Henry County Supervisors consider possible Workforce Development Merger

MT. PLEASANT — Henry County is weighing whether to join a major regional merger of workforce development boards, a decision that could shape the future of local employment services and workforce training across a wide swath of Iowa.

At the July 17 Board of Supervisors meeting, Mississippi Valley Workforce Development Board Executive Director Miranda Swafford outlined the urgency behind the proposed merger between the Mississippi Valley, South Central, and Northeast Iowa workforce regions. The move comes amid steep federal funding reductions that have left several local boards unable to maintain operations independently.

South Central Iowa Workforce Development has announced it will cease operations Oct. 1 without a merger.

“Their current staff have agreed to stay on until then, but as of Oct. 1, they would be unable to continue,” Swafford said. “If a merger does not occur, South Central would go back to the state, and then would be run by Iowa Workforce Development instead of having local control.”

That loss of local oversight is a key concern driving the push to merge. Under state law, if a local workforce area cannot fulfill its responsibilities, Iowa Workforce Development (IWD) — a state agency focused primarily on unemployment benefits — assumes control of job training and placement services. Local leaders fear that transition would weaken regional responsiveness.

“The services that are provided and everything would be basically delivered by IWD,” Swafford said. “You lose the community-driven oversight.”

Funding Cuts and Structural Concerns

Clinton County Supervisor Jim Irwin, who chairs the Mississippi Valley board’s chief elected officials (CEO) group, said the merger is an effort to preserve and strengthen services in the face of ongoing funding losses.

“We’ve had two years of 18% reductions,” Irwin told the board. “And we’re likely to see another cut next year.”

He cited continued rising administrative costs and burdens on small counties as further motivation to pool resources.

The combined board would represent 40 counties across eastern and south-central Iowa, one of the largest in the state. While the idea of managing such a large area raises concerns, Swafford and Irwin said the plan includes forming regional subcommittees to preserve local representation and keep services community-focused.

“We’re not trying to centralize everything,” Irwin said. “This is about preserving the quality and availability of services while keeping local voices involved.”

Financial Responsibility Debate

A major sticking point in the discussion has been how to allocate financial liability among participating counties. Currently, Mississippi Valley divides liability evenly across its eight member counties. But Supervisor Chad white said he favors a population-based approach.

“Population-based liability makes the most sense,” white said, noting that counties like Scott and Clinton — with larger populations and service demands — should shoulder more of the cost.

Irwin acknowledged that Scott County may resist such a model but said the majority of other counties are already on board.

“Most of the small and mid-sized counties are supporting the merger,” Irwin said. “Jackson, Lee, and Wapello counties have already voted in favor, and Des Moines County has as well. Muscatine County is expected to vote soon, and Clinton County supports the plan.”

Swafford said data on service usage will help inform the financial discussion.

“We would be able to provide the data on how many people were served in each county to support that approach,” she said.

A Growing Statewide Trend

If approved, this would be the second major merger of workforce regions in Iowa in recent years. In 2021, Western Iowa consolidated three struggling boards into a single 42-county region known as IowaWORKS Plains, which is now operated by the state. Leaders in the Mississippi Valley region have repeatedly cited that model as one they want to avoid.

“We serve more people in our eight counties than IowaWORKS Plains serves in 42,” Irwin said. “We don’t want to become another example of losing local control and falling behind in services.”

According to a report in the Maquoketa Sentinel-Press, the state has set an August 18 deadline for boards to submit letters of intent to merge. The Iowa Workforce Development Board will review and potentially approve the merger on August 25. If approved, the new region would formally begin operations October 1.

Next Steps for Henry County

Supervisor Steve Detrick said he’s not opposed to the merger but wants to see more data before voting.

“We need the metrics to understand from a county perspective,” he said.

White agreed.

“It would be helpful to see how many Henry County residents have actually used the services, so we know what we’re paying for,” he said.

Henry County’s vote is critical. As Swafford explained, all counties in the three merging areas must approve the plan. “If one county says no, it holds up the whole process,” she said.

The board is expected to vote at its next meeting. In the meantime, supervisors said they would continue gathering information and talking with other county leaders across the region.

“This merger is about survival and long-term stability,” Irwin said. “And it’s also about making sure people in our communities still have access to the training and support they need to get ahead.”

Comments: AnnaMarie.Kruse@southeastiowaunion.com