Iowa court nullifies entire state economic development fund (Vilsack)

[Kadie]

Iowa court nullifies entire state economic development fund


By MIKE GLOVER, Associated Press
Last Updated: June 16, 2004, 05:43:25 PM PDT


DES MOINES, Iowa (AP) - The state's highest court nullified a $500 million economic development fund Wednesday, ruling that Democratic Gov. Tom Vilsack overstepped his authority when he stripped Republican proposals from the program.

The surprising ruling sent business leaders, attorneys and lawmakers scrambling to resurrect a program that has already promised millions of dollars to more than 30 companies. Vilsack, who is being mentioned as a potential running mate for John Kerry, pledged that Iowa will honor those agreements.

"The train wreck has happened," said Democratic Sen. Bill Dotzler. "We need to get this fixed and we need to get it fixed now."

Vilsack championed the Iowa Values Fund during the 2003 legislative session, arguing that the program was essential to jump-start the state's stagnant economy. The fund was intended to lure high-tech businesses to Iowa, and officials have considered it their premier economic development tool.

more... http://www.modbee.com/24hour/nation/story/1441191p-8794968c.html