Governor Culver Proposes $700 Million Jobs, Infrastructure Plan Without Raising Taxes
DES MOINES, IA – January 21, 2009 – (RealEstateRama) — Stating that the optimism and resilience of Iowans strengthens the condition of the state, Governor Chet Culver today proposed a new jobs and infrastructure initiative during the annual Condition of the State.
The $700 million initiative, known as the Rebuild Iowa Infrastructure Investment Bonds, is designed to create jobs, strengthen the economy, and address unmet infrastructure needs across the state. The plan would be funded with existing state gaming revenue and require no increase in taxes.
“In addition to the devastation of the natural disasters, Iowans have been hit by another perfect storm, but this time it’s an economic one. We’re dealing with a severe national recession, the likes of which we haven’t seen since the great depression. And, it has already displaced Iowa workers and threatened jobs,” said Governor Culver. “In an effort to stimulate economic growth during this recession, create good private sector jobs, and address unmet infrastructure needs, I propose the creation of the Rebuild Iowa Infrastructure Authority. But when I say infrastructure, I’m not just talking about bridges and roads. I mean all infrastructure: rail, trails, public buildings, water and sewer treatment facilities, the utility grid, and telecommunications, too.”
Governor Culver stressed the need to continue rebuilding Iowa following last summer’s floods and tornadoes, creating new jobs by addressing the state’s infrastructure needs, and balancing the budget without raising taxes on working Iowans.
“I believe our first order of business in the 2009 legislative session must be to rebuild the state we love,” added Governor Culver.
To meet this goal, three specific steps were requested by the Governor of the legislature:
- Pass a $43 million Rebuild Iowa Bill to help communities, businesses and families impacted by the floods and tornadoes of 2008 pay for long-term disaster recovery efforts. Funds for the proposal would come from the state’s cash reserves, which currently sit at a record $620 million.
- Approve recommendations of the Rebuild Iowa Advisory Commission made after last summer’s historic storms. Recommendations include improvements for flood plain mapping, land use planning, disaster insurance, regional watershed management, first responders, and local emergency management departments. (For more information on the RIAC Commission recommendations, visit www.rio.iowa.gov)
- Create the Rebuild Iowa Infrastructure Investment Bonds, the $700 million initiative to create jobs and address the state’s infrastructure needs.
Added Governor Culver: “There is no time to wait. This legislative session, we must address every facet of our 21st century infrastructure, to ensure that we continue to grow our economy and support the jobs of the future.”
The Governor also included a video – In Deep Water: The Flood of 2008 – as a part of his Condition of the State, which highlighted the impact of last summer’s floods on the city of Cedar Rapids and urged lawmakers to help all communities affected by last year’s severe weather.
The national economic recession and what it will mean for the state’s FY2010 budget was also a key priority of the Governor, who said cuts will be needed in spending without raising taxes on Iowans.
“This economic challenge is historic in its scope. Its roots can be traced to the greedy actions of a few on Wall Street, lack of financial oversight, and misguided federal policies from Washington,” said Governor Culver. “This world-wide recession is affecting nearly every state in the nation, no matter if they are big or small, rural or urban, Democratic or Republican. This is the economic reality. And I believe it’s our responsibility to limit the impact of the recession on hardworking Iowans.”
Governor Culver will be submitting his FY2010 budget proposal to the legislature at the end of January. He highlighted steps that have already been taken to reduce the FY2009 budget. These include $40 million in targeted cuts in December as well as a 1.5 percent across-the-board reduction that went into effect on January 1 for all spending except public safety officers. Governor Culver also formally asked the legislature to approve $47 million in further spending reductions he previously requested in the current budget, but said much deeper cuts will be needed for FY2010.
“Most of us here – in fact, all of us – won’t like some of the effects of these cuts. But all Iowans must share in the responsibility to keep our fiscal house in order. Simply put, if Iowans are being asked to do more with less, then so should our government,” said Governor Culver. “We’re going to make government more lean, find efficiencies, create infrastructure jobs, and cut spending. This means some services will be cut. And, as I’ve said, because of the national recession, I believe this is no time to raise taxes on hardworking Iowans.”
Governor Culver ended his speech by reminding Iowans of the challenges ahead, and calling on Iowans to work together:
“These are difficult days – but in Iowa, we don’t run from challenges, we tackle them head-on. Our state was built by the hard work and sweat of people who weren’t afraid to take on this land with all of its challenges. They believed, as I do, that in every challenge is an opportunity. Despite some setbacks, I am both optimistic and confident about what the future holds for our state. Let’s put partisan politics aside and work as a team for the good of all Iowans. When we do, I believe our best and brightest days are ahead of us.”
