Iowa Governor Announces MFG 4.0 Grants and Reforms for Unemployment Insurance |
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Governor Kim Reynolds announced two new programs to address Iowa’s workforce shortage this week. She made this announcement on site at ABI member company Iowa Spring Manufacturing. The grant programs will facilitate the expansion of Manufacturing 4.0. A total of $30 million in American Rescue Plan Act (ARPA) funds will help manufacturers bridge the technological divide in the workplace.
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The first grant opportunity of $5 million will supplement the existing Manufacturing 4.0 plan for small manufacturers (up to 75 employees).
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The second grant opportunity of $25 million will apply to those manufacturers who employ 76-250 employees.
During the same press conference, Iowa Workforce Development announced it is launching a new Reemployment Case Management system to ensure Iowans return to work as quickly as possible. Weekly work search requirements will double from two to four and the number of activities that qualify as a work search will be reduced from 27 to 12. The proposed changes can be implemented without legislative approval, according to IWD.
ABI is very supportive of the announcements and appreciates Governor Reynolds’s support of Iowa manufacturers. Improved workforce policies will allow companies to hire unemployed individuals at a faster pace. Unemployment insurance reform is going to be a top priority for ABI during the 2022 legislative session. You can view the governor’s statement here. Read more from Radio Iowa and The Des Moines Register.
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Second Round of Maps Unveiled
Legislature Meets Next Week for Special Session
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Yesterday, the Iowa Legislative Services Agency (LSA) released the second set of proposed maps for the U.S. House, Iowa House and Iowa Senate Districts. The decennial process, known as redistricting, is taking place across the country as states look to establish legislative districts for the next ten years. The Iowa Legislature will convene a second special session October 28th to consider the latest proposal from the nonpartisan LSA.
Republicans in the Iowa Senate voted down the first set of maps earlier this month as issues related to compactness and population deviation were cited. The Legislature approved a resolution stating these concerns. The LSA is then supposed to apply those concerns as they constructed the new round of maps.
It’s too early to tell how Republicans will vote on the maps, as they have control of the House and the Senate. If the second map is voted down, LSA will have up to 35 days to issue a third map. The Legislature can amend this third map within the confines of the Iowa Code and the Iowa Constitution. Look for much more on this issue in next week’s newsletter.
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A Brief History of Vaccine Mandates in Iowa |
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Like many red or purple states, Iowa has been the subject of a public policy tug-of-war over COVID-19 vaccine mandates. ABI has been advocating for members as policymakers have been steering a course. At the end of the 2021 spring legislative session, some lawmakers wanted to prohibit employers from taking vaccine status into account when making new hires and prohibit employers from requiring that current employees receive vaccines.
ABI objected and prevailed upon members of the House and Senate to allow that such decisions be left to individual employers and avoiding a blanket mandate. Fast forward to September 8, 2021 when the Biden Administration announced an Emergency Temporary Standard (ETS) was being developed that would mandate that employers of more than 100 must require their employees become vaccinated and the ABI response was the same – such decisions were best left to employers and a blanket mandate should be avoided. A press release explaining the ABI position can be found here.
In the days following the Biden Administration announcement, much has been written about the ETS but no draft version exists. The Biden Administration has indicated that individual employees can avoid the mandate by supplying the results of a negative COVID-19 test weekly. Additional guidance suggests that if an employer fails to successfully implement the mandate the employer would be subject to a $14,000 per occurrence fine. A version of the U.S. House Human Infrastructure bill would up those fines to $700,000 per occurrence.
Governor Kim Reynolds and the majority caucuses of the Iowa House and Senate oppose such a government mandate on businesses and individuals and we expect a lawsuit challenging the ETS mandate to be filed immediately to stay the implementation of the mandate until legal challenges are considered. Many believe such a sweeping mandate will be struck down.
In Iowa, once the mandate is published and the inevitable lawsuits filed, the state will have 30 days to develop guidance on how businesses must implement the ETS. Your ABI public policy team will be advocating for the interests of our members throughout the process. Should you need any questions answered on the status of the process please reach out to JD Davis.
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REC Projecting Steady Growth for FY22 and FY23
Significant Tax Cuts on the Table in 2022
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The Revenue Estimating Conference (REC) convened last Friday and projects the State of Iowa will see stable growth for the current and coming fiscal years. The REC, a three-person panel that provides budget forecasts for Governor Kim Reynolds and the Iowa Legislature, estimates the FY22 budget will be $8,934.2 billion, or a 1.5% increase over FY21. It also projects the FY23 budget will be $9,074.7 billion, or an increase of 1.6% over FY22. Iowa closed FY21 with a record budget surplus of $1.24 billion and net receipts of $8,800.6 billion, which is an increase of 11% than FY20.
Given those facts, Governor Kim Reynolds and Senate Majority Leader Jack Whitver both issued statements following the conclusion of last week’s REC meeting. Both leaders indicated they would be pressing for reductions in income taxes for Iowa taxpayers in 2022. Leader Whitver also recently appeared on Iowa Press where he emphasized that message. You can view Governor Reynold’s release and Sen. Whitver’s statement. Read more below:
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Feenstra Announces Re-election Bid for Congress |
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This week, first-term Congressman Randy Feenstra (IA-04) declared he is seeking re-election to the U.S. House. Feenstra, a former state senator, beat Democrat J.D. Scholten in 2020 to become the new Congressman to represent Iowa’s 4th District. Feenstra defeated longtime incumbent Congressman Steve King in a June primary to become the Republican nominee in the historically Republican district. He raised $321,387 in the latest fundraiser quarter according to The Des Moines Register. Though the composition of the 4th District is currently unknown for the 2022 race due to the ongoing redistricting process, Feenstra will be a favorite to win as the district will likely remain a Republican stronghold. No Democrat has announced a run at this point in time.
