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Posts tagged Economic Opportunity

Tuition rising: Do students approve?

Posted November 16th, 2018 to Blog
As I spoke to a University of Iowa finance class this week, I wondered: Did they vote?
I showed these students data on a variety of issues, closing with the reversal from state support to tuition as the largest share of funding Iowa universities, an issue affecting most if not all of the class. Here is what it looks like for the University of Iowa:
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We have more about this in our new “Roadmap for Opportunity” series. See this two-pager.
Today, The Gazette of Cedar Rapids landed on my doorstep with a page 1 story about the Board of Regents’ plans to raise tuition 3 percent to 5 percent a year for the next five years at the UI and Iowa State University. The size of the increase will depend on new funding. An increase of at least 3 percent a year results from years of cutting.
My talk to the finance class came six days after Iowa voters retained Statehouse leadership that has forced the regents to tell families to plan on tuition increases for the next five years. The regents’ plan implicitly shows they expect more of the same from the Legislature and Governor.
I told the students that I hoped they had voted, and that they would pay attention to the impacts of public policy choices on their lives. Maybe they did, and maybe they are OK with the policy choices made, and coming.
They will be living with these impacts — student loan debt among them — long after many of us are gone. If they want something different, they will have to speak up, and they will have to do so in large numbers.
M
Mike Owen is executive director of the nonpartisan Iowa Policy Project.
mikeowen@iowapolicyproject.org

Restoring equity in tax policy — Plug tax loopholes

Posted November 15th, 2018 to Blog

Through the years in Iowa, very few lawmakers have had the courage to take on an utter abomination in our corporate tax system: tax loopholes.

It is one thing to expressly pass a tax preference — a credit, exemption or deduction — with a specific purpose, clearly defined for all taxpayers to see and reviewed for its effectiveness. (Iowa does not provide such accountability with many such preferences, but that is for another post.)

It is quite another thing, however, to see weaknesses in your tax code exposed and exploited by large companies, and to leave those holes open for routine abuse. Welcome to Iowa.

A new report by the Center on Budget and Policy Priorities discusses this issue as part of overarching tax policy that states can use to advance racial equity and sustain services responsibly. From the report:

States can nullify a variety of tax avoidance strategies employed by large multistate corporations by adopting a reform known as “combined reporting,” which treats a parent company and its subsidiaries as one entity for state income tax purposes, thereby minimizing companies’ ability to shift income earned in a state to other states that are tax havens (like Delaware and Nevada).

The figure below shows Iowa is out of step with the majority of states on this issue. All but one of our neighboring states has a corporate income tax, and all but one of those states has combined reporting to stop companies from avoiding taxes that were originally intended by the tax code to be collected.

The Iowa Policy Project and Iowa Fiscal Partnership have been encouraging Iowans to look at this issue for many years. We made it part of our 2018 Tax Policy Kit — explaining here how Iowa could save itself tens of millions of dollars that are squandered to companies that effectively set their own tax policy. The Iowa Taxpayers Association consistently defends this break that not only burdens our state, but tilts the playing field to big, multistate corporations and against Iowa-based, Iowa-focused businesses.

Two governors, Tom Vilsack and Chet Culver, at times proposed adoption of combined reporting, but the issue — while getting some attention at the committee level — has not reached a floor vote in the House or Senate.

Iowa’s tax code needs to be fair to all residents. It needs to generate revenue to sustain services that are important to all residents, from education to water quality to law enforcement to health care. To allow corporations to set their own rules by exploiting weaknesses in the tax code defies these oft-stated Iowa values of fairness and accountability.

Posted by Mike Owen, Executive Director of the Iowa Policy Project.

mikeowen@iowapolicyproject.org

Tax reality: No pumpkin spice added

Posted November 1st, 2018 to Blog

You find it everywhere these days: pumpkin spice this, pumpkin spice that … tax cuts this, tax cuts that. It’s so easy to overdo it — with pumpkin spice or with tax-cut rhetoric.

