Culver, Branstad spar over I-JOBS creation

In another round of the war over I-JOBS, Gov. Chet Culver's Department of Management released a 107-page report claiming the creation or retention of 7,079 jobs.

I-JOBS, the state's two-year bonding program has invested $705,355,935 in flood mitigation and infrastructure projects -- nearly $100,000 per job, according to the report.

The cost is even higher, according to former Republican Gov. Terry Branstad, who is challenging Culver's bid for a second term.

Branstad's campaign manager Jeff Boeyink claimed the jobs are costing Iowans about $240,000 a piece.

“These are short-term construction jobs, not the long-term jobs Gov. Culver promised when he proposed I-JOBS,” Boeyink said. The $1.7 billion cost of repaying I-JOBS bonds “is not a great return on investment for Iowa taxpayers.”

According to the report, I-JOBS has:

Created 1,688 projects so far in all 99 counties in the state (through June 30, 2010)

Invested $705,355,935 toward flood mitigation and infrastructure projects, with more than half dedicated solely to recovery and mitigation.

Leveraged, through local, state, federal and private funds, $610,585,794.

To date, that means $1.32 billion of projects are either under way, committed or completed. For the month of June, I-JOBS has created or retained 7,079 jobs. That number doesn't count indirect jobs created or retained (such as employees who make asphalt purchased for road projects) or induced jobs (such as a restaurant that benefits from a nearby I-JOBS project).

But construction employment in Iowa is actually down 2,700 since the I-JOBS bill was passed, Boeyink countered, and nearly 20,000 Iowans have been added to the rolls of the unemployed since this program began.

“In reality, the I-JOBS program has done next to nothing to create the long-term, sustainable jobs that Iowans so desperately need,” he said. “These projects will only last until the money runs out. In fact, a number of these projects will need renovations by the time the state pays back the bond, which is more than two decades from now.”

The report highlighted the need to elect Branstad, “who understands how to create long-term jobs,” Boeyink said.

However, Culver's re-election campaign said that using Branstad's job creation formula of one construction job created for every $25,000 of infrastructure spending, I-JOBS is more successful than the Department of Management report would suggest.

Adjusting for inflation, Culver's campaign spokeswoman Ali Glisson said the total $875 million in I-JOBS bonding should create 15,867 jobs.

“When Branstad wants to sell Branstad's jobs program, estimates are fine to use,” she said. “When Governor Culver's office actually calls the contractors and subcontractors to account for jobs created, according to Branstad, the program is somehow supposed to be considered a failure.”