The Iowa Department of Management released a report on the I-JOBS state bonding initiative yesterday. Click here for the pdf file (more than 100 pages). Governor Chet Culver’s office highlighted how much I-JOBS has invested in infrastructure, particularly in the areas of flood recovery and mitigation, as well as how many jobs have been created or retained. Iowa Republicans continue to claim I-JOBS failed, having funded only temporary jobs at a high cost.
The Department of Management’s report documents about 1,700 projects that could not have gone forward without I-JOBS money. Unfortunately, recent media coverage of I-JOBS hasn’t focused on its clear benefits. The dominant media frame has become a he-said, she-said take on whether I-JOBS has lived up to Culver’s job creation promises last year.
Terry Branstad’s gubernatorial campaign launched a new YouTube video attacking the I-JOBS infrastructure bonding program. Like other leading Iowa Republicans, Branstad continues to exaggerate I-JOBS costs. The video claims the state bonding will cost Iowa taxpayers $55 million per year for 23 years (a total of $1.7 billion). However, when most of the I-JOBS bonds were sold a full year ago, strong investor demand and Iowa’s solid credit rating drove down the interest rate. The repayment costs are approximately $42 million yearly (from gaming revenue, not the general fund), and will add up to far less than $1.7 billion.
UPDATE: Chet Culver’s campaign responded to this web ad from a different angle:
BRANSTAD MOCKS FLOOD VICTIMS IN LATEST WEB AD
DES MOINES – Gubernatorial candidate Terry Branstad mocks recent flood victims in his newest web ad, in which he slams Governor Culver’s I-JOBS program.
“A large part of I-JOBS money goes toward flood recovery and mitigation efforts, just ask the citizens of Cedar Rapids and Coralville who depended on aid from I-JOBS to help rebuild their cities and limit damage from future flooding. But Terry Branstad continually mocks I-JOBS; the web video is just the latest representation of that,” said Culver/Judge Campaign Manager Donn Stanley.
Branstad has called the I-JOBS program a “folly.” [1] The video, released by the Branstad campaign today, is goofy and is, at best, inconsiderate after this weekend’s flooding around Lake Delhi given how critical I-JOBS funding has been in rebuilding from the 2008 floods.
Stanley continued, “Despite this weekend’s flooding, the Branstad campaign continues to mock I-JOBS. It shows just how arrogant and out of touch Branstad and his campaign are. I certainly do not believe that mocking I-JOBS and the flood victims shows the kind of serious leadership Iowans need in tough times.”
While Iowa Republicans keep talking down our state’s economy and misleading voters about our fiscal condition, facts and figures compiled by professional analysts paint a different picture.
Links on encouraging revenue projections and economic indicators are after the jump.
We have a projected state budget gap of nearly $1 billion dollars. And we have seen a dramatic slide in student test scores and teacher layoffs in school districts across the state. We can do better. We must do better. And, as Terry Branstad’s running mate, I will dedicate my every waking minute to sharing with Iowans his ambitious goals for our future.
Like Branstad, Reynolds laments teacher layoffs across the state, and like Branstad, she fails to acknowledge that those education cuts would have been much deeper without the federal stimulus money Iowa has received.
Details on the budget for fiscal year 2011 can be found here. All Reynolds needs to do is figure out how to spend no more than 99 percent of state revenues projected for the year. In other words, balance the budget without using the $328 million in federal stimulus money (American Recovery and Reinvestment Act funds) and the $267 million in reserve funds that Democrats included in the budget Culver signed into law.
If Reynolds is prepared to criss-cross the state bashing Democrats over teacher layoffs, she should be prepared to show us the education budget Iowans could expect under a Branstad administration.
As Governor, Terry Branstad admitted “his books were never balanced.” According to the State Auditor, Terry “cooked the books.” And when state unemployment hit a record high, Branstad asked for a raise. When Terry cut foster care, Branstad took another raise. When the state couldn’t pay its bills, Branstad raised our taxes and raised his pay once again. Terry Branstad: Cooked books, Raised Taxes, Eight pay raises. A past we can’t repeat.
A Culver campaign press release with supporting facts and citations from news reports is after the jump.
We all know Branstad wasn’t a good manager of state finances, but I like the way this ad touches on his deeply flawed priorities as well. Branstad started seeking a pay raise during his very first year in office, when unemployment peaked at 8.5 percent. A few years later, this guy wasn’t ashamed to take home more money even as he was cutting foster care programs.
