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05 March 2009
A proposal calls for borrowing about $174 million for major projects at community-based corrections facilities, improvements at the Iowa Veterans Home, repairs at various state office buildings and other projects.
"This is just the first phase," said Sen. Robert Dvorsky, D-Coralville.
Culver recommended $156 million for the first part of the construction effort, but lawmakers beefed it up to $174 million. The extra money is mostly to build a new community corrections facility in northern Polk County next to the new jail. Such facilities are for low-risk offenders who often work during the day and return at night.
Money would also be spent on lake dredging, Iowa Public Radio renovations, commercial airports and other building projects.
Senate Study Bill 1274 was approved 15-8 by the Senate Appropriations Committee Wednesday.
Republicans on the committee voted against the bill, which also strips out money for a new Wallace State Office Building. It is now eligible for debate by the full Senate.
The Legislature voted last year to borrow money for the same projects using bonds backed by tobacco settlement money. When that bond market fell apart, so did the borrowing plan.
This time, Democratic lawmakers want to issue annual appropriation bonds.
That means lawmakers would have to decide each year where the money for repayments would come from, such as the general fund, an infrastructure fund or another state source.
Debt payments would amount to $13.9 million a year for 20 years.
Iowa currently has about $708 million in debt, one of the lowest debt levels in the country.
Plans to borrow another $540 million or so are in the works, said Sen. Matt McCoy, D-Des Moines.
In his Condition of the State speech in January, Culver called for lawmakers to approve borrowing $700 million. He has since increased the estimate to $750 million because market conditions are making it less expensive to borrow, a governor's spokesman said Wednesday.
Culver called for the money to pay for public buildings, utilities, roads and bridges.
But McCoy said Wednesday that roads and bridges probably will not be part of the plan.
Borrowing $750 million would cost Iowans about $56 million in each of the next 20 years in principal and interest.