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August 4th, 2010

Boeyink: Where is the I-Jobs debt in the latest Moody’s report?

The Governor Branstad 2010 campaign today released the following statement from Branstad 2010 campaign manager Jeff Boeyink regarding the latest Moody’s report allegedly showing Iowa as the second-lowest per capita debt state in the country. The problem? They didn’t bother to factor in I-Jobs.

In response, Boeyink stated:

This report gives a significantly distorted view of the state debt situation in Iowa in that, among other things, it does not include any of the $1.7 billion I-Jobs debt in its rankings.  The $1.7 billion debt burden created by Governor Culver’s I-Jobs borrowing equates to more than $500 for every man, woman, and child in the state of Iowa.

Just like he tries to mask his big spending increases in the state budget by not counting the use of one time revenue sources and the use of reserve funds, Governor Culver is happy to use this slight-of-hand in reporting Iowa’s debt burden to further deceive Iowans about the true cost of his massive borrow and spend programs.

Governor Branstad believes in a pay as you go system for funding our state’s infrastructure needs.  Borrowing huge amounts to fund these projects means the state will actually get about half of the work it would have if the same dollars were used on a pay as you go basis — interest payments will consume the rest.

What Governor Culver has done is mortgage our future in two significant ways:  1) his borrowing is shouldering debt on future generations to the tune of $55 million a year over the next 23 years, and 2) he is severely limiting the funds that will be available over the next two decades to meet the inevitable future infrastructure needs of this state.

While Governor Culver likes to brag about making “tough choices”, borrowing money, spending reserves, and using one time money for ongoing expenditures while passing the biggest budget and the biggest borrowing scheme in our state’s history in 2009 isn’t “tough”, it’s irresponsible.

Governor Branstad spent less than the state took in, balanced the budget on generally accepted accounting principles, and left our state with a $900 million surplus.  The results of these two administration’s speak for themselves and Iowans understand it is Terry Branstad who will bring jobs and fiscal responsibility back to our state.

Sen. Paul McKinley: Culver’s Moody’s Debt Statement Again Highlights His Mismanagement

Senate Republican Leader Paul McKinley (R-Chariton) today issued the following comment regarding Culver’s latest attempt to mislead Iowans about our level of debt:

“Governor Culver’s latest attempt to spin his failed four years as governor by touting an outdated and incomplete Moody’s report on Iowa’s debt once again highlights his mismanagement and demonstrates how out-of-touch he is to the economic realities faced by everyday Iowans. This latest campaign-style charade is exactly why Iowans do not trust Governor Culver’s I-JOBS numbers, they do not trust his budget numbers and they do not trust in his abilities to clean up the scandals that have rocked his administration.

Senate Republicans believe Iowans deserve an honest government that will put the focus on private sector job creation, cutting spending, reducing taxes and cleaning up state government. This debt and spend governor and the other Culver Democrats in the Legislature have amassed an unacceptable record that we cannot afford to repeat.”

Strawn: Chet’s Debt Distortions – Yet another sign Culver doesn’t want Iowans to know the truth.

The Republican Party of Iowa today said that Governor Chet Culver is trying to distort the truth about Iowa’s debt. Culver is touting a report from Moody’s that reportedly shows Iowa’s per capita debt is the second lowest in the country, at just $73 per capita.

Iowa GOP Chairman Matt Strawn said, “The Moody’s report obviously doesn’t factor in the I-JOBS debt that Governor Chet Culver has burdened future generations with. Simple math shows that $73 a person multiplied by approximately 3 million Iowans is only around $220 million dollars – nowhere near the $1.7 billion cost for the failed I-JOBS program. For Culver to tout his spending practices while overlooking the $1.7 billion tab he racked up, is further evidence that he doesn’t want Iowans to know the truth.

“The truth is that Terry Branstad will be honest with Iowans. He won’t burden future generations with unnecessary interest payments. He will pay for projects as we go, getting more for the money.  Terry Branstad is the best choice for a financially-healthy Iowa.”

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