Condition of the State 1988; 1988.0; Gov. Terry Branstad

A. Major funding for this program was provided by friends of Iowa Public Television. Governor Branstad condition of the state address. Presented before the joint session of the i wood General Assembly. Here is Dean Borg. Good evening. Earlier today Governor Terry Branstad delivered a condition of the state address to the newly convened Iowa legislature. Here is Governor Branstad. Madam President Mr. Speaker. Mr. Chief Justice justices and judges state officials senators and representatives distinguished guests and friends. A year ago. I stood before you in these chambers and said that the worst was behind us. I know that some of you question that statement and I can certainly understand why.

To say that Iowa has been battered in the last decade is an understatement. We are still feeling the effects. And believe me I know there are Iowans in the midst of the struggle and none of us should lose sight of that. But together we've come a long way despite the stress and adversity of a time when farm land values drop further and faster. And during the Great Depression we accomplished a great deal in these past few years. I'm here today to tell you that I believe that the best can be before us. Why do I say this. Because of the condition of the state. 1987 was the best year for this decade in Iowa's economy. For the first time in seven years the number of working Iowans topped 1.4 million. We

had a net gain of 21000 new jobs in Iowa last year. Farmland values actually rose eleven point two percent after dropping 65 percent in the previous five years almost 60 400 new businesses incorporated in Iowa in 1907. A number which nearly matches our peak years of 1989 and 80 and these numbers do not tell the whole story. 1087 not only mark the turning point for the Iowa Kaname but it was a year when the attitude turned for the better. The misty gloom of the past decade is clearing in Iowa. We're beginning to see the outline of a road to a brighter future. Now even though you and I gained some notoriety over our disagreements when you consider what we've been through we've made real progress. IO is moving forward and I want to commend all of you for your

part in helping make that possible. Just consider what we've done. We passed a major education program that will ensure I was number one position in education in this nation for years to come. We began a concerted effort to protect our groundwater. We eliminated the penalties for expanding employers and cut their taxes by over 30 million dollars a year. We cut the individual income tax rate and the top rate by 25 percent. We enact legislation to streamline state government and make it more efficient and less costly. We made we made Iowa more competitive as a place to do business by eliminating the personal property tax and the sales and use tax on machinery equipment and computers. We established economic development incentives in a job training program to encourage business diversity. Now despite these accomplishments

we must recognize that there is a downside to this positive report. Over the past decade we've lost people particularly young people. Business is close especially in our smaller communities and perhaps most disturbing many small communities have lost a whole generation of leaders. In fact for some small towns the crisis is not over. These are the positives and the negatives that establish where we are in Iowa today. And despite the problems with the vastly improved state economy there is a temptation to sit back and say well we've finally made it. And figger we don't have to do anything. We can't afford to take that attitude. We have an important choice to make here today. We can stand

still or move ahead. Personally I don't think there is a choice. We need to move forward. And if we don't we will surely lose our way of life. Our values our work ethic our safe and clean communities. This is our heritage in Iowa. If we are to hold on to the best of our past we must not be afraid of further change lest we forfeit the very best of our future. Let us all make a commitment today to work together. In this next year and the years ahead. The heart of the new Iowa must be small businesses located in communities throughout this great state. They already account for a third of Iowa's total labor force. Even in the worst of times small businesses generate new jobs. They can provide new opportunities in our rural areas and in our urban areas and in

general can help us weather the circle downturns in agriculture. We all want to diversify in Iowa. If we make the right choices we will have small towns that are healthy cities that are thriving and a state where quality productivity and disappear your education are a way of life. And where our young people want to establish a home and a career. Now the question becomes how do we achieve this vision. How do we make it a reality. Well I certainly don't think it's an impossible dream. And I think we begin right where we are. We must recognize our strengths and use those. For the foundation for the new Iowa. Let's look at those strengths for a minute. First we have education

the nation looks to us for leadership in education and rightly so. Nine out of 10 Iowa schools ranked above the national average on scholastic achievement and Iowa students are on the average a year and a half. Ahead of students in other states. And let's not forget we're one of only four states in this great country that has two world class research universities. Iowans also work harder than most other Americans. Just last week Sandy Merck and the president of Integrated resources life companies of New Jersey announced that his company. Has doubled its employment in Iowa in the last two years and they intend to double it again in the next two years. Why would he do that. Well Mr Mirken said it best and I quote Iowa is one of the few places where you still get a full day's work for a

