In my opening day speech to the Iowa Senate I promised Iowans the Senate would pass legislation to expand growth and opportunities for all of us. My colleagues and I kept our promise to Iowans by passing bold, pro-growth reforms. Over the last several days the results of those reforms are becoming clearer.
Governor Reynolds released a statement on August 18, noting the state’s unemployment insurance tax rate will decrease an average of 25% on 2018 wages. This decrease, taking effect January 1, 2018, reflects the solvency of our unemployment trust fund. The latest unemployment numbers, released on the same day, also shows the strength of our workforce. Iowa’s unemployment rate remained at 3.2 percent and below the national rate of 4.3 percent in July.
A few days later on August 23, it was announced Iowa’s Insurance Commissioner Doug Ommen is reviewing another proposed rate decrease in the state’s workers’ compensation premiums. The Iowa Insurance Division on July 1, 2017, approved a rate decrease of 3.9% and this latest proposal is an additional 8.7% decrease for January 1, 2018.
Recently, Iowa current workers’ compensation premium rates were the 24th highest in the country, ten years ago those same rates were the fifth lowest. Bureaucrats and judges implemented costly and anti-competitive decisions, negatively impacting businesses and employees in this state. The passage of Workers’ Compensation reform restored the balance to Iowa’s system and lowered costs for job creators.
These new rates are a victory for all Iowans. When the cost of doing business in Iowa is lower, employers have the opportunity to grow their businesses, the state and local economies benefit from their investments, Iowa is more attractive to new businesses and entrepreneurs, and those results are more career opportunities for Iowans.
This latest news shows these reforms are shaping Iowa’s economy to be more vibrant and competitive with any state in this country. And together, as Iowans, we can achieve that goal.
Let’s make it happen!