IDP Chairman Michael Kiernan, left, and former Gov. Terry Branstad

“He’s a hypocrite. Period.” Kiernan said. “He’s looking at his own record with rose-colored glasses making calculated, political decisions that will, in his mind, distance himself from his own record and help him win the [Republican gubernatorial] primary.”

Branstad has been highly critical of the $830 million I-JOBS bonding plan, a proposal Democratic Gov. Chet Culver called the centerpiece of his 2009 legislative agenda. At a recent Republican Party of Iowa event, Branstad said “too much debt is bad and those that create it should be thrown out of office.”

The Democrats point out that Branstad used public bonding to fund more than $613 million in projects between 1989 and 1994. Those projects included a state prison at Clarinda ($22.6 million); the Iowa Communications Network ($115 million) and the Underground Storage Tank cleanup program ($141 million). Adjusted for inflation, Branstad’s bonding totals nearly $1 billion.

“Here’s the general rule of thumb for Taxin’ Terry:  He was for it before he was against it, and now no one knows what, if anything, he stands for,” Kiernan said. “Branstad criticizing Governor Culver for using bonding to fund I-Jobs after bonding out nearly a billion dollars in state projects himself is hypocritical.”

Branstad has also been critical of a plan announced by Culver to pay state troopers out of the Road Use Tax Fund, which is designated to pay for road construction and maintenance projects. Branstad said the idea was “a bad budget practice that was used in the past, and as governor I put an end to it.”

But one of Branstad’s Republican rivals, state Rep. Chris Rants, said it wasn’t the governor who ended the practice, but the legislature.

“Terry Branstad must have forgotten that in 1985 Gov. Branstad started the practice of funding the Iowa State Patrol from the Road Use Tax Fund. Gov. Branstad used this bad budget practice for 11 years as governor,” Rants said, adding: “The practice didn’t come to an end until my first term in the legislature when people like myself made the tough decisions needed to get Iowa’s fiscal house in order.”

The Sioux City Journal reports Tuesday that Branstad attempted to explain his past use of the Road Use Fund during a campaign stop Monday, saying it was done during the Farm Crisis of the 1980s and was corrected during his administration.

Branstad spokesman Tim Albrecht could not be immediately reached for comment.

Gov. Chet Culver

The money will be paid back over the next 20 years with gambling revenue. The legislature originally planned to allocate $55 million a year to pay for the bonds, but the state received a lower interest rate than expected, so the annual debt service on will be approximately $43.2 million.

Culver credited a low debt burden and a AAA bond rating from Standard & Poor’s for the savings for the favorable interest rate.

“Iowa’s strong fiscal management means we can take steps to create jobs and improve our economy that few other places across the nation can do,” he said in a statement. “And thanks to our strong fiscal management, it means we can take bold action to move our state forward while saving Iowa taxpayers millions of dollars in the process.”

Proceeds from the bond sale will be transferred to the State on July 22. The first deadline to apply for funds is Aug. 3.

Responding to the news of the bond sale, Senate Minority Leader Paul McKinley, R-Chariton, said Culver was simply engaging in political spin.

“Only a debt and spend governor like Chet Culver would believe that Iowa taxpayers will ‘save millions’ after first putting over a billion dollars of debt on the state’s credit card,” he said.

With no formal political experience, Fong’s positions on the issues are still a mystery to most voters. Unlike his GOP competition, who have endured numerous campaigns and been thoroughly vetted, Fong is a virtual unknown to those living outside his hometown of Cedar Rapids.

But over a series of months, Fong has repeatedly posted on Hawkeye Review, a blog run by Linn County GOP chair Tim Palmer. His posts there may represent the only window currently available into Fong’s political thinking, and some of his thoughts may be controversial to Iowa’s conservative Republican base.

Fong first came to the attention of GOP activists when he spoke out publicly against a Democratic tax proposal that included ending federal deductibility. Addressing a legislative committee, Fong said this “tax-on-a-tax plan will cost us jobs. Not just a handful of jobs, but hundreds of jobs, and not just in Linn County, but also across the state. A recession is the worst time imaginable to raise taxes.”

However, his position on the issue is not as cut and dried as it may appear. In a post a few days earlier, Fong said he agreed with the idea of ending federal deductibility, he simply disagreed with how Democrats would handle the influx of money that would result.

