Bruce Braley says his rival is 'outsourcing' jobs to Illinois; Mike Whalen says his company is expanding in Iowa.

By TOM WITOSKY REGISTER STAFF WRITER

October 10, 2006

Dubuque, Ia. - Democratic congressional candidate Bruce Braley accused Mike Whalen, his Republican opponent, Monday of outsourcing jobs from Iowa to Illinois when the Bettendorf businessman agreed to move the corporate headquarters of one of his companies to Moline, Ill., in 1998.

"You need to decide whether someone who moves a business across the river for economic incentives of up to $3 million is really going to work for you as an Iowa taxpayer," Braley said. He raised the issue during the second televised debate in the race for the 1st Congressional District seat.

But Whalen, owner of the Heart of America and Iowa Machine Shed companies, insisted that Braley was attempting to mislead voters about the move.

"I have administrative people in Des Moines, in Moline and Wisconsin because I have operations in six states and I hope in many more states in the future," Whalen said. "The core company I own is the Iowa Machine Shed, and I have owned it for 28 years in Iowa, and I employ more than 700 Iowans. In 2004, we paid over $3 million of various taxes - state, city and local taxes all together in Iowa."

The skirmish over Whalen's moving of the Heart of America offices from Davenport to Moline was one of the highlights of the second debate between the two political newcomers.

Whalen and Braley are waging a heated - and sometimes bitter - campaign that has become a focus in the battle for majority control of the U.S. House.

Different polls have shown each candidate leading in the district, which has been represented by Republican Rep. Jim Nussle but went to Democrat John Kerry over President Bush in the 2004 presidential election.

Nussle is running for governor against Chet Culver, Iowa's secretary of state.

While criticizing Whalen's business move, Braley, a lawyer from Waterloo, claimed that Whalen benefited from incentives provided by the federal, state and local governments. Braley's statement - quoting newspaper articles from 1998 - indicated that Whalen's company received a $700,000 rebate from local sales and property taxes for moving to Moline. In addition, the statement also said that Illinois officials provided an additional $800,000 in incentives, including loans and job training funds. The statement also includes in its tally a $1.5 million project by the city of Moline to demolish Arsenal Bridge ramps near the new headquarters for construction of 200 public parking spots.

Braley, who has also criticized Whalen for opposing an increase in the federal minimum wage, said that Whalen's acceptance of the incentives should raise questions among voters.

"When Mike decided to move his corporate headquarters and outsource his headquarters from Iowa to Illinois, he was the recipient of federal money and state money and local money," Braley said.

"Do you want someone like me out there fighting for more sunshine, more transparency and more responsiveness to the taxpayer of this country, or someone who is going to outsource your work across to Illinois?"

After the debate, Whalen described Braley's attack as a cheap shot and insulting.

"It's easy to accuse and hard to defend when it is something this complex," Whalen said. "Here is the most insulting thing about what Mr. Braley said: He implies that if an Iowa company starts in Iowa and expands outside of Iowa, they are traitor to Iowa."

Whalen said that his Iowa company currently is spending about $30 million to expand its operations within the state and hopes to employ more than 1,000 Iowans before the end of the decade. He also said that he has established administrative headquarters in several states for his companies because of local requirements such as obtaining liquor licenses for restaurants and hotel bars.

"I'd like to ask Mr. Braley for the number of jobs he has created over the last 28 years," Whalen said. "How much are they paid, and how much are their benefits worth?"