Keep it simple. The tax cuts are for the wealthy, and come at great cost of services while making the tax system less fair.

Just ask the Iowa Department of Revenue, which produced the following analysis in May, just before state legislators rammed their backroom tax package for the rich through both houses of the Legislature and to the Governor’s desk. Yes, she signed it.

And here are the numbers behind those sections of the pumpkin above:

Put another way, almost 40 percent of resident taxpayers will get about 3 percent of the benefit of the tax cut in tax year 2021; over four-fifths of taxpayers will together see only about 26 percent of the benefit. On the other hand, the top 2.5 percent — families making over $250,000 — will receive 46 percent of the benefit.

This was a tax cut for the richest Iowans, who did not need a cut, and the bill overall will cost almost a half billion dollars in 2021.[1]

These effects have been apparent for months,[2] despite claims that are obvious distortions, according to the Department of Revenue analysis.

That analysis shows the average tax change in tax year 2021 for people making between $50,000 and $60,000 — this covers the latest median-income level of $58,570 — would be a $156 cut, or less than $3 a week. Don’t spend it all in one place. Meanwhile, the cut for millionaires would, on average, be $24,636.

By the way, the “fact checkers” who let loose-speaking pols off the hook for their exaggerations about tax cuts are often missing a critical point: Many Iowans, including some middle- and moderate-income working families, actually will see tax increases, or no change at all, if the new law is not changed.

Of course, most won’t see these effects right away, despite the promises. How convenient.

Mike Owen is executive director of the nonpartisan Iowa Policy Project in Iowa City. mikeowen@iowapolicyproject.org.

 

[1] Iowa Department of Revenue analysis for Legislative Services Agency, May 2, 2018

[2] Charles Bruner and Peter Fisher, Iowa Fiscal Partnership, “Tax plan facts vs. spin,” May 5, 2018, http://www.iowafiscal.org/tax-plan-facts-vs-spin/

See also: “A Roadmap for Opportunity: What real tax reform would look like,” Iowa Policy Project, http://www.iowapolicyproject.org/2018docs/180906-roadmap-taxes.pdf

IPERS defenses are ‘care tactics’

Posted October 30th, 2018 to Blog

IPERS, the Iowa Public Employees’ Retirement System, has come under attack in recent years for no substantive reason — only ideology and politics. Understandably, IPERS members, who number well over 10 percent of the population of Iowa, are concerned.

So, some folks are engaged in what might be called “care tactics,” to make sure the stakes on that issue are well-understood. People who care want good information, and are asking for it.

These efforts and concerns are being dismissed by those who claim there is no threat to IPERS. Political scare tactics indeed are part of the 2018 campaign on several issues — primarily taxes, as illustrated by the hair-on-fire ads on television that do more to distort than inform.

But it’s hard to make that case about pension concerns, which stem directly from leaders’ comments, proposed legislation and a longtime goal of ideologues on the right who have become more strident.

Those now dismissive of pension concerns point to recent campaign-season comments by Governor Kim Reynolds. Yet not so long ago Reynolds herself raised the prospect of some change in IPERS’ actual pension structure to a “defined contribution” or 401k-style structure for new employees.[1] Her predecessor, Terry Branstad, had made similar comments.[2] Legislation was proposed in 2017 in the Senate.[3] All of this remains fresh in the minds of those who are worried, as do efforts by others to undermine IPERS.

IPERS critics have promoted that riskier “defined contribution” structure, needlessly scaring Iowa taxpayers about Iowa’s secure IPERS system. The Des Moines Register has run such scare pieces, by Don Racheter of the Public Interest Institute[4] and by Gretchen Tegeler of the Taxpayers Association of Central Iowa.[5]

Neither the media nor IPERS critics have been able to explain how a separate system based on a 401k style structure — “defined contribution” — could be introduced for new employees without undermining existing and promised IPERS benefits for current members.

