SHARE:
Policy Points from Iowa Fiscal Partners

Posts tagged University of Iowa Labor Center

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

Labor Center: Inviting public discussion

Posted August 13th, 2018 to Blog

One of the most unsavory parts of the threats to the University of Iowa Labor Center — though not the only one — was the lack of public input into the decision by university officials.

The decision was “announced” under the public radar. Only after the word started spreading about the decision already made, the university decided to go public.

Increasingly, this is how decisions are being made in Iowa by government institutions — the Legislature has been a great example of it in the last two years with attacks on protections for working families and on equity in the tax code. The UI handling of the Labor Center decision is right in line.

These approaches defy Iowa values of transparency and public spirit once treasured in a state once proud of its openness. As we shall see in the coming days, there is an alternative: A reintroduction to the concept of a public hearing.

The “Save Our Labor Center” coalition will hold four such hearings in the coming days in various locations around the state. Each is an hourlong event starting at 6 p.m. Here are the dates and locations:

  • Tuesday, Aug. 14, Des Moines — UAW Local 450 Hall, 4589 NW 6th Drive.
  • Thursday, Aug. 16, Cedar Rapids — IBEW Local 405 Hall, 1211 Wiley Blvd SW.
  • Wednesday, Aug. 22, Bettendorf — USW Local 105 Hall, 880 Devils Glen Road.
  • Tuesday, Aug. 28, Sioux City — UFCW Local 222 Hall, 3038 S. Lakeport St.

As the group notes in flyers it has produced for these hearings:

“University leaders took NO INPUT from any of the workers, students, faculty, or community members who rely on the Labor Center’s education and research prior to announcing their decision. Iowa’s public universities must hear from the public before making major decisions with significant, permanent impact on students, working Iowans, and communities across the state.”

For more information, you can contact saveourlaborcenter@gmail.com.

The Iowa Policy Project works with the University of Iowa Labor Center at times to enhance an understanding of public policy issues, and our staff has found the center to be a tremendous resource for Iowans.

A public university has a fundamental responsibility to the public and to public decision making that is being lost. These hearings are an example of what the University of Iowa should have done, on its own, well in advance of a backroom decision being dumped in the laps of Labor Center staff and the many Iowans who benefit from its work.

It might be interesting to see if anyone from the University of Iowa administration or the Board of Regents shows up at any of these hearings. It would be to their credit to do so, and to listen.

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