Branstad: I-JOBS creates too much debt, not enough jobs

UPDATED

MARION – “Modest” bonding to expedite recovery in Linn County and other areas devastated by 2008 floods might be appropriate, Gov. Terry Branstad said April 28, but his Democratic opponent's “indiscriminate” $875 million I-JOBS bonding plan has created too much debt and too few jobs.

Branstad could have supported a “small portion” of Gov. Chet Culver's I-JOBS program.

“If you have a public facility ruined by a flood and you don't have enough resources, then bonding may be appropriate,” Branstad said. “But I would be real selective. I think what (Culver) did was to say, ‘If we throw enough money at it, it will solve all of our problems.'”

Branstad, who is in a three-way primary for the Republican nomination to face Culver, was in Marion for the opening of his Linn County campaign headquarters at 500 Marion Blvd.

Later, aboard his “Comeback Express” on the way to speak to the Coralville/North Corridor Rotary, the four-term governor said bonding “should be a last resort, not the first.”

Branstad, who was governor from 1983-99, noted the state didn't use bonding after the 1993 floods, but conceded the devastation in 2008 was greater.

“We tried to do everything we could to maximize the FEMA dollars and used some state money and private funds as well,” he said.

Branstad, who was president of Des Moines University for six years, could have supported “a small portion” of I-JOBS.

“Philosophically, I'm not saying never bond, but only in rare circumstances where there is a significant payback, fast turnaround and where it makes sense,” he said. Flooding might be the best example.

“If you have a public facility ruined by a flood and you don't have enough resources, then bonding may be appropriate,” Branstad said. “But I would be real selective. I think what (Culver) did was to say, ‘If we throw enough money at it, it will solve all of our problems.'”

I-JOBS hasn't come close to creating the 30,000 300,000

jobs Culver predicted, Branstad said. Instead, unemployment rate has gone from 5.3 percent to 6.8 percent.

Democrats have called Branstad hypocritical for attacking Culver's bonding. Iowa Democratic Party Chairman Michael Kiernan pointed out that the Branstad administration bonded for $613 million in projects, including the Iowa Communication Networks and a new prison.

He and Branstad disagree on the relative cost of that bonding. Branstad said Culver did more bonding in one year than his did in 16. Kiernan contends that adjusted for inflation, Branstad's bonding is nearly more than $1 billion - more than Culver's $875 million I-JOBS program.

Branstad is amused by the criticism because much of the bonding during his administration was proposed by Democrats, who controlled both the House and Senate for 10 of his 16 years in office.

“It's ironic for Democrats to attack me for what their Legislature did and what I fought,” he said. “When I wanted to build a new prison, the Democrats chose to bond for it rather than use a pay-as-you-go approach.”