Fearless 7.1.24

Good morning, Fearless readers:

Welcome to July. As always, we’re eager to hear from you.

How will the Iowa Supreme Court’s June 28 decision about abortion affect you and your place of work? You can email Nicole Grundmeier (nicolegrundmeier@bpcdm.com) or Emily Wood (emilywood@bpcdm.com) with your thoughts.

In this week’s Fearless e-newsletter, you will find:

A news story about the Iowa Supreme Court’s decision on the state’s six-week abortion ban – what will the economic and workforce implications of this decision be?
A guest column introducing Christina Fernández-Morrow, the editor-in-chief of Jefas: Latinas in Business Magazine. Fearless will be partnering with Jefas in upcoming months.
A news story and video from our recent Fearless Focus panel about child care – our six guest panelists identified challenges and solutions.
In case you missed it: A new national survey from Goldman Sachs finds a lack of child care creates significant workforce challenges for small businesses.
Lots more!

– Nicole Grundmeier, Business Record staff writer

Most abortions will soon be illegal in Iowa. The Iowa Supreme Court ruled Friday that the Iowa Constitution does not provide special protection for abortion rights and that the government has a rational basis for requiring most pregnancies to continue after about six weeks following a person’s last menstrual period.

A law that makes abortion illegal once fetal cardiac activity is detected, passed in 2023, means Iowa will join 16 other states with the nation’s most restrictive abortion laws, according to the Guttmacher Institute. The decision was 4 to 3.

Under Iowa court rules, it will be at least 21 days before the ruling formally takes effect. Planned Parenthood noted in a news release that abortions allowed under current law will remain legal during that time.

Ruling could affect Iowa’s workforce
Both advocates and opponents of abortion access are denouncing or celebrating the ruling from a moral or political perspective, but today’s decision also could affect Iowa women, especially those with lower incomes, and how they participate in the workforce.

"We do have a lot of evidence on the effects of abortion policy," said Caitlin Knowles Myers, a professor of economics at Middlebury College who was interviewed by the Business Record on Thursday. Going back to the U.S. Supreme Court’s Roe v. Wade decision in 1973, she said, economists have been able to determine that legal abortion made girls and women "much more likely to finish high school, go to college, finish college, have higher-earning jobs and avoid poverty."

In the past two years, the Turnaway study showed that women who are denied abortions go on to have adverse events on their credit reports far more often than women who can access abortion.

Iowa’s ban will have the greatest effect on women without means, Knowles Myers said: "A great number of people who are Iowa residents who want abortions are still going to get them; they are going to drive to other states where abortion remains legally available, or they’re going to mail-order abortion medication and have it shipped to their houses and manage an abortion in that way."

While the Iowa law includes exceptions for pregnancies that result from rape or incest and for certain medical emergencies, Knowles Myers said that developments in states that banned abortion earlier raise concerns about cases such as ectopic pregnancies. Those do not result in a live birth, but lawyers and doctors in Texas, Idaho and other states have said they sometimes delay providing abortion care to be sure they don’t run afoul of laws permitting the procedure only if the woman’s life is threatened.

Judkins: Support programs can help Iowa women and girls
Iowa has taken some steps to make more resources available for women and girls who can no longer choose abortion in the state. The More Options for Maternal Support program, also known as the MOMS program, created in 2022 and modified earlier this year, provides grants to agencies that promote healthy pregnancy and childbirth. Those agencies are not permitted to primarily promote abortion.

Kristi Judkins, executive director of Iowa Right to Life, said in an interview with the Business Record on June 13, that she’s seen estimates that the law could result in 2,000 fewer abortions each year.

Judkins said that Iowa has more than 50 pregnancy resource centers, and that the support network for women and girls is being made more robust. "Obviously, they want to support life, but they are going to do it in a way that’s compassionate and respectful," she said. More details are at IowaPregnancySupport.com, Judkins said.

Knowles Myers, the economist, agreed that "programs that provide support to low-income families [make] it financially more viable." However, she said that giving a new parent some diapers and a car seat only goes so far, and that what is really needed are long-term resources like housing stability, job security and affordable child care.

"A lot of low-income working mothers are shift workers, and they have really unpredictable job schedules and a really hard time taking leave [when children are sick]. Is a crisis pregnancy center going to address labor policy? I don’t think so."

She said businesses can help support parents by providing consistent work schedules that are given with plenty of heads-up.

