIO IOWA" NEWS DIRECTOR KAY HENDERSON AND "ASSOCIATED PRESS" SENIOR POLITICAL REPORTER MIKE GLOVER. Glover: MR. BLOUIN, A LOT IS HAPPENING AT THE STATEHOUSE TO TRY TO WORK SOMETHING OUT TO HAVE A SPECIAL SESSION TO SOLVE THIS PROBLEM FACING ECONOMIC DEVELOPMENT. PUT ON YOUR PREDICTIVE HAT. DO YOU THINK THERE'S GOING TO BE A SPECIAL SESSION? Blouin: I DON'T KNOW ABOUT THAT, ALTHOUGH I DO BELIEVE THERE'S GENUINE DESIRE ON THE PART OF ALL OF THE PARTIES TO FIND SOME WAY TO FIX THE DILEMMA THE COURT RULING CREATED, THE DILEMMA IN TERMS OF THE VALUES FUND. AND WHEN YOU GET THAT KIND OF ALMOST UNANIMITY ON THE PART OF BOTH PARTIES, BOTH HOUSES, BOTH BRANCHES, SOMETHING USUALLY GETS WORKED OUT. WHETHER THAT REQUIRES A SPECIAL SESSION OR CAN BE HANDLED BY AGREEMENT WITH SOME KIND OF AN INTERIM ADMINISTRATIVE SOLUTION IS YET TO BE DECIDED, BUT I THINK THEY'RE GOING TO GET THERE. Glover: THAT'S THE SECOND QUESTION. IS IT YOUR VIEW THAT THE LEGISLATURE HAS TO COME BACK? I MEAN THERE HAVE BEEN "X" AMOUNT OF DOLLARS, MILLIONS OF DOLLARS ALREADY DOLED OUT UNDER A PROGRAM THAT NO LONGER EXISTS. DOES THE LEGISLATURE HAVE TO DO SOMETHING TO LEGITIMATIZE THOSE GRANTS? Blouin: I BELIEVE THERE'S AN ADMINISTRATIVE SOLUTION. AND THIS ISN'T JUST MIKE BLOUIN SAYING THIS. THE ATTORNEYS FROM THE ATTORNEY GENERAL'S OFFICE, THE GOVERNOR'S OFFICE, THE DEPARTMENT KIND OF CONCUR ON THIS. WHAT THAT SOLUTION SPECIFICALLY WOULD BE WHEN IT'S ROLLED OUT IS YET TO BE DEFINED. BUT BE THAT AS IT MAY, IT SEEMS TO ME THAT IF THERE CAN BE A SOLUTION INVOLVING A ONE-DAY SPECIAL SESSION, IT HAS FAR MORE STAYING POWER AND DOESN'T CREATE THE WOUNDS THAT AN IMPASSE WOULD CREATE. Glover: AND ONE LAST QUESTION ABOUT THIS POTENTIAL SPECIAL SESSION. HOW URGENT IS THE NEED TO HAVE IT? IS THIS SOMETHING THAT HAS TO HAPPEN VERY QUICKLY? IS IT SOMETHING THAT CAN HAPPEN IN A COUPLE OF MONTHS? Blouin: WELL, I THINK THE PROBLEM NEEDS TO BE SOLVED QUICKLY IN REGARDS SPECIFICALLY TO THE 36 COMPANIES WHERE WE AS A PEOPLE OF IOWA THROUGH OUR GOVERNMENT HAVE MADE A COMMITMENT. IOWANS ARE PRETTY CONSISTENT IN OUR BELIEF THAT OUR WORD IS OUR BOND. WE'VE MADE A DECISION AS A STATE TO SUPPORT 36 COMPANIES WITH VARYING DEGREES OF FINANCIAL HELP, AND THOSE COMMITMENTS NEED TO BE SUSTAINED. AND I THINK THEY WILL BE. THEY HAVE TO BE, AT LEAST IN TERMS OF MESSAGE, THOSE COMPANIES, DEALT WITH RATHER QUICKLY. Henderson: WELL, LET'S TALK ABOUT THE MESSAGE TO BUSINESSES. WHAT IS THIS LIMBO SITUATION? WHAT SORT OF A MESSAGE HAS THAT SENT TO THE BUSINESS WORLD? YOU'RE OUT THERE IN CONTACT WITH EXECUTIVES DAY TO DAY. Blouin: SO FAR IT'S NOT BEEN A PROBLEM. WE'RE NOT OUT OF BUSINESS. THIS WAS THE BIG TOOL THAT WE'VE HAD TO WORK WITH, AND IT'S HAD AN AMAZING RESPONSE AND AN AMAZING ABILITY TO LEVERAGE JOBS, GOOD QUALITY JOBS IN THE FIRST YEAR OF ITS EXISTENCE. BUT WE STILL HAVE ALL THE TAX CREDIT TOOLS. WE STILL HAVE ENTERPRISE ZONES, NEW JOBS AND INCOME PROGRAM, NEW CAPITAL INVESTMENT PROGRAM. THE COMMUNITIES STILL HAVE THE JOB TRAINING PROGRAMS, AND STILL HAVE SOME CEBA MONEY AND