February 9, 2012

"Prevailing wage" concept debated at statehouse

A bill that would require a "prevailing wage" for those who work on most taxpayer-funded construction projects in Iowa was debated tonight in the statehouse. A public hearing attracted about 50 speakers, including a number of union leaders.

"This proposal is not a new one," said Ken Sager, president of the Iowa Federation of Labor. "The federal government has required prevailing wage on cosntruction projects, as do five of the six states around us."

Jason Barton-Norris of Cedar Rapids, a member of the Carpenters Union, told legislators the state is currently engaged in a "race to the bottom."

"The current, lowest-bidder statute places the state in the position of actively driving down wages and benefits in our communities," he said. "By distorting the market, not only does this attract contractors that bid on the basi of who can pay the lowest wage, but forces state administrators to accept bids from out of town or out of state contractors."

But business groups and local governments oppose the bill. Andy Warren, state director of the National Federation of Independent Business, was among those who argued "prevailing wages" for city, county and school district construction projects will push property taxes higher, and push more businesses out of the state. "Regardless of the implied benefits," Warren said, "this bill will cause Iowa to lose more jobs."

Mike Webster is chairman of the Associated Builders and Contractors of Iowa, which represents about 5000 businesses. Webster also registered his complaint with the concept. "As an employer, I know first-hand how setting the wages of individual employees is a decision that is personalized based on their performance. It is not something that can be simplified and set by a government agency," Webster said. "I reward my reliable, hard-working employees with higher wages. This legislation interferes with an employer’s ability to make these decisions."

After the two-hour public hearing, a House committee was to begin debating the bill at 9:30 p.m.

"Equal pay" bill clears Iowa Senate

The Iowa Senate has approved a bill which would strengthen Iowa’s wage discrimination laws, making it easier for women to charge they’ve been underpaid on the job. The bill passed on a party-line vote, with Democrats in favor and Republicans opposed.

Senator Pat Ward of West Des Moines was one of three Republican women to vote against the bill. "Lawsuits just filed willy nilly could have a tremendous effect on the businesses that operate in your small towns," Ward said. "Any Main Street busiess with four or more employees could be affected."

Senator Kim Reynolds, a Republican from Osceola, also worried about "frivolous lawsuits" from women using the new law to charge they’re underpaid, when current law already allows them to charge they’re being discriminated against on the job. "And it seems to me that we already have existing laws on the books that would enable people to move forward with this," Reynolds said. "And that, really, disparity in pay is an open door to taking this further than we need to."

And Senator Nancy Boettger, a Republican from Harlan, worried about another section of the bill that Boettger says would let minorities and handicapped people sue if they believe they’re underpaid. "We have a lot of good citizens in the state of Iowa that…hire some of our handicapped folks," Boettger says. "…I think the unintended consequence of this bill will be that not as many of our handicapped folks will be able to get jobs."

Senator Matt McCoy, a Democrat from Des Moines, ridiculed the Republicans. "We’ve heard arguments that this is a poor economy and therefore we should be allowed to discriminate against women based upon the fact that we’re in a national recession," McCoy said. "…Never should we use the economy as a right to discriminate against somebody. Nor should we use the fact that somebody has a physical or mental disability as a right to discriminate against someone." McCoy cited the recent case of mentally retarded men in Atalissa who had most of their wages paid to a Texas firm that was housing them in a building that was declared a fire hazard.

Senator Jack Hatch, a Democrat from Des Moines, said the work of all should be valued, including the work of women. "To vote against this bill is an acknowledgement of three things. One — you haven’t been listening. Two — you don’t understand the issue and…sadly, you’re afraid," Hatch said. "You’re afraid of the consequences of what this would do for woman, actually give them a fair shot at all jobs in this state."

Senator Keith Kreiman, a Democrat from Bloomfield, argued the bill makes an important statement: equal pay for equal work.  "Maybe I’m a little touchy because I’m the only male in my household, but I do get a little concerned when I do hear some of the excuses for maybe not supporting this bill," Kreiman said.

Click on the audio link below to listen to all of the debate on the bill.

The legislation would outlaw wage discrimination based on age, race, sexual orientation, national origin and religion as well as gender and would apply to businesses with four or more employees. It must clear the Iowa House and be signed by the governor before it would become law. According to the Iowa Commission on the Status of Women, Iowa ranks 37th among the 50 states when it comes to pay equity for women.

 

AUDIO: senate debate (mp3 runs 35 min)

Auditor says governor should cut state budget more deeply

State Auditor Dave Vaudt says Governor Chet Culver needs to propose deeper cuts in the state budget. "When you look at $6.5 billion budget, in tough economic times if you can’t find more than $43 million worth of spending to reduce, then you’re not looking hard enough," Vaudt says.

Governor Chet Culver, a Democrat, presented his proposed budget to legislators in late January. Vaudt, who is a Republican, says while Culver proposes cuts of as much as 10 percent in some state agencies, the governor would allow spending to accelerate in areas like education and health care — a combination that accounts for that $43 million figure Vaudt identified as cuts.

Vaudt also disputes Culver’s assertion that the state’s budget woes are caused by the double-hit of a poor economy and natural disasters. "That’s a very small part of our problem," Vaudt says. "Yes, it magnifies our problem. It’s definitely a piece of our problem but even absent the floods and the disasters and the recession, we’d still be dealing with a very significant spending gap because of our poor budget practices of the past."

