The Voice of Iowa Business

June 16, 2017

Thank you to everyone who attended the 2017 Taking Care of Business Conference!

Hundreds of ABI members and business leaders from across Iowa and the Midwest gathered in Dubuque last week for the annual conference. Thank you to all the attendees, sponsors, committee members and presenters who helped to make it a great success! Click here to see photos of all the festivities.

Mark your calendars now to join us in Coralville/Iowa City on June 5-7, 2018 for the 2018 Taking Care of Business Conference!

Check out coverage of Gov. Kim Reynolds and Lt. Gov. Adam Gregg:

Gov. Reynolds says tax code must be changed to keep young workers in Iowa (KCRG)

In Dubuque, Gov. Reynolds lauds state's manufacturing, highlights economic goals (Dubuque Telegraph Herald)

Legislative News

Join ABI and the U.S. Chamber at Rep. Young Spirit of Enterprise event

ABI, along with the U.S. Chamber, will host U.S. Rep. David Young of Van Meter on Monday, June 19, for a special awards ceremony. The U.S. Chamber will present Young with the Spirit of Enterprise award for his support of pro-growth policies in Washington.

The prestigious award is given annually to members of Congress based on their votes on critical business legislation as outlined in the U.S. Chamber's annual How They Voted scorecard. Members who supported the U.S. Chamber's position on at least 70 percent of those votes qualify to receive the award. If you would like to attend the event on Monday, please email Nicole Crain at [email protected] for details.

The state faces another budget shortfall for fiscal year 2017

With two weeks left in the state fiscal year, Gov. Kim Reynolds announced Tuesday that Iowa will borrow up to $50 million from the Economic Emergency Fund to head off another shortfall for the current fiscal year. According to the Legislative Services Agency (LSA), state revenues for the last 11 months have fallen about $97 million short of projections.

The Revenue Estimating Conference (REC) had projected 2.8 percent growth for the current fiscal year, but revenue has only been growing at 1.2 percent. The governor has said she and her staff are continuing to monitor the situation. She also said there will not be across the board budget cuts and hopes to avoid having to call for a special legislative session to address further cuts. Read more from The Des Moines Register.

Directors Durham and Townsend to address ABI policy committees

Registration is open for ABI's public policy committee meetings that will be held in August. Last year, more than 90 companies and 150 members participated in the public policy development process. Many legislative changes were made at the state level this session and we need your help to develop new policies for 2018.

ABI has lined up Debi Durham, director of the Iowa Economic Development Authority, to speak at the Economic Growth Committee and Beth Townsend, director of Iowa Workforce Development to speak at the Employment and Workforce Committee. Click here for the full schedule of committee meetings and to register for these meetings, which are free to ABI members.

Interim legislative study committees announced

Legislative study committees that meet between legislative sessions have been announced for 2017. The study committees are formed to bring House and Senate members from both parties together to try and address a particular policy concern through legislative action for next year. Two committees of interest to ABI members are the Industrial Hemp Program Study Committee and the Prescription Pain Medications Study Committee. Keep reading...

Federal Spotlight: BAAD Tax Coalition

A broad coalition of businesses and trade associations around the country is working to defeat any proposal from Congress that would increase taxes on advertising. The Businesses Against the Advertising (BAAD) Tax Coalition was formed to support small- and medium-sized businesses that are the backbone of the American economy. Keep reading...

Federal Spotlight - Department of Labor rescinds two rules

Secretary of Labor Alexander Acosta has rescinded two burdensome rules in a victory for manufacturers. Last week, Mr. Acosta rescinded the 2016 Administrator's Interpretation regarding the classification of independent contractors. He also rescinded a 2016 interpretative memorandum on joint employer under the Fair Labor Standards Act. The rescissions are effective immediately. Keep reading...

Registration is open for Iowa's premier executive golf event, the ABI Executive Open! The 2017 tournament will take place at the Des Moines Golf and Country Club on Monday, Aug. 28. Click here to register. Sign up early to ensure you get a spot! Interested in sponsoring this great event? Contact Kathy Anderson, [email protected].

From the Desk of...

The surprisingly simple incentive plan that recruits and retains employees

Ray Bening and Duke Reichardt

Bening Financial

With the Iowa unemployment rate below 4 percent, retaining and recruiting executive talent is now crucial, especially considering that replacing a key employee may cost a business two to four times that lost employee's compensation. Not to mention possible business interruption and loss of momentum.

It can be challenging to align the financial goals and objectives of a business owner with those of key employees. Done correctly, alignment will increase productivity and profit. Typically, a 401(k) plan is the primary deferral and tax advantaged opportunity to build retirement assets. For key employees, however, IRS restrictions make it difficult to maximize benefits. And sharing company stock as a retention vehicle can be complex, particularly in a closely held business.

There is a solution to these concerns, one that is simple enough that a key employee can explain the benefits to a spouse at home. Nonqualified Deferred Compensation (NQDC) plans have been around since the IRS favorably ruled on them in 1957. The fact is, a nonqualified deferred compensation plan (NQDC) is both flexible and effective. Keep reading...