day's pay. Then there is our quality of life in Iowa. It's important for us to be able to walk our streets and not worry about crime. We are committed to preserving our land and water for future generations. In Iowa we know that you can count on your neighbors. They're honest and caring people. In Iowa. You know you can participate in the democratic process. Just witness all the people in this state who are taking part in the presidential precinct caucuses. And you can't beat the quality of our recreation sports arts and cultural activities. And finally we must remember the strong industries that we already have in Iowa. A combination of rich land abundant water emerging technology and hard work make our agriculture the most productive in the world.

Thank you. The word Thanks insurance biotechnology telecommunications and manufacturing are all well established in Iowa. So how do we use these strengths and our vision of the future and make it a reality. We need to look around us at the current trends and the things in the world that will affect us and our future. Then I think we can match up our strengths with the trends and move forward. The trends tell us that in order to succeed in the 21st century we have to compete in a world market. Iowa is already ALAP ahead in that race. We have competed in global markets for years. Nearly a third of the grain produced by Iowa farmers

is sold in the international marketplace. And one of seven I will factory workers produces for the export market. With the decline in the value of the dollar. Iowa agriculture and manufacturing are poised to capitalize on great opportunities in order to succeed in the 21st century. It is said we will need to be part of a growing service economy. The greatest job growth in the next decade will be found in business and financial services in teaching computers human resources and engineering. Where does that put Iowa. Puts us on a good course. We're already second in the insurance industry in the United States and by the end of this century we intend to be number one sixth biotechnology industries either located or announced new locations in our state last year and in communication services we've grown two

hundred and forty five percent in the last 10 years. To succeed in the 21st century we all need highly skilled educated workers. The U.S. Department of Labor estimates that by the year 2000 12 million new jobs will be created in the United States. But 80 percent of those new jobs will require cognitive skills with our commitment to quality education in Iowa. We have the we have the education and the people to match that trend. And the coming years will likely bring a continued demand for quality. Not only do people want quality in the products and services they buy. They want quality in their lives. We know that Iowa is a place with high ethical standards strong

values and where trust is part of our way of life and the watchword for Iowa industry is quality. We are the home of some of the highest quality products in the world. Maytag Amana. When a bagel. John Deere Hello rolls spring to name a few symbolize Iowa quality products. For the first half of the decade of the 1980s the trans ran against US interest rates the value of the dollar by polls the economy they all worked against us. Now the new trends are coming in our direction. They're pointed in our direction. So let me outline for you a program that uses our strengths that addresses the trends that will help us fulfill our vision. One of an Iowa that maintains our home town way of life and at the same

time is economically sound and diverse. What is it going to take. It's going to require an aggressive program and I'm laying out here today. A five point program that will market focus build diversify and strengthen our state. Market. We must market Iowa people must know who we are and they know must they must know what we have to offer. We found that Iowa has a lot of the things people want but they don't know that we have. And it shows we ranked thirty seventh among the states in industrial marketing and in Midwest tourism advertising. There is no contest. We are dead last. And you know I'm getting tired of

waking up to Missouri. I'm tired of people asking me how's the potato crop out there in Iowa. I was simply can't afford to be the best kept secret in the nation. Thank you work. Will work. So that's why I'm recommending that we allocate. An additional 3 million dollars for a marketing budget. Now you may think that sounds like a lot of money. But if we don't tell anybody about ourselves we can rest assured that we won't reach our goals. The bottom line is if we do tell people about Iowa. We can increase the number of business locations here by at least 10 percent. And that means more jobs for Iowans. Or worse.

