House at standstill until Gov. Culver agrees to negotiate, leader says

DES MOINES - Iowa House Majority Leader Kevin McCarthy, D-Des Moines, on Tuesday accused Gov. Chet Culver of refusing to negotiate on next year's state budget, a charge Culver's office disputed.

Although Culver's staff said negotiations with legislators are ongoing, Culver said he's not willing to compromise on his priority - a $750 million bonding plan that apparently has not won the support of a majority of lawmakers.

Legislative leaders indicated they are optimistic they will wrap up next year's budget and adjourn for the year before the week is over. Although the House won't start its day until 2:30 p.m. Wednesday, House Speaker Pat Murphy, D-Dubuque, thinks lawmakers will finish their work Saturday.

For the time being, however, little progress is being reported on key agenda items including the budget, income tax reforms pushed by Democratic lawmakers and an infrastructure bonding plan favored by Culver.

"There's no negotiation occurring at this time, and so until that starts, we're kind of at a standstill," McCarthy said in an interview.

Culver spokesman Troy Price fired back with statement saying they "respectfully disagree" with McCarthy.

"Both Gov. Culver and Lt. Gov. (Patty) Judge have met and continue to meet with legislators on important issues that affect hard-working Iowans," Price said.

Judge and McCarthy had a lengthy conversation Monday night to address the issues that remain on the agenda before lawmakers can adjourn, Price said.

Those negotiations may not be closing the gap between Culver and lawmakers.

"At this point, I'm not willing to compromise on any part of it," Culver said about his bonding proposal. He has made some concession. Culver said he's reduced the amount he wants to borrow for roads and bridges from $250 million to $100 million and that would be used to repair city and county roads damaged by flooding last year.

Bonding for roads and bridges, which are likely to wear out before the bonds are retired in 20 years, has little support among Democrats and Republicans, legislative leaders said and majority party members say they will need Republican votes to pass a bonding plan.

Rep. McKinley Bailey, D-Webster City, said Democratic lawmakers have a problem with the idea of repaying bonds over 20 years to fix roads that won't last that long. He compared it to taking out a 20-year loan on a car.

One Democratic priority that won't delay adjournment is an income tax plan that would lower taxes for most Iowans and end federal deductibility. Murphy said it is no longer on the must-do list for this year.

"If I can find the vote, even if it's five minutes before we adjourn, we'll do it, but it's not going to keep us here," he said. Murphy blames Culver's insistence to make what was a revenue neutral bill a tax cut at a time when state revenues are declining for costing him votes for the bill. Culver denied that and suggested the plan picked up Republicans votes as a result of his efforts.

House Minority Leader Kraig Paulsen, R-Hiawatha, denied any Republican would vote for the plan. Paulsen said in his seven years in the Legislature, he hasn't seen problems of this magnitude between the Legislature and governor.

"There was maybe some stress between different legislative leaders and the governor's office in the past, but it's never broken down quite to the point where it appears it's broken down right now," Paulsen said.