Contributions plus Interest investments equal Benefits plus Expenses in administration of the system— this is what is required for full funding of IPERS. If you reduce that first item, contributions, by setting new employees apart in a different plan, clearly that matters. It’s math.

In fact, it affects more than those new employees. Reducing contributions by diverting those from new employees reasonably means lower benefits — for current members!

The media and all policy makers should be asking more about this. It’s not enough to accept a “nothing to see here” argument from someone who in the recent past declared herself open to a change — especially when activists have pushed for it, and legislation has been proposed. The dismissal — not exposing it — is the “scare tactic.”

Let’s stay away from the “scare tactics,” and focus on the “care tactics.”

 

[1] Ed Tibbetts, Quad-City Times, “Reynolds says state looking at IPERS task force,” Jan. 26, 2017. https://qctimes.com/news/local/government-and-politics/reynolds-says-state-looking-at-ipers-task-force/article_bf76d410-c70b-5300-951c-ad1cb6bced3f.html

[2] William Petroski, The Des Moines Register, “IPERS cuts key target; unfunded pension liabilities up $1.3 billion,” March 24, 2017. https://www.desmoinesregister.com/story/news/politics/2017/03/24/ipers-cuts-key-target-unfunded-pension-liabilities-up-13-billion/99600866/

[3] O. Kay Henderson, RadioIowa, “Democrats accuse GOP of plotting that IPERS be dismantled,” December 11, 2017. https://www.radioiowa.com/2017/12/11/democrats-accuse-gop-of-plotting-that-ipers-be-dismantled/

[4] Don Racheter, Public Interest Intitute “Replace IPERS with defined-contribution plan,” The Des Moines Register, May 27, 2016. https://www.desmoinesregister.com/story/opinion/abetteriowa/2016/05/17/replace-ipers-defined-contribution-plan/84492576/

[5] Gretchen Tegeler, Taxpayers Association of Central Iowa, “Don’t minimize Iowa’s public pension debt,” The Des Moines Register, January 16,2018, https://www.desmoinesregister.com/story/opinion/columnists/iowa-view/2018/01/16/iowas-public-pension-debt-eclipses-other-public-debt/1035979001/; also “Public retirement systems are not ideal for young, mobile employees,” The Des Moines Register, December 8, 2016, https://www.desmoinesregister.com/story/opinion/columnists/iowa-view/2016/12/08/public-retirement-systems-not-ideal-young-mobile-employees/95148216/

 

Mike Owen is executive director of the nonpartisan Iowa Policy Project. mikeowen@iowapolicyproject.org

 

 

 

Revenue forecast: A confirmation of failure

Posted October 18th, 2018 to Blog

With new revenue information in hand, it is apparent that:

•   Large cuts to higher education were unnecessary
•   Continuing to short-change K-12 schools was needless
•   Concerns about large tax cuts were warranted.

During the 2018 session we saw legislators craft mid-year cuts and an FY2019 austerity budget behind closed doors. The effect will be the same as it has been for several years now: Iowa lawmakers won’t have much to work with when the 2019 legislative session convenes in January due to large tax cuts, leaving tight purse strings for education.

The October 2018 Revenue Estimating Conference (REC) projections show a $127 million surplus — up $95.6 million from what was expected for fiscal year 2018, which ended in June.[1] Many in the state are searching for factors they think contributed to the surplus. In reality, the discrepancy in expected and actual revenue is related to errors in forecasting. The REC used a slower rate of growth in calculating these projections after overestimating revenues for the past two fiscal years.

A significant factor contributing to the surplus is a state revenue boost caused by new federal tax cuts, especially for higher-income families. Iowa has a special state break for federal taxes paid. But because fewer federal taxes are being withheld, additional income is subjected to state tax.