SO ON. SO WE CAN DO SOME THINGS, AND WE'RE PROGRESSING AS IF THINGS ARE NORMAL. Henderson: BUT IF THIS DOESN'T GET RESOLVED QUICKLY, WILL SOME OF THOSE BUSINESSES THAT ARE ON THE LINE GO ELSEWHERE? Blouin: WELL, IT COULD HAPPEN AT SOME POINT, KAY. WE KNEW ALL ALONG THAT WE WOULD RUN OUT OF MONEY IN JANUARY OR FEBRUARY. THIS JUST MOVES UP THE TIME LINE A LITTLE BIT. IF A FIX IS ARRANGED, IF YOU WILL, AND THE HUNDRED MILLION IS STILL AVAILABLE, WE'RE BACK TO THE JANUARY OR FEBRUARY TIME LINE. SO IT'S A QUESTION OF HOW DO YOU DEAL WITH THAT THREE-, MAYBE FOUR-MONTH TRANSITION TIME IF THERE'S ONLY A WAY OF DEALING WITH THE 36 COMPANIES. Borg: I'M INTERESTED IN THAT PHRASE "IF THE FIX IS ARRANGED." AND I RECALL, FIRST OF ALL, YOU SERVING IN THE IOWA LEGISLATURE. YOU'VE BEEN IN THE CONGRESS. YOU KNOW HOW THESE THINGS ARE NEGOTIATED BEHIND THE SCENES. YOU MUST BE A PART OF IT WITH ALL THAT BACKGROUND THAT YOU HAVE. WHAT'S HAPPENING BEHIND THE SCENES? Blouin: WELL, THERE'S CONSTANT COMMUNICATION. Borg: WELL, YES, BUT -- Blouin: IT'S NOT JUST THE FORMAL MEETINGS THAT HAPPEN EVERY FEW DAYS. THERE ARE PHONES CALLS BEING MADE. THERE ARE MESSAGES BEING SENT. CAUCUSES ARE MEETING INDIVIDUALLY. HOUSE REPUBLICANS, HOUSE DEMOCRATS, SENATE REPUBLICANS, SENATE DEMOCRATS, LEADERSHIP TALKING TO EACH OTHER, LEADERSHIP TALKING WITH THE GOVERNOR'S STAFF ON A FAIRLY REGULAR BASIS TRYING TO FIND A WAY TO CREATE A WIN/WIN. IT'S AN ELECTION YEAR AND THINGS TAKE A LITTLE LONGER. Borg: TALKING WITH THE GOVERNOR'S STAFF -- AND I UNDERSTAND THEY'RE GETTING ORDERS FROM THE GOVERNOR -- HOW INVOLVED IS THE GOVERNOR IN THE ACTUAL -- Blouin: OH, I THINK DAILY. VERY MUCH INVOLVED. THE GOVERNOR LOVES THIS KIND OF ATMOSPHERE. IT JUST WAKES HIM UP. IT ENLIVENS HIM... AN OPPORTUNITY TO TAKE A PROBLEM AND FIX IT IMMEDIATELY. THE CREATIVE JUICES JUST START FLOWING. AND HE'S VERY, VERY DIRECTLY INVOLVED IN THIS THING. Glover: MR. BLOUIN, HELP THE SINIC THAT'S IN ME. THE LEGISLATION ON WHICH THE COURT ACTED LAST MONTH WAS THE RESULT OF THE FAILURE OF THIS LEGISLATURE AND THIS GOVERNOR TO REACH A COMPROMISE. IT WAS LEGISLATION WHICH WAS HEADED FOR A TRAIN WRECK THE DAY IT WAS PASSED. AT THAT POINT THE GOVERNOR AND THE LEGISLATURE WERE UNABLE TO REACH A COMPROMISE. WHAT'S CHANGED? HASN'T THIS STATE GOVERNMENT DEMONSTRATED THAT AS CURRENTLY CONSTITUTED IT IS INCAPABLE OF SOLVING THIS PROBLEM? Blouin: WHAT'S CHANGED I THINK, IN MY MIND AT LEAST, IS THE ATTITUDE OF THE PEOPLE OF IOWA. I HEAR IT EVERYWHERE: WE DON'T CARE WHO WON; WE DON'T CARE WHO LOST; WE'VE GOT A PROBLEM; QUICK THE BICKERING AND FIX IT. LEGISLATIVE CANDIDATES IN BOTH PARTIES IN OFFICE AND OUT ARE HEARING IT ALL OVER THE STATE, AND THAT'S A LITTLE DIFFERENT KIND OF A TWIST TO THE ATTITUDE THAT WAS OUT THERE A YEAR AGO. THE NUMBER ONE ISSUE ON EVERYBODY'S AGENDA, NO MATTER WHAT OFFICE THEY'RE RUNNING FOR IN IOWA TODAY, CAN BE DEFINED AS JOBS, THE ECONOMY. IT'S A HUGE CONCERN FOR IOWANS. AND THIS IS PART AND PARCEL TO THE SOLUTION. THEY WANT IT FIXED. Glover: AND YOU'VE JUST RAISED THE