May 19, 2000

The Honorable Chester Culver
Secretary of State
State Capitol
L O C A L

Dear Mr. Secretary:

I hereby transmit Senate File 2428, an Act appropriating funds to the department of economic development, certain board of regents institutions, the department of workforce development, the public employment relations board, making related statutory changes, and providing an effective date.

Economic development touches all Iowans, and I am pleased that this bill seeks to provide additional opportunities throughout our state. It is notable that several initiatives the Lieutenant Governor and I developed to create more Iowans, younger Iowans, and better paid Iowans are contained within this bill. Our state will benefit from additional worker training opportunities at community colleges through the ACE program, assistance to businesses that provide new employment opportunities for Iowans with disabilities and minority population, additional immigration services, and worker safety. These are quality of life issues that better our state and make it more attractive to those looking for a place to live and work.

Senate File 2428 is, therefore, approved on this date with the following exceptions, which I hereby disapprove.

I am unable to approve section 1, subsection 2a, unnumbered paragraph 3. This would require the department of economic development and the small business development centers develop a written report on services provided by each and identify the distinct services to be provided by the department and the small business development centers and recommend actions that would eliminate any duplication of services. The department and the small business development centers undertook this exercise prior to the last legislative session. It would be more appropriate for them to continue working on resolving issues under consideration from that report than to re-start the process from the beginning.

I am unable to approve the designated portion of section 12, subsection 5, unnumbered paragraph 2. This prevents the department of workforce development from allocating additional penalty and interest revenues prior to January 30, 2001. In the past, the department has had the flexibility to identify projects or target areas that would receive funding

and report these expenditures to the legislature. The language contained in this bill is unduly prescriptive, usurps normal executive branch functions, and could hamper administration of the fund.

I am unable to approve section 19 in its entirety. This would expand the acceptable uses of the physical infrastructure fund to include program capital costs for the accelerated career education program. Senate File 2453 already provides $5.3 million for accelerated career education program capital projects; the $2.5 million for the physical infrastructure assistance fund should be targeted toward community infrastructure improvement projects, such as, for example, child care facilities, that do not have an alternative funding source.

I am unable to approve section 27 in its entirety. Subsection 1 would require the information technology services division of the department of general services to study the workforce investment one-stop program and submit a report by January 15, 2001. This issue has already received thorough study, and I believe that there are more productive uses for the division and the department's time. Subsection 2 would require the department of workforce development to submit a written report by August 10, 2000 for a plan for financing the state's system of workforce development centers after the administrative contribution surcharge is repealed. The short timeframe provided for the completion of the study will make it difficult for the department to adequately address these issues as well as those involved in meeting their statutory requirements under Iowa Code Chapter 8.23.

For the above reasons, I hereby respectfully approve Senate File 2428 with the exceptions noted above.

Sincerely,

Thomas J. Vilsack
Governor

TJV:jmc

cc: Secretary of the Senate
   Chief Clerk of the House

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