Disappointing stuff from Lynn Campbell of IowaPolitics.com:

Republican gubernatorial candidate Christian Fong has refused to take down his statewide radio ad, despite complaints and threats of legal action by the Iowa Democratic Party.

“We have no intention to take down the ad,” Marlys Popma, Fong’s campaign manager, told IowaPolitics.com today. “We’re very confident that everything in the ad is completely accurate.”

Fong on Monday launched the 60-second ad called “Iowa Dream” that focuses on introducing himself and outlining his story for Iowa Republicans, but also says: “We have a state government that borrowed almost a billion dollars to pay its bills.” Popma said the $830 million I-JOBS program will actually cost the state about $1.4 billion by the time it’s paid off.

Campbell goes on to quote Iowa Democratic Party chair Michael Kiernan’s statement calling the ad “materially false and misleading.” Finally, Campbell quotes Popma as saying the Fong campaign hasn’t heard directly from the Iowa Democratic Party.

This is a perfect example of bogus “objective” journalism that offers readers nothing but “he said/she said.” If Campbell has spent even 10 seconds wondering whether the state of Iowa is borrowing a billion dollars to pay its bills, you’d never know it from her story.

Yet Fong’s claim can be disproved by minute or two of online research. The I-JOBS program is funding special infrastructure projects, not line items from the budget. If Iowa were borrowing money to meet ongoing spending commitments, the state would not have a AAA bond rating, and the I-JOBS bonds would not have a AA rating.  

For whatever reason, Campbell makes this story about Republican confidence and Democratic “complaints” instead of about the accuracy of Fong’s ad.

I recommend that the folks at IowaPolitics.com read this piece by Philip Meyer on “The Next Journalism’s Objective Reporting.” Excerpt:

True objectivity is based on method, not result. Instead of implying that there is an equal amount of weight to be accorded every side, the objective investigator makes an effort to evaluate the competing viewpoints. The methods of investigation keep the reporter from being misled by his or her own desires and prejudices.

Have you gotten four raises in the past six years? Jefferson County supervisor Stephen Burgmeier has, I learned after writing about the Republican’s first television ad for the September 1 special election in Iowa House district 90. Burgmeier is highlighting alleged overspending by Democrats, but if he’s so stingy with the people’s money, why did he keep voting to raise his own pay?

The “check the facts” page on Democratic candidate Curt Hanson’s website contains other useful information too. In addition to raising his own pay repeatedly, Burgmeier voted five times to raise taxes on Jefferson County residents. Did Iowans for Tax Relief know about this record when the group took responsibility for running Burgmeier’s campaign?

The Iowa Democratic Party is running this ad backing Hanson:

Share any relevant thoughts about phony Republican posturing in this thread. You can sign up here to volunteer for the Hanson campaign.

UPDATE: Curt Hanson has already posted a rapid response at his campaign website.

Two and a half weeks before the September 1 special election in Iowa House district 90, Republican Stephen Burgmeier’s campaign launched its first television commercial:

The producers fit quite a few misleading statements into one 30-second ad. The visual suggests Iowa has taken on “a billion dollar debt,” and the voice-over emphasizes the word “billion,” even though the I-JOBS infrastructure bonding initiative was for $830 million.

The commercial accuses “Governor Culver and his allies” of borrowing “almost a BILLION dollars to pay their bills.” However, the I-JOBS program was created to fund infrastructure projects and has nothing to do with meeting state government’s ongoing spending obligations. (Click here for a breakdown of how the money will be spent.)

During this recession, several other states have been forced to borrow money to pay their bills, but Iowa is borrowing for capital investments. Credit analysts and national institutional investors understand the difference, even if Iowa Republicans don’t. That’s why “investor enthusiasm and high market demand” drove down the interest rate on the I-JOBS bonds.

Next, Burgmeier’s ad shows a man saying, “That’s money taxpayers are on the hook for,” implying that taxes will go up to repay the debt. In fact, existing gaming revenues will provide the approximately $43.2 million in annual payments on the bonds.