Instead, this is my income tax proposal:

Eliminate deductibility of federal taxes, and lower all marginal state income tax rates to the point that no working Iowan of any income level will see their taxes rise.

Another issue sure to be a factor in the GOP primary is the Iowa Supreme Court’s decision to legalize same-sex marriage. How to overturn that decision has already caused friction between two Republican candidates, Bob Vander Plaats and Christopher Rants.

In discussing the ruling, Fong wrote it would be “rightly be characterized as an attack on marriage, and also on Iowa’s families and Iowa’s communities.” But he warned against conservatives being “baited into a negative-toned or knee-jerk reaction by those that make their living off of single-issue politics or special-interest fundraising.” While he supports overturning the decision, he said the “frantic calls for a marriage amendment… are counter factual to the realities of how the constitutional process works.”

And, since I’m not making any friends with this paragraph, let me suggest that turning a moral issue into a political chip is both disrespectful to the people involved and trivializes an important debate. We all have deep feelings on this, which is why it is too important to be jammed through in a state of panic.

Instead of “raging against the decision,” Fong would rather see his party “advance a positive, optimistic plan that is not just pro-marriage, but pro-family,” including making family counseling tax deductible, giving community-college based job training for the unemployed and government funded catastrophic family health care coverage for those who are out of work.

After all, medical emergencies are the number one reason families face personal bankruptcy, and financial stress is one of the top causes of divorce.

Fong calls for the state to revamp the tax code to “eliminate the loopholes and special interest credits that enable some to pay none, and mind-boggling complexity that turn honest folks into tax criminals.” He said Culver’s I-JOBS program, which borrows more than $800 million to pay for infrastructure repair and flood recovery, will simply extend budgetary pain and “delay the inevitable.”

The State of Iowa must either grow by raising taxes and fees, or shrink by cutting spending.

During debate of the bonding proposal, Fong said the legislature should borrow to pay for the “fantastic, new Iowa Economy projects that are going to pay off in big ways” that are included in the I-JOBS program, as long as they are “not stapled to pork.”

Fong has blogged repeatedly about his party’s need to over come the “I’m right, you’re wrong, so there!” style of politics.

Most of us know someone who suffers from this same condition. What are the symptoms? You’ll know it by a retreat into non-sensical, single-issue ideology: Jobs lost? “Must be high taxes.” School enrollment down? “High taxes.” Uncle Ned’s business failed? “High taxes!!” Wide ties back in fashion? Softball league dropped their playoff? Fender bender on Highway 30? “A thousand times, high taxes! High taxes!!”

Come on! Life is complex. A paradigm built on issue-based politics, or sound-bite style logic, is inadequate to win in the marketplace of ideas, and a lousy way to try to win an election. If you hear a journalist, a politician, or your next door neighbor constantly harping on something as the root of all evil, you have found philosophical paralysis. It’s time to move on.

Fong’s blog posts at the Hawkeye Review have been compiled for easy access here. He also spoke Wednesday with O.Kay Henderson at Radio Iowa and answered questions about his entrance into the race, including the fact that he donated money to several Democratic legislative candidates.

The site, ijobsiowa.gov, will be the official home of information about the I-JOBS infrastructure improvement program. In an interview with the Iowa Independent earlier this month, Phil Roeder, Culver’s deputy chief of staff, said the goal of the new site would be to allow citizens to “follow the money from application for funds to how decisions are being made to distribution all the way down to how many jobs it is creating.”

Transparency will be key to the success of the bonding initiative, Roeder said, and that idea not only includes the new Web site but also involves ensuring all business is conducted in public meetings.

At its inaugural meeting June 3, the panel charged with handing out $165 million of the I-JOBS funding established Aug. 3 as the deadline for local governments and non-profit agencies to apply for money. And starting today, the board will begin holding meetings at 10 locations around the state to give local residents an overview of the program.

Vander Plaats, who so far is the only Republican challenging Culver in 2010, called the plan to issue bonds to upgrade state infrastructure, create jobs and pay for flood recovery a “gift that will keep on taking for Iowa taxpayers.”

