I-JOBS economic stimulus plan created more than 7,000 jobs for 1,700 projects, study shows

Study: I-JOBS stimulus plan created 7,000 new jobs

DES MOINES, Iowa — An economic stimulus plan pushed by Gov. Chet Culver has created more than 7,000 new jobs since the program began, according to a study released Wednesday.

The plan, dubbed I-JOBS, called for the state to borrow more than $800 million for flood recovery and infrastructure repair. It was approved by the Legislature after record flooding and has funded nearly 1,700 projects, the report showed.

“All of that has been done without raising taxes and at the least possible long-term costs,” the report said.

Culver called the report evidence the plan has pulled the state back from the brink of recession, but critics argue it’s evidence of a costly failure that provided only short-term work.

The study, issued by the Iowa Department of Management, shows the state has spent more than $705.3 million, with about half going toward flood recovery programs. It also has attracted another $610.5 million in federal, local and private investments, the report said.

Culver said the number of jobs created could top 23,000 during the next two years, Culver said.

“The U.S Chamber of Commerce cited I-JOBS as one of the reasons we have the eighth-strongest economy in the country,” the governor said.

The report also bragged that no tax dollars are being spent on the stimulus effort. The Legislature agreed to issue bonds that will be repaid over 20 years, and that money will come from profits from the state’s gambling industry and criminal fines.

Culver has been forced to struggle with a faltering economy and make deep cuts in state spending that have cut into his approval ratings. The I-JOBS program is his prescription and likely will be the centerpiece of his re-election campaign this fall.

Former Gov. Terry Branstad is the Republican nominee to oppose Culver, and his campaign wasted little time attacking the report.

“These are short-term construction jobs, not the long-term jobs Gov. Culver promised when he proposed I-JOBS,” said Branstad campaign manager Jeff Boeyink.

Boeyink said the actual price tag for the program will be close to $1.7 billion, with precious little to show for the massive spending. He said each job Culver claimed in the program is costing the state roughly $240,000.

“In reality, the I-JOBS program has done next to nothing to create the long-term sustainable jobs that Iowans so desperately need,” Boeyink said.

He said nearly 20,000 Iowans have lost their jobs since the plan began.

Culver fired back, demanding Branstad identify which of the projects funded by I-JOBS he would cancel.

“I challenge Terry Branstad and the Republican Party of Iowa to identify a list of the 1,700 projects they don’t support,” Culver said.

The issue also is likely to the focus of this year’s legislative elections as Republicans seek to grab back control of a House and Senate firmly in Democratic hands.

“Iowans are asking where are the long-term private sector jobs and unfortunately Governor Culver still has no answer,” said Senate Minority Leader Paul McKinley, R-Chariton.