IDED Report

[IA_Seth]

I got a response from the IDED and they sent me a report that shows the awards they've distributed through the IVF and other IDED business assistance programs since July 2003. The report's end date is June 30, 2005. They will be issuing a new progress report soon with the end reporting date being 12.31.05.

Average wage is included, but median wage is not (hmmm)...also, they do not track whether jobs are associated with labor unions.


Per the email:

"The report details the number of projects that are awarded assistance and the jobs (created of retained) that those projects are associated with. After a project applies for and is awarded assistance, that agreement is then put into the form of a contract thereby obligating the "pledged" numbers to be met. If that doesn't happen, the state can collect the funding that was paid out to those businesses. Typically, projects include some kind of capital improvement -- like building a new addition or retooling a manufacturing line -- all of which occurs before new jobs are put in place."

Since the report is an excel spreadsheet I can't post it here, but if anyone would like a copy, PM me your email address and I will forward it along. I am absolutely SWAMPED at work lately, but this might be something that could be further researched by anyone that has time (the company names are listed, we could find where they are located).

[Debi]

1. Probably doesn't list how many companies were awareded

Waivers on wages either, huh?

Read this here:

http://klsnow.blogspot.com/2006/04/era-of-fiscal-irresponsibility.html


<snip>

An open records request sent to IDED was returned with a tracking spreadsheet over 9 months old. It showed that many companies had refused to report their job creation, and from the companies that did, 1282 actual jobs were created. Wells Fargo built cubicles to hold 846 of them, and 91 other companies combined to create 436 jobs.

There is no evidence to show that any action was taken against companies that refused to report or failed to create jobs.

In short, a massive government program was create to instill a desired result with no oversight and it appears much of that money ended up getting pissed away.

<snip>

I'll PM you!

[Debi]

2. Interesting information

Wells Fargo received $10,000,000? Holy Crap!!!

Allegedly created 2000 jobs at an average salary of $16.11/hr.

Anyone here work for WFHM? Are you making $16.11 an hour?

Was it worth $10,000,000 in taxes?

++++++++++++++++++++++++++++++++++++++++++++

Wells Fargo Home Mortgage  Des Moines  2000  0  $16.11 
Iowa Values Fund (Forgivable Loan)  07/31/03 $10,000,000 
++++++++++++++++++++++++++++++++++++++++++++

http://www.iowalifechanging.com/document/lifesrchdoc.asp (Iowa Values Meeting 07/31/03)

What exactly does this mean:

<snip>

Mr. Lang asked if the $10 million loan would be shown as a cost in the 2004 fiscal year or would it be divided $5 million in 2004 year and $5 million in the 2005 fiscal year. Mr. Blouin responded that the $10 million would be charged to the Iowa Values Fund balance $5 million this year and $5 million next year. Mr. Lang added that Wells Fargo should be advised that this approval is based on the assumption that money would be received from the Federal government as advised and credited to Iowa Values Fund as appropriated but that disbursement was not a sure thing until the money was in the bank.

<snip>

Here's another something interesting:

ADM - who received tax credits for 'creating' jobs at $28.85 an hour.....requested and recieved a waiver of that $$ wage.

Here:

IDED Minutes:

New Jobs and Income Program
ADM/Cedar Rapids and Clinton – Amy Johnson

<snip>During the next three to five years, ADM plans to make a significant investment in machinery and equipment for both the Cedar Rapids and Clinton plants. (These improvements will create approx 20 new jobs - excised info)

<snip>ADM has provided the Department with written confirmation that none of the activities or expenditures outlined in this project are being undertaken as the result of the recent settlement ADM entered into with the EPA and the Department of Justice in response to possible Clean Air Act violations.

Requesting for a Waiver: The cities of Cedar Rapids and Clinton are requesting, on behalf of ADM, a waiver of the NJIP job creation requirement. The communities believe that a waiver of the NJIP job creation requirement should be granted because:

Current Iowa Employment: 1,767

Total Number of Jobs to be created: 20

Number of Jobs Eligible for NJIP: 15

Community’s Median Starting Wage Threshold: $14.20 per hour

Median Starting Wage for Jobs to be Created (NJIP Eligible Only): $28.85/ hour

Employee Benefits: ADM provides both its hourly and salaried employees with medical and dental insurance. The percentage of the premium paid for by the company varies by employee classification but the company pays at least 85% of the premiums for all employees.

IDED Staff is recommending to the Finance Committee that the communities’ request for a waiver of the job creation requirement be approved.

The staff is also recommending that ADM’s application for NJIP benefits be approved with a minimum investment tax credit of 5% and that the Director be given the authority to negotiate an increased tax credit percentage, not to exceed a total of 9%.


Guess what the IDED has on it's printout for the purpose of economic development? that ADM created 20 jobs @$28.85 per hour even though they requested and received a waiver to do otherwise. Also ADM received tax breaks solely to replace out dated equipment that created a, let's say, not so profitable situation for ADM.

That's what the Values Fund has done for us!