ISSUE THAT IS THE TOPIC OF THE NEXT FOLLOW-UP, WHICH IS ISN'T THAT, IN FACT, WHAT'S NEEDED RIGHT NOW, AN ELECTION? HAVEN'T WE REACHED GRIDLOCK IN STATE GOVERNMENT, AND IT'S TIME FOR VOTERS TO COME IN AND SAY HEAD IN THIS DIRECTION, HEAD IN THAT DIRECTION? Blouin: WELL, IT'S GOING TO HAPPEN WHETHER WE NEED IT OR NOT. THAT'S THE NICE THING ABOUT EVEN NUMBERED YEARS. THEY'RE VERY ODD IN A LOT OF WAYS. AND IT'S THE PEOPLE'S TURN TO DECIDE WHAT DIRECTION WE GO IN AND WHO THE PLAYERS ARE GOING TO BE AT THAT TABLE. AND THAT'S WHAT THIS SUMMER AND FALL IS ALL ABOUT. Glover: AND ISN'T IT JUST LOGICAL TO ASSUME THAT NOTHING IS GOING TO HAPPEN UNTIL THAT ELECTION TAKES PLACE? Blouin: NO, I DON'T THINK SO. I THINK THEY'RE GOING TO WORK THIS OUT. I DON'T THINK EITHER HOUSE OR PARTY WANT TO HIT NOVEMBER WITHOUT HAVING RESOLVED THIS. EVEN IF IT'S IN A MUTUAL AGREEMENT THAT THERE'S AN ADMINISTRATIVE RESOLUTION TO IT, I REALLY DON'T THINK THEY WANT TO SIT DOWN WITH THE VOTERS AND TRY TO EXPLAIN THAT WE'VE LET THIS MOMENT PASS. Henderson: YOU'VE RECENTLY TOLD DEAN JUST MOMENTS AGO THAT THE GOVERNOR IS VERY INVOLVED IN RESOLVING THIS MATTER. REPUBLICAN LEGISLATORS TELL REPORTERS PUBLICLY THAT HE'S NOT INVOLVED, THAT HE'S TOO FOCUSED ON HIS AUDITION TO BE JOHN KERRY'S RUNNING MATE. CONVERSELY, REPUBLICANS MAY NOT WANT TO GIVE HIM A RESOLUTION TO THIS WHILE HE'S ON THAT AUDITION TOUR. I MEAN ISN'T THIS SORT OF UNCERTAINTY ABOUT THE JOHN KERRY RUNNING MATE DEAL SORT OF GUMMING UP THE WORKS HERE? Blouin: YOU KNOW, IT ISN'T. WHAT'S GUMMING UP THE WORKS IS THAT IT'S AN ELECTION YEAR AND NOBODY WANTS TO GIVE THE OTHER SIDE A LEG UP. IT'S KIND OF THE NATURE OF POLITICS. I DON'T CARE WHAT YEAR IT IS OR WHO'S BEING CONSIDERED FOR WHAT OFFICE, IT'S THE NATURE OF THE PROCESS. IT'S JUST ANOTHER EXCUSE THAT THOSE WHO HAVE A PARTISAN SLANT ON ONE SIDE USE AGAINST THE OTHER. IF THE GOVERNOR WERE SELECTED TOMORROW OR THE ANNOUNCEMENT WERE MADE THAT IT WAS SOMEONE ELSE TOMORROW, THERE WOULD BE ANOTHER REASON. POLITICAL POSTURING IT PART OF THE GAME, AND I DON'T THINK IT'S INTENDED TO BE PERSONAL. Henderson: WELL, LET'S TALK ABOUT ONE OF THOSE OTHER REASONS. SOME OF THE PEOPLE WHO OPPOSED THE CREATION OF THE FUND IN THE BEGINNING WERE AMONG REPUBLICANS IN THE SENATE, AND THEY STILL HAVE SOME PHILOSOPHICAL PROBLEMS WITH IT. FOR EXAMPLE, THEY PERHAPS THINK THAT MAYBE THE STATE OF IOWA SHOULDN'T BE GIVING $10 MILLION TO ONE OF THE NATION'S LARGEST FINANCIAL INSTITUTIONS. IT'S CORPORATE WELFARE, PICKING AND CHOOSING WINNERS. I MEAN IS THAT PART OF THE PROBLEM IS THAT THERE'S STILL SOME RESISTANCE TO THE IDEA IN GENERAL? Blouin: IT'S PART OF IT BUT IT'S A VERY SMALL MINORITY. THE SUCCESS OF THE FIRST YEAR HAS ELIMINATED MUCH OF THE NAYSAYING ATTITUDE. WHEN YOU'RE INVOLVED IN THE RETENTION AND CREATION OF 11,000 JOBS IN A STATE THAT AVERAGED $38,900 A YEAR, ABOUT 10,000 ABOVE THE CURRENT AVERAGE, AND THAT AVERAGE IS EXISTING WAGES AND THESE ARE STARTING WAGE COMPARISONS, THAT MAKES BELIEVERS OUT OF PEOPLE. Henderson: BUT THE OTHER COMPLAINT WAS THIS