Support the best education Iowa can provide

To the Editor:
In Mr. Engle’s letter, “Questions for Rep. Patti Ruff,” dated April 15th, regarding support for increased funding for Iowa schools without a determination as to how the increase will be paid, Mr. Engle suggests that Ms. Ruff is “pandering to the education vote” and “just waiting for someone to turn over (“a pot of money”) to big spending politicians for their pet projects.” As of May 3rd, the funding increase for education has not been resolved.  The Republican dominated House and the Governor are holding at a 1.25% increase and the Democrats have come down to 2.625% increase.  The difference in dollars between the GOP and the Democrats is 56 million. The GOP budget (as reported by the Deputy Communications Director of House Democratic Staff) presently is 7.175 billion. That difference of 56 million represents 1.28% of the whole big pie.
If this minor increase is not passed, educators will lose their jobs, class size will be increased, and the quality of education in the state of Iowa will be reduced. This sends a message to students thinking about a profession in education that Iowa does not care about education. I believe this conveys to our existing classroom teachers a message that their efforts to develop world class students in Iowa is a farce. Education is not a “pet project” - it is the foundation of a democracy and a serious investment in the youth of our state. Abe Lincoln had an apt quote, “The philosophy of the schoolroom in one generation will be the philosophy of government in the next.”
This funding increase is not really about adding another burden on the backs of tax payers. It is about priorities in the way we spend our money.  I want to point out a pot of money that was thrown away on just one project funded by the Branstad administration which would have paid for this education increase two to three times. You may recall back in 2013 a nitrogen fertilizer plant was planned to be built in the southeast corner of Iowa, Lee County, outside of the small town of Wever.  This may be the largest Economic Development project in Iowa history, although it isn’t finished. It is due for completion this year and thus far has a 100 million dollar overrun which may make it the state’s most expensive project at a cost approaching two billion dollars.
Here are the facts as laid out by Joe Bolkcom, chair of the Iowa Senate Ways and Means Committee, on the Senate floor, February 20th, 2013 and reported in the Des Moines Register. I will paraphrase for the sake of brevity. Illinois and Iowa were vying for the same project.  The Mid-west Bond Disaster (flood recovery) Bonds put up 1.2 billion low interest loan that was estimated to be worth 300 million to Orascom, the Egyptian company in charge of the project. Lee Co. then granted a no tax benefit for 20 years equal to another 133 million. This was very likely all that was needed to seal the deal and bring the project from Illinois to Iowa. No one knows with certainty. But then, the money incentives got more interesting. Iowa anted up: a sales tax refund, a loan and a forgivable loan from the Iowa Economic Development Authority, a grant from IA DOT (five million), job training money and research and development tax credits, all totaling 12 million. Then Governor Branstad threw in another 100 million in investment tax credits over four years. The grand total in business incentives was 550 million (more than a third of the cost of building the plant comes from state and local tax payers).
Governor Branstad’s justification was that Lee Co., the poorest county in the state, needed jobs. All the associated businesses that would eventually develop would bring a big economic lift to that area of the state and to the state as a whole.  The cost of nitrogen fertilizer would be reduced for the farmers of this state.  
Let’s look at the jobs. It started out to be an estimate of 200 permanent jobs, and 2,500 temporary (two year) construction jobs - most to be hired from Iowa. Latest figures have the permanent jobs at 165 and construction temps at 2,000 and not all Iowans. There is a labor dispute recently reported that remains to be resolved between Orascom and the construction workers. The construction of the plant is under the control of a Netherlands company, a division of Orascom, called OCI N.V.
The jobs to cost ratio (of our state incentives or taxes) has the jobs provided too low for the very high cost of tax incentives. I’m certain those permanent jobs were welcome in Wever and the future of that town will be brighter. And those 2,000 temp jobs were a blessing as well. The problem is, these temp jobs don’t build communities when the work is done. When the work is done most don’t stay. It is boom and bust scenario. And, there’s no tax base for the community for 20 years. It remains to be seen if the farmers’ fertilizer costs will be greatly reduced. Egyptian and Netherlands companies have one thing in mind with their investment - profit - that does not include big savings for Iowa farmers. Repair parts will likely come from the Netherlands.  
This whole project provides an example that helps clarify the definition of the word “boondoggle.” Mr. Engle, there was a big pot of money there, but it’s nearly gone. Yes, the fertilizer plant is there, or may be completed the last quarter of this year, but we tax payers paid too dearly for it. Those incentives to a foreign company were budget busters. Maybe we can learn something from history and spend more wisely in the future. Then we might look into supporting the best public education this state can provide without breaking the backs of our tax payers.  
There is more to this topic regarding state spending inequity and priorities gone awry, but that is another letter to the editor.

George Blair
New Albin