The ad begins with a voice-over asserting that “red ink is rising in Des Moines” and later shows a woman saying, “Stop the red ink.” Those statements, along with the cartoon of red ink drowning Culver and the capitol, wrongly suggest that the infrastructure borrowing is deficit spending.

The second part of the ad promises that Burgmeier will vote for a new budget law “to make it harder to waste tax dollars.” I’d like more details about how such a law would work, and I’d also like Burgmeier to specify which of these investments he considers wasteful.

The ad promises Burgmeier will “serve as a check and balance to Governor Culver’s runaway spending” and closes by saying Burgmeier will bring “balance and spending restraint back to our government.” Iowa Republicans may believe Culver is very unpopular in district 90, or they may have decided to run against him in order to rile up their base. It’s notable that the ad never uses the word “Republican” and doesn’t identify the candidate’s political party. I guess the outside interest groups running the Burgmeier campaign don’t have much confidence in the Republican brand to carry the day.

The Iowa GOP didn’t announce the size of the ad buy, which networks would run the ad or which programs have been targeted. If you live in the viewing area for this district, let us know whether you’ve seen the ad, and if so during which television shows. If you prefer not to post a comment here, you can send me a confidential e-mail at desmoinesdem AT yahoo.com. Please also report on any radio ads you’ve heard.

I’m curious to see whether this will be Burgmeier’s only television commercial or if his campaign will mention other issues, including same-sex marriage, in later ads.

Having spent no time in this district lately, I have no idea whether Burgmeier or Democrat Curt Hanson has an edge. Political scientists will tell you that as a general rule, the party out of power does well in low-turnout by-elections and special elections. Both Democrats and Republicans are working hard to get out the vote in district 90. State GOP Chairman Matt Strawn and some other Republicans view this race as a must-win.

Share any relevant thoughts in this thread.

The business network CNBC threw a wrench in the Republican sound bite machine yesterday by ranking Iowa the fourth best state in the country for doing business. Click the link to read Iowa’s scores for 2008 and 2009 in the ten different categories CNBC considered in compiling these rankings. (Iowa ranked ninth overall in 2008.) You can also watch the CNBC segment here.

Iowa improved in almost all of CNBC’s categories from 2008 to 2009. The biggest improvement was in the “economy” category, where Iowa went from 29th in 2008 to 4th in 2009, even as the national recession deepened. While the recession is hurting Iowa along with every other state, we are doing reasonably well under the circumstances. CNBC also moved Iowa up quite a few notches under “technology and innovation” and “transportation and infrastructure.” We have a ways to go to reach the top-ranked states in those areas, which is why the Culver administration is smart to be investing heavily in our infrastructure with the I-JOBS bonding program.

Speaking of I-JOBS, now that most of the bonds have been sold, money is starting to be awarded:

Every city and county in Iowa will receive a portion of $45 million in additional funding under I-JOBS for local street and road projects. These funds will begin being distributed to cities and counties starting next Tuesday.

In addition, $50 million in I-JOBS funds will improve 55 state highway system bridges in 29 counties across the state. Projects in the metro Des Moines area include two I-35 bridges over the Iowa Interstate Railroad, the Iowa 17 bridge over the Des Moines River, and U.S. 69 bridge over Scott Avenue.

Scroll to the bottom of this page to find links to pdf files containing a “list of I-JOBS road funding amounts for all Iowa cities and counties, as well as bridge projects.”

Meanwhile, Iowa Republicans continue to proudly oppose the I-JOBS program. Today Senate minority leader Paul McKinley and others are triumphantly Twittering about an article in the Des Moines Register: Economists question impact of I-JOBS plan. My response is after the jump.