Proponents of the state tax cuts seek to attribute the budget surplus to the cuts themselves. First, it is impossible to credit the budget surplus to the 2018 state tax cuts, most of which will not take full effect until 2019 and beyond.

Second, even the REC estimates do not predict continued growth at the FY18 levels. Iowa will have already given away the FY18 surplus before the beginning of the next legislative session, because tax cuts mean less revenue. The FY20 budget will be tight. This will steer the legislative discourse to hold down K-12 spending, to push higher-ed costs toward tuition and student debt, and to threaten needed services and institutions — as the administration is doing right now to the University of Iowa Labor Center.

Sustainable budgeting requires realistic forecasts and working to help all Iowans understand the impacts of budget and tax choices. It also means generating adequate revenue to pay for essential services such as education, health care and environmental quality, and helping to create opportunity for all.

[1] Iowa Department of Management, “Iowa budget closes with higher-than-expected revenue, $127 million surplus.” September 2018.

Natalie Veldhouse is a research associate for the nonpartisan Iowa Policy Project in Iowa City. nveldhouse@iowapolicyproject.org

Food for the fact-checkers

Posted October 12th, 2018 to Blog

At the Iowa Policy Project, we are nonpartisan and we do not support or endorse candidates for office. Rather, we hope those who do, and the candidates and parties themselves, will conduct their discussions on a foundation of fact.

When they do not, we just might throw a penalty flag. Our work is public policy research and analysis, to help people see what is fact and what is not, and to introduce context where it is missing. This is not always easy with complex issues, and there are gray areas. Where bad information is being spread, that interferes with the mission of our work, so we will do what we can to keep that record straight.

Very early in Wednesday’s debate between Governor Kim Reynolds and businessman Fred Hubbell, the Governor made at least two clearly unsupportable claims about taxes. These are issues we cover constantly.

First, the 2018 tax overhaul not only was costly, but overwhelmingly benefited the wealthiest. Any suggestion to the contrary is simply unsupportable, using data provided by the Iowa Department of Revenue in May before the bill passed. Those supporting the bill knew this would be the impact, and those writing it drew it that way.

According to the department, the legislation will mean either no change, or an actual tax increase, to nearly a quarter of resident taxpayers — 23.3 percent — in tax year 2019. For those who receive cuts, the average cut for millionaires was projected to be $20,021; for someone between $60,000 and $70,000 adjusted gross income, the cut was projected to be a tiny sliver of the benefit compared to millionaires — $232.

This flatly negates the Governor’s comment that, “In 2019, virtually every single Iowan will see their taxes go down.” This is clearly inaccurate. Further, as the law is phased in, the continuing impact will be that some will lose, some will not. Unquestionably it will affect public services as hundreds of millions in revenues are cut — which means Iowans who depend upon those services, and that is most Iowans, will lose even more.

Second, the Governor in pushing for new corporate tax cuts chose to play to the myths about business taxes promoted by the business lobby to drive down Iowa’s already low business taxes.

Business consultants have exposed the hollow core of this claim, most recently the Anderson Economic Group, which in June ranked Iowa 15th lowest in state and local business taxes (all of which are governed by state policy). Iowa business taxes consistently have been shown to be competitive.

For more information about both the tax legislation and Iowa taxes on business see these resources:

What real Iowa tax reform would look like, Iowa Policy Project “Roadmap for Opportunity” series, August 2018.

Iowa tax overhaul: Sorting facts, key points from spin, Iowa Fiscal Partnership, May 2018

Myth-Buster: Competitiveness no problem for Iowa taxes, Iowa Fiscal Partnership, March 2018
The problem with tax-cutting as economic policy, Peter Fisher, Iowa Policy Project, GradingStates.org
Mike Owen is executive director of the nonpartisan Iowa Policy Project. mikeowen@iowapolicyproject.org

A Roadmap for Opportunity: It’s Time to Put Iowa on the Right Path

Posted October 9th, 2018 to Blog

181009-roadmap-logoIowa can unlock the potential of each individual and allow all workers to share in the fruits of their labor by making public investments in the foundations of a strong economy. Well-resourced schools, access to higher education, decent wages and protections, economic supports, clean water and renewable energy, and a cleaned-up tax system, all can pave the way to opportunities and broadly shared prosperity that Iowans want.

