Iowa Governor Moves on I-JOBS Bonds

Governor Culver Discusses I-JOBS With Nation’s Top Bond Rating Agencies

June 10, 2009 -- DES MOINES – In a sign that the I-JOBS Initiative is moving forward, Iowa Governor Chet Culver today joined with State Treasurer Michael Fitzgerald and state budget officials to hold conference calls with the nation’s three leading bond rating agencies to discuss the I-JOBS Bonds. The state is expected to issue $590 million in special obligation bonds in the coming weeks to help pay for part of the infrastructure investment and job creation program.

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“Thanks to our conservative fiscal management, including strong cash reserves during the midst of this national economic recession, Iowa is well-positioned to develop a program like I-JOBS, which will create jobs and strengthen our economy,” said Governor Culver. “I-JOBS will help rebuild a smarter, safer, and stronger Iowa. It will put thousands of Iowans to work. From transportation to housing, from education to technology, from telecommunication to water quality projects, to rail and trail to alternative energy, no aspect of our public infrastructure will go untouched.”

The Governor and Treasurer held conference calls with Moody’s, Standards and Poor’s, and Fitch to secure a high bond rating for the I-JOBS Bonds. A high bond rating demonstrates the strength of not only the bonds, but state government as a whole.

"I expect the IJOBS bonds will be well received by the rating agencies and the investment community given strong security features, including gaming revenues, beer and liquor revenues, as well as a reserve fund subject to moral obligation replenishment," said Treasurer Fitzgerald.

These bond rating calls are one more step forward for the I-JOBS Initiative. One week ago, the I-JOBS Board held their first meeting, where the board set up the process to distribute I-JOBS funding, and established the timeline for making the first awards.

I-JOBS is the Governor’s signature legislative initiative from the 2009 Legislative session. The total $830 million plan includes funding for transportation, disaster recovery, telecommunications, renewable energy, public infrastructure, and housing.

Source: Iowa Governor