IS FOR RURAL -- THIS IS NOT GOING TO HELP RURAL IOWA, IT'S GOING TO HELP URBAN IOWA. HAS THAT BEEN ANSWERED? Blouin: YEAH, IT HAS. WE TOOK THE FIVE REGIONS THAT WERE LAID OUT IN THE LAW AND HAVE TRACKED HOW THE JOBS AND WAGES AND INVESTMENTS HAVE HAPPENED IN EACH OF THOSE FIVE REGIONS. THE NORTHWEST IOWA REGION WHERE A LOT OF THE SKEPTICISM CAME FROM INITIALLY HAS AN AVERAGE PER CAPITA INCOME OF ABOUT $25,500. ABOUT A -- EXCUSE ME, $23,500. THE VALUES FUND AND OTHER PROJECTS THAT WE WERE INVOLVED IN THIS YEAR HAVE CREATED NEARLY A LITTLE OVER 2,000 JOBS THAT AVERAGE ABOUT 30 -- ABOUT $40,000, $17,000 AVERAGE ABOVE. IT'S BEEN PHENOMENALLY SUCCESSFUL IN RURAL IOWA. Henderson: THAT'S THE OTHER THING THAT WE HEARD SENATE MAJORITY LEADER STEW IVERSON SAY THIS WEEK. HE DOESN'T SEE WHERE THESE JOBS ARE. HE WANTS SOME CONCRETE FIGURES THAT JOBS HAVE ACTUALLY BEEN CREATED, AND HE SAYS HE'S NOT GOTTEN THAT YET. Blouin: WELL, HE'S NEVER ASKED FOR IT. WE'VE HANDED IT OUT TO THE PRESS IN PRESS CONFERENCES LAST WEEK ALL OVER THE STATE. WE'VE HANDED IT TO LEGISLATORS AS THEY'VE ASKED FOR IT. AND WE'VE HAND DELIVERED, WHILE THE LEGISLATURE WAS IN SESSION, INCREDIBLE AMOUNTS OF DATA. AND STEW IVERSON AND I HAVE TALKED ABOUT THIS ON MANY OCCASIONS. 11,000 JOBS, 38.9, $1.4 BILLION IN CAPITAL INVESTMENT. STEWART'S DISTRICT STRADDLES THE CENTRAL BORDER OF THE STATE AND ACTUALLY COMES INTO THE CENTRAL REGION. SO HIS DISTRICT PROBABLY HAS BENEFITS IN THREE OF THESE ARBITRARY LINES OR GROUPINGS THAT WERE DRAWN. AND THOSE THREE AREAS HAVE BEEN RESPONSIBLE FOR SOMEWHERE IN THE NEIGHBORHOOD OF 8,000 OF THOSE 11,000 JOBS. Glover: WHETHER OR NOT THE FUND HAS CREATED JOBS, WHETHER THE PAY LEVEL FOR THOSE JOBS IS WHAT IT IS, WHETHER YOU'VE CONVINCED THE PUBLIC THAT THIS THING WORKS, HAVEN'T YOU IN FACT FAILED TO CONVINCE DECISION-MAKERS? BECAUSE WE STILL HEAR THAT -- WE STILL HEAR PEOPLE WHO ARE MAKING THE DECISION ABOUT WHAT HAPPENS SAY, "I DON'T SEE ANY JOBS. I DON'T THINK THIS FUND WORKS. I DON'T THINK WE OUGHT TO BE DOING THIS." HAVEN'T YOU FAILED TO CONVINCE PEOPLE THAT ACTUALLY DECIDE? Blouin: YOU KNOW, AS A MATTER OF FACT, I DON'T THINK WE HAVE. I THINK WE'VE DONE A VERY GOOD JOB IN SHOWING THE RESULTS OF THIS. ONE YEAR INTO THIS, NO ONE EXPECTED IT TO BE AS SUCCESSFUL AS IT'S BEEN. NO ONE, EVEN THE AUTHORS OF THIS, THOUGHT IT WAS GOING TO CREATE 11,000 JOBS WITH THE KIND OF ECONOMIC IMPACT IT'S HAD. Borg: WELL, WHAT ARE YOU SAYING, THEN? THAT PEOPLE WANT IT TO FAIL? Blouin: IT'S AN ELECTION YEAR, DEAN, AND WINNING AND LOSING IS CRITICAL TO WHO CONTROLS THE LEGISLATURE. SO PEOPLE ARE GOING TO POSTURE THINGS DIFFERENTLY. Borg: DISINFORMATION. Blouin: YES, THAT'S ONE WORD FOR IT. KAY TALKED ABOUT SOME LEGISLATORS REFERRING TO THIS AS CORPORATE WELFARE. OF COURSE IT IS. FIFTY STATES DO IT. TWO HUNDRED COUNTRIES DO IT. WE CANNOT UNILATERALLY DISARM IN THIS THING, OR WE AREN'T GOING TO HAVE THREE MILLION PEOPLE DOING MUCH OF ANYTHING IN IOWA VERY SOON. WE'VE GOT TO PARTICIPATE. AND I BELIEVE THE VAST MAJORITY OF LEGISLATORS