Reynolds addresses IVF question
Iowa Gov. Kim Reynolds on Friday released a prepared statement that addressed parenthood and in vitro fertilization: "We will continue to develop policies that encourage strong families, which includes promoting adoption and protecting in vitro fertilization (IVF). Families are the cornerstone of society, and it’s what will keep the foundation of our state and country strong for generations to come."

Knowles Myers, the economist, testified at a congressional hearing earlier this year at which Sen. Chuck Grassley of Iowa said that he didn’t think it was appropriate to examine abortion access through an economic lens. "I took Sen. Grassley’s comment in good faith," she said. "If you view [abortion], as I believe Sen. Grassley does, as fundamentally a question about what he sees as human life, then I took him as saying there’s nothing you could say with an economic argument that would change that.

"And I think that’s OK. … As an economist, I’m not there to opine on ethics or when life begins. But what I do think we should be able to do, and where I do think everybody should be open to having a conversation and listening, is we should be able to talk about the facts, the scientific evidence, and the facts are that access to abortion is of fundamental economic importance to women and families. And that if you deny access to abortion, you will see economic consequences, particularly for poor, vulnerable families."

Other responses
Iowa state Rep. Jennifer Konfrst, a Democrat from Windsor Heights, said on a conference call organized by Planned Parenthood on Monday that the University of Iowa’s training program for obstetricians and gynecologists is in jeopardy because prospective doctors won’t be able to practice all the necessary services. University officials declined to comment earlier this month but passed the Business Record’s request on to an Iowa Board of Regents spokesperson, who said he would provide the Business Record with a statement after the Iowa Supreme Court announced its decision.

Leah Vanden Bosch, development and outreach director for Iowa Abortion Access Fund, said on Monday that her group will continue assisting women with accessing abortions.

Editor’s note: Fearless will be sharing one Jefas Magazine story in the first e-newsletter of the month through November. In this column, Jefas Editor-in-Chief Christina Fernández-Morrow shares more about the new magazine’s origin and purpose.

Jefas: Latinas in Business Magazine showcases Latina entrepreneurs who are trailblazers, changemakers and fearless. “Jefas” means “boss” and that is exactly what these women are.

The magazine launched digitally May 9 at the inaugural Latina Business Excellence Summit in Des Moines. The event, organized by a team of Latina business owners, was created to bring together Latina entrepreneurs and those with aspirations. It was a resounding success that sold out three times over. Women came from neighboring states, and the vibe was electric.

“Never in my wildest dreams did I think I’d see this in Des Moines,” said Erika Macias, publisher and co-founder of Jefas Magazine. “Hundreds of Latinas coming together, supporting one another to thrive – I knew we created something bigger than we imagined.”

The magazine lit up social media, being shared, quoted and reposted for weeks. When the print edition debuted in June, the buzz was even louder. People keep saying how beautiful it is; they love the quality and how it makes the photos pop. It does justice to these women who have pushed against some incredible odds to create businesses in environments that are often hostile and unwelcoming to Latinas. It shows the tenacity and fierceness of our women.

The Latinas featured dominate in industries across the board. You’ll read about a petite, soft-spoken Mexican American who drives a huge tow truck through the streets of Central Iowa like it’s a go-kart; a cosmetic chemist whose family is originally from Puerto Rico who runs a global beauty brand out of Storm Lake and created a reality TV competition for makeup artists in Cuba; an indigenous Chicana living in Iowa City and creating one-of-a-kind jewelry from metals and stones handpicked and cut by Natives. These are just a few of the fearless Jefas who are creating legacies despite the many obstacles in their way.

Jefas Magazine was created to not only shine a light on how many Latinas are contributing to Iowa’s economic landscape but also as a resource. Its mission is to empower Latina business owners by increasing their access to opportunities, representation and resources so they can realize their full potential and inspire other Latinas to do the same. According to the 2020 State of Latinos Entrepreneurship Report, Latinas represent 40% of all Latine-owned businesses, yet less than 2% of their businesses receive venture capital funding, which leaves Latina entrepreneurs to seek financial assistance from family and friends or try to go it alone.

Blanca Plascencia, owner of El Fogón Mexican restaurants in West Des Moines, and the new Guacamole Patio and Cantina in Waukee, wrote about using Small Business Administration programs and creating personal relationships at her bank to finance her ventures. These testimonies are critical because Latina business strategies to overcome barriers aren’t often covered in traditional media.

That lack of attention led to the talent that came together to create Jefas Magazine. The entire team is from Latine communities across Iowa. When writers, photographers, designers and translators heard about the magazine, they wanted to be a part of it. Their shared experience brought unique perspectives of straddling cultures and blending languages that connected the contributors in ways that glow throughout the pages of Jefas Magazine.

