Received an update this week from State Senator Rob Hogg (Dem.) who represents our neighborhood of Cedar Rapids, along with other neighborhoods in our community.
Senator Rob Hogg's e-mail mentioned the following ...
First Bills for 2011: SF18 – Economic Emergency Fund
I filed two bills this week that I hope will attract bipartisan support and be signed by incoming Governor Branstad. One is SF18, which would increase the allowable size of our economic emergency fund from 2.5% of the state’s general fund to 7.5% of the general fund. For a general fund of $6 billion, this would increase the cap on the economic emergency fund from $150 million to $450 million. As our economy recovers, we need to rebuild our economic emergency fund to a larger level so that we have more of the resources we need when the next disaster or next recession hits. When disaster or recession hits, the need for government goes up, yet in 2009 and 2010, we had to cut our state budget and were spared deeper cuts only by the federal stimulus funds sent to state government.
Although we had a record high rainy fund at the time of the 2008 disasters and recession, it has been clear to me that it was not enough. Next time, I want Iowa to be ready. Senate File 18 would help us get ready.
SF19 – Helping Disaster-Affected Businesses
The other bill I filed this week is SF19, which would allow the Department of Economic Development to waive certain restrictions on its ability to use existing funds to help disaster-affected businesses. Right now, some existing program funds (High Quality Jobs Program, Enterprise Zones, and Grow Iowa Values Fund financial assistance), which are designed to help high-wage businesses expand, cannot be used to save jobs at a disaster-affected business just because the business has competitors within the state.
Senate File 19 would allow these programs to be used to help restore businesses and save high-wage jobs, even if the business happens to have competitors in state. The state was able to use these programs to help some flood-affected businesses in Cedar Rapids because they did not have in-state competitors, but they were not available for other businesses. I was reminded of the need for this legislation in 2010 when I met with business owners who were flooded in Colfax and who happened to have in-state competitors. After a disaster, we need to help businesses save jobs, especially those that pay high wages and provide benefits, regardless of whether other businesses happen to compete in state. It does not create any competitive advantage for one business over another to simply restore the disaster-damaged business after a disaster.
In addition, Senator Rob Hogg invited people to the first legislative forum of the session on Saturday, January 15, from 10:30 to 11:45 a.m. at Mercy Medical Center, 701 10Th Street SE, in Cedar Rapids. Senator Hogg mentioned these forums, which are sponsored by the League of Women Voters and other co-sponsors, are always a great opportunity to listen to legislators from Linn County and to ask questions and visit with us individually after the forum.
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