I stand by my prediction that former Governor Terry Branstad will not seek his old job again, but I can’t resist responding to these comments by Republican blogger Constitution Daily:

Now back to Branstad, his credentials as a governor are amazingly good. He governed during the farm crisis and floods of 1993, all while balancing a budget and even having a surplus. […]

Branstad against Culver will be a great campaign. Culver has shown no leadership skills even within his own Party. The flood will be a defining issue. Branstad led us through that with ease where Culver still has us wading through the muck. Culver has no excuses and no one to shift blame to. This is a big advantage for Branstad.

Also with Culver, the budget is massively in the red. Whether or not you agree, the perception is that Branstad always had a balanced budget and didn’t grow government. That is what people want and dream of returning to. Can you imagine the debates between the two? How would Branstad not come out smelling like a rose not just on rhetoric but actual experience?

If Constitution Daily is old enough to have been politically aware during Branstad’s tenure, he is suffering from serious memory loss. I’ll explain why after the jump.

Most of the bonds that will fund the I-JOBS program were sold this week, and Iowa’s solid credit rating fueled strong investor interest. According to State Treasurer Michael Fitzgerald,

investor enthusiasm and high market demand for the Iowa bonds helped drive down the interest rate to 4.31 percent, which resulted in a $42 million yearly payback for the state and a roughly $12 million annual savings over what originally was budgeted to repay the borrowing. […]

“Investors were impressed with the state of Iowa and put their money on the table to show it. There was strong support for the bonds from Iowans and from national institutional investors,” he added.

“This is where our balanced budget, our surpluses that we have and our history of running the state – we’re not California or even Minnesota or Wisconsin or New York right now. All those states are having trouble and we’re doing well,” the state treasurer said. “In fact, one of the investment bankers said Iowa is a refreshing contrast to the other states that have been coming to the market.”

Over $600 million of the I-JOBS bonds have now been sold. Another $115 million of bonds will be issued in 2010.

Speaking to me by phone today, Fitzgerald explained that the I-JOBS bonds are rated AA (a notch lower than the state of Iowa) because they will be repaid out of gaming revenues. We would have had to issue A-grade bonds if Iowa were like other states, which have exhausted their reserve funds and are borrowing simply to meet budget obligations. Investors liked the fact that the I-JOBS bonds will fund capital improvements and not ongoing government spending, Fitzgerald said.

Republicans like Iowa House minority leader Kraig Paulsen and Iowa Senate minority leader Paul McKinley have discounted the importance of Iowa’s AAA bond rating. It’s clear today how wrong they were. If Iowa’s overall financial condition were not strong enough to warrant the AAA bond rating, repaying the I-JOBS bonds would cost $55 million annually instead of $43 million.

A press release from the governor’s office noted that Iowa is among just 11 states that have a AAA bond rating. I’ve posted the full text of that release after the jump.

Once the proceeds from the I-JOBS bonds come through next week, funds will be available for various infrastructure projects, from renovating the Iowa Veteran’s Home in Marshalltown to rebuilding flood-damaged facilities to upgrading sewer systems around the state. Those projects will create jobs while improving the quality of life in many communities.

When Congress was debating the stimulus bill earlier this year, Mark Zandi, the chief economist for Moody’s, compared various forms of government spending and tax cuts in terms of economic stimulus “bang for the buck.” He concluded (pdf file) that various forms of government spending did more to stimulate the economy than various kinds of tax cuts.

The best kinds of spending in terms of stimulative effect were food stamps and extending unemployment benefits. Every extra dollar the federal government spends on food stamps generates approximately $1.73 in economic activity, and every dollar the federal government spends to extend unemployment benefits generates approximately $1.63 in economic activity. People who need these services are likely to spend additional money quickly, helping preserve jobs in the retail sector.