I hope future Culver ads will underscore how cutting state assistance to vulnerable Iowans has long been Branstad’s knee-jerk preference, rather than his last resort. The foster care cuts highlighted in Culver’s new commercial occurred in 1987. When Iowa faced a budget crisis in 1992, Branstad brought two money-saving ideas to a meeting with state lawmakers in advance of a special legislative session: first, cut spending on foster care, and second, cut Medicaid programs that helped children buy eyeglasses and keep senior citizens out of nursing homes. During this year’s campaign, when asked an open-ended question about how he would cut state government, Branstad
said he’s still looking for ideas but did mention reforming the state’s mental health system and rolling back Medicaid, which has been expanded to cover more people, including children. He said state employees should pay for their health insurance like private sector employees.
That’s classic Branstad. Gee, I haven’t figured out yet how to make the budget numbers add up, but why not change Medicaid so that fewer people qualify? While we’re at it, let’s stop helping tens of thousands of families send their four-year-olds to preschool.
Branstad’s record of incompetence should be at the center of the gubernatorial campaign, but let’s not forget about his skewed priorities.
UPDATE: Conservative blogger Gary Barrett claims the Culver ad distorts the facts on Branstad’s pay hikes. The Culver campaign released a response to Barrett’s post, which you’ll find after the jump.
It’s time for Branstad to put up or shut up. He has a well-staffed campaign and a policy director who served in the Iowa House for ten years. Taking the 2011 budget Governor Chet Culver signed as a starting point, Branstad’s team should figure out how to do without the $328 million in federal fiscal aid (ARRA funds) and the $267 million in reserve funds that budget incorporates.
Then Branstad should produce the budget he would have demanded for fiscal year 2011, which would spend no more than 99 percent of state revenues projected for the year. Let’s see how K-12 education, Medicaid, public safety and other services would fare under Branstad’s “responsible” Iowa budget.
Voters deserve more than platitudes about fiscal responsibility. Let us compare the 2011 budget Iowa Democrats adopted with the one Branstad would have demanded.
Second, the Republican candidates for governor will criticize spending reductions Democrats included in next year’s budget, on the grounds that those cuts will force corresponding increases in property taxes statewide. It’s true that many Iowans will pay more in property taxes because of changes related to the “rollback” calculation, which “determines the percentage of a property’s actual value that will be taxable” in a given year. Former GOP gubernatorial candidate Chris Rants explained here why the rollback figure is on the rise. It has nothing to do with the tough choices Democrats made on the 2011 budget.
Rants and other Republicans are wrong to suggest that any cut in state spending will automatically lead to further property tax hikes. (They’ve been making that claim since Governor Chet Culver’s across-the-board budget cut last October.) Here’s just one example of why their assumptions are flawed. The Des Moines Register reported Tuesday on how Des Moines area school districts are coping with budget shortages. All of the districts will receive less from the state in the next fiscal year. Thankfully, the cuts are smaller than the worst-case scenarios floated in February, because Iowa House and Senate Democrats sought to protect K-12 education from severe budget cuts.
Anyway, all Iowa school districts are adapting to the reduction in state funding. But contrary to what Iowa Republicans are telling you, many districts, including the state’s largest in Des Moines, have ruled out property tax increases. Of the 10 central Iowa school districts mentioned in this article, only three are raising property taxes, and one more is considering that step. The others are cutting expenses and in some cases using money from cash reserves to cover the shortfalls in the coming fiscal year.
Some local governments in Iowa will raise property tax rates, but as with school districts, many will get by with spending or service cuts instead. I support additional federal fiscal aid to local and state governments, because the collapse in revenues is the most severe in six decades, and spending cuts could hamper the economic recovery. But naturally, the same Republicans who scream about property tax hikes are against using “one-time federal money” to help balance budgets.
I’m looking forward to the Iowa Democratic Party’s Jefferson-Jackson dinner this weekend. It will be live-streamed for those who can’t be there in person. The Iowa branch of Organizing for America is having a grand opening on Saturday as well, right before the JJ dinner.
Details for those and other events are after the jump. Post a comment or send me an e-mail (desmoinesdem AT yahoo.com) if you know if something I’ve left out.
Linn County Dems: Don’t forget that November 24 is the special election in Iowa House district 33.
One more “save the date”: the Culver-Judge campaign’s holiday party will be on Saturday, December 5 at the Val-Air Ballroom in West Des Moines from 7:30 pm to 11:00 pm. Tickets are just $35 for an individual, $10 for students and $50 for a family. Call 515-244-5151 or go to www.chetculver.com for more information.