UNDERSTAND THAT, AND IOWANS CLEARLY DO. Glover: THE ARGUMENTS ON THIS THING ARE, ON THE ONE SIDE, THE GOVERNOR SAYS WE NEED TO INVEST IN THE STATE. THAT'S WHY WE HAVE TO HAVE A $503-MILLION IOWA VALUES FUND. REPUBLICANS SAY WE NEED TO CUT TAXES TO STIMULATE THE ECONOMY. THE BILL THAT THE COURT DEALT WITH DID A LITTLE BIT OF BOTH. HOW FAR IS THE GOVERNOR WILLING TO GO TO GIVE REPUBLICANS A LITTLE BIT OF THE TAX CUT THEY'RE AFTER? Blouin: WELL, I THINK YOU'RE GOING TO HAVE TO ASK THE GOVERNOR THAT. HE'S ALREADY ACKNOWLEDGED THE SUGGESTION THAT ACCELERATED DEPRECIATION FOR BUSINESSES BE MADE PART OF A COMPROMISE. THAT'S GOING TO HELP SMALL- AND MID-SIZED BUSINESSES AND FARMERS DRAMATICALLY AS WELL AS THE LARGER COMPANIES. IT'S GOING TO STIMULATE INVESTMENT IN A COUPLE OF YEAR WINDOW AND CREATE SOME JOBS. THAT'S PRETTY DECENT MOVEMENT ON THE PART OF THE GOVERNOR. HE ALSO POINTS TO THE FACT THAT OVER THE LAST ELEVEN YEARS THE STATE HAS, EVERY YEAR, REDUCED TAXES IN ONE FORM OR ANOTHER, THAT AMOUNT TODAY TO A $900-MILLION ANNUAL REDUCTION IN REVENUE INTO THE STATE TREASURY. WE'RE NO LONGER ONE OF THE HEAVIER TAXED STATES IN THE NATION. WE'RE A MID STATE IN TERMS OF POPULATION, A MID STATE IN TERMS OF TAXATION, AND WE'RE ONE OF THE BEST STATES IN AMERICA IN TERMS OF REGULATORY CLIMATE. I DON'T SAY THAT. THE U.S. CHAMBER OF COMMERCE SAYS IT. Glover: AN ISSUE THAT'S ON THE MINDS OF A LOT OF IOWANS RIGHT NOW IS A DISPUTE THAT'S HAPPENED AT THE MAYTAG CORPORATION OVER IN NEWTON. THERE WAS A LABOR DISPUTE, A TENTATIVE AGREEMENT. THAT'S A COMPANY THAT'S HAD SOME FINANCIAL DIFFICULTIES. THAT'S A COMPANY THAT'S MOVED SOME JOBS OUT OF THE COUNTRY. IS THERE A ROLE THE STATE SHOULD PLAY IN ASSURING THAT MAYTAG KEEP THIS OPERATION HERE? Blouin: SURE THERE IS. THERE'S A ROLE WE'RE TRYING TO PLAY IN HELPING MANUFACTURING STAY IN IOWA ACROSS THE BOARD. THERE'S A VERY SERIOUS TREND IN THE COUNTRY IN MANUFACTURING, AND IT'S NOT JUST AFFECTING IOWA. IT'S AFFECTING ALL OF US THAT HAVE A SIZABLE MANUFACTURING BASE. IOWANS DON'T REALIZE IT BUT 51 PERCENT OF OUR ECONOMY IS MANUFACTURING BASED WITHIN THE STATE OF IOWA. IT'S A HUGE IMPACT ON OUR ECONOMY, AND A LOT OF IT IS IN TROUBLE. IT'S GLOBAL RELATED IN MANY RESPECTS. IT'S COMPETITION RELATED. PRODUCTS BECOME OBSOLETE. PRODUCTS RUN INTO NEW COMPETITORS THAT THEY CAN'T COME UP AGAINST IN A COMPETITIVE WAY. COMPANIES GET BEHIND THE TREND ON NEW TECHNOLOGY, NEW EQUIPMENT, TRAINED WORK FORCE. AND ALL OF THOSE THINGS LEAD TO THE KINDS OF BRICK WALLS THAT BRING ABOUT CLOSURES. WE'RE TRYING TO CREATE A SYSTEM THAT WILL IDENTIFY THOSE PROBLEMS EARLY ENOUGH SO THAT WE CAN, WITH LIMITED STATE RESOURCES, HELP THEM THROUGH THE PROCESS OF REINVENTING THEMSELVES. Glover: SPECIFICALLY WITH MAYTAG, IS ANYONE -- ARE YOU OR ANYONE FROM YOUR OFFICE IN CONTACT WITH THAT COMPANY SAYING WHAT DO YOU NEED, WHAT CAN WE DO? Blouin: THE GOVERNOR HAS HAD SEVERAL MEETINGS OVER THE LAST SEVERAL MONTHS WITH MAYTAG TOP OFFICIALS. I'VE BEEN ON THE PHONE AS RECENTLY AS LAST WEEK WITH MAYTAG OFFICIALS, TALKING ABOUT