GOP wants legislative branch to investigae Film Office

September 21, 2009 by O.Kay Henderson · Leave a Comment 

Republican legislative leaders have sent a letter to Democrats who control the legislature’s debate agenda (because Democrats hold a majority of seats), asking that the Legislative Oversight Committee investigate the current drama in the Iowa Film Office. “Oversight” is a unique committee in the legislature in that it has members from both the House and Senate.

Read the Republicans’ news release and letter below..

Republicans Request Oversight Committee Attention to Tax Credit Program

(DES MOINES)—Today House Republican Leader Kraig Paulsen (R-Hiawatha) joined Sen. Paul McKinley in requesting the Government Oversight Committee address the Iowa Film, Television and Video Project Promotion Program at their upcoming meeting on Thursday, September 24th. The Republican Leaders sent a formal request to the House Democrat leadership as well as the Oversight Committee leadership.

“The governor’s lack of oversight and failure to properly manage the film tax credit has not only put the program in jeopardy but already wasted millions in taxpayer money. Republicans will work to bring more transparency and openness to this initiative, ” said House Republican Leader Kraig Paulsen.

Here is the letter:

September 21, 2009

Dear Speaker Murphy and President Kibbie:

It is our goal to provide the taxpayers of Iowa an open and honest account of the actions of the Iowa Film Office and the Iowa Department of Economic Development. Therefore, we ask you to include a discussion of the Iowa Film, Television and Video Project Promotion Program on your agenda for your September 24th Government Oversight meeting.

As lawmakers, we expect this investigation to be conducted with maximum transparency and openness to ensure the film tax credit initiative is being administered legally and ethically. We look forward to your response.

Sincerely,

Representative Kraig Paulsen, Republican Leader, Iowa House of Representatives

Senator Paul McKinley, Republican Leader, Iowa Senate

Tramontina memo outlines “irregularities” in Iowa film program

September 18, 2009 by O.Kay Henderson · Leave a Comment 

Below is the memo written by (now former) Iowa Department of Economic Director Michael Tramontina on Wednesday. The memo was handed to members of the Iowa Economic Development Board as they left their meeting this week in Des Moines and it was released to Radio Iowa this evening.

Memorandum
September 16, 2009

TO: Jim Larew, IGOV Chief of Staff; Dick Oshlo, Director, Dept of Management; Bob Bocken, Chair of DED Board

FROM: Michael Tramontina, Director Dept of Economic Development

RE: Film Program Status

DED management is investigating several reported irregularities in the handling of the Film program. At the same time we are: Adapting to the explosive growth of the program; responding to Legislators’ and IDRF’s evaluation of the impact of the program on the state budget; amending administrative rules to tighten eligibility to assure maximum impact on in-state workers and film industry; promote a permanent film production industry in fixed locations. This memo will attempt to bring IGOV, IDOM and the board up to date on each of these issues. Read more

DED director abruptly resigns; governor freezes film tax credits

September 18, 2009 by O.Kay Henderson · Leave a Comment 

Breaking news, released just before five o’clock on a Friday: Iowa Department of Economic Development director Mike Tramontina has resigned (seems as if he was asked to do so) and the governor has written the head of the Iowa Economic Development Board a letter, freezing the film tax credits available for movie-makers making their movies in Iowa.

Read the release below:

GOVERNOR CULVER ACCEPTS RESIGNATION OF MIKE TRAMONTINA AS DIRECTOR OF IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT

DES MOINES – The Director of the Iowa Department of Economic Development, Mike Tramontina, has tendered his resignation, effective immediately, to Governor Chet Culver.

The Governor has accepted Tramontina’s resignation.

The Department of Economic Development will report to Richard Oshlo, the interim director of the Department of Management, while new leadership at IDED is being considered.

NOTE: The following letter was sent from Governor Culver to Robert Boeken, chair of the Iowa Economic Development Board, this afternoon:

September 18, 2009

Mr. Robert Bocken
2904 15th Ave NE
Fort Dodge, IA 50501

Re: Film, Television and Video Promotion Program

Dear Mr. Bocken:

While there have been many reported benefits resulting from the Iowa Department of Economic Development’s implementation of the film, television and video project promotion program established under Iowa Code section 15.393, I am also very troubled by information very recently received by our office that there have been insufficient procedures in place to assure a full and accurate accounting of expenditures made to enable persons to qualify for tax credits under the program.

Therefore, until all reasonable questions about the administration of this program are answered, I ask that no further schedules of qualified expenditures be approved nor any further tax credit certificates be issued.

I am confident that our office, in working with your Board and others asked by us to review these matters, can resolve pending issues efficiently and effectively, allowing us to move forward with this important program in a manner that is both consistent with the intent of this legislation and that protects the interests of Iowa taxpayers.

Sincerely,

Chester J. Culver
Governor of Iowa

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