Gov. Culver signs IBA-supported TIME-21 legislation

Above: Gov. Chet Culver signed SF 2420 on Tuesday, April 22 to address the funding needs of Iowa’s roads and transportation infrastructure. He said the bill will help Iowa keep pace in job creation and economic growth.

State leaders gathered in the Rotunda of the State Capitol on Tuesday, April 22 as Gov. Chet Culver signed a bill to fund Iowa’s roads and transportation infrastructure. The bill, SF 2420, establishes a funding mechanism for the Transportation Moves the Economy in the 21st Century (TIME-21) fund. The fund was created during the 2007 legislative session in an effort to address the $27.7 billion shortfall facing Iowa’s public roads system over the next 20 years.

The Iowa Bankers Association has supported the TIME-21 initiative. Following the bill’s passage, IBA Legislative Committee Chair Bill Orrison expressed his appreciation.

“Bank growth and profitability in Iowa is tied directly to growth in economic development and entrepreneurialism opportunities. Having a superior infrastructure is one of the vital keys for markets, especially rural, to the accomplishment of those opportunities. I applaud the legislature in addressing the infrastructure needs of Iowa,” said Orrison, who is charter president and chief financial officer of Northwest Federal Savings Bank in Spencer.

The legislation creates revenue without raising Iowa’s gas tax by increasing registration and title fees on vehicles beginning Jan. 1, 2009. Current pick-up truck owners will not be affected.

The bill is projected to raise more than $160 million a year by 2013. Revenue will be deposited in the TIME-21 fund and allocated to the Primary Road Fund (60 percent), Secondary Road Fund (20 percent) and City Street Fund (20 percent). Click here to learn more about the provisions of the bill.

Farm Bill negotiations continue, extension set to expire

As of Wednesday, April 23, House and Senate Farm Bill negotiators remained deadlocked over how to pay for a $10 billion spending increase for the legislation. Sen. Tom Harkin (D-Iowa), chairman of the Senate Committee on Agriculture, Nutrition and Forestry and the Farm Bill conference committee, reported the committee had approved three provisions of the bill: crop insurance, the Commodity Reauthorization Act and support for fruit and vegetable growers. After signing a one-week extension of the 2002 Farm Bill last week, President Bush said he does not expect the committee to reach an agreement before the extension expires on Friday, April 25. He has since called on Congress to pass a one-year extension of the bill. The Iowa Bankers Association, in partnership with the American Bankers Association, will continue to monitor proceedings to ensure that provisions to expand the Farm Credit System’s lending authority are not included in the legislation.

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