CHICAGO -- An Iowa state senator has proposed selling debt so the state can raise $42 million to comply with a court order requiring payment of retroactive income tax refunds to federal retirees.

But Gov. Terry Branstad is "not interested" in issuing bonds to come up with the money, according to his press secretary, Richard Vohs. The governor will address the matter in his fiscal 1995 budget message, Vohs said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.