WAYS OF BUILDING UP, NOT JUST STABILIZING BUT BUILDING UP THE MAYTAG PRESENCE IN IOWA. YOU KNOW, MAYTAG IS AN IOWA COMPANY BORN AND RAISED. THEY DON'T WANT TO LEAVE. THEY WANT TO BE HERE. THEY WANT TO BE PART OF OUR FUTURE. THEY'RE IN A GLOBAL, VERY COMPETITIVE ATMOSPHERE, AND THEY'RE TRYING TO ACCOMPLISHING STAYING IN BUSINESS AND STAYING IN IOWA AT THE SAME TIME. Glover: SO WHAT DO THEY NEED AND WHAT CAN YOU DO? Blouin: WE'RE FLUSHING THAT OUT. THERE'S A LOT WE CAN DO ON THE RETENTION SIDE. THERE'S A LOT WE CAN DO IN TERMS OF HELPING THEM GROW OR ATTRACT OTHER COMPONENTS OF THEIR MAYTAG FAMILY INTO IOWA. AND THEY NEED TO DECIDE WHAT'S ON THE TABLE, AND THEN WE NEED TO DECIDE WHAT WE CAN DO FOR THEM. AND THAT'S GOING TO TAKE SOME TIME. SUMMER, FALL, MAYBE EVEN A LITTLE LONGER. Henderson: BEYOND THE MANUFACTURING SECTOR, LET'S TAKE A STEP BACK AND LOOK AT THE OVERALL ECONOMY. GOVERNOR VILSACK TENDS TO BE A LITTLE SCHIZOPHRENIC ON THIS. WHEN HE'S TRYING TO TOUT IOWA AS A PLACE FOR NEW BUSINESS, BOY, WE'RE DOING MUCH BETTER THAN OTHER STATES. IT'S A ROSY SCENARIO HERE. WHEN HE'S CAMPAIGNING ON BEHALF OF JOHN KERRY, THINGS ARE PRETTY -- NOT VERY GOOD HERE. WHICH IS IT? Blouin: IT'S BOTH AND I DON'T THINK THE GOVERNOR IS WRONG ON EITHER SIDE. I'M AN OBEDIENT SERVANT. YOU CAN ACCUSE ME OF THAT. THE FACT REMAINS IOWA HAS ONE VERY SERIOUS PROBLEM. WE ARE AS MUCH RECESSION OR RECOVERY RELATED IN TERMS OF OUR ECONOMY AS WE ARE STRUCTURAL. YOU GO ACROSS THE MIDWEST FROM PENNSYLVANIA, OHIO, INDIANA, ON OVER TO IOWA, EVERY ONE OF THESE STATES HAVE SOMETHING IN COMMON. OUR BASIC ECONOMY IS STRUCTURALLY IN NEED OF HELP. IN IOWA, IT'S BOTH AGRICULTURE AND MANUFACTURING. MAYBE 75, 80 PERCENT OF OUR ECONOMY IS LONG TERM IN TROUBLE. WE NEED MAJOR HELP IN TERMS OF TRANSITIONING BOTH AGRICULTURE AND MANUFACTURING. NOW, IN THE CONTEXT WITH THAT, WE'VE COME A LONG WAY. WE'VE PUT SOME PIECES INTO PLACE AS A STATE THAT RECOGNIZE THAT FROM VISION IOWA TO UTILITY REFORM, THAT'S RESULTED IN THE LARGEST EXPANSION OF THE UTILITY BASE THIS STATE HAS EVER SEEN, TO BEGINNING TO VENTURE INTO THE VENTURE CAPITAL BUSINESS WITH FOUR MAJOR PIECES OF LEGISLATION AND THE VALUES FUND. BILLIONS OF DOLLARS ARE STARTING TO TRANSFORM THIS ECONOMY, AND A LOT OF IT'S PRIVATE MONEY BEING MOVED BY MINOR AMOUNTS OF PUBLIC INVESTMENT. Borg: ARE YOU SAYING, THOUGH, THAT WHAT'S BEEN DONE IN THE VALUES FUND, VISION IOWA, IS A DROP IN THE BUCKET AND MUCH MORE IS NEEDED? Blouin: IT'S NOT A DROP IN THE BUCKET. IT'S VERY SIGNIFICANT BUT MUCH MORE IS NEEDED. WE'VE JUST STARTED THIS, DEAN. THIS IS A GENERATIONAL PROBLEM. THIS ISN'T SOMETHING YOU CAN FIX IN TWO YEARS BETWEEN AN ELECTION. IT'S GOING TO TAKE US FIFTEEN, TWENTY YEARS TO FIX THE IOWA ECONOMY. AND WE CAN'T LET UP ON IT FOR SIX MONTHS OR A YEAR ANYWHERE ALONG THE LINE. Henderson: BUT REPUBLICAN LEGISLATORS SUGGEST YOU CAN'T BUY LOVE, YOU NEED TO DO A LITTLE TAX RELIEF IN ADDITION TO THIS CORPORATE WELFARE WHICH YOU DISCUSSED EARLIER THAT THE STATE NEEDS TO ENGAGE IN. DOES THE STATE'S TAX STRUCTURE COMPARE