With this in mind, you might imagine that the states would take full advantage of money allocated to unemployment benefits in the American Reinvestment and Recovery Act. But you would be wrong, according to this article by Olga Pierce from ProPublica:

So far, only about half of the $7 billion included in the stimulus package [for expanding unemployment insurance] has been claimed by states. […]

Four states have explicitly rejected the funding, but many others have so far failed to pass legislation qualifying them for incentive payments. […]

Under the stimulus bill [2], states can qualify for the extra funding by extending unemployment insurance to new categories of workers. To receive a third of the funding, they must begin using something called an alternative base period, which would allow more low-wage workers to receive unemployment benefits. […]

To get the other two-thirds of the cash, they must adopt at least two other changes from a list that includes covering part-time workers and offering $15 extra per week for each dependent.

If states meet the requirements, they qualify for a federal lump sum payment that will cover the cost of expansion for at least three years, or longer in many cases. It was on those grounds – that after the federal funding runs out states will have to find another way to cover the cost – that Louisiana Gov. Bobby Jindal [3], Mississippi Gov. Haley Barbour [4] and others [5] that said they would reject the funding.

Bleeding-heart liberal that I am, I believe basic fairness justifies extending unemployment benefits to more part-time and low-wage workers. But even if you don’t care about fairness, Zandi’s analysis shows that extending unemployment benefits will get money circulating in the economy.

Click here for a map and a chart showing how much federal unemployment money each state has claimed.  

As of mid-June, 17 states had claimed none of the stimulus funding for unemployment benefits, and another 12 states and the District of Columbia had claimed only part of that money. In some of those states, Democrats are in charge. Progressives who have ridiculed Republican governors for rejecting stimulus money for unemployment benefits should also hold Democrats accountable on this score.

Fortunately, Iowa is among 21 states that have fully used these stimulus funds as Congress intended. Thousands of Iowans struggling to get by will benefit from the $70.8 million the stimulus bill appropriated to our state for unemployment benefits. Democrats in the state legislature and Governor Chet Culver deserve credit for enacting the necessary legislative changes to collect this funding.

Many of the states that have left stimulus money on the table have significantly higher unemployment rates than Iowa, by the way.

Speaking of boosting the economy, Zandi’s report showed that infrastructure projects were the third-most stimulative form of government spending. Every extra dollar spent on infrastructure generates an estimated $1.59 in economic activity. Remember that next time Iowa Republicans bring out their misleading talking points about the the I-JOBS program. Also remember that Iowa has used the stimulus bill’s transportation funding wisely compared to many other states, according to a recent review by Smart Growth America.

In contrast, most kinds of tax cuts Republicans advocate generate less than one dollar of economic activity for every dollar they cost the government. As a gesture to Republicans, Democrats replaced some spending in the stimulus bill with $70 billion allocated to fixing the alternative minimum tax, even though Zandi’s analysis found that a dollar spent on fixing the alternative minimum tax generates only about 49 cents in economic activity.

It’s too bad the Obama administration made a number of concessions to Republicans on the stimulus bill. Like Bob Herbert wrote a few months ago, when the GOP talks about the economy, nobody should listen.

Given Barack Obama’s Iowa caucus breakthrough and convincing general-election victory here, it was only a matter of time before someone else built an Iowa campaign around his strategy. I didn’t count on a Republican being the first person to try, though.

Enter Christian Fong, who made the Republican race for governor a lot more interesting last week.

Some early impressions of Fong’s personal narrative, political rhetoric and electoral prospects are after the jump.  

The I-JOBS Board met in Cedar Rapids today and awarded money for the first time, approving eight flood recovery projects worth $45.5 million. All of the projects are in Linn County except for $500,000 awarded to help the city of Elkader build a new fire station. More details are in this press release from the governor’s office, which I have posted after the jump.

Attacking the I-JOBS bonding program has become a staple of Iowa Republicans’ speeches and newsletters (see also here and here). I would like Republicans to explain how they would pay for flood recovery projects like the ones approved today. Or would they prefer “small government” that doesn’t repair public libraries or build new county offices and fire stations?

The Republican Party of Iowa is celebrating its “rising stars” tonight at an event featuring Mississippi Governor Haley Barbour. Judging by what we’ve heard lately from Iowa GOP leaders, they’re gonna party like it’s 1929.

