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The Subprime Prison: Governor Culver Proposes New Prison at Fort Madison using Interest Only Revenue Bonds

UNDER CULVER'S PLAN, STATE WOULD REPAY INTEREST ONLY ON ABOUT HALF OF THE $275 MILLION OF REVENUE BONDS FOR THE FIRST FOUR OR FIVE YEARS:

The budget proposal for Fiscal Year 2009 put forward by Governor Culver calls for the "...issuance of revenue bonds for approximately $260 million in net proceeds..." to fund a variety of prison construction programs (and the Iowa Veterans Home), the largest of which is the building of a new state penitentiary in Fort Madison.  (The actual amount of new revenue bonds to be issued would be $275.3 million.)