Unfortunately, policy choices have put us on a road that prioritizes corporate profits over worker wages and corporate tax cuts over the public investments that allow for a strong, sustainable economy. We are at a crossroads and our policy choices today and in the near future can either pave the path to economic opportunity in every corner of our state, or create roadblocks to prosperity for everyday Iowans.

Our people-first roadmap offers the way forward. It lays out the evidence-based, responsible solutions to our state’s most pressing issues, pinpointing several stops along the way that would mark progress for our state, such as:

pinCreating the workforce of our future and ensuring our children reach their potential. Iowa can and should ensure K-12 schools receive the funding they need for every child to succeed, no matter where they live. We also must restore our commitment to higher education with more state support, lower tuition, and aid to reduce student debt.

pinBoosting economic security and supports for working Iowans. Giving Iowans’ lowest wage workers a long overdue raise, ensuring workers get paid what they’re legally owed, shoring up our system of compensation for workers who get hurt on the job, and restoring worker rights to collective bargaining can ensure that all Iowa workers are getting a fair deal. Iowans also need a boost in child care assistance, which can make or break the ability of a family to work.

pinRestoring a public commitment to the health and well-being of every Iowan, particularly seniors and people living with disabilities. Reversing the privatization of Medicaid and pursuing cost savings through innovation and efficiency rather than reduced services and worker wages are critical steps to ensuring access to health care for all Iowans — now and in the future.

pinEnsuring clean water and renewable energy for a healthy, sustainable Iowa. We can and must balance the state’s need for clean and abundant water with our agricultural economy by reducing water pollution. Likewise, Iowa should restore its legacy of leadership in renewable and efficient energy in order to create a cleaner, greener state for future generations.

pinCleaning up and restoring balance to the tax code. Right now, Iowa asks the lowest income Iowans to pay a higher share of their income in state and local taxes than those with the highest incomes. We can fix this by cleaning up corporate tax loopholes that squander precious public dollars that could otherwise be invested in shared opportunity for Iowans.

Iowa is at a critical juncture. We can take the high road that leads to progress and shared prosperity, or go down a dead end. The policies in this roadmap provide a clear route to a stronger Iowa. For more detail on each stop on the roadmap, please click here.

Eye on the ball: Wages and the cost of living

Posted July 17th, 2018 to Blog

 

 

 

Our 6th edition of The Cost of Living in Iowa finds that roughly 100,000 Iowa working households are unable to make basic needs.[1] Put another way, about 17 percent — or 1 in 6 — households cannot get by on their income alone. It is a critical number that should inform countless public policy discussions for the remainder of 2018 and on into the next legislative session.

Part One of this report details how much working families must earn in order to meet their basic needs, while Part Two estimates the number and proportion of Iowa working households able to earn enough. This latest edition adds new analysis by race, Hispanic origin, and gender.

These pieces provide the foundation for Part Three, which is forthcoming and will connect the dots further illustrate the importance of public work support programs for many Iowans, who despite their work efforts, are not able to pay for the most basic living expenses.

We construct basic needs budgets that represent what it takes to survive rather than thrive in the state of Iowa. These budgets include allowances for rent, utilities, food prepared at home, child care, health care, transportation, clothing and other household necessities. The basic budget does not include savings, loan payments, education expenses, any entertainment or vacation, social or recreational travel, or meals outside the home.

