Minnesota Senate bonding bill would support $1.5B in capital spending

Minnesota State Capitol

A  bonding showdown is looming in the Minnesota Legislature, and up to $1.5 billion in capital investments is at stake. Gov. Mark Dayton earlier this year laid out his proposed $1.4 billion public works construction plan that will likely play a major role in bonding discussion and negotiations. His proposal is mostly centered on education, water, rail and public safety upgrades.

Image of U.S. interstate system map by Michael Hicks licensed under CC BY 2.0.

Image of Minnesota State Capitol by Michael Hicks licensed under CC BY 2.0.

Now comes a bill in the Minnesota Senate that proposes a $1.5 billion bonding bill that would touch approximately 200 public projects statewide – from public facilities to transportation, education and water infrastructure. Bill proponents say the bonding would make a significant investment in every part of the state and now is the time to move forward because of low interest rates. The bonding total for the projects would be $1.8 billion. The state would contribute $1.5 billion, with local partners making up the remainder.

Although the House has not yet laid out its bonding bill, officials say the House version is much more fiscally conservative – only supporting $600 million in bonding authority.

Senate members say their version of the bonding bill will create 40,000 new jobs. It will also open up a myriad of contracting opportunities for private-sector firms.

Some of the proposed spending in the Senate bill includes:

  • University of Minnesota – $160 million, including $66.6 million for a Chemistry and Advanced Materials Science Building in Duluth and $27.1 million for a Health Sciences Education facility in Twin Cities;
  • Minnesota state colleges and universities – $173.6 million, including $18 million for an Academic Learning Center at Bemidji State University and $5.5 million for an Applied Technology Center at Century College;
  • Flood Hazard Mitigation Grants – $20 million;
  • Park, state recreation area and trail development – $19.7 million;
  • Physical security upgrades at the State Capitol Complex – $18.5 million;
  • Public safety – $42.9 million, including $33.3 million for State Emergency Operations Center in Arden Hills and $2.5 million for an emergency operations training facility in Minneapolis;
  • Transportation – $377 million, including $70 million in local road improvement grants and $80 million for local bridge replacement and rehabilitation;
  • Peter Hospital – $70 million for security upgrades; and
  • Wastewater Infrastructure Funding Program – $80 million, including $55 million for wastewater projects and $25 million for drinking water projects.

The Senate bonding bill is expected to be taken up on the Senate floor on Thursday. Private-sector firms interested in contracting with the state on some of these proposed projects should keep a close eye on this bill as well as the governor’s proposal and the yet-to-be-announced House version. Many Minnesota legislators predict bonding bills of this size to be the norm in upcoming legislative sessions as the state deals with a growing backlog of public assets in need of upgrades or replacement.