Economy deals Culver a good hand, but now he has to play
BYLINE: ELBERT DAVID
One month after Gov. Chet Culver took office, Iowa business leaders say they like his enthusiasm, despite an early misstep, and hope that he takes advantage of the unique opportunity he has been handed.
"Few governors have been dealt a hand as good" as the one Culver now holds, said Des Moines lawyer Steven Zumbach.
Rarely, he said, are Iowa's agricultural and urban economies both as strong as they are today. "When things are going well, that's the time to take advantage and lay the groundwork for truly significant change."
Iowa Farm Bureau Federation President Craig Lang agreed. It's time for Iowa to make significant investments in research for renewable fuels and genetics at public universities, he said.
A strong economy creates opportunities for resolving long-standing problems, like the inequities in Iowa's property tax system and the state's distribution of road use tax money, said Lee Clancey, chief executive of Priority One, the economic development agency in Cedar Rapids.
When I called business leaders last week to ask how the new governor is doing, most said they wanted to be positive.
"I know what it's like to have a hundred people coming at you from a hundred different directions when you're in a new job," said Clancey.
Culver needs time to sort things out before critics start shooting at him, the former mayor of Cedar Rapids said.
That's true, but it's also fair to say that Culver's first month in office has done little to inspire confidence in his ability to handle economic issues.
A few things stand out.
Most notable was Culver's newly voiced support for changing Iowa's right-to-work law, which a lot of people are hoping was just a misstep on the part of the new governor. The law ensures that no worker is forced to join a union.
I say "newly voiced" because the issue was not something that Culver, or anybody else, talked about during the election.
If Culver had spoken up on the right-to-work law during the election, it's doubtful that he would have been elected.
Labor leaders want to change Iowa's 60-year-old right-to-work law by adding a "fair-share" provision. Unions could collect payments from non-union members to cover what they describe as the benefits of collective bargaining.
That's a legitimate policy debate. One that should have been aired during the election, not after the votes were counted.
It's a fairly safe bet that if such a law were to pass now with Culver's support, it would delay anything else he might want to accomplish.
"Changing right-to-work is a step backward," said Mike Ralston, president of the state's largest trade association, the Iowa Association of Business and Industry.
Another issue that has business leaders puzzled is Culver's proposal to create a $100 million Iowa Power Fund.
Since Culver coined that name during the campaign, descriptions of the fund have been long on symbolism and clichs - "make Iowa the Silicon Valley of renewable energy" - but short on specifics, like how the money would be spent.
Culver's budget address on Jan. 30 provided the most detail yet, although the plan is still pretty thin.
He called for creation of a new state agency to oversee the fund, which would "help home-grown energy businesses get started or expand, and will leverage new private investments in renewable technologies."
That might have been a good proposal five or 10 years ago, before everybody and their dog climbed on the ethanol bandwagon. But today the ethanol industry has more investment capital than it knows what to do with, and Iowa is a major producer and user of wind energy.
The leaders I talked with are hoping the governor puts the Iowa Power money into research at the state's universities. It could make a big difference in the state's economy down the road.
One last concern, and then I'll shut up.
Culver's handling of two state agencies doesn't bode well for economic development.
The Iowa Department of Economic Development and the Iowa Department of Cultural Affairs were both doing some interesting things under leaders chosen by Culver's predecessor, Tom Vilsack.
One doesn't normally think of a culture agency as an economic development tool, but director Anita Walker persuaded Vilsack and lawmakers to expand the use of historical tax credits to include arts and entertainment venues, which proved to be hugely popular.
She also got urban and rural counties interested in promoting art and history projects with the Iowa Great Places program. That program recognizes and promotes innovative community efforts, like the renovation of the Frank Lloyd Wright hotel in Mason City or turning the Garst family farm near Coon Rapids into a national attraction.
Culver declined to rehire Walker when he took office, which is his prerogative, but he has yet to name a permanent replacement.
The same is true for the Iowa Department of Economic Development, which was headed by Mike Blouin, Culver's rival for the Democratic nomination for governor last year.
On the one hand, it is understandable that Culver might not want to keep his old rival around. On the other hand, a lot of Republicans and Democrats believe Blouin was the best director the state agency ever had.
Blouin has spent most of his career in economic development in eastern and central Iowa and has the contacts and respect of his peers to prove it.
It would have taken a big man to keep Blouin around, and a lot of people were hoping Culver was that kind of big man.
Now, business leaders are starting to wonder if Culver, who was affectionately called a "big lug" by his wife in campaign commercials, might turn out to be a big slug when it comes to economic development.
Business Editor David Elbert can be reached at (515) 284-8533 or delbert@dmreg.com