Culver unveils $750 million bonding plan

DES MOINES - The Legislature's majority Democrats signaled support Thursday for borrowing money to create jobs and rebuild state infrastructure but doubted they would get to Gov. Chet Culver's proposed $750 million level.

The governor sent lawmakers a comprehensive "I-Jobs" infrastructure bonding plan he said would create tens of thousands of jobs statewide over three years without raising taxes

Culver's proposal to "face the economic recession head on" would pump $250 million into transportation projects, $150 million in disaster recovery efforts, $100 million in water quality and wastewater improvement projects, and $75 million for local infrastructure, broadband technology and alternative energy projects.

Another $175 million would go toward improvements at state correctional facilities, the Iowa Veterans Home, and a host of other projects that cleared the Senate in a separate bill on a 32-18 party-line vote Wednesday.

"Iowa can literally work its way out of this recession," Culver told a Statehouse news conference where he unveiled details of a concept he introduced in January's Condition of the State address. "This is a jobs initiative that will modernize our infrastructure."

The governor estimated there are 3,800 projects that are "ready or near-ready to go," and he expected that projects in all 99 counties would be eligible for the infrastructure program to be overseen by a newly created 11-member board.

"We think it has a lot of good ideas in it and we're going to work with the governor to try to find common ground," said Senate Majority Leader Mike Gronstal, D-Council Bluffs. "I'm not positive we'll get to that $750 million number."

Culver said now is an opportune time to borrow money given the favorable interest rates and Iowa's AAA bond rating. He said he plans to tour the state "with my shovel" and work with lawmakers to get as much of the package as he can to his desk as soon as possible.

"We want to turn dirt as quickly as we can," he said. "This is something that we can do in the next four to five weeks and it's the most important thing we can do this session."

House Speaker Pat Murphy, D-Dubuque, was upbeat about parts of Culver's plan. But he conceded some lawmakers prefer to raise the gas tax as part of a steady, dedicated funding stream for roads and bridges rather than bond for a short-term surge in construction work that's not sustainable.

"It's an uphill climb but we might be able to do something in that area," Murphy said.

"We're going to try to find consensus on something that we can do with bonding," he added. "The details are the hard part of work out on this. We will try to see what we can get 51 votes for on the House side."

Senate GOP Leader Paul McKinley of Chariton said the governor is talking about making work by borrowing and spending while Republicans are talking about creating sustainable jobs by easing taxes and regulations.

"You cannot borrow and spend your way out of a poor economy," he said.

"Once the work is done, it's done. You could hire someone to dig a ditch and that's work," McKinley noted. "You create jobs by lowering barriers, not lifting barriers as the governor and Democratic legislators are proposing to do."

House GOP Leader Kraig Paulsen of Hiawatha said the governor points to the borrowing power of Iowa's AAA bond rating and vows to use by committing $56 million annually of state gaming profits to pay off the bonds over 20 years.

"If your kids came to you and said I have a Mastercard and I intend to use it, you'd rip it out of their hand," said Paulsen, who doubted any Republicans would vote for the governor's bonding legislation.

Davenport Mayor Bill Gluba gave the governor high marks, saying it could help the city's $56 million sewer project that could create 200 construction jobs and open 20 square miles to future development in northwest Davenport.

"I think it's fantastic. In my judgment, this is probably the most significant piece of legislation before the Iowa Legislature today," said Gluba, who previously served eight years in the General Assembly. "Here's an opportunity to put Iowans to work and to invest in the state of Iowa in very fundamental things."

Coralville City Council member John Lundell also expressed support, saying "I think it's very timely and very creative use of the bonding capacity.

It's a good time to do it."