The were the focus of our continued growth means we must focus our limited resources on economic development. That's why we need programs like Iowa transportation 2000 which I ask you to adopt this year. Thank a diversified state will require ease of moving people groups goods and services and transportation 2000 does just that. It creates an improved network of highways airports rail roads and even recreational trails to work for the economic development of our state. An important point is that 80 percent of Iowa's population will live within 10 miles of the vital arteries to the world's markets. I believe that we can do even

better in targeting our lottery dollars. We can help small business and entrepreneurs to grow. And that's why I'm recommending a two million dollar increase in available funds for the community economic betterment account with funds to be used for new opportunities and filling the gaps in financing and increasing funding for the Iowa Product Development Corporation a new seven point five million dollar small business loan program that will help us attract private funds to Iowa's emerging businesses and an increased commitment to retrain unemployed workers to help them find new jobs bill. We need to build on our strengths. If we are to be the leading agricultural state in the nation and we are we must strive to enhance the marketability of our commodities worldwide. We need to place

more emphasis on research and biotechnology. We need to update the swine research facility at I was State University and equip the new agronomy building on that campus. Thank you. I work with construction starting on the new laser center at the University of Iowa and the biotech center I was State University. We've taken a big step forward. Now we need to build the linkages between the research efforts and the Iowa companies and entrepreneurs that can turn those research findings into marketable goods and services. I'm recommending that Iowa patent library. Be established to also assist our researchers and entrepreneurs. We can also build on our agricultural strengths by completely taking the sales and use tax off repair parks

and by giving livestock producers sales tax exemptions rather than refunds on the equipment they purchase. Thank you work. I work. Our educational system is among our greatest strengths and we must not let up our educational excellence program our of last year is a shining example of Iowa's extraordinary commitment to quality education for our children. It is making our state a nationally recognized leader for education reform. There should be no retrenchment from this historic step for Iowa's future. Will work. NCAA Glavine appreciate the link.

We need to continue our efforts and support our teachers and administrators our schools and universities our colleges and technical institutions so that we can turn out the best educated people we can do that by providing our Regents institutions with the funds necessary to retain and attract quality faculty. We should fully fund the merged carrier formula and tuition grants should be provided. For twenty two hundred fifty more Iowa students. Who work. As we can build on our three phase educational excellence program by initiating pilot programs for effective schools in pre-kindergarten education we need to adopt appropriate minimum standards for quality. In our local school districts.

But no state mandate for a school district reorganization the work of. Our system of welfare must do more than help people in need. It should help people to break the cycle of poverty and dependency as our economy strengthens. We should take this opportunity to use the improved jobs that are available to help people to return to work. The effort begun last year to redesign this state's welfare system should be continued to underscore Iowa's commitment to the work ethic. Diversify we must diversify Iowa's economy. That's what rural development is all about besides encouraging businesses to locate in our small towns. We need to create a rural development fund that gives technical and management assistance to rural communities and entrepreneurs provides

training for farmers to earn off farm income and creates. A professional economic development training institute. Strengthen. We need to strengthen I was improving business climate. We must reduce the excessive cost of liability insurance for our health care providers and small business today in some parts of Iowa. You cannot find a doctor to a deliver a baby because of the skyrocketing cost of malpractise insurance premiums. So I believe we should put a one million dollar limit on medical liability and a cap on noneconomic loss thank you will allow. A word Many of Iowa's small companies in new industries find it difficult to raise

money through the sale of stock. This limits the growth of small companies in our state. We should amend the Iowa Securities Act to be consistent with federal law. What I've just outlined represents the program that will. Market our assets focus our resources build on our strengths diversify our economy and strengthen our business climb. In the end the building of a new Iowa will take more than the efforts of us that are just in this room to be truly successful. We need to involve all the people of this state in the process. Now I know that Iowans don't like to be told what to do.

We've got at least one of those independent people in the audience. They're independent. They want to participate in the decisions that will shape their future and they should because we in government can't do it all for them. Our success will to a large part depend on how well. The leaders in every community of our state respond to the need for a diversified economy. At the state level we should stand ready to support with the tools incentives. And this is divs and resources. That Iowans need to fashion their own future. And I can tell you Iowans are hungry to participate in shaping the new Iowa for the last six months I've

held seven town meetings on each of these occasions two or three hundred people spent the evening with me and we talked about their future and the future of their community. They told me they're eager to make a difference for their community. And they come to those meetings because they want to learn how they want to find a way. To stop the population loss to create new jobs in their community and preserve their way of life. At one town meeting recently I visited with people from seven different communities in two counties who have joined together to promote economic development in their area. What we need to do is find a way for all Iowans to participate in the development of their communities. And I think I know a way. There is a proposal I call.

