In spite of a line-item veto that will shut down 36 Iowa Workforce Development field offices, and a failed attempt at a special session, Iowa Democrats say they are optimistic about the future of economic development in rural Iowa in the wake of new business initiatives President Barack Obama has proposed while visiting Iowa this week.
Obama’s listening tour though Iowa and Minnesota was also a platform for him to unveil multiple job creation and economic development initiatives specific to rural communities. A formal plan with additional proposals is expected to be announced after Labor Day.

Jack Hatch
One such initiative is the creation of federal workforce USDA field offices in rural areas, not completely unlike the IWD offices facing shut-down. There are an expected 2,800 offices that will open nationally, with the purpose of reducing the distance rural dislocated workers must travel for employment information and assistance.
“I’m very pleased with what he’s proposed there,” Sen. Jack Hatch (D-Des Moines) said Wednesday. My reaction is obviously it’s common sense to keep field offices open that directly impact and help people seek employment. This is certainly a welcome sign for [Democratic legislators].”
“It’s a bittersweet victory,” Senate Majority Leader Mike Gronstal (D-Council Bluffs) said, referencing the backdrop of the recent veto. “We recognize the benefits of these offices the President is proposing.”
As well, Obama has proposed $350 million in capital to existing rural businesses, and $13.2 million for various programs under the Small Business Jobs Act.

Jeff Danielson
Sen.
Jeff Danielson (D-Cedar Falls) said the initiatives will “expand markets for Iowa grown products. We have the best green thumb economy on the planet. By exploring the green collar jobs of the future, like bio-fuels and other value-added agriculture products, we will have a fighting chance to keep more Iowans employed in high quality, high paying jobs.”
The Governor’s Office declined to comment on Obama’s visit — which included showdowns with state tea party activists and admonishment from the GOP — or the proposed rural business ideas, but spokesman Tim Albrecht said Branstad remains focused on his own ambition to create 200,000 new jobs in the state over a five-year span.
“The Governor continues to focus on growth industries in Iowa, including bio-sciences and others,” Albrecht said.
None of the IWD field offices have closed yet, department spokeswoman Kerry Koonce said. The earliest closure will be at the end of August.