Governor will call special session if flood funds aren’t sent
DES MOINES — Iowa Gov. Chet Culver, his patience with federal officials growing short, said he’ll have to call lawmakers back into a special session to divert dollars to flood recovery unless federal agencies release money that is due to Iowa.
“Iowans deserve no less than immediate action, and there’s no more time for delay,” Culver said during a news conference Friday.
He complained that $85 million in federal dollars intended for Iowa has not yet been sent to the state by the U.S. Department of Housing and Urban Development.
State officials already have determined they will use that money to rebuild homes and businesses damaged by storms and flooding and improve infrastructure to prevent future flooding.
“My objective is to get this money into the communities and working for Iowans as quickly as possible,” Culver said. “This will help speed up the recovery efforts already happening at the local level.”
But even with state plans in place, Culver said the federal bureaucracy in Washington has continued to disappoint state officials.
“It’s one bureaucratic hurdle after another, and we’re tired of waiting,” Culver said. “We need the money.”
The state is also waiting on the Federal Emergency Management Agency to decide whether the federal government will pick up 75 percent or 90 percent of some flood-related costs. Culver said the state has determined it is eligible for the 90 percent federal assistance.
Culver also wants to use
$10 million in federal funds in small business stimulus, along with $15 million in state dollars for business assistance.
“The initiative is designed to kick-start the recovery and get communities moving again,” Culver said. “We are dealing with people’s lives, and time is of the essence. Iowans have had enough of waiting, and it’s time to put our plan into action.”
Even with the federal dollars, the state likely will still have to pick up the remainder of the cost. Culver has been working with the state’s executive council to set aside $24 million to show communities they can proceed with rebuilding without having to raise taxes or borrow.
Culver has ordered state agencies to defer $73 million in spending to use for disaster-related expenses if it is necessary. That could mean plans to build a new maximum-security prison and a state office building could be put on hold, Culver said.
Another frustration for Culver is that the state might disqualify itself from some federal help if the state were to go ahead and pay for some things, such as demolishing homes.
HUD spokesman Brian Sullivan outlined steps both the agency and the state of Iowa must take before the money can move to the state, including publishing a notice outlining the ways the money can be spent. Sullivan said the agency has not done that yet, but it could happen as early as Tuesday.
“We share Gov. Culver’s concern that Iowans need this money sooner, not later,” Sullivan said.
Legislative leaders expressed support for Culver’s plans.
“The Legislature is committed to helping all Iowans rebuild their lives,” House Speaker Pat Murphy, D-Dubuque, said in a statement.
Senate Majority Leader Mike Gronstal, D-Council Bluffs, urged the Bush administration to quit holding onto recovery dollars intended for Iowa.
“Any further delay in releasing this funding is a disservice to homeowners and small business owners hit by flooding and tornadoes,” Gronstal said in a statement.
Charlotte Eby can be contacted at (515) 243-0138 or chareby@aol.com.