Public, Private Partnership Can Lead to Innovative Public Policy

This month’s Business Monthly explores Public, Private partnerships and the benefits the approach can bring.

In public policy development, public, private partnerships prove to be the best solution to solve some of the thorniest policy challenges. Just a few years ago Iowa lagged the nation and many of our neighboring states in the deployment of truly high-speed internet (100 MPS upload and download speeds).

ABI members, particularly manufacturers, knew their industries were changing by adding automation, by equipment “talking” to each other and the increased use of reams of electronic data in their processes. In many cases, a well-capitalized enterprise could overcome the speed deficit by working with internet providers to construct dedicated large pipe internet access to boost the company’s upload and download speeds. That was the reality of the day. It meant that unless a company could afford to solve the problem for themselves it would go unsolved as the market signals for high-speed internet providers moved their capital to other markets.

Something had to be done. 

Governor Reynolds saw the need for a solution and created a $100 million grant fund to change the market signals and attract the private capital needed to unlock higher internet speeds. Importantly, the funds were wrapped in a public, private partnership that maximized the effectiveness of the program. 

To start, it was not free money to internet vendors. A large amount of private sector capital was required to qualify for the public funds. Additionally, private sector internet users, collaborating with their local communities, self-identified speeds, and availability. That data was delivered to the state government where the state’s Chief Information Officer synthesized a granular internet speed map of Iowa to ensure that the public funds were spent for maximum impact. 

Several rounds of awards have followed. Federal funds made available for the purpose were directed to the program and its pre-existing public, private grant program. The build-out continues but the endeavor illustrates how once a problem is identified and the decision to solve the problem is agreed upon, public, private partnerships can be vital to public policy success. 

Policy makers in Iowa continue to track the initiative and increasingly the conversations have moved on to how can companies embrace manufacturing 4.0 and how harnessing the “internet of things” and even artificial intelligence will keep Iowa businesses competitive in expanding markets.

This is but one example. Public, Private partnerships are also shaping solutions to childcare and workforce housing. The ABI public policy team is mindful of the benefits of the public, private model and works each session to promote legislation that delivers those benefits to our members.