“More than rebuilding Iowa’s infrastructure, Chet Culver thinks it will rebuild his image so he can win another term,” Vander Plaats said. “Iowans aren’t that shortsighted and Chet Culver is going to learn that for himself next year.”

Republicans opposed the bonding plan, arguing that the eventual cost to repay the bonds will be $1.7 billion. They argued for a “pay-as-you-go” method, saying the state should cut expenses before it turns to borrowing to pay for the projects in the plan.

Democrats countered that the scale of the state’s needs, due in part to last year’s natural disasters but also to years of infrastructure neglect, as well as Iowa’s AAA bond rating made the borrowing plan a good investment.

Vander Plaats, who ran unsuccessfully for the GOP nomination in 2002 and 2006, said he believes Culver’s plan won’t create jobs and will saddle taxpayers with needless debt.

“He may buy some jobs now but it will be the Iowans who will be working the next 20 years who have to pay the bill,” he said.

In ceremonies in Marshalltown and Iowa City, Culver signed Senate Files 376, 477, and 474, all aimed at upgrading state infrastructure, creating jobs and flood recovery.

“Passing the legislation was the easy part,” Culver said. “Now, we must get to work creating good jobs and revitalizing our communities.”

The plan, which Culver discussed during his Condition of the State address, establishes an 11-member board within the Iowa Finance Authority to oversee payment of the bonds and ensure the projects fit into the program’s criteria, which include the number of jobs created, the project’s readiness to proceed immediately, and the project’s energy efficiency, among other things. Culver is expected to appoint six of the 11 members, although the time frame of the appointments is not clear. The other members of the board are the directors of several state departments.

The state is expected to sell bonds to pay for grants this summer, with the first grants being awarded soon after the bonds are sold. All money is required to be spent within three years.

Before the measure passed, Culver called on county, city and school officials to submit projects they believed could benefit from I-JOBS money. More than 4,000 projects were submitted, however governments will have to officially resubmit applications to be considered.

Below is a complete breakdown of the I-JOBS spending targets, according to the governor’s office:

Veterans home, community colleges and other public improvements: $285 million

·         $185 million to improve public facilities across Iowa, such as the Iowa Veterans Home, correction facilities, and our community colleges.

·         $100 million for further investments in state public infrastructure, including state parks.

Flood recovery and rebuilding: $165 million

·         $118.5 million in competitive grants available for reconstruction of local public buildings and flood control prevention in communities hit by last year’s disasters.

·         $46.5 million in grants targeted for help to Linn County, Cedar Rapids, and to rebuild fire stations in Palo, Elkader, and Charles City.

Transportation infrastructure: $115 million

·         $50 million to improve the safety of Iowa’s bridges.

·         $55 million to cities and counties to improve local roads, including many roads still damaged by last year’s natural disasters.

·         $10 million invested in airports, rail and trails.

Iowa’s universities: $115 million

·         $100 Million to rebuild 10 buildings destroyed by flooding at the University of Iowa, which will allow the use of nearly $500 Million in federal funds

·         $15 Million to build a veterinary hospital lab at Iowa State University

Environment and water quality: $80 million

·         $35 million to help construct sewers in communities under 10,000.

·         $20 million in competitive grants for communities of any size for water improvement projects.

·         $25 million to water-quality projects, including flood prevention, as well as soil conservation practices.

Housing needs: $35 million

·         $20 million invested in affordable housing for elderly, disabled, and low-income Iowans.

·         $10 million to construct or improve shelters for domestic abuse, emergencies, and the homeless.

·         $5 million to repair homes damaged by last year’s floods.

Telecommunications and renewable energy: $35 million

·         $25 million invested in improving access to technology throughout Iowa.

·         $10 million to create a revolving loan program to support alternative energy projects to support both new jobs and energy independence.

Gov. Chet Culver had made the plan the centerpiece of his legislative agenda, proposing it in his Condition of the State address and campaigning around the state for months trying to build public support.

Gov. Chet Culver

The plan, which Culver dubbed I-JOBS, will borrow millions to pay for flood recovery and infrastructure projects, including transportation, public buildings, disaster recovery and prevention, wastewater and water improvements and initiatives on housing, energy, and broadband access.The multi-bill plan is now headed to Culver’s desk for his signature.

