Loebsack Hears Small-Business Concerns
By David DeWitte, The Gazette, Cedar Rapids, Iowa
Feb. 20–MARION — U.S. Rep. Dave Loebsack heard plenty about rising health insurance costs and access to skilled workers in a series of listening sessions with small-business owners across Iowa’s second congressional district.
Loebsack started a day of sessions Tuesday by hearing from about a dozen business owners at the Kirkwood Training and Outreach Services Center in Marion. At least half had a beef about health insurance costs and the supply of skilled workers.
Several business owners discussed health insurance premiums that rose 25 percent or more after companies changed carriers. One busi ness owner said a health insurance policy with a $5,000 deductible was the only kind she could afford for herself, making a recent broken leg extremely expensive.
Tom Miller and Sue Warner of Schumacher Carpets in Cedar Rapids said health insurance remains a big issue even though they can still tag onto Warner’s health insurance plan from a previous employer as a retiree. High expenses have prevented the couple from hiring any employees, although they have independent contractors to handle installation. They work six days a week without vacations to keep the business running.
Lars Peterson, interim state director of the Iowa Small Business Development Cen ters, agreed that hiring skilled employees and rising health care costs are two of the largest challenges facing entrepreneurs assisted by the state’s 15 centers. He said the two issues are closely related, because good employees expect to have adequate health insurance.
“Business succession is a huge issue,” Peterson added. He said a large percentage of small business owners in rural communities are nearing retirement age. In rural Iowa towns, “when a business closes, it doesn’t reopen.” Work-force readiness was a concern for Tom Day, owner of Day Mechanical Systems in Cedar Rapids, even with health insurance.
The company has grown to 54 employees, but the technical demands of high purity welding and other services make it tough.
“I don’t know where I’m going to get the people,” Day said.
Small business owners voiced support for the state’s small business development centers, SCORE and the Cedar Rapids-based Entrepreneurial Development Center of Iowa. Miller, Warner, and several others said the centers were key to helping them get into business.
The old devil — high taxes,– still hasn’t gone away. Matt Miller of Hiawatha-based Mobile Demand, which supplies rugged portable computers to the wholesale beer industry, was one of several who urged Loebsack to do his best to control taxes. Miller said high taxes make it hard to reinvest in a growing business.
Loebsack discussed the recently passed fiscal stimulus package and his belief in investing in education as a form of economic development.
He planned to meet with constituents in Mount Pleasant, Burlington and Keokuk later in the day.
Contact the writer: (319) 398-8317 or david.dewitte@ gazettecommunications.com
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