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PAG LIN
1 1 HOUSE CONCURRENT RESOLUTION NO.
1 2 BY KREIMAN
1 3 A Concurrent Resolution calling for a nationwide cease-
1 4 fire in the escalating business recruitment war.
1 5 WHEREAS, the development of a global economy,
1 6 acceleration of technological innovation, and other
1 7 economic conditions have intensified pressures on
1 8 state governments to offer financial incentives to
1 9 attract and retain jobs; and
1 10 WHEREAS, Iowa is being asked to become involved in
1 11 very high-stakes bidding wars with other states and
1 12 localities to compete for new, relocating, and
1 13 expanding businesses; and
1 14 WHEREAS, businesses are increasingly prone to
1 15 routinely request financial incentives, regardless of
1 16 actual need, and without a demonstrated method of
1 17 determining actual need; and
1 18 WHEREAS, increasing use of financial incentives by
1 19 state governments fosters a reliance on incentives to
1 20 the detriment of other more salutary long-term
1 21 economic strategies, such as workforce development
1 22 programs; and
1 23 WHEREAS, increasing reliance on financial
1 24 incentives by state governments has engendered a
1 25 pernicious bidding war with ever-escalating costs for
1 26 each new job created; and
1 27 WHEREAS, increasing per-job costs of financial
1 28 incentives raise serious questions concerning the
1 29 relative benefit of certain economic development
1 30 projects based on their ever-increasing costs; and
2 1 WHEREAS, increasing per-job costs of financial
2 2 incentive packages will inevitably inflate the minimum
2 3 expectation of businesses seeking assistance; and
2 4 WHEREAS, state governments cannot determine whether
2 5 the award of, or failure to award, financial
2 6 incentives has a significant influence on the decision
2 7 of a specific business to locate at a particular site;
2 8 and
2 9 WHEREAS, a 1992 survey of 200 executives conducted
2 10 for the International Association of Corporate Real
2 11 Estate Executives revealed that of the top 10 factors
2 12 in site location decisions, property taxes and
2 13 business taxes ranked only eighth and tenth
2 14 respectively; and
2 15 WHEREAS, the economic bidding war between the
2 16 states produces no gain for the nation's economy as a
2 17 whole, and the nation, Iowa, and other individual
2 18 states stand to benefit more from economic cooperation
2 19 than confrontation; NOW THEREFORE,
2 20 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES, THE
2 21 SENATE CONCURRING, That the Governor of the State of
2 22 Iowa is urged to enter into negotiations with the
2 23 governors of the other states to enter into an
2 24 agreement to foster cooperative economic development
2 25 policies and limit the mutually destructive financial
2 26 incentive war.
2 27 BE IT FURTHER RESOLVED, That the members of the
2 28 Iowa congressional delegation are urged to solicit the
2 29 help of members of Congress from other states in
2 30 securing the cooperation of other governors in
3 1 negotiating such an agreement.
3 2 BE IT FURTHER RESOLVED, That the Chief Clerk of the
3 3 Iowa House of Representatives send copies of this
3 4 resolution to the Governor of the State of Iowa and to
3 5 each member of the Iowa congressional delegation.
3 6 LSB 2414HH 76
3 7 ec/cf/24
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