Connecting government decisions and economic development
Workforce. Housing, Infrastructure. Business attraction, retention and expansion. These are the oft-used descriptive terms of economic development. But a project’s ability to impact a community’s growth can be accelerated or derailed by one critical factor: government policy. State and local policies shape the potential for progress through tax structures, development tools, and more.
Few see this relationship more clearly than Craig Patterson, a longtime government relations professional and lobbyist who represents Professional Developers of Iowa (PDI) at the Iowa State Capitol. For organizations like Winn-Worth Betco, which work directly with communities and employers in Winnebago and Worth counties, Patterson’s role is a critical link between state-level decision-making and local economic outcomes.
Patterson acknowledges he is not an economic developer, but his role places him at the intersection of legislation and local economic outcomes. His assessment of bills introduced at the Capitol and how they may affect communities across the state offers critical insight for legislators and local leaders alike.
How does government policy set economic climate?
At its most fundamental level, government policy defines the business and investment climate. Patterson points to Iowa’s recent income tax reforms as an example of policy having a direct, positive impact on economic development efforts.
“The income tax reform that’s been made in the state of Iowa over the last several years has been very helpful for economic development,” Patterson said. “We have one flat rate now. When I started doing this, there were eight or nine brackets and federal deductibility. It was very complex if you were trying to make the case for choosing Iowa.”
Simplifying the tax code did more than reduce rates. It made Iowa easier to explain and market. For economic developers competing for projects, clarity and predictability matter as much as incentives.
Property tax policy presents a more complicated challenge.
“Property tax has to be addressed,” Patterson said. “There’s a growth limitation in place that penalizes cities that have significant growth.”
In fast-growing communities, this limitation can reduce the financial return from successful economic development, forcing cities to lose part of their gains even as service demands increase.
Keeping funding sources alive
Large-scale economic development projects are rarely funded by a single source. Instead, they rely on a carefully assembled stack of tools at the local, state, and federal levels.
“A lot of these economic development projects take years to put together,” Patterson explained. “They’re stacked with many different funding sources, including Tax Increment Financing (TIF), historic tax credits, and other pieces.”
This complexity explains why abrupt policy changes can have outsized consequences.
“Changing the rules on TIF might upset the apple cart, causing funding to fall apart on a proposal that’s been worked on for five or ten years,” Patterson said. “And while metro areas may have more ability to function without TIF, rural Iowa is not going to have a chance if something happens to TIF.”
Housing, infrastructure, workforce
Policy decisions can determine whether a project moves forward. Housing availability has become one of the most consistent barriers to growth across communities of all sizes.
Policies like the Workforce Housing Tax Credit Program and negotiations to raise its cap so more communities can access it would really make a difference, said Patterson.
Infrastructure is another area where policy gaps can stall development. Proposed tools offer promise for Iowa’s future, such as a state-level infrastructure bank to help communities prepare sites when private developers are ready to build, but public improvements lag behind. Another is a land redevelopment trust, to give communities new ways to address dilapidated properties, assemble sites, and return land to productive use.
Stability and collaboration
Helpful policies occur with stability and recognition by legislators that economic development occurs over decades, not election cycles. Communication between policymakers and local stakeholders is essential. Patterson sees his role as ensuring that legislators hear real-world impacts directly from those using these programs.
“Lawmakers' roles are important,” Patterson said. “You can really slow things down around the state if you’re pulling the wrong levers.”
Patterson expects conversations to increasingly focus on efficiency and collaboration, potentially reshaping how communities work together.
“There are 99 counties in Iowa, so instead of having 99 separate policies, is there a way to structure shared services, regional partnerships, or new models?” he said.
Working for success in Winnebago and Worth counties
Government policy can either support long-term growth or unintentionally hinder it. Economic development depends on a policy environment that supports community success. Taxes, incentives, housing tools, infrastructure financing, and regulatory consistency all work together to shape outcomes.
Economic development is strongest when local voices are part of the conversation. Winn-Worth Betco works with business leaders, local governments, and community partners to stay informed on policy issues that affect economic growth in Winnebago and Worth Counties. To learn more about current initiatives, share local perspectives, or get involved in shaping the region’s economic future, contact us today.