Jefas: Latinas in Business Magazine can be found online and at Latina-owned businesses across Iowa, the Quad Cities, Chicago and Nebraska. To order copies for your place of business, contact Erika Macias at holaamerica2000@gmail.com. Follow us using @JEFASmagazine on Instagram and TikTok.

Iowa is in the midst of a marathon, providers and experts said, toward a goal of families being confident that they can sign up for high-quality child care, near where they live, without busting their budgets.

Big improvements over the course of decades mean a lot of ground has already been traveled, but huge shortcomings in availability and costs remain. No solutions are simple, and persistence is necessary to continue progress, said panelists at the Business Record’s June 20 Fearless Focus virtual event on child care.

“We have lots of issues we still need to work on,” said Bethany Davis, vice president for early childhood for Des Moines’ Oakridge Neighborhood nonprofit. “However, I am amazed in the 23 years that I’ve been in the field how far we have come, and I think we have people’s ears. I think we have legislators’ attention. I think we’re making progress. And we’re always advocating. So, keep advocating.”

The one-hour forum, moderated by Emily Wood, the Business Record’s special projects editor, brought together longtime advocates who have been in the trenches in child care facilities and in policy discussions involving businesses, local communities and state policymakers.

“Child care is the No. 1 expense for the typical Iowa family’s budget. For a family of two, with two kids in child care, we’re talking well over $1,293 a month. That far outpaces even housing costs for families,” said Dave Stone, advocacy officer at United Way of Central Iowa. “We’ve seen a movement across the country on behalf of employers … to start offering caregiving benefits or dependent care benefits to their employees. Companies can see improvements in employee satisfaction, engagement, retention and productivity. … There’s been a number of company case studies, as well, that found that for every $1 that they spend on caregiving benefits, it results in a gain of $18.93. So quite a good [return on investment].”

When Fearless surveyed its audience about gender equity in Iowa, three-quarters of respondents identified affordable child care as a major issue. Companies, in some cases with the aid of state grants, have set up innovative offerings in or near workplaces, and policy changes at the Statehouse will provide more flexibility for providers and higher reimbursements tied to a state program to assist lower-income families with child care.

But many challenges remain, and, despite advances, new pressures are emerging, too, such as school districts exploring or even implementing four-day weeks that would create new child care needs. It all adds up to urgent questions about a service that is vital for families and for the economy.

“Not only are we serving the employees, the parents, but also we are working hand in hand with the future generation,” said Ashley Miranda, assistant director and family development coordinator for Conmigo Early Education Center in central Des Moines. “We spend so much of the children’s day with them, we want to teach them, we want to make sure we can give them the best that we can.”

The panelists for the June 20 Fearless Focus virtual forum included:
Deann Cook, president and CEO, Iowa Women’s Foundation
Bethany Davis, vice president – early childhood, Oakridge Neighborhood
Renee Hansen, external relations manager, Sukup Manufacturing Co.
Teresa Hovell, benefits manager, Vermeer Corp.
Ashley Miranda, assistant director and family development coordinator, Conmigo Early Education Center
Dave Stone, advocacy officer, United Way of Central Iowa

Below are more highlights from the panelists’ remarks, which have been edited and condensed for clarity, about current barriers and how Iowa can continue to make progress:

Deann Cook:
Our focus at Iowa Women’s Foundation has been not so much free and low-cost care, but raising wages for the child care workforce without having to put that burden on child care centers. And the way we’ve done that is we’re supporting 13 communities throughout the state on a Wage Enhancement Program. So there was a matching grant from the state; the community or county raised funds among business partners, individuals; those were matched by the state for a Wage Enhancement Program that allows registered child care providers in those areas to tap that fund to raise wages for their child care workforce. So if the business model of the child care facility doesn’t allow them to pay more — which, for all the reasons you’ve heard, that’s usually true — the community can become part of investing in that workforce through a public-private partnership match with state dollars to raise those wages. So the small difference in pay makes a big difference in retaining folks and recruiting them.

Ashley Miranda:
We have plenty of 17-year-olds here at Conmigo [allowed to assist at child care facilities under a new state law]. And honestly, we absolutely love them, especially for center field trips, when we just need a lot of hands on deck, and especially at the swimming pool. So they are great. And it’s really nice that we’re able to hire them at such a young age, especially when we can really instill the importance of early education into them early enough to where they can dedicate themselves to this and understand just how important it is to play a role and be intentional with it. It does require lots and lots of training. And a lot of side-by-side training, leading by example. And that does take an effect on us daily when these teenagers are still in high school during the day, so they can only come to us after school, and then they only get two hours of training every day. So that training really takes a very long time; it can take months rather than two weeks.

