Wednesday, May 13, 2009

Republican Party of Iowa
May 13, 2009
Contact: Danielle Plogmann

Strawn: Governor Culver, Massive Debt No Cause for Celebration

Des Moines, IA – Republican Party of Iowa Chairman Matt Strawn today said the state's failed leadership will again be on display tomorrow as Governor Chet Culver will embark on signing ceremonies to celebrate taking the state into debt and sticking Iowa taxpayers with a $1.7 billion tab.

"This is another example of Culver's failed leadership. Massive debt spending and wildly exaggerated job creation claims do not make sound economic policy," said Strawn, noting media reports that show the Governor has inflated the number of temporary jobs created by his proposal as much as 700%.

Of the $830 million the state will borrow, $715 million of that will go to Culver’s so-called “I-JOBS” program. Media reports clearly show the Governor greatly exaggerated the number of jobs the spending will stimulate. In fact, ISU economics professor David Swenson told the Des Moines Register the program will only create about 4,050 jobs – not the 30,000 as Culver has wildly claimed. Professor Swenson also reported the program is creating construction jobs that will be temporary. Unfortunately for Iowa workers and taxpayers, those jobs will be long gone before Iowans finish paying off the massive debt.

Strawn, himself a small business owner, said, "Unfortunately, until we have new legislative leaders and a Governor who understands that small businesses and risk-taking entrepreneurs -- not state government -- create long-term sustainable jobs, Iowa's economy will continue to suffer."

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