For more information contact: Charlene Briner 651-296-5809
There was an audible sigh of relief heard throughout the halls of the State Capitol when the state's economic forecast was released in November 2006. After a massive budget deficit in 2003-04, higher than expected corporate tax collections left us with $1 billion in one-time money for the next two years. This set the stage for the Legislature to get to work shaping budgets for 2008-2009.
So it was extremely disappointing last week when Governor Pawlenty chose to veto the Capital Investment Bill, doing so in part because he said the one-time money included in the bill should be spent elsewhere.
How to use one-time money. As chair of the House Capital Investment committee, I made the case with fellow committee members that the most sensible, responsible use of one-time money was a mix of equitable statewide higher-education infrastructure investments and one-time transportation funding. The House pledge to govern with fiscal moderation was reflected in the bill we assembled, and careful consideration was applied to each project. The vetoed bill used $164 million of the total one-time money, or less than 1 in 6 dollars, for public infrastructure.
Asset preservation at state colleges and universities. The largest portion of the vetoed bill went toward critical repairs to leaky roofs and replacement of broken or inadequate mechanical systems at Minnesota State Colleges and Universities and University of Minnesota institutions across the state. These campuses include: Crookston, Morris, Duluth, Minneapolis, St. Paul, Rosemount, Grand Rapids, Moorhead, Alexandria, Bemidji, Mankato, St. Cloud, Marshall, Willmar, Austin, Albert Lea, Vermillion, Bloomington, Brooklyn Park, Rochester and others.
Delayed repairs for unsafe bridges The vetoed bill invested in transportation with statewide infrastructure investments for local bridges. There are 714 bridges on the current master bridge replacement priority list from the Department of Transportation. The vetoed bill would have repaired and replaced unsafe and hazardous bridges in Minnesota counties including: Otter Tail, Itasca, Lake, Carver, Morrison, Murray, Benton, Travers, Sibley and many others.
Loss of federal dollars. The vetoed bill leveraged federal, local and private funding to maximize the impact of the state's investment. Most notable are 10 transit corridors that would affect up to 75 percent of the state's population. U.S. House Transportation Committee Chairman Jim Oberstar addressed a special House-Senate joint hearing this session to strongly urge state transportation investments that could be federally matched. The transit projects in the vetoed bill did just that.
Flood mitigation and storm relief. The vetoed bill improved public health and life safety by providing storm and flood mitigation to areas like: Stillwater, Bayport, Browns Valley, Roseau and Bovey. It was also an important economic development piece that would have made infrastructure investments to protect and create jobs in Itasca and Ramsey counties.
Additional cost to tax payers and loss of economic opportunity. Not to be lost in this process is the huge number of construction jobs that would have been created across the state. In addition, each delay costs taxpayers millions in additional inflationary costs. Inflation alone could add up to $40 million or more to the total costs of the projects, and the construction jobs that would have been created are especially critical at this time because of current economic downturns in the housing sector.
Crucial projects to maintain our infrastructure and preserve our state's assets are now in question due to the Governor's veto. With less than two weeks remaining in the session, the Governor needs to return to the table so a meaningful public works package vital to Minnesota's economic future can still be salvaged.