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IowaPolitics.com: Legislature wraps up voting on $765 million bonding plan
4/26/2009

By Lynn Campbell and Andrew Duffelmeyer
IowaPolitics.com

The Iowa Legislature put the final touches on a three-part, $765 million bonding plan championed by Democratic Gov. Chet Culver as a plan to create thousands of jobs, paving the way to adjournment of the 2009 legislative session late Saturday or early Sunday.

"I feel really good about the fact that we got this done," Culver told reporters at about 4:15 p.m. Saturday, roughly 45 minutes after legislative passage of the plan. "It was my signature legislative item this session. It was the focal point of my Condition of the State speech."

As for Republicans' criticism that the bonding plan will put the state's children and grandchildren in debt, Culver said, "It's just not true." He said Iowa ranks 48th in the nation in debt load, and even if the state were to triple its debt, it would still rank 47th.

"I think they needed an excuse to vote against a bill," Culver said of Republicans. "And they're going to have a lot of explaining to do to the voters next fall. What do you say to a flood victim? If you voted against this bill, you voted against helping the University of Iowa rebuild their campus. You voted against flood victims." The Iowa Senate on Saturday gave final legislative approval to the biggest piece of the bonding plan.

Senate File 376 authorizes $545 million in bonding for projects at the Iowa Veterans Home, correctional facilities, deficient bridges, local infrastructure, disaster relief, watershed and water quality, alternative energy, sewers, housing and public broadband.

Republicans didn’t offer any amendments, but did have plenty to say on the the bill before it was approved 30-18.

“You’re signing up future legislators to actually deal with your problems,” said freshman Sen. Shawn Hamerlinck, R-Davenport. “Holy cow. To be that self-righteous, to be that arrogant, to have your heads that big and actually believe that you can spend that amount of money is appalling.”

Republicans took issue with Democrats' estimate of 30,000 jobs created by projects funded by bonding and the federal stimulus, while Democrats in exchange took issue with Republican estimates of the price of the bonding plan when interest and other costs are added.

Senate Minority Leader Paul McKinley, R-Chariton, spoke of going into debt many years ago when starting a business but said there is a difference between public and private debt.

“I guarantee you that there is such a thing as a bad investment, and we have made plenty of them,” McKinley said. “This $750 million will create 30,000 jobs? If you believe that, I’ve got a bridge to sell you.”

Sen. Herman Quirmbach, D-Ames, acknowledged that a total of $765 million in bonds would cost approximately $1.7 billion to repay, but the Iowa State University associate economics professor said that view is too simplistic.

“You can add up some fancy numbers, but the calculation is misleading,” Quirmbach said. “The true economic cost is far, far lower than some of the numbers that have been cited this morning. The other error of the cost is that it leaves out some of the benefits.”
Photos from Saturday's session

Created with flickr slideshow.


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