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Iowa lawmakers plan to restore status quo funds for Workforce

James Q. Lynch, CR Gazette –

DES MOINES – Lawmakers are moving legislation to restore funding for Iowa Workforce Development offices forward, with committee action likely later this week.

House Study Bill 670 will maintain the $8.67 million approved by the legislature last year, but not re-open any of the offices closed by Gov. Terry Branstad.

“It’s about as status quo as it can be,” said Rep. Nick Wagner, R-Marion, a member of a House Appropriations subcommittee that considered the bill March 27.

Legislative action is necessary in light of a unanimous Iowa Supreme Court ruling earlier this month that Branstad illegally shut down 36 job workforce centers across Iowa last year. After the 2011 session, Branstad vetoed funding for the centers and Legislature’s requirements that they remain open.

The bill will restore the funding that was knocked out by the court ruling “so we don’t have to lay off all these people and we are able to maintain all the Workforce Development offices,” Branstad said.

Quick action on the bill will provide certainty for Iowa employers and job-seekers, said Rep. Chris Hall, D-Sioux City, also a member of the subcommittee.

“The agreement reached will make sure businesses can find skilled workers and Iowans can get the skills they need to land a high quality job,” he said.

Branstad warned the agreement does not address the 2013 budget. He pointed out federal funds have been cut and interest on the unemployment trust fund is “down considerably so there is less money available.”

He hopes the Legislature can avoid a situation similar to last year when it mandated the number of offices Iowa Workforce Development was to maintain, but didn’t provide adequate funding.

“I think there is an understanding that doesn’t make sense,” he said.

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