DES MOINES - Saying the first order of business in 2009 is to rebuild Iowa, Gov. Chet Culver today called for a $700 million bonding plan to upgrade the state's infrastructure and jump-start a sluggish economy by creating jobs.

In his Condition of the State message, Culver also urged state lawmakers to immediately spend $43 million in emergency reserves to assist communities hard hit by last year's natural disasters with funds to address unmet housing and business needs and help individuals and families still facing challenges.

"Let's waste no time in getting to work. Neither the natural disasters, nor the economic recession, are the fault of Iowans. But the difficulties each create are something we must all face together, and our constituents are counting on us," the governor told a joint convention of the 83rd General Assembly.

"I believe our first order of business of the 2009 Legislative session must be to rebuild the state we all love," he added. "The rebuilding has begun. But there's much more work to do, and that's why I need your help this session."

Culver urged lawmakers to move quickly to approve $43 million from the state's "rainy day" account to help disaster victims not eligible for the nearly $1.5 billion in federal emergency assistance that already has flowed to Iowa and to cover costs associated with the ongoing recovery efforts.

The governor also implored lawmakers to take advantage of the state's AAA bond rating and low debt load to create a new authority to issue up to $700 million over the next several years to repair and upgrade "every facet" of the state's critical infrastructure needs without raising taxes.

The proposed rebuild Iowa investment bonds would be funded through existing state gambling revenue to provide grants and loans statewide for construction projects involving roads, bridges, railways, recreational trails, public buildings, water and sewer treatment facilities, "the utility grid," and telecommunications, he said.

"There's no time to wait. This legislative session, we must address every facet of our 21st century infrastructure, to ensure that we continue to grow our economy and support the jobs of the future," said Culver, noting each $100 million invested equates to over 4,000 jobs.

"Just as we locked arms and worked together during the flood fight, we must continue our efforts, as partners, to rebuild Iowa, by investing in, and modernizing our infrastructure," he added.

During his televised speech, the governor also called for bipartisan legislative efforts to address projected budget shortfalls and improve government efficiencies by making better use of limited state resources.

He asked lawmakers to retract $37 million that had been committed to build a new state office building and approve the 1.5 percent across-the-board cut in current-year spending with exceptions for correctional officers and state troopers.

"I'll be very frank. Most of us here - in fact, all of us - won't like some of the effects of these cuts. But all Iowans must share in the responsibility to keep our fiscal house in order. Simply put, if Iowans are being asked to do more with less, then so should our government," Culver said.

Given the economic realities, the governor said state government will have to get leaner, which likely will mean some services will be cut because he did not support raising taxes on hardworking Iowans during a time of national recession.

"Let's take this opportunity to improve the way state government works, and not be afraid of changing how we do business," he said. "We should explore the sale or lease of state assets; consolidation of state contracts; group purchasing agreements - and other sensible ways to save taxpayers' money."

During the governor's annual address, he paid tribute to the Aplington-Parkersburg High School football and volleyball teams and their coaches for the spirit and tenacity shown by that community's efforts to bounce back from a deadly tornado last May.

A video detailing the flood fights in Cedar Rapids, Waterloo, Palo, Columbus Junction, Oakville and other communities was shown and Culver commended Lt. Gov. Patty Judge, retiring Iowa National Guard Adjutant General Ron Dardis and legions of Iowa volunteers, soldiers and others who responded to Iowa's worst natural disaster last year.

The governor also used his Condition of the State address to pay tribute to former Sen. Mary Lundby, R-Marion, who is battling cancer. He also asked Iowans to remember the state's 68 soldiers who have died in the line of duty since Sept. 11, 2001, and to honor their families' sacrifices.

Contact the writer: (515) 243-7220 or rod.boshart@gazcomm.com