“I-JOBS will help rebuild a smarter, safer and stronger Iowa,” Culver said. “It will allow us to speed up our recovery from one of the worst natural disasters in American history. It will put people to work. From transportation to housing, from education to technology, from alternative energy to water systems, no aspect of our public infrastructure will go untouched.”

The high price of the plan, however, caused every Republican to vote against it.

“With this bill, you’re handcuffing us for the next 26 years,” said Sen. Randy Feenstra, R-Hull. “This legislature of 2009 will go down in history.”

Senate Majority Leader Mike Gronstal, D-Council Bluffs, agreed with Feenstra that the session will go down in history.

“It will go down in history as the session where we said we’re not going to do what Louisiana did and leave New Orleans in swamps,” he said. “We’re not going to do that. We’re going to make sure we recover from last summer’s disasters, help our communities fix themselves up, pull themselves up, and build a new future.”

Culver 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 [Republicans] needed an excuse to vote against a bill,” he said. “And they are 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.”

Culver and Democratic lawmakers were originally at odds over how much money to borrow and whether or not to use any of the money for road and bridge repair. Earlier this week, however, the governor indicated that while he was willing to negotiate the details of the bill, the key principals of his plan, including funds for transportation projects, must remain.

The plan is estimated by Democrats to create 30,000 jobs, a figure Senate Minority Leader Paul McKinley, R-Chariton, scoffed at.

“This $750 million will create 30,000 jobs? If you believe that, I’ve got a bridge to sell you,” he said.

In March, Iowa State University economist David Swenson and Creighton University economics professor Ernie Goss looked at Culver’s plan and concluded the total would be closer to 4,000 jobs.

The House and Senate both worked until early Saturday morning only to reconvene hours later with the hope of adjourning the 2009 session this weekend. The final details of a $6 billion state budget are among the final pieces of legislation being considered.

On a vote of 30-19, lawmakers gave approval to Senate File 477, which would allow the state to issue bonds totaling $100 million for vertical infrastructure improvements and $5 million for alternative energy projects.

The bill is expected to be debated by the Iowa House today.

The measure is one of several bonding bills passed last night. Both the House and Senate passed a $115 million to help University of Iowa rebuild flood-ravaged areas of the Iowa City campus, and the House passed an amended version of a $545 million bonding bill passed by the Senate last month.

All told, legislators are expected to approve more than $800 million in bonding bills this weekend with the hopes of adjourning early next week.

The bill, Senate File 376, marks the biggest chunk of what will eventually be more than $800 million in bonding bills aimed at flood recovery and infrastructure repair. The measure passed on a 53-43 vote.

As part of Gov. Chet Culver’s I-JOBS recovery plan, the bill establishes an 11-member board within the Iowa Finance Authority to oversee payment of the bonds and ensure the projects fit into the program’s criteria, which include the number of jobs created, the project’s readiness to proceed immediately, and the project’s energy efficiency, among other things.

Some of the highlights of the plan include:

- $185.8 million for competitive grants for local infrastructure projects related to disaster recovery.

- $165 million in bonds will be issued for flood prevention, reconstruction and replacement of local buildings.

-$55 million for water improvement projects.

-$20 million for affordable housing assistance grants.

-$25 million for public broadband technology grants.

-$50 million for bridge safety fund.

The Senate passed a $100 million bonding measure earlier this month. An amendment to the House version, sponsored by Rep. Dennis Cohoon, D-Burlington, adds another $15 million to the bill for veterinary medical facilities at Iowa State University. The bill passed the House on a 52-40 vote.

Senate File 474 is the first piece of a multi-bill bonding plan that will total more than $800 million for flood recovery and infrastructure repair. Gov. Chet Culver initially rolled out a $750 million bonding plan in March. Lawmakers originally balked at the high price tag of the plan, specifically the governor’s plan to borrow $250 million for road and bridge repair.

After several weeks of negotiations, Culver and Democratic legislators managed to compromise on a plan that will borrow $100 million for road and bridge repair and another $600 million for Culver’s I-JOBS plan, which includes money for housing, public works projects and flood recovery.

Legislators have indicated they would like to vote on the remaining bonding bills this weekend in order to adjourn by early next week.

UPDATE at 9:15 p.m.: The Iowa Senate passed the House version of SF474 on a vote of 31-18.