Case in point: Iowa Senate Minority leader Paul McKinley. The possible gubernatorial candidate’s weekly memos continue to whine about spending and borrowing by Democrats (see also here). Republicans would rather slash government programs and provide “targeted” one-year tax credits.

The lessons of Herbert Hoover’s presidency are still lost on these people. I apologize for repeating myself, but excessive government spending cuts can turn an economic recession into a depression. Since state governments cannot run budget deficits, it makes sense for the federal government to help the states “backfill” their budgets. That was the express purpose of the state transfer funds in the stimulus package.

In addition, it is prudent to spend federal funds on projects with long-term benefits. Energy Secretary Steven Chu was in Des Moines on June 23 to highlight the first installment of what will be $41 million in stimulus funds for renewable energy and energy-efficiency projects in Iowa. Energy efficiency programs in particular will have huge collateral benefits, saving consumers money while helping the environment.

No matter how many times Republicans repeat their misleading talking points about the I-JOBS state bonding initiative Democrats passed this year, it is prudent to borrow money for worthwhile projects when interest rates are low. I don’t hear McKinley or other Republican leaders telling businesses not to borrow money to make capital improvements.

Share any thoughts about Republican ideas, rhetoric, or career lobbyist Haley Barbour in this thread.

The official website for the I-JOBS infrastructure bonding initiative launched yesterday. It’s easy to navigate and includes, among other things:

*the rules for applying for I-JOBS money;

*details on how the bonding money will be directed to various types of infrastructure (transportation, disaster recovery and prevention, environment and water quality, telecommunications and renewable energy, and housing);

*a page where citizens can submit any question about the I-JOBS program;

*an interactive map on the main page which, as I-JOBS money starts to be awarded later this year, will allow users to click on any Iowa county to find out which projects affect that county’s residents.

You can receive updates on the I-JOBS program on Twitter as well.

The only thing I couldn’t find on the site is a link for reporting waste and abuse of I-JOBS money. If that’s not on the site, it should be added, and if it’s already there in an obscure location, it should be moved somewhere easier to find. The official page on the use of federal stimulus funds in Iowa has a link for reporting stimulus fraud right on the main page. Perhaps the I-JOBS webmaster could follow that example, or at least put a link for whistleblowers in the “helpful links” section.

Republicans will be looking for any slip-up in the use of I-JOBS money to bolster their misleading talking points about the infrastructure bonding initiative. It should be easy for Iowans to report any problems they see in their communities.

All government spending on infrastructure is not created equal. With good planning and accountability measures, the federal stimulus and state bonding packages approved this year by Congress and the Iowa legislature could turn out to be wise investments with long-term benefits. Without proper monitoring, we could squander lots of borrowed federal and state money.

Laura Dean of the Huffington Post drew my attention to the Project on Government Oversight‘s review of state websites on the American Recovery and Reinvestment Act (the official name for the stimulus bill). They were specifically looking for resources for those who want to report fraud, waste and abuse in how federal stimulus funds are being used.

The findings are summarized here. Iowa did well as one of only seven states that “listed clear procedures for whistleblowers, such as what information to report, who to report to, and what will be done with that information.” (“Report stimulus fraud” is right on the front page of Iowa’s site, in the “featured links” section.)

However, there’s always room for improvement. The Project on Government Oversight applauded a few especially “whistleblower-friendly websites”:

Tied for first prize were Florida and Georgia, whose sites did an excellent job of providing clear procedures and protections for whistleblowers. Next up were Maine, Connecticut, and Texas, whose websites all did a good job of making the whistleblower’s job just a little bit easier.

Perhaps the webmaster for Iowa’s site on federal stimulus spending can make a few changes based on the Project on Government Oversight’s recommendations (pdf file).

As for state spending on infrastructure, the I-JOBS board will choose projects to receive funds soon. The criteria for selection are clear, and state officials understand the need for transparency in the process. Once the money has been allocated, the I-JOBS website should make it easy for citizens not only to track how the money is being spent, but to report any suspected fraud, waste or abuse.