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ABI Provides Testimony on Muscatine Attainment to the Environmental Protection Commission |
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On Tuesday, ABI Director of Public Policy Brad Hartkopf spoke to the Environmental Protection Commission (EPC) regarding attainment for SO2 in Muscatine County. Hartkopf requested the EPC support DNR’s request to amend the state implementation plan (SIP) for sulfur dioxide that would place Muscatine County back in attainment. The DNR recommended this change after monitoring the area and analyzing permits from manufacturers. ABI supported this item as it’s based on sound science and will allow Muscatine businesses to continue to do business and expand in Iowa. The EPC unanimously approved the agenda item. Thank you to ABI member Mark Thimke (Foley Lardner) for providing technical support to ABI staff on this issue. Read ABI’s comments here.
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On Monday, Environmental Protection Agency Director Michael Regan announced a strategy to drastically regulate and ultimately attempt to mitigate contamination from PFAS (Per-and Polyflyoroalkyl Substances). PFAS, also called “forever chemicals,” are extraordinarily durable and don’t break down easily. The EPA plans to issue regulations to set limits for public water supplies, with a final rule expected to be enacted around the fall of 2023. PFOA and PFOS will likely be designated as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which is also known as the Superfund law.
The ABI Board of Directors has approved a new policy position to address the topic of emerging chemical regulation. ABI encourages new government programs mandating monitoring and/or remediation to not impose retroactive liability on those using (PFAs or other chemicals and compounds) in compliance with existing laws, rules and regulations. ABI will monitor this issue closely and share any developments in the newsletter.
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ABI Members Head to D.C. for Biennial Fly-In Next Week |
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Several ABI members and ABI’s public policy staff will be in the nation’s capital next Tuesday through Thursday to meet with all members of Iowa’s Congressional Delegation. The group will also meet with ABI’s federal partners to discuss key issues the business community faces at the federal level. The fly-in comes as Congress is focused on several important matters that affect our business climate in Iowa and nationally. We’re thankful for each member of our delegation and the National Association of Manufacturers, the U.S. Chamber of Commerce and BIPAC for taking time to meet with ABI members and staff. Watch for a recap of the trip in next week’s newsletter and a future Weekly Business Report. |
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Call for 2022 Conference Workshop Proposals |
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Proposals are now being accepted to present workshops at the 2022 Taking Care of Business Conference. ABI seeks speakers who can deliver dynamic, engaging sessions with a strong emphasis on takeaways.
The hour-long workshops will be held Wednesday, June 15th. Attendees pre-register for workshops, and attendance typically ranges from 20-85 participants per workshop.
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ABI Executive Vice President Nicole Crain and Dalexi Carrillo, Director of Programming and Communications with BIPAC share how ABI members can take advantage of resources to engage and educate their employees on local elections. Learn more: iavotes.com.
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Leadership Iowa Hosting Virtual LI CONNECT Series for Alumni |
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The Leadership Iowa Alumni Committee is celebrating 40 years of Leadership Iowa by providing unique opportunities to connect its expansive statewide network. The group will be continuing to host its virtual LI CONNECT event series throughout the year, beginning with an “Alumni Meet & Greet” next Friday, Oct. 29 from 8:30-9:30am. Program alumni and new class members are invited to share insight, stories and tips on how they made the most of their LI experience. Leadership Iowa alumni can RSVP online here.
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Fostering Relationships Is Key to Retaining Employees in the Current Workplace
By Todd McDonald, ATW Training Solutions
With changes driven by the recent pandemic, recruiting, hiring and retaining workers will be heavily driven by an organizations ability to help foster relationships with workers who may be working in offices, remotely or a combination. The numbers don’t lie.
- According to a recent survey by Voodle (Voodle 2021 Hybrid Workplace Report), 55% of the 800 responses say that their company culture has suffered since the pandemic forced remote work.
- Additionally, 40% feel that the lack of connection with other team members is a very/extremely difficult aspect of remote work.
- 83% of companies responding to the 2021 ATW Training Solutions Trends in Talent Development Survey say they will have remote workers in 2022.
- 1 in 4 workers say the ability to work remotely is so important to them that they are willing to take a 10-20% reduction in pay to work remotely.
CLICK HERE for tips on how your organization can foster better relationships.
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Registration Ends Monday: Iowa Governor's Safety & Health Conference
November 1 - 2, 2021
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Join the Iowa Occupational Safety & Health Advisory Council at Prairie Meadows on November 1-2 for two days of conversation on how best to protect Iowa workers. Network with colleagues, make new contacts, and continue your growth as an OESH professional.
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Eide Bailly Inspired Perspectives Webinar Series |
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Eide Baily’s Inspired Perspectives webinar series is designed to help businesses and individuals make informed decisions, remain successful and ensure compliance in a competitive marketplace. CLICK HERE to join an upcoming webinar covering topics like energy efficiency tax benefits, tax legislative updates, financial planning strategies to grow your wealth, and international tax.
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TOP SUPPORTERS - GOVERNOR |
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