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| Date: | May 8, 2012 | | Contact Name: | Susan Closmore | | Contact Phone: | 651-296-5712 | | Contact Email: | susan.closmore@senate.mn | | For Immediate Release | |
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| SENATE PASSES BONDING BILL, INVESTING IN STATEWIDE INFRASTRUCTURE |
St. Paul- The Minnesota Senate passed the Capital Investments bill Monday evening by a bipartisan vote of 45-22. The proposal invests $496 million in general obligation bonds focusing on statewide infrastructure projects. Together with last year's bonding agreement with Governor Dayton, total bonding requests will be under $1 billion for the biennium. The debt service is lower than the budgeted amount for the biennium and well within the state guidelines for debt service.
The largest portions of this year’s bill include: higher education requests totaling $158 million, and state assets preservation at $96 million. The package also includes $40 million for roads and bridges, $30 million for flood mitigation, and $15 million for waste water infrastructure across the state.
“This bill has a narrow focus on bricks and mortar projects, addressing statewide infrastructure needs in a fiscally responsible manner. Southeast Minnesota has more bridges than nearly any other part of the state. This bill directs critical funds towards roads and bridges like those in Olmsted County. Furthermore, taxpayers own a lot of buildings that need our attention to prevent decay and stay functional for years to come. The asset preservation funds will be used as needed to address these facilities and their needs,” said Senator Carla Nelson (R-Rochester).
The Capital Investments bill also replaces earmarks with a capital grants program to be administered by the Department of Employment and Economic Development (DEED). The legislation requires that project proposals be ranked according to eleven criteria that will help promote business development and take politics out of funding local projects. Senator Nelson was part of the team that developed the criteria for DEED to use in prioritizing projects that would create the highest return in public benefits for the public costs incurred.
“We specified the qualities we would like DEED to consider in projects -- the potential to enhance job growth, encourage private investment, attract revenue from out of state, or increase the tax base. Return on investment and a cost benefit analysis are also key criteria in ranking grant proposals. We also advocated for a balance of appropriations between the metro area and greater Minnesota. In times of fiscal challenge, it is even more important to ensure that state investment is allocated to projects having the greatest potential to encourage job growth and provide a strong economic return to the taxpayers,” said Senator Nelson.
Another project with the potential to enhance job growth is the partnership between Rochester Community Technical College and DEED. RCTC, DEED and MnSCU collaborated to establish the Workforce Development Center in Rochester. The state is allocating nearly $9 million to support their innovative efforts to provide job training in close proximity to higher education.
“RCTC and DEED are launching a workforce development initiative with an eye on the future in the very heart of our district. I’m thrilled to see them gain support from the state to move forward, connecting the dots for students between the classroom and their careers,” added Senator Nelson.
Senator Nelson authored a bill during the 2011 Legislative Session to establish a State Capitol preservation commission to develop a comprehensive, multi year, pre-design financial plan for the restoration of the Capitol building. After the commission was establish, Senator Nelson was selected to serve as one of its 15 members. The bonding package passed Monday included $44 million to begin Phase I of State Capitol renovations recommended by the commission.
“116 years ago this week ground was broken on the Minnesota State Capitol. Today, this remarkable state icon is in grave need of renovations. This bill includes $44 million to begin repairing and preserving this grand building. The need is great, the time is now and the duty is ours to preserve this architectural masterpiece for future generations,” concluded Senator Nelson.
The House passed their bonding bill on Monday as well and will now go to conference committee to reconcile the differences in the two versions.
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