The I-JOBS board met for the first time on June 3. According to this news release,

The I-Jobs Board is specifically tasked with awarding approximately $165 million of funds from the I-Jobs program. Of  that amount, $46.5 million is earmarked for projects in Linn County, Cedar Rapids, Palo, Elkader and Charles City. The  remaining $118.5 million will be available on a competitive basis to support the construction of projects relating to  disaster relief, mitigation and local infrastructure.

The board approved this tentative timetable for allocating the money. The key date is August 3, when applications are due. As Governor Chet Culver’s deputy chief of staff Phil Roeder told Iowa Independent,

“Everyone in the administration understands that with I-JOBS, time is of the essence,” Roeder said. “In order to have impact on the economy, we have to move quickly.”

I was pleased to see Roeder highlight the importance of transparency for the I-JOBS program. The administration is creating a website that supposedly will allow the public to track how money is being spent. I strongly agree with Kathleen Richardson, director of Iowa Freedom of Information Council, who emphasized the need for the I-JOBS board to follow open meetings rules as well.

Citizens can find draft rules for the I-JOBS program here. You can send comments about these rules to ijobs@iowa.gov.

Meanwhile, Iowa Republicans continue to bring out their misleading talking points, such as this Twitter comment from IowaGOP,

Culver keeps pumping I-JOBS (1st mtg. today.) But how will it help create and keep long-term jobs in IA? Still haven’t heard.

How the program will create jobs should be obvious when you read which kinds of construction projects are eligible for the money (such as roads, bridges, sewers, repairing flood-damaged structures). As for how these public works will keep jobs in Iowa, what part of “quality of life” do Republicans not understand? Also, expanding broadband access in rural areas will allow more Iowans to operate internet-based businesses.

Even Iowa State Economics Professor David Swenson, whom Republicans like to quote on this subject, estimates that the I-JOBS program will create around 4,050 jobs.

Funny, Iowa Republicans don’t acknowledge Swenson’s insight when it comes to ending federal deductibility, which he considers an “archaic holdover” in our state’s tax system. But that’s a point for another post.

Iowa Republicans are bashing Governor Chet Culver for appointing Kate Gronstal to the I-JOBS board, which will decide how to spend $118.5 million of the $830 million in I-JOBS money. Kate Gronstal is the daughter of Iowa Senate Majority Leader Mike Gronstal.

Iowa GOP chairman Matt Strawn slammed what he called “political nepotism”:

“I’m sure there are thousands of qualified engineers in this state that don’t raise the red flag that someone who is an immediate family member of a legislator in charge of ramming this through the Senate,” Strawn said.

Since Culver “declined to respond” to Strawn’s allegation, I want to lay out the case for putting Kate Gronstal on this board.

1. She is qualified for the position as a professionally trained structural engineer. It’s not as if the governor put a well-connected person with no relevant experience on the board.

2. By all accounts she is smart and highly capable. People born into political families have certain doors opened for them. I’m sure Marcus Branstad had a leg up on the competition when he was starting his career in Iowa Republican circles. Who cares as long as he is good at what he does?

3. Kate Gronstal’s presence on the board will subject its award process to a higher level of scrutiny. That’s good.

I supported the large infrastructure bonding package because Iowa’s debt load is not that high, interest rates are relatively low, and public works projects can improve the quality of life in the long term while creating jobs in the short term.

However, it is critically important that the I-JOBS money be spent wisely to benefit whole communities, not just a few wealthy developers.

Iowa Republicans never liked Culver’s bonding plan, and they’ll be watching for any mistakes that bolster their misleading talking points. With Kate Gronstal on the I-JOBS board, Republicans will use any unworthy project approved to highlight alleged Democratic nepotism and mismanagement.

I-JOBS has the potential to make Iowa a better place to live. Governor Culver has appointed a qualified board to administer the program. All the board members, and especially Kate Gronstal, have strong incentives to demonstrate that they can handle this responsibility.