In Part One, we find statewide that a single parent with two children needs to earn a wage of $23.91 per hour in order to meet basic needs. A two-parent household with one child and one parent working need an hourly wage of $13.29, compared to $16.30 for the same family type with two workers. Differences in cost from one county to another can be dramatic. The total annual basic needs budget for a family with two working parents and two children was $10,600 higher in the highest cost county compared to the lowest cost county. No family type is able to meet basic needs on Iowa’s $7.25 minimum wage.

Part Two uses census data to estimate the number of Iowa working households that are able to meet the basic needs without public assistance. In 2018 we find that 17 percent of households or 227,000 Iowans live below this threshold.[2] Broken down further, fully 62 percent of single-parent working households are unable to meet basic needs. For this family type, there is an average gap of $20,000 between after-tax income and basic needs expenses. A larger share of African American (30 percent), Hispanic (28 percent), and female-headed (19 percent) households are unable to meet basic needs in Iowa.

The cost of living in Iowa continues to rise. Working families and individuals in Iowa must earn substantially above the official poverty threshold — in some cases nearly three times the poverty level — to achieve a very basic standard of living in Iowa without the help of public supports. Part Three of The Cost of Living in Iowa 2018 will show the role of work support programs in bridging this gap.

[1] The Cost of Living in Iowa, 2018 Edition, Part 1: Basic Family Budgets. Peter S. Fisher & Natalie Veldhouse, July 2018, the Iowa Policy Project. 

[2] The Cost of Living in Iowa, 2018 Edition, Part 2: Many Iowa Households Struggle to Meet Basic Needs. Peter S. Fisher & Natalie Veldhouse, July 2018, the Iowa Policy Project. 

Posted by Natalie Veldhouse, research associate for the nonpartisan Iowa Policy Project. She and IPP Research Director Peter Fisher are the authors of the latest edition of The Cost of Living in Iowa. nveldhouse@iowapolicyproject.org

A University ‘for’ Iowa, or just ‘in’ Iowa

Posted July 14th, 2018 to Blog

There are lots of good reasons not to shutter the University of Iowa’s Labor Center.

For starters, any such move would be rash, shortsighted, and wasteful. The Labor Center’s core continuing education mission teaches labor leaders about workers’ rights, about civil rights in the workplace, and about occupational health and safety. Those who have benefited from these courses over the years credit the Labor Center with helping them — and their local unions — sustain workplaces which are safer and more equitable.

For the pittance in state funds (about $500,000) devoted to the Center, the returns the state — in fewer harassment claims, fewer workers’ compensation settlements, fewer cases of wage theft — are incalculable.  Closing the Labor Center, in this respect, is like taking down the stoplights at an intersection: you could claim savings in signage and electricity as a result, but at what cost?

In turn, the threat to the future of the Labor Center — the only academic center in the Regents system devoted to work and workers in Iowa — sends a terrible message to the state’s working families. In an era of spiraling inequality, when the combination of stagnant incomes and rising tuition are putting a college education increasingly out of reach, do we really want to harden the perception that the state’s universities only serve the interests of the upper classes? There are about 1.6 million wage earners in Iowa, a quarter of whom do not earn a wage sufficient to climb above the poverty line.  These Iowans — as citizens, voters, taxpayers, and parents — should know that the state’s public institutions are for them too.

And finally, the University’s claim that the Labor Center is peripheral to its academic mission is simply not true. The University’s current strategic plan sits on three pillars: student success, research, and engagement. The Labor Center contributes on all of these fronts, and especially on engagement and outreach to the rest of the state. On this score, the strategic plan argues that the University should “enhance UI’s statewide visibility and increase access to UI expertise,” “support the translation of intellectual work into applications to enhance economic development,” and “create lifelong learning opportunities that broaden UI’s reach across Iowa.”

The Labor Center does all of this and more. It is one of the few arms of the University with a sustained and serious “extension” mission to the rest of the state. If the University is serious about its strategic plan, and about proving its value to those outside Johnson County, its best option is to nurture such forms of engagement with off-campus Iowa constituencies rather than abandon them. It is jewels like the Labor Center that demonstrate a commitment to the mission of a flagship public institution; which demonstrate that UI can and should be The University FOR Iowa and not just a University IN Iowa. 