Iowa tomorrow. It has been discussed with members of the business community and it is sponsored by the Iowa newspaper association. It will encourage Iowans to come together this year in town meetings to express their vision for the state for the beginning of the next century. The goal is to develop a consensus for jobs in every community in Iowa. Iowa tomorrow can provide the framework for Iowans to decide. What they want their state to be what kind of an environment they want to live in and how each Iowan can make a difference. Iowans helping Iowa that's what it's all about. We must work together to help our state to grow and to prosper. I for one pledge to do everything I can to help achieve that goal. I realize that we all have a great many responsibilities and demands on our

time and it's easy to get distracted from a common goal. The fact that it's an election year does not change the reality that we have difficult choices to make. But I know we can do it. After all it was an election year when you all approved. The most massive restructuring and downsizing of state government in our history. I know we can work together again this year. Thank you. The word thank 988 is a pivotal year for Iowa. It is a year when we can make our strengths work for us or let future trends control our destiny. It is here where we can risk some

change or risk our way of life. It is a year when we can move forward or stand still. Let us all resolve to be architects of change for the new Iowa separately. We cannot succeed together we cannot fail. Thank you. Thank you. The Republican governor of a Democratic controlled legislature met together last week in what some describe as an attempt to put aside some of the differences that arose last year and in the special sessions over taxes and to come together with some main agenda items. But that was last week and yesterday start in the legislature maybe in the case of the harmony may be short lived. We don't know about that we're going to ask two people in just a couple of minutes here exactly what some of that common ground might be. That's Don even since the speaker of the Iowa House and Bill Hutchens who leads the Democratic

majority in the Senate. Speaker even what did you like. If we can put it that way about the governor's assessment of the condition of the state and some of the proposals what did you like about it. I think he's absolutely right. I was counting his turn it up. We're feeling a lot better about things out there but there still are many problems particularly in rural Iowa in our small town. Communities and specifically so we need to attack. Those. Areas with real rural redevelopment plan we were pleased that he accepted some of our animal work that he's going to look at some of that stuff because we're going to pass in the other areas that were surely going to work together. This is welfare reform on balancing the budget so I think we have a tremendous amount of common ground. We need to emphasize those work on those and be as popular as possible. Just a quick question to you Don before we turn to Bill Hutchens he winked at you said he said You winked at him but you weren't clapping on the education proposal why. I was sort of afraid to clap for anything that the governor proposed last year by for is a

proposal to repeal federal duck bill and we got shot down over that. I think a lot of what he said was stuff we can work with was by far the best delivered speech I've seen. Governor you have but I guess as far as content is concerned if I were a boxer would be a featherweight. Bill HUTCHENS What's your assessment. Well I think he addressed many of the issues that we've been working on in the interim. We're all about. Welfare reform which he really talked about today and I think we pretty much accepted where we're going with education right now with the differences that commonly given attitudes that we take toward some of those initiatives. We've come up with some different ideas and in our interim committees hello they're headed really in the same direction. Let me just ask about that transportation 2000 that's a re proposal of last year that 4 percent increase in the gas tax that going to go anywhere. Well we we attempted to pass a form of that last year and kept

coming up with 24 votes. I've had the Transportation Committee chairman from the Senate and the ranking Republican. In the Senate in my office yesterday were sitting down and talking to some of those interest groups counties cities state to say and. If there's a middle ground that might attract the votes and that starts go from there that's going to be the hitch is that how do you divide it up between the counties in the suburbs where that's the way it is and you know we just have to see if there's a middle ground. Dean there's one common area that we're all concerned with the federal government cut our transportation operation from WA. Sent to him by 35 million. That will mean a greatly reduced road maintenance and no new roads. So we may be able to work in that area of replacing those lost federal funds that way so we don't fall backwards. Thank you gentlemen for the quick assessment of you. The governor's condition of the state message and his proposals and with that we end our coverage of the condition the state Monday evening at 6:30 will present the

budget address in which the governor will be saying how he intends to pay for some of these proposals that will be live at 6:30 and I will public television in the next few months will monitor the progress of the governor's proposals as they make their way through the legislative progress. Doing that at seven o'clock and I will press on Sunday nights. Until then I'm doing Board thanks for joining us tonight. Tonight major funding for the condition of the state was provided by friends of the Iowa Public Television.