Gov. Terry Branstad delivered his Condition of the State address to the Iowa General Assembly this morning, outlining two major priorities this legislative session: enacting a four-point jobs and careers plan of action and creating the nation’s best school system.

The jobs initiative includes submitting a revised plan to reduce commercial and industrial property taxes by 40 percent over the next eight years to the General Assembly.

“Commercial property taxes in Iowa are the second-highest in the nation, and I believe there is agreement within this chamber that these taxes must be reduced – not because they cost businesses money, but because they cost Iowans jobs,” the governor said.

The second piece of Branstad’s plan asks for the Legislature to give the newly created Iowa Economic Development Authority $25 million for its High Quality Jobs Program, an incentive program to attract new businesses to Iowa.

Branstad pointed out that his proposal will be structured so state investments in the program will decline over time and the program will become self-funding within 10 years.  

He also wants to encourage small businesses that supply key components to the state’s manufacturing sector to expand facilities in Iowa.

“Manufacturing must remain an important part of our diversified Iowa economy,” Branstad said, adding that he’ll offer legislation removing barriers that could discourage suppliers from bringing their businesses to Iowa.

The final piece of the governor’s plans involves keeping Iowa companies in Iowa, even if an ownership change takes place.

Branstad will propose legislation that will encourage the formation of Employee Stock Ownership Plans, which will encourage the sale of local businesses to the employees who have made the company profitable.

“Our plan will encourage more Iowans to own a stake in their company, to reap a greater share of the fruits of their own labor, and to help protect the quality of life in their local community,” he said.