Governor Terry Branstad says a program that distributes state grants and loans to businesses which promise to locate or expand in Iowa will survive. Republicans in the Iowa House had voted to shut-down what has been known as the Grow Iowa Values Fund, criticizing it as a government program that picks winners and losers, but Branstad says it will continue.

“It’s going to be by a different name and there will be funds available for economic development projects,” Branstad says.

Senate Democrats had embraced the continuation of the Grow Iowa Values Fund, a name established during former Governor Tom Vilsack’s tenure. Branstad says the name’s not that important, but the ability to use state grants and loans to encourage businesses to choose Iowa as a place to expand or locate is important.

“It’s gone through many name changes over the years and I don’t think people are focused on what the name of it is,” Branstad says. “It’s more: Does the state have some resources to help with forgivable loans or grants…that can help in an economic development project?”

Branstad says House Republicans have agreed to set aside 15-million dollars for such state grants and loans. Branstad and Senate Democrats had originally proposed 25-million, although Democrats had dedicated a portion of that to community college programs that’re related to economic development. Under the plan Branstad announced today, all 15-million dollars would be controlled and distributed by the Iowa Department of Economic Development.

(Radio Iowa – on the web at www.radioiowa.com)

Governor Branstad’s aides have begun drawing up plans for a state government shutdown. Branstad and his fellow Republicans in the Iowa House have been unable to strike an agreement on state spending with Democrats in the Iowa Senate. Dave Roederer (ROH-der) — Branstad’s budget director — says the contingency plans will ensure state workers get paid and prisoners stay in prison if there’s no deal by July 1st when the new state fiscal year begins.

“We have plans for all types of emergencies and this would be no different,” Roederer says. “But we’re not focusing on that. We’re focusing on getting the budget done.”

Democrats in the Senate are urging Branstad to release more details to the public about what would happen if state government does shut down.

“The governor has emergency powers whenever there’s an emergency. I am not anticipating an emergency,” Branstad says. “I will deal with it if I have to, but I think they need to get serious about doing the job and I have cancelled my trip so I will be available to do whatever I have to do.”

Branstad has canceled his participation in an 11-day trade mission to China and South Korea in mid-June so he can stay for budget negotiations.

“There’s been virtually no action in the legislature for the last several weeks,” Branstad says. “I intend to stay here and hold their feet to the fire because I believe the people of Iowa deserve a budget that is sustainable for the long-term and one that protects the taxpayers against a massive tax increase.”

Democrats in the Senate sent Branstad a letter this morning (Tuesday), urging him to strike a “middle-ground” compromise on the budget that would include proposals that neither side supports 100 percent. Branstad’s not budging, though.

“The bottom line is the people of Iowa elected a new governor and they elected a new governor and they elected a new governor because they were not satisfied with the direction the state was going and the financial mess that had been created by the previous governor and the legislature,” Branstad says. “Somehow they haven’t gotten that message yet.”

Branstad says Democrat are making “reckless and irresponsible” demands for additional spending in education and other areas. Lieutenant Governor Kim Reynolds likens Democrats to children demanding their parents spend money on frivolities that should be spent instead on the family’s mortgage. Reynolds will lead the state trade mission to China and South Korea.

(Radio Iowa)

Police in Atlantic report three people were arrested over the weekend, and one accident was investigated. Taken into custody Friday on a charge of Driving While Suspended, was 31-year old Ryan Richards, of Avoca.

On Saturday, officers with the Atlantic P-D arrested 25-year old Ryan Mullen, of Atlantic, for Driving While Revoked for failure of an OWI test, and, on Sunday, 23-year old Dereck Hilsabeck, of Des Moines, was arrested for OWI and Possession of Drug Paraphernalia.

All three men were brought to the Cass County Jail, where they were booked and held pending an appearance before the magistrate.

And, no injuries were reported following an accident early Saturday morning. Officials say Jacob Goff, of Atlantic, was traveling east on Highway 83, entering Atlantic and approaching Sunnyside Lane, when his vehicle was hit by a deer that jumped out of the south ditch. The accident, which happened just before one-a.m., caused about $1,200 damage.

The Cass County Board of Supervisors today (Tuesday), approved a budget amendment for Fiscal Year 2011. The changes, which were described by County Auditor Dale Sunderman, did not result in the amount of the budget being changed, just a shifting of funds.

The amendment changes the Secondary Roads Department allocations, reducing the construction budget, and increasing slightly, the operating budget. There was also minor adjustment in appropriation of monies into the local health budget, because of a flow through of received grant monies.

There was also an allocation of funding so the new courthouse generator could be paid-off through the Capital Projects line item, rather than through a loan from the local option sales tax.

The budget amendment was adopted after a public hearing, during which there were no objections. The Board also amended expenditure appropriations, in that the D.O.T and County budgets were changed.

The DOT expenditure appropriations were changed by decreasing Secondary Roads construction by $808,000, increasing snow and ice control by $60,000, and increasing new equipment by $75,000.

The County’s portion of the adjustments were increased accordingly.

Two people were injured during a motorcycle accident Sunday night, near Crescent. According to the Pottawattamie County Sheriff’s Office, 30-year old Daniel Slusky, of Omaha, was driving a 1999 Harley Davidson motorcycle on Highway 183 (Old Lincoln Highway), when he crossed the center line of the road and lost control of the cycle before it crashed. The accident happened at around 8:05-p.m., Sunday.

Pott County Sheriff’s Department spokesman, Sgt. Dwayne Riche, says Slusky was unconscious when rescue crews arrived. He was flown by Life Flight helicopter to the University of Nebraska Medical Center in Omaha, where a report on his condition is currently not available.

An adult female passenger on the cycle, Dakota Job, of Omaha, was injured, and transported by Crescent Fire and Rescue to the UNMC.

Sgt. Riche says alcohol was being investigated as a possible cause of the crash.