The Iowa Senate Appropriations Committee last week endorsed $174 million in bonding to finance various projects that are part of Gov. Chet Culver’s $750 million borrowing plan to jump-start the state economy.
The projects include new corrections facilities, renovations to the Iowa Veterans Home, local airport projects, lake dredging, and other state building improvements. The bill cleared the committee in a partisan vote with only the majority Democrats voting for it.
The governor last month announced the borrowing program. He wants to create a new authority to issue the debt to fund sweeping infrastructure investments and other projects, including road and bridge improvements.
Iowa can afford to borrow — using what Culver dubbed Rebuild Iowa investment bonds — over the next several years to fund loans and grants without raising taxes because of the state’s top credit marks and available gaming revenue, which will go to repay the debt.