FAVORABLY TO OTHER STATES? Blouin: YES, IT DOES. OUR REGULATORY CLIMATE AND TAX CLIMATE COMPARES VERY FAVORABLY TO OTHER STATES. DO WE COMPARE FAVORABLY TO SOUTH DAKOTA -- NO -- ON TAXES? BUT I'LL TAKE OUR QUALITY OF LIFE OVER THE SOUTH DAKOTA QUALITY OF LIFE, THE QUALITY OF OUR SERVICES, EDUCATION, HEALTH CARE, AMENITIES, PUBLIC SAFETY ANY DAY OF THE WEEK. AND COMPANIES LOOK FOR THAT AS WELL. THEY WANT TO KNOW WHAT YOUR INFRASTRUCTURE IS LIKE, WHAT'S YOUR COMMITMENT TO YOUR PEOPLE, NOT JUST HOW SMALL IS THE TAX BURDEN, BECAUSE USUALLY THE COMPANIES THAT ARE ONLY INTERESTED IN TAXES USUALLY AREN'T TERRIBLY INTERESTED IN PAYING LIVING WAGES. Glover: MR. BLOUIN, IF WE COULD TURN TO SOMETHING YOU'VE MENTIONED THROUGHOUT THIS SHOW, AND THAT'S THE ELECTION. AREN'T WE LOOKING AT A COUPLE OF YEARS WORTH OF GRIDLOCK HERE IN IOWA? THIS YEAR WE'RE GOING TO HAVE SOME LEGISLATIVE ELECTIONS. REPUBLICANS HOLD THE LEGISLATURE. WE HAVE A DEMOCRAT IN THE GOVERNOR'S OFFICE. MOST PREDICTIONS ARE THE REPUBLICANS ARE GOING TO HOLD AT LEAST PART OF THE LEGISLATURE AFTER THIS ELECTION. ISN'T THE TYPE OF GRIDLOCK WE'RE LOOKING AT RIGHT NOW GOING TO HAPPEN FOR THE NEXT TWO YEARS? AND WHAT DOES THAT MEAN TO THE FUTURE OF ECONOMIC DEVELOPMENT? Blouin: YOU KNOW, THERE WON'T BE GRIDLOCK IF IOWANS DON'T WANT THERE TO BE GRIDLOCK, AND IOWANS HAVE NEVER BEEN BASHFUL. THERE'S ONLY THREE MILLION OF US, AND WE'VE LEARNED TO BE PRETTY VOCAL TO OUR ELECTED OFFICIALS IN TERMS OF WHAT WE NEED AND WHAT WE WANT AND WHAT WE WON'T STAND FOR. I THINK IOWANS HAVE REACHED A POINT WHERE THEY ARE ABSOLUTELY ADAMANT. THEY DON'T WANT GRIDLOCK. THEY WANT GOVERNMENT MANAGED AND THEY WANT SOLUTIONS FOUND TO THE PROBLEMS WE'RE FACING. I THINK PEOPLE ARE VERY AWARE AS AN EXAMPLE THAT WE'RE THIS CLOSE TO LOSING A WHOLE GENERATION OF PEOPLE IN TERMS OF QUALITY EDUCATION. THEY WANT IT FIXED. THEY KNOW WE HAVE TO CREATE JOBS IN IOWA, MEANINGFUL JOBS SO THAT NOT ONLY THEMSELVES BUT THEIR CHILDREN HAVE A REASON TO WANT TO STAY IN IOWA. AND THEY WANT THAT TO BE A MAJOR PRIORITY OF EVERY ONE OF THEIR CANDIDATES IN BOTH PARTIES. NOW, SOME PARTS OF THE STATE SING THE SONG A LITTLE DIFFERENT THAN OTHERS, BUT THE SONG IS BEING SUNG. AND I THINK IN THAT ATMOSPHERE, THE GRIDLOCK ISN'T GOING TO HAPPEN. Glover: AND SINCE THE GOVERNOR ACTUALLY HAS A STAKE IN THE OUTCOME OF THIS ELECTION, HOW ACTIVE WILL HE BE IN TRYING TO TAKE HIS CASE TO VOTERS URGING THEM TO VOTE FOR LEGISLATIVE CANDIDATES WHO WILL SUPPORT HIM? Blouin: HAVE YOU EVER KNOWN HIM TO SIT ON THE SIDELINES? Glover: I'VE KNOWN HIM TO TRY TO SPARE SOME LEGISLATIVE EGOS AT TIMES. [ LAUGHTER ] Henderson: WILL YOU BE RUNNING FOR GOVERNOR NEXT TIME AROUND? Blouin: MY NUMBER ONE GOAL IS TO TALK TOM VILSACK INTO RUNNING AGAIN. I DON'T CARE WHAT HE'S SAID. I HAVEN'T GIVEN UP. I REALLY WOULD LOVE TO SEE TOM VILSACK HAVE AN OPPORTUNITY TO GOVERN THIS STATE WITH MONEY. HE'S GONE THROUGH SIX OF THE TOUGHEST CONSECUTIVE YEARS THIS STATE HAS EVER SEEN, AND HE'S NAVIGATED US THROUGH THAT PRETTY WELL. IT WOULD BE A MARVELOUS