Senate bonds for UI disaster aid

DES MOINES – Disaster recovery aid likely will soon be on its way to help University of Iowa officials rebuild flood-ravaged areas of the Iowa City campus.

The Iowa Senate voted 29-20 on Wednesday to approve a $100 million bonding plan that UI officials need to help leverage up to $478 million in federal emergency assistance, said Sen. Matt McCoy, D-Des Moines.

Other money from insurance, private donors and other state sources will be combined with the bond proceeds and FEMA funds to address an estimated $743 million in flood damage to UI buildings via repair or replacement efforts, he said.

“Despite the university's very best efforts, this funding is going to be necessary to restore their campus to make this multi-billion dollar enterprise whole,” said McCoy, in pushing for passage of Senate File 474. “The university has indicated to us that this damage is so extensive that they suspect it will take years, not months, to repair.”

The measure, which will be part of an overall infrastructure bonding package of up to $750 million that majority Democrats and Gov. Chet Culver are fashioning, now goes to the House for expected approval.

Democratic Sens. Dennis Black of Grinnell and Tom Hancock of Epworth joined 18 Republicans in opposing the measure.

Sen. Steve Kettering, R-Lake View, said lawmakers support disaster recovery efforts, but bonding opponents preferred a pay-as-you-go approach rather than encumbering the state with $216.9 million in principle and interest to repay by 2040.

“If we had priorities, we could simply pay for this as we went,” said Kettering, who pointed to gambling profits of $35 million in fiscal 2010 and roughly $130 million annually thereafter that would be available for infrastructure needs.

“We've got to quit this spend, spend, spend and spend some more attitude,” he said, noting that UI officials concede they won't be able to use the bond proceeds immediately and the repayment of the academic revenue bonds won't start until 2013.

“I find it amazing that we want to go borrow money, and then we're just going to let it sit around and we accumulate interest on it,” Kettering said.

McCoy said the proceeds will provide state matching dollars to leverage $478 million in FEMA help to partially finance long-term disaster recovery and mitigation efforts at the Iowa City campus hard hit by record flooding last June.