Despite cuts, Vilsack focuses on positive aspects of economy

Emily Klein

Gov. Tom Vilsack focused on the positive qualities of Iowa during a speech and open forum at Ames City Council Chambers Thursday. He did not directly address the recent 2.5 percent across-the-board state budget cut.

“I fully appreciate and understand the stresses we’re under, but understand that we are still ranked among the best in education,” Vilsack said.

Maureen Kilkenny, associate professor in economics and agriculture, said Vilsack’s optimism may be what the state needs.

“Maybe the best economic policy is self-fulfilling expectations,” Kilkenny said. “Let’s hope this helps us look forward and take risks.”

If people like what they have, they need to invest in it, she said.

Vilsack outlined four “cornerstones” on which to build a stronger economy in Iowa.

The cornerstones included an energy policy for the state, Vision Iowa’s plan to attract creative people and businesses, values funds and venture capital.

The Iowa Values Fund is a commitment on the part of the state to transform the economy. For example, Wells Fargo announced it will locate a new facility in Iowa to create a home-base for its financial services. Venture capital focuses on providing funding for Iowan entrepreneurs.

Vilsack said the cornerstones have yet to be fully engaged and will bring revenue to the state.

He stressed the importance of “selling Iowa” to people who live elsewhere, as well as to Iowa’s young adults — an attempt to keep them within the state.

“I am here today with this message, and the message is a relatively simple one,” Vilsack said. “We are in a competition, and for us to win the competition, we need to aggressively market our state.”

Vilsack said Iowa offers time to its residents.

“[That means] not spending three hours a day commuting to and from your place of work,” he said. “We can give people time to spend with their families, time to read a book, take a walk, pursue a hobby, coach little league or go to a church service.”

He went on to list facts and rankings of Iowa that showed the educational, environmental and business aspects of the state are above those of many others. He said a University of Florida study last year identified Iowa as the state that did the best job in caring about people.

Tahira Hira, assistant to the president for external relations and executive administration, said she believes Vilsack is doing his best.

Money needs to come from somewhere, whether it is from tax money or new businesses, she said.

“The world is changing; it’s shifting like plates in an earthquake,” said Hira, professor of economics. “Our economy is changing. It can’t be what it was.”