EXPERIENCE FOR HIM TO HAVE THE OPPORTUNITY TO DO SOME THINGS IN IOWA WITH SOME DOLLARS ON THE TABLE. AND AS THE ECONOMY COMES BACK, THOSE DOLLARS WILL BE THERE. Henderson: WELL, LET'S SAY YOU'RE NOT TOO PERSUASIVE AND HE LEAVES, WOULD YOU CONSIDER RUNNING? Blouin: LEAVING -- LEAVING -- YOU'RE TALKING ABOUT BEING THE VICE PRESIDENT OF THE UNITED STATES -- Henderson: WELL, YEAH, OR LEAVING OFFICE. Blouin: -- THAT WOULD BE A MARVELOUS EXPERIENCE. IF SALLY PEDERSON IS IN LINE, I'D BE INCLINED TO NOT WANT TO TAKE SALLY ON. I'D BE VERY INCLINED IF LIEUTENANT GOVERNOR PEDERSON WERE GOVERNOR PEDERSON. I WOULD SUPPORT HER ALL THE WAY. Glover: AND HAVE YOU ACTIVELY TRIED TO CONVINCE THE GOVERNOR TO RUN AGAIN? Blouin: OH, YEAH. Glover: HE'S BEEN PRETTY ADAMANT; HASN'T HE? Blouin: OH, YEAH. I DO IT EVERY TIME I SEE HIM, WITHIN REASON. I DON'T WANT HIM LOCKING THE DOOR BEFORE I GET IN. BUT, YEAH -- Glover: HE'S PRETTY ADAMANT WITH US. Blouin: YEAH, HE IS. Glover: HE DOESN'T LEAVE MUCH ROOM FOR INTERPRETATION. Blouin: HE'S VERY ADAMANT ABOUT IT. Glover: SO WHY DO YOU KEEP INSISTING YOU HAVE HOPE? Blouin: BECAUSE I'M A CONSUMMATE OPTIMIST. I NEVER GIVE UP UNTIL IT'S TOO LATE. Glover: AND LET'S LOOK AT THE POLITICAL CLIMATE THIS YEAR. Blouin: SURE. Glover: WE'VE GOT LEGISLATIVE ELECTIONS, BUT WE HAVE A PRESIDENTIAL ELECTION. WHAT'S THE POLITICAL CLIMATE GOING TO BE LIKE IN IOWA THIS YEAR IN TERMS OF DEBATING THE ECONOMY? BECAUSE MANY OF THESE ISSUES ARE, AT PRESENT, IN PLACE IN THE PRESIDENTIAL RACE. Blouin: I HOPE THE CLIMATE MANDATES THAT EVERY CANDIDATE FOR EVERY OFFICE TO THE LEGISLATURE IN EVERY PART OF THIS STATE, REGARDLESS OF PARTY: TALK ABOUT ECONOMIC DEVELOPMENT; TALK ABOUT IOWA'S FUTURE; TALK ABOUT WHAT'S AT STAKE, NOT JUST IN TERMS OF THE ECONOMY BUT WHAT'S AT STAKE IN TERMS OF JOBS, EDUCATION, HEALTH CARE, THE THINGS THAT MATTER TO IOWANS; WHAT'S AT STAKE IN TERMS OF OUR FUTURE; HOW DO WE FIND A WAY TO TURN THIS ECONOMY INTO SOMETHING THAT HAS GENERATIONS OF GROWTH OPPORTUNITY. AND OUT OF THAT KIND OF DISCUSSION SHOULD COME THE KIND OF VARIETY OF IDEAS FROM BOTH PARTIES, FROM CANDIDATES EVERYWHERE, THAT WILL LEAD TO SOLUTIONS. IT USUALLY HAS. I BELIEVE IT WILL. Borg: WITH THAT FUTURISTIC VIEW, WE HAVE TO CLOSE. THANK YOU, MR. BLOUIN -- Blouin: THANK YOU. Borg: -- FOR TAKING TIME TO BE WITH US TODAY. Blouin: GOOD TO BE BACK. Borg: THAT'S IT FOR THIS WEEKEND'S EDITION OF "IOWA PRESS." ON BEHALF OF THE STAFF HERE AT IOWA PUBLIC TELEVISION, WE HOPE YOU'RE ENJOYING A HAPPY AND SAFE FOURTH OF JULY INDEPENDENCE DAY WEEKEND. AND I HOPE YOU'LL WATCH NEXT WEEK AT OUR REGULAR TIME, 7:30 FRIDAY AND SUNDAY AT NOON. I'M DEAN BORG. THANKS FOR JOINING US TODAY.
CAPTIONS BY: MIDWEST CAPTIONING DES MOINES, IOWA FUNDING FOR THIS PROGRAM WAS PROVIDED BY "FRIENDS," THE IOWA PUBLIC TELEVISION FOUNDATION... GENERATIONS OF FAMILIES AND FRIENDS WHO FEEL PASSIONATE ABOUT THE PROGRAMS THEY WATCH ON IOWA PUBLIC TELEVISION. AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. |
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