Weather

Clear

Wind: WNW

windmph 9 mph

HeatIndex: 81

More Weather

Click to Watch the KCRG-TV9 News at 6, LIVE.

Tools

Credit Crunch Will Delay Iowa Bond Sale

By Becky Ogann

Story Created: Oct 3, 2008 at 1:15 PM CDT

Story Updated: Oct 3, 2008 at 1:15 PM CDT

DES MOINES (AP) - The state is delaying plans to issue bonds to pay for $185 million in prison construction and other projects because of the nation's credit crunch.

Treasurer Michael Fitzgerald says plans are on hold to issue the bonds to finance renovations at the Iowa Veterans Home in Marshalltown, improvements at prisons in Mitchelville and Rockwell City and a new office building near the Capitol.

Fitzgerald blamed a tight credit market that has made all kinds of borrowing difficult, even for governments that almost never default.

He says it unclear when the state can move ahead with the bond issue. Officials planned to repay the bonds with proceeds from a settlement with the tobacco industry.

More Good Stuff

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.