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Governor’s bonding plan shared with capital investment committee

A large capital investment package is traditionally passed in the even-numbered year of a legislative biennium.

But with a last-minute failure to do so in May 2016, Gov. Mark Dayton is anxious to get shovels in the ground and put construction personnel to work.

The House Capital Investment Committee received a potential starting point for debate Tuesday by reviewing what the state’s top elected official seeks.

No action was taken on what has been introduced as HF892. Rep. Dean Urdahl (R-Grove City) is the House sponsor. Sen. Sandy Pappas (DFL-St. Paul) sponsors the companion, SF640. Both await action by the respective capital investment committees.

When unveiling his $1.5 billion bonding plan five weeks ago, Dayton said it is largely a catch-up for there being no bill last session.

A nearly $1.1 billion package — including $818 million of general-obligation bonding — was unveiled with about an hour to go on the session’s final night. Passed, as amended, 91-39 by the House in a chaotic final few minutes, the Senate then amended the bill to include funding for the proposed Southwest light rail line between Minneapolis and Eden Prairie. However, the House adjourned sine die before the amended bill was returned. 

This year’s gubernatorial proposal includes:

  • $167 million to help rehabilitate wastewater and drinking water infrastructure systems, expand capacity and meet water quality requirements;
  • $135 million for asset preservation at the University of Minnesota and Minnesota State;
  • $70.3 million to renovate and expand the state security hospital;
  • $70 million for local road projects;
  • $70 million to rehabilitate or replace local bridges;
  • $69.7 million for rail grade separations in Coon Rapids, Moorhead and Prairie Island;
  • $34 million for Fort Snelling improvements, including a new visitors center;
  • $11.5 million to finish the Lewis & Clark Regional Water System in southwest Minnesota; and
  • $10 million to upgrade and expand port capacity in Duluth, Red Wing, Winona and St. Paul. 

MORE See the full spreadsheet of projects included in the governor’s proposal

Thirty-five percent of the projects are in Greater Minnesota, 35 percent have statewide impact and 30 percent are in the Twin Cities metropolitan area. Dayton indicated the proposal would create nearly 23,000 jobs.

Minnesota Management and Budget Commissioner Myron Frans said the state’s debt capacity guidelines would allow for a proposal exceeding $3 billion; however, that is not the administration’s recommendation.


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