Culver: ‘The people of Iowa are strong’

Gov. Chet Culver delivered his second Condition of the State Address Tuesday morning, calling on Iowa lawmakers to “do more with less” amid falling revenue projections but devoting significant time to the needs of Cedar Rapids and other communities marred by natural disasters over the past year.

“The condition of our state is strong because the people of Iowa are strong,” Culver declared before introducing a video presentation that showcased the impacts of last summer’s floods.

The first half of Culver’s address focused on recovery efforts, and the first request he made of the legislators assembled at the capitol was to “rebuild the state we all love.” He said the state should tap into its “rainy day” fund, and he asked them to act on the recommendations of the Rebuild Iowa Commission.

Culver also asked lawmakers to support the creation of the “Rebuild Iowa Infrastructure Authority,” which would oversee large investments to improve Iowa’s infrastructure. This, Culver said, would help with both disaster recovery and economic growth during the nation’s economic downturn. “For every $100 million spent on highway construction alone, more than 4,000 new jobs are created,” he said according to prepared remarks.

Culver suggested that the infrastructure investments should be paid for by issuing bonds, which essentially means borrowing money. The money could be paid back without raising taxes, he said, because the state gets enough revenue from gambling to pay for them. Republicans in the House chamber signaled their disagreement by sitting quietly as most Democrats seemed to applaud the idea.

“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,” the governor said, adding that Iowa is in a better position than most other states to weather the looming financial storm.

Though Culver at one point said that “everything’s on the table with respect to balancing the budget and finding cost savings in state government,” he signaled his opposition to raising taxes “on hardworking Iowans.” Senate President Jack Kibbie, a Democrat, and some other lawmakers had called for an increase in the state’s tax on gasoline purchases as recently as Monday.

Culver repeated themes from his 2006 gubernatorial campaign in his speech, and, as his campaign for reelection in 2010 begins, Iowans may start to hear the same catchphrases more often. He called on lawmakers to “use Iowa common-sense in planning our budget,” and he reinforced his goal of “making Iowa the renewable energy capital of the United States and the Silicon Valley of the Midwest.” He asked the legislature to “stay true to our Iowa values by effectively managing the budget,” and he characterized himself as a “high school football teacher and coach.”

As the Iowa’s 83rd General Assembly gets under way, Democratic leaders in the House and Senate appear willing to set aside past disagreements with the governor. House Speaker Pat Murphy issued a statement quickly after Culver concluded his address, calling the governor’s economic proposals “bold” and pledging to “act quickly on his recommendations.” Senate Majority Leader Mike Gronstal also characterized Culver’s plan as “bold” as he pledged to work with the governor and Republican legislators “to make the tough decisions necessary to balance the state budget.”