Bonding deal struck; details being worked out

DES MOINES – Gov. Chet Culver and top legislative Democrats Thursday were hammering out the specifics of a $750 million bond plan that stood between them and adjournment of the 2009 session.

“I think it's a victory for the people of Iowa, especially the thousands who are looking for jobs,” Gov. Chet Culver told reporters. “I really feel good about the fact this will not only speed up flood recovery efforts and create jobs, but allow our state to work our way out of this recession.”

The deal was struck when Culver agreed to compromise on the amount of bond proceeds that would be dedicated to improving Iowa roads and bridges. The governor initially wanted $250 million, but agreed to lower his request closer to $100 million to win the needed support.

Culver said he felt comfortable in lowering his number because the state is in line to receive $360 million in federal transportation stimulus dollars, so there would be adequate investments to meet most immediate needs for roads and bridges through a combination of state and federal resources.

Senate Majority Leader Mike Gronstal, D-Council Bluffs, and House Speaker Pat Murphy, D-Dubuque, said they expected the compromise agreement would garner the votes needed for House and Senate passage.

“Two sides of good faith came together and discussed their differences and came up with something that works,” Gronstal said.

Details of the package were expected by mid-afternoon, but negotiators still had not distributed final numbers when the House ended floor action for the day. Senators worked into the evening in hopes of reaching final adjournment sometime this weekend.

Gronstal said the main package was about $650 million, with a separate $100 million piece in academic revenue bonds for the University of Iowa flood recovery and rebuilding projects that already has won Senate approval.

Democratic leaders said progress on the bonding package and budget negotiations raised their hopes that the 2009 session could end yet this week.

“I'm pretty confident that we can go to conclusion this week,” Gronstal said. “How far that might take us into the weekend at this point is not a function of lack of agreement, it's a function of how quickly we can move those agreements into draft form and get them introduced and passed. So we're pretty confident we're going to get done here pretty soon.”