Branstad calls I-JOBS a mistake; plans to reevaluate projects

Gov.-elect Terry Branstad said Thursday he wants to evaluate I-JOBS projects that may not be under contract to determine whether they are a good use of taxpayers' money and if they should move forward.

Branstad said it was “a mistake” for now lame-duck Gov. Chet Culver and the Democratically controlled Legislature to embark on the $875 million bonding plan for infrastructure improvements, and he wants a status report on what the current obligations are and what the critical needs are that would warrant the state's investment.

“What has been committed will be fulfilled. If there's money that hasn't been committed, hasn't been spent, we want to review and analyze that,” he told reporters. “Once you have a contractual obligation, it needs to be fulfilled, no question about that and it will be.”

Branstad said he was hopeful there was a sizable share of I-JOBS funds that haven't been obligated.

Culver spokesman Jim Flansburg said more than $665 million of the overall $875 million in bonding proceeds had been awarded as of Aug. 31. That included all funds awarded by the I-JOBS Board and programs administered by the Iowa Finance Authority, including funding for water, affordable housing and shelter projects.

The remaining $212.9 million was I-JOBS funding that had not been awarded. That included nearly $66 million in state infrastructure projects, $61 million in environmental and water quality improvements, and $42.3 million in transportation projects – including bridge safety, local roads, passenger rail and public transit. About $4.4 million was designated for disaster recovery and prevention measures – a category where $221.5 million in I-JOBS money has been awarded, according to data provided by Culver's office.

“I want to evaluate the situation and determine what the critical needs are,” Branstad said during a taping of Iowa Public Television's “Iowa Press” show, slated to air Friday.

“First of all, I think most of it already has been spent, but that that hasn't been spent my general inclination is to say it shouldn't be spent,” he said. “I want to evaluate each and every project based on its merits. I don't think we should just be willy-nilly trying to spend money. Instead, I want to look at protecting the taxpayers' interest in the process. But, it there's a project that's been obligated, then we have a responsibility to fulfill it.”

During a wide-ranging interview, Branstad said he plans to work with the Department of Management, Legislative Services Agency and State Auditor David Vaudt to formulate a five-year state budget plan to bring state spending in line with tax revenue. He said it would be his plan not to fill most of the roughly 2,000 state jobs that were left open after veteran state employees took an early-retirement incentive.

Branstad reiterated his call for revamping some of the benefit and salary provisions for state employees – such as requiring workers on individual health insurance plans to pay a share of the premium costs and revising automatic “step” increases in wages for workers who are not out the top of their pay scale.

“I want to treat employees fairly, but I also want to treat taxpayers fairly,” said Branstad, who promised during the just-ended election campaign to reduce state government spending by 15 percent over the next five years. “I'm going to ask for reasonableness” when talks on a new two-year contract with unionized state workers begin later this month.

“I want to have a very open process,” he said. “I don't want any secret deals. I want to do everything above board.”

Branstad ruled out raising taxes as part of his budget overhaul, saying his focus will be on reducing the state corporate income tax and phasing down taxes on commercial and industrial property as a way to spur job creation among private-sector businesses.

As has been past practice, Branstad said he will ask current Culver administration agency heads and top personnel to submit their resignations during the transition to Branstad's fifth term as governor which will state with his Jan. 14 inauguration. He said he may ask some current administrators to stay on but also will bring in new faces – a list which could include GOP attorney general candidate Brenna Findley, GOP state treasurer candidate David Jamison, former Rep. Rod Roberts and lame-duck Secretary of State Michael Mauro, a Democrat who lost to Matt Schultz in Tuesday's balloting.

On other topics, Branstad said he wished Iowa Attorney General Tom Miller would reconsider his decision not to join 21 other states in challenging the health-care reforms pushed by President Barack Obama and enacted by the Democratically controlled Congress.

He also supported revamping the current judicial merit-selection system for nominating judges to ensure political balance, and he hoped the nominating commissions would move in a deliberate manner in the wake of the defeat of three Iowa Supreme Court justices to identify potential replacements – slots he believed he should fill, not ongoing Gov. Culver.

The governor-elect, who previously served four terms from 1983 to 1999, said he has not made a decision whether he would seek a sixth term in 2014 – a question left open by the fact that most of his future goals plan five years to complete. He said Lt. Gov.-elect Kim Reynolds will be “a full partner” and a liaison with local government and he has not decided whether he will endorse a Republican for president in 2012 – saying he will start Iowa's first-in-the-nation caucuses neutral but would not rule out a candidate endorsement closer to the February 2012 precinct gatherings.

What does this mean for Cedar Rapids?

Gov.-elect Terry Branstad's I-JOBS bombshell will likely have little impact on Eastern Iowa flood recovery projects, a check with officials in Cedar Rapids, Coralville and Linn County indicate.

Cedar Rapids Mayor Ron Corbett said Thursday that the city of Cedar Rapids has signed contracts with the state for flood-recovery projects receiving I-JOBS money.

“None of the funding should be in jeopardy,” Corbett said.

Branstad on Thursday said he wants to evaluate I-JOBS projects not now under contract to determine whether they are a good use of taxpayers' money and if they should move forward.

The Cedar Rapids projects, Corbett said, are all worthy flood-recovery projects. In some instances, he noted the city has not yet drawn down any of the state grant money.

That status of I-JOBS projects at the University of Iowa was not immeiately available late Thursday.

State Board of Regents officials were looking into whether regents projects would be affected by Branstad's proposed review.

The regents received at least $115 million for projects related to flood recovery at the UI and an expansion of the College of Veterinary Medicine facility at Iowa State University.

And while those regents projects are called I-JOBS projects, they actually have a different funding source than the rest of the state's I-JOBS projects because the regents have their own bonding authority, officials said.

In Coralville, City Administrator Kelly Hayworth said he did not believe Branstad's proposal would affect any of Coralville's I-JOBS projects because the city has commitments for them.

Construction on Coralville's First Avenue flood recovery and mitigation project, funded by a $27 million I-JOBS grant, began earlier this year.

In Linn County, Darrin Gage, Linn County director of policy and administration, said the county has signed contracts for all three of its I-JOBS projects.

They are $4.4 million to assist in renovating the Jean Oxley Linn County Public Service Center, 930 First St. SW; $3.69 million toward the $3.7 million Juvenile Justice Center; and about $5 million toward the $14.6 million Linn County Community Services/Options of Linn County building at 26th Avenue COurt and 12th Street SW.

The major I-JOBS grants to Cedar Rapids include:

• $5 million for the new library.

• $15 million for the new Event Center.

• $5 million for the Public Works Building.

• $5 million to renovate the Paramount Theatre.

• $5 million for the flood-ruined downtown steam system.

• $4.4 million for renovation of the Veterans Memorial Building.

• $2 million for the former federal courthouse.

• $3.31 million for the reconstruction of Sixth Street SW so it doesn't flood at Prairie Creek.

• $1.075 million for a riverbank amphitheater.

• $6.6 million to build a new west-side fire station and help fund a new Central Fire Station on First Avenue East.

• $380,250 for the purchase of flood-blighted properties next to the Paramount.

The following chart shows I-JOBS appropriation through August 2010. Branstad intends to evaluate each project and make decisions about the ones not already under contract.

I-JOBS Appropriation