Renee Hansen:
The Child Care Task Force with Gov. Kim Reynolds came up with a lot of creative ideas. Sukup was awarded a state grant in partnership with a consortium of our community — not just Sukup as a business, but we work together with the school district, we work together with a bank in town, in order to create and build an infrastructure, and thanks to state funding, we’re able to do that as a grant match. We are in the process of building an infrastructure right now in Sheffield, Iowa, that will house close to 110 children in a child care desert. The only other child care that is in Sheffield that I know of right now only houses 36 kids. So there is a huge need for it. This taskforce really opened the doors to other ideas and public-private partnerships.

Teresa Hovell:
You have to be very proactive, you have to find the resources in your community. Pella is a 10,000-person community, but go past that. Look at the next town, pull every resource and every business that you can, where you’re also pulling in your team members, and have open and honest conversations. Make them part of it, so it’s not just a business trying to attract talent, it’s a business trying to work with the community. I think that is the key to being able to collaborate, to find opportunities and to create that experience. … Every community is a little bit different. But Vermeer did a lot of work, working within our county and within our community, talking to different providers, whether they be in-home or an established center, on talking with the schools to understand what is necessary to do this. But I think it has to be very much that effort of saying, “We want to work with you. And we want to work with you on behalf of our community, not just behalf of us as a business.”

Dave Stone:
We’ve been working with the Polk County Board of Supervisors to study this issue, help our policymakers understand that it is a critical issue. They did award us $2.6 million in grant funding to address affordability and accessibility with our local child care coalition here in the metro region. We’ve also engaged with federal partners such as the National Fund. And one of those things that we received a grant for is to work on increasing worker satisfaction, promoting quality work environments, increasing those wages, because this is a complex problem to solve. Many of our business partners would say, when you look at the math, when you look at the business model, it doesn’t make sense, and it really doesn’t. But it is one of those critical things that are necessary for any business that wants to open a new factory or plant or manufacturing location. Nuclear families with kiddos won’t just move there. They don’t have extended family to take care of the kids. We need to really think of child care as that sort of first entrance point, the welcome mat, if you will, as you’re trying to attract and retain new talent.

Bethany Davis:
Oakridge as an organization or neighborhood is pretty diverse. Culturally, just having people understand that preschool is important, and is a pretty good indicator of how they will learn, to be successful and prepared in the future, is a little difficult to get sometimes for the families of our neighborhood. Children do often come to us with no English, or maybe an older sibling who does speak for them or their parents, so the language is a little bit of a barrier. Fortunately, we know that children that young do learn English pretty easily. Our main concern is we want them on par and ready for school just like any other student. We do have some resources that make it a little easier, but it is challenging, just having the different languages and cultural barriers.

A new national survey from Goldman Sachs 10,000 Small Businesses Voices released June 20 showed a lack of affordable and accessible child care is a significant barrier to small-business growth.

A majority of small-business owners surveyed from 47 U.S. states, including Iowa, reported that there are insufficient affordable child care programs in their communities. The new survey of small-business owners found:
84% believe it has been difficult for working parents to afford high-quality child care programs for their children.
More than half (57%) say that, where they live, there are not enough child care programs that are high quality and affordable.
38% say that a lack of child care has had a negative impact on their ability to operate or grow their business.
62% say that being able to offer a child care benefit to their employees would have a positive impact on talent recruitment and retention.

Over one-third said that their employees have been forced to cut their work hours or forgo work entirely because of child care challenges.

“Small-business owners like me are grappling with workforce challenges directly tied to the lack of affordable, high-quality child care," TJ Tollakson, owner of Dimond Bikes in Des Moines, said in a prepared statement. "The child care challenge gets worse in the summer months when kids are out of school. At Dimond Bikes, I’ve had employees resort to taking family and medical leave during the summer because they did not feel they had other affordable child care options. The ability to offer child care benefits would be a significant first step in helping our businesses compete and grow.”

The new data identifies potential policy solutions that small businesses would support to address this challenge. Seventy-seven percent of small-business owners would support policymakers increasing federal funding programs that help families better access affordable child care; and 70% would support legislation to increase the tax credit available to businesses who want to locate or provide child care for their workforce from $150,000 to $500,000.

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