Minnesota Gov. Mark Dayton wants to borrow $1.5 billion this year to finance state construction projects.
That price tag could jump to $2.3 billion if lawmakers decide to also fund local government building requests that the governor didn’t propose but indicated he could support.
However, the Republican-controlled Legislature is almost certain to pare down the bonding request the Democratic-Farmer-Labor governor unveiled Tuesday.
GOP Sen. Dave Senjem of Rochester, chair of the Senate bonding committee, said Dayton’s proposal “busts the budget” and pledged his panel would draft a bill that “taxpayers can actually afford.”
The University of Minnesota and the Minnesota State college system would be the big winners under Dayton’s proposal. They would receive a combined $542 million, mostly for restoring existing buildings.
The governor requested an additional $998 million to fix state buildings, construct affordable housing, upgrade sewer and water systems and make other infrastructure improvements.
“It’s a robust bonding bill,” said state Management and Budget Commissioner Myron Frans. He filled in at a Capitol news conference for Dayton, who was out with a cold.
Frans said the investments are “urgently needed” to protect the state’s long-term financial health. He noted that half the state’s public college and university buildings are in “fair or worse condition” and need repairs.
The state could borrow up to $3.5 billion without jeopardizing its AAA bond rating, he said.
The administration estimated the public works package would create 22,950 jobs, based on a U.S. Department of Commerce model.
LOCAL REQUESTS LEFT WANTING
Dayton took the unusual — if not unprecedented — step of not recommending any of the $858 million in projects requested by cities, counties and other local government entities. But Frans said the governor thinks those projects merit state funding and offered to work with legislators to include them in a final bonding bill.
Local projects are “critical to any bonding bill’s success,” said House Capital Investment Committee Chair Dean Urdahl, R-Grove City. He also said he could support many of the state projects Dayton wants, “but not the amount that he’s suggested.”
The Legislature passed and Dayton signed a $988 million bonding bill in May. On average, lawmakers authorize borrowing $800 million for public works projects in even-numbered or “bonding” years.
A BOOST FOR EDUCATION
University of Minnesota President Eric Kaler and Minnesota State interim Chancellor Devinder Malhotra attended the news conference to tout Dayton’s plan to devote most of the state funds to restoring and upgrading existing college buildings.
Of the $299 million Dayton requested for the U, $250 million would go for preserving existing buildings. At Minnesota State, $180 million of the $243 million would be allocated for upgrading current structures.
“Asset preservation is our No. 1 priority,” Malhotra said.
Kaler said more than half the buildings on the U’s Twin Cities campuses are 50 years old or older and need repairs.
“We made a decision to focus on renewal,” not on “bright shiny objects,” he said.
GRANTS COULD BOOST LOCAL PROJECTS
While Dayton declined to recommend grants for local government projects, cities and counties would share a boatload of money that he requested for statewide developments.
For instance, he proposed allocating $167 million for grants to communities to build sewer and water projects. To provide affordable housing, he requested $100 million for competitive grants to local for-profit and nonprofit developers.
Parks, trails and recreation areas across the state would be upgraded under Dayton’s $171 million request for the Department of Natural Resources. That agency also would help pay for local flood-control and dam-repair projects.
Cities could compete for $5 million in Department of Employment and Economic Development grants for roads that support economic development and create jobs.
“Now is the time to make substantial investments in our state’s future,” Dayton said in a news release. “My public works proposal would make significant, needed investments to provide world-class educations for our students, guarantee clean, affordable water for our communities and ensure our state has the infrastructure necessary to grow and compete in the modern economy.”
BONDING PROPOSALS ACROSS MINNESOTA
Click on the markers for details on Gov. Mark Dayton’s bonding proposals in Minnesota communities.
Courtesy: State of Minnesota