In Cedar Rapids, Culver makes case for revenue bonds

Gov. Chet Culver outlined his proposed $743 million state economic incentive plan while surrounded by stud-bare and plastic-covered walls at the Cedar Rapids Public Works Building.

Amid visible signs of flood damage in Cedar Rapids yesterday, Gov. Chet Culver made the case for his $743 million infrastructure plan in ways both large and small.

The large: use a bond issue to fund immediate and long term construction projects across the state that he says will generate jobs and address public needs.

The small: help for local non-profit organizations hurt by last summer’s floods.

“We are specifically earmarking roughly $5 million in our emergency flood recovery bill for non-profits,” Culver said in an exclusive interview with the Iowa Independent following his public appearance in Cedar Rapids Thursday evening.

“That would include social service agencies that aren’t getting the help that they need because, for example, they are not eligible for federal funds,” he said. “In addition, we are setting up a case management system that will help flood victims. We’re using millions of dollars to reach out specifically to those 24,000 flood-impacted homeowners and businesses for counseling.”

While his public remarks at the Cedar Rapids Public Works building barely skimmed his vision of including telecommunications, green building projects and other out-of-the-box infrastructure developments, Culver provided more detail after the meeting.

“I think it can be a combination of [immediate need and longer term projects],” he said. “The projects related to infrastructure will not only create construction jobs, but they’ll create permanent jobs. For example, if you build a new water treatment facility, you’ll need people to run it everyday. So you might have 100 people in the construction phase and 10 or 12 that are full-time employees.”

Culver also believes that Iowa can do more than just rebuild existing infrastructure. For instance, he believes new construction can be certified by the Leadership in Energy and Environment Design (LEED) as high-performance, sustainable facilities. To illustrate this point, he discussed possibilities that might be available to the state’s overwhelmed shelter services, a focus of First Lady Mari Culver.

“If we build new shelters … in flood-impacted areas maybe we’ll find an opportunity to build a brand new LEED-certified sustainable building,” Culver said. “That would not only create those short-term construction jobs, but more permanent ones as well. Or, we might help shelter structures expand and build on to their existing facilities so that they could have additional space and capacity. That could also perhaps create some permanent jobs.

“Most importantly, we want those entities in the human services arena to be involved in this legislative debate so that we can make sure that we serve their needs,” he said.

Although parts of the state have experienced an economic slide, no city faces the magnitude of challenges now facing flood-ravaged Cedar Rapids. If Culver’s plan is to succeed, it must have the blessing of Cedar Rapids and neighboring towns, which suffered the brunt of the 2008 disasters.

Lu Barron, chairwoman of the Linn County Board of Supervisors, liked what Culver had to say. She’s also convinced that his work is not done.

“He definitely needs to continue to make his case here in Cedar Rapids,” Barron said after listening to Culver’s public remarks. “We are the ones that have been devastated well beyond the other communities. We need a lot of help and assistance, and we need it now and not later.”

Barron and Justin Shields, a Cedar Rapids City Councilman, are glad to hear Culver’s plans to pull emergency money from the rainy day fund for distribution to disaster victims.

“I think the governor has been working extremely hard for the people in Iowa, and a lot of times they don’t understand it since they don’t know and see all the things he does on a daily basis,” said Shields.

“To me he made the case clearly that he is here to help. He’s the leader of our state and I personally believe he’s done a very good job. His handling of this flood and devastation has just been outstanding.”

In presenting his plan, Culver often alluded to critics of his proposal to rebuild Iowa’s infrastructure and create jobs. He pointed out that Iowa ranks 48th in the nation in terms of per-capita public debt. He also made reference to several current and former Republican governors — Jeb Bush, Sarah Palin and George W. Bush among others — who took their states into debt to provide infrastructure improvements.

“If we don’t do this… well, I’m waiting to hear what we’re going to do,” Culver said.

“The sooner this get through [the legislature], the sooner we can get moving,” he said. “I have a sense of optimism and a sense of excitement, but also a real sense of urgency. We can’t wait.”

Culver, indicating that Iowa was one of 33 states in the nation that suffered disasters in 2008, said a complete federal bailout will never come.

“Even if ours was the worst of the disasters — which it was — the states and the localities will have to find their own way,” he said. “What I’ve proposed is a way to garner the funds we need without raising taxes.”

According to Culver, Iowa currently earmarks $200 million of the roughly $350 million the state receives in gambling revenue each year for infrastructure. If the legislature agrees with the plan Culver announced in his State of the State address, Iowa would earmark an additional $56 million each year to secure and repay $700 million in leveraged revenue bonds.