Colin Gordon is the F. Wendell Miller Professor of History at the University of Iowa and a senior research consultant with the Iowa Policy Project. He is the recipient of the Regents Award for Faculty Excellence (2016) and the UI’s Distinguished Achievement in Publicly-Engaged Research Award (2015).

Hit ‘reset’ on center closings

Posted July 12th, 2018 to Blog

Editor’s Note: These are the remarks of Professor Elizabeth Heineman, chair of the History Department at the University of Iowa, prepared for a news conference Wednesday about the planned closing of the UI Labor Center. Professor Heineman was one of several speakers at the news conference.

elizabeth-heineman_0My name is Elizabeth Heineman. I’m a member of the History faculty at the University of Iowa, where I’ve taught for almost 20 years.

The announcement of the closure of the Labor Center and many other centers and programs complemented them on their good work, but said they weren’t critical to the university’s academic mission and student success. I’d like to talk about the university’s mission and the Labor Center’s role in fulfilling it.

The university’s mission is a three-legged stool: teaching, research/scholarship, and public engagement/community service. We’ve heard a great deal about the Center’s public engagement and community service, so I want to talk about the other two legs of the university’s mission: teaching, and research/scholarship. I’m here to say that the Labor Center — in addition to everything you’ve already heard — is also critical to these elements of the university’s mission.

Let me start with some information about the Labor Center’s research activity.

  • The Labor Center is a major recipient of nationally-competitive grants, which have totaled some $950,000 since 2002 — almost a million dollars. These attest to the Labor Center’s outstanding role in the research mission of the university. In fact, far from losing steam during the current stringent budgetary environment, the Center won a grant of nearly $200,000 from the National Endowment for the Humanities just this spring. The NEH doesn’t throw money around. This kind of grant from the National Endowment for the Humanities means that the Labor Center is on the map in the research world. This is exactly the kind of activity that helps to establish UI as a major research university.
  • Why does the Labor Center keep winning these major grants? One reason is the Iowa Labor History Oral Project, nationally recognized as one of the country’s most important collections in labor history. It has been used for cutting-edge research by Iowa faculty, staff, and PhD students as well as scholars nationally and internationally — and every time someone travels from far away to use our collections, it enhances the University’s reputation as a hot spot for research activity.
  • Perhaps most important: the Labor Center is an integral part of the university’s teaching mission. We’ve heard a bit about graduate education, but the Labor Center is perhaps even more crucial to undergraduate education.
    • Labor Center staff teach courses: not just in communities and on the shop floor, but in the undergraduate classroom. Their courses on labor history in the US and internationally are a crucial part of any basic education in both US and global history.
    • In those courses, students aren’t just reading textbooks and listening to lectures. Rather, they’re using the Center’s oral history collection and performing their own oral histories, gaining experience in public history, not just academic history. Often, they choose to research their own hometowns. When they go home to do interviews, when they talk with their families and neighbors about their assignments, it helps to send the message that the University is committed to preserving the history of working Iowans and Iowa communities – and engaging our young people in the process.
    • Finally, the Labor Center is very important in facilitating internships with community organizations. Those internships help students to gain jobs skills, and they provide fresh perspectives and energy for the host organizations.

It’s possible that those who made the decision for closure weren’t aware of all these aspects of the Labor Center’s activity. No one can be in command of all detail. This is why a process of consultation and input is necessary — consultation with the people on the ground who work closely with the Center and who are aware of all aspects of its activity and its contribution to the university’s three-legged mission: teaching, scholarship, and public engagement.

I would like to see such a process. Let’s hit reset, gather the information we need about what, exactly, would be lost if the Labor Center were to close. Otherwise, we risk losing a resource that is invaluable to the state and to the university alike.