Iowa House Republicans plan to broach idea to defund $30 million in I-JOBS 2 money

What is given at the Statehouse and the governor's office may just be able to be taken back.

Twenty-two Iowa communities - including Cedar Rapids with its fire station and amphitheater projects and Coralville with its flood-protection plans along two creeks - should take notice, Rep. Tyler Olson, D-Cedar Rapids, said on Friday.

Olson warned that Republican members of the Iowa House of Representatives - where they enjoy a new and strong, 60-40-seat majority - will submit an appropriations bill on the first day of the legislative session on Monday that seeks to reverse last year's appropriation of $30 million in “sustainable communities” grants, which came to be known as I-JOBS 2 disaster-prevention funding.

The city of Cedar Rapids garnered the largest of the grants, $7.675 million, with $5 million to help fund the city's new central fire station, $1.6 million to help with a new west-side fire station and $1.075 million to help with the city's new riverfront amphitheater that is part flood-protection and part entertainment venue.

The city of Coralville received $3.65 million for flood-protection along Biscuit and Clear creeks.

The state I-JOBS Board made the awards in September from the last year's legislative appropriation.

As vice chairman of the House Appropriations Committee, Nick Wagner, R-Marion, on Friday said that the Republican appropriations bill, in fact, does now call for defunding $30 million in I-JOBS 2 funding, but he said every bill changes as it is debated.

At the same time, Wagner said recipient communities that have signed contracts with the state for I-JOBS 2 funding will probably not lose access to the funding.

“A signed contract is a commitment we made as a state, and it's the right thing to honor the commitment,” Wagner said. “We will probably go through and honor those commitments.”

Cedar Rapids Mayor Ron Corbett, a former Republican speaker of the Iowa House, on Friday said he understood that the I-JOBS defunding provision was in the proposed legislation, but he said he wasn't worried that the city would lose any of its I-JOBS money.

“We believe everything is covered. All documents have been signed and approved,” Corbett said.

Ellen Habel, assistant city administrator in Coralville, likewise said Friday that the city of Coralville has signed contracts with the state for its I-JOBS 2 funding.

Nonetheless, Rep. Olson said he was keeping his eyes open.

Olson said he has spoken with the bipartisan Legislative Services Bureau's Fiscal Services Division, which he said told him that the legislature does have the authority to defund a program.

“There's no question that this is an intent to take money back,” Olson said of the Republican proposal. “One of the basic roles of state government is public safety, and that includes fire stations and fire protection and flood protection. And it's a big mistake to take that money back.”

Corbett said both governor-elect Branstad and the Republican leadership at the Statehouse previously have said that they will honor signed I-JOBS contracts even though the money has not been spent.

“We take them for their word. We also appreciate Tyler Olson bird-dogging on behalf of Cedar Rapids to make sure what we've been awarded actually gets into the community.”

The Democrats in the Iowa Senate retain a 26-23 majority, and the Senate would have to agree to defund programs.

“We believe I-JOBS made a lot of sense. It would be a mistake to back up on that,” Senate Majority Leader Mike Gronstal, D-Council Bluffs, said on Friday.

Democratic leaders point out that bonds sold to finance I-JOBS projects are being repaid with gaming revenues, not taxpayer money.

Among other recipients of I-JOBS 2 money are the city of Dubuque, which was awarded $3.96 million for a creek restoration project, the city of Edgewood, which got $300,000 for a new emergency building and storm shelter, and the city of Muscatine, which obtained $850,250 for a new fire station.