Culver sees consensus on $750 million bond plan

DES MOINES - Gov. Chet Culver said Friday he's close to reaching an agreement with the Legislature on his $750 million bonding plan to rebuild communities and put Iowans to work.

"We're getting close to consensus," Culver said and predicted the package would be close to his proposal to sell $750 million in bonds to invest in renewable energy, rail, roads, bridges, wastewater treatment and other infrastructure.

"I feel strongly that if we're going to do this it has to be bold," the governor said. Although much of the funding would be steered toward rebuilding communities damaged by floods and tornadoes last year, he said the spending will reach all parts of the state.

"Not just flood-impacted communities, but Sioux City and northwest Iowa where they have a lot of infrastructure needs," he said. He'd like to see Highway 20 upgrade to four lanes across the state, for example.

With 83,000 Iowans out of work, he said on Iowa Public Radio's Talk at 12, it's imperative for the state to use its AAA bond rating to invest in programs that create jobs. Investing in infrastructure will create more than blue-collar constructions jobs, he said. "We'll need architects and engineers to help us to do these jobs."

Iowa can't rely on the federal stimulus package to turn its economy around, the freshman Democrat said.

"We need to take control of our own destiny," Culver said.

Legislators have expressed reluctance to bond for roads and bridges that may not last as long as it takes to repay the bonds. However, Culver indicated he has about $150 million in his plan for roads and bridges, down from $250 million earlier.

Culver has proposed paying the bond debt with about $50 million a year of gaming revenue. That has come under criticism, too. State Treasurer Mike Fitzgerald said the state could save up to $120 million over the life of a 20-year, $750 million bond issue by financing the borrowing with yearly state appropriations rather than dedicated gambling proceeds.

Fitzgerald said the bond market would be more favorable to an appropriation bond because gambling revenues are more volatile and current Iowa law requires county votes every 10 years to reauthorize legalized gambling activities - something that makes investors skittish.