After the jump I’ve posted the governor’s press release containing bios for all members of the I-JOBS Board and the Accountability And Transparency Board, which will “make sure Iowa meets or exceeds the accountability and transparency requirements of the American Recovery and Reinvestment Act” (also known as the federal economic stimulus bill).

Governor Chet Culver signed more than two dozen bills on May 26, the last day he was able to take action on legislation approved during the 2009 session. Two of the bills made up the last piece of the I-JOBS program, four more are aimed at helping veterans and Iowans on active duty, and the rest cover a wide range of issues.

Some good news for water quality was buried in the long list of bills and veto messages signed on Tuesday. For the details, follow me after the jump.

Water quality has long been one of Iowa’s biggest environmental problems. Fortunately, the state plans to spend some $455 million cleaning up Iowa rivers and lakes, according to an excellent piece by Perry Beeman in the May 10 edition of the Des Moines Register:

After decades of struggling to address serious pollution problems, the state now has an unprecedented pool of state and federal money to solve some of its worst water-quality problems, said Charles Corell, the water chief of the Iowa Department of Natural Resources.

One of the biggest impacts: improved sewage treatment and septic systems in the 500 towns and rural subdivisions that don’t have any. […]

Much of the new money for water quality was approved last month by the Iowa Legislature as part of a huge bond package pushed by Gov. Chet Culver. Other money was awarded as part of flood recovery efforts.

Money for lake restorations – including popular spots like Clear Lake in Cerro Gordo County and Carter Lake in Pottawattamie County – will more than quadruple. Many predict the much larger pool will fuel recreation opportunities and improve local economies. […]

“You essentially have untreated or under-treated sewage getting into waterways,” said Corell, who visited Truesdale and Greenville on Thursday to discuss proposed sewer projects. “And it’s all the time, not just when it rains.”

After the jump I have posted details Beeman compiled about the new money that will be used to improve water quality in Iowa. A large sum came from the federal economic stimulus bill, which didn’t get a single Republican vote in the House of Representatives. Another major source is the I-JOBS bonding initiative, which passed the Iowa House and Senate last month with no Republican votes.

Republicans keep bashing the federal stimulus spending and the state-level borrowing, as if no Iowans will benefit from these policies (aside from the few thousand people who will work on the projects). One typical example was the e-mail blast Iowa Senate Republican leader Paul McKinley sent out last week. You won’t find it on the comically awful Iowa Senate Republicans website, which appears not to have been updated since April 16. However, I receive “McKinley’s Memos” via e-mail, and I’ve posted the May 15 edition after the jump to give you a flavor of current Republican ideology.

I addressed most of the points McKinley raises in this post. The Party of No’s indiscriminate stance against borrowing fails to recognize that when interest rates are relatively low, bonding to pay for worthwhile projects is a wise investment. It may be hard to assign a dollar value to reducing water pollution in Iowa, but that doesn’t mean it’s not important for human health, biodiversity and local economies.

Hundreds of thousands of Iowans will benefit from the clean water projects discussed in Beeman’s article. If Republicans had their way, the sewer improvements and lake cleanups wouldn’t happen for years, if ever.

Please share your own thoughts about penny-wise and pound-foolish conservative dogma in this thread.

UPDATE: The governor signed the bonding plan into law on May 14.

It’s only been a few weeks since the Iowa legislature’s 2009 session ended, and I’m already tired of hearing Republican attacks on the $830 million infrastructure borrowing program (I-JOBS).

The bonding proposal was among the most important bills passed this year. However, to the Party of No it was a terrible idea because paying back $830 million in bonds will cost a total of $1.7 billion.

Iowa Republicans “support funding infrastructure projects on a pay-as-you-go basis.” In other words, while the economic recession is bringing down state revenues, we should sit tight and only improve our infrastructure when the state has the cash to pay the full cost up front.

I cover a few problems with this argument after the jump.