The state’s Republican auditor also is criticizing the Democratic governor’s proposal to borrow $700 million for infrastructure projects. Vaudt says it would be short-sighted to borrow money when the state already has a special fund set up for infrastructure projects. Vaudt says if the governor and legislators would stop diverting money from that fund, the state would have about a quarter of a billion dollars in gambling taxes and payments related to the tobacco companies’ settlement with the state.

"Now, stop and think: $250 million a year over a three-year period would give you more money than the governor is proposing to bond," Vaudt says. "The $700 million is going to take us 20 years to repay — huge difference there."

A spokesman for the governor suggests Vaudt’s critique is more about politics than finances. "We understand the Auditor’s motivation to criticize Governor Culver these days may have less to do with fiscal policy and more to do with his own ambitions," Culver communications director Phil Roeder said in a prepared statement. "…The state’s budget has been well-managed under the Culver/Judge Administration. It lacks credulity to suggest otherwise."

Auditor Vaudt has said he is considering a bid for governor in 2010 and if Vaudt were to win the Republican Party’s nomination, he’d face off against Culver who intends to seek reelection

 

ISU coach saw some positives despite loss

Iowa State coach Greg McDermott says there were some positives to come out of Saturday’s loss at Oklahoma State. The Cyclones fell to 2-8 in the Big-12 after an 86-67 loss to the Cowboys and next up visit 15th ranked Kansas on Wednesday.

McDermott says there are portions of the game that they’re playing very well and they need to understand that’s how they pulled out to an early lead.

McDermott says many of the problems for the Cyclones are on the offensive end. He says when scoring comes tough, then the margin of error on the other end is very slim. McDermott says when they rebound well and play defense, then things have gone well.

The Cyclones are 13-12 overall. 

Officials estimate $1.9 billion headed to Iowa from "stimulus"

State officials believe about $1.9 billion is destined for Iowa over the next three years once President Obama signs the federal economic stimulus package into law tomorrow.

Governor Culver has appointed a "working group" of people from a dozen state agencies to identify the strings that are attached, as states will be competing against one another for some of the money. "We’re quickly trying to get our arms around this legislation so we can come out ahead of most states," Culver says.

According to the governor, over half a billion dollars can be used for health care programs in Iowa, namely Medicaid. Another $387 million is reserved for education, although state officials aren’t yet sure of how that money may be used. Finally, there’s more than $350 million set aside for transportation projects. "Which is about as much as we spend on an annual basis on road and bridge projects," the governor says.

Culver plans to talk privately this week with legislators to repeat his opposition to raising the state gas tax as a way to finance more road construction and maintenance. "I think that would be a mistake to do at this time, especially in light of the fact that we just received $358 milion for road and bridge projects," Culver says. "I think they’re going to have a very tough time making the case to average Iowans…that we need to raise the gas tax right now."

Governor orders reductions in Rebuild Iowa Office staff salaries

Governor Chet Culver has asked the new head of his Rebuild Iowa Office to reduce the salaries of employees in that office.

Some legislators have complained about the highly-paid Rebuild Iowa Office staff and today the governor met with retired General Ron Dardis, the new Rebuild Iowa Office executive director, to chat about that. "There will be significant changes to that budget that was presented to the legislature," Culver said of the salaries. "It’ll be scaled back significantly and those salaries will be adjusted downward."

While Culver says he has been "disappointed in some of the decisions" made by Rebuild Iowa Office staff, he also defends the office. Culver compares its response to Iowa’s natural disasters to the response of the State of Texas to Hurricane Rita, which struck the Gulf Coast in 2005. "RIO has gotten national recognition for being a very supportive structure, to help in recovery efforts," Culver says. "For example…(in) Texas it took years for Community Development Block Grant money to get on the street. In Iowa, we did it in four months."

Culver’s headed to Washington, D.C. later this week for the National Governors Association winter meeting and he’s taking the new Rebuild Iowa Office director with him. The two men have an appointment at the Department of Housing and Urban Davelopment, as Culver says HUD has $4 billion that could be used by flood victims. "We’re going to put together a very detailed ‘ask’ for Iowa," Culver says. "We’re also going to need waivers."

Culver says he’s made an "important move" in putting Dardis in charge at the Rebuild Iowa Office, as the former head of the Iowa National Guard has the "stature" to run the office in the next phase of recovery from the floods. Emily Hajek, the office chief of staff, told legislators two weeks ago the office had so far fielded over 2500 phone calls and email from individuals and governments hit by last year’s natural disasters. The figure raised eyebrows, since the office has been operating for over half a year — meaning Rebuild Iowa Office staff dealt with about 20 calls and email each business day.

As for that figure, Culver says it is a "great question" to wonder about the workload. "And I’ve said that I think it is important that (legislators) ask these questions and that they get answers," Culver says.

AUDIO: governor holds news conference (mp3 runs 33

Identities of Hampton fire victims released

The  victims who died as the result of the fire Saturday afternoon at an apartment complex in Hampton have now been identified as a young woman and a toddler.

Hampton Fire Chief James Wobschall says 25-year-old Mackenzie Blandau of Hampton and 22-month-old Luis Garcia died in the fire which gutted a four unit apartment complex. Four other people were injured, including a firefighter.

The cause of the fire remains under investigation.