Accessibility menu
State Representative Alice Hausman
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3824
For more information contact: Jenny Nash 651-296-4122
Press/News Releases
MEAGER HOUSE GOP BONDING BILL: A MISSED OPPORTUNITY FOR LONG-TERM PRIVATE SECTOR JOBS
Today, a less than impressive bonding bill (HF 2622) was presented and passed by the House Capital Investment Committee. It is perplexing because public works projects that clearly should have been contained in the bill – are not. For example, the second highest priority for the Minnesota State Colleges and Universities System (MnSCU) was disregarded. The MnSCU request was for $13.3 million to renovate space at the Minneapolis Community and Technical College for their workforce program – the exact type of bonding project we should be funding to prepare our future workforce for the new economy.
The meager bonding bill passed today is a missed opportunity to invest in infrastructure for permanent jobs that are vital to the state’s economic recovery. The bill allocates only $280 million in general obligation bonding. Governor Dayton recommends $775 million in bonding -- the amount assumed in the budget forecast and well within the Pawlenty-era guideline of holding tax-supported state debt to no more than 3.25 percent of annual state personal income. (Minnesota is far below that figure at 2.45 percent.)
At the Governor’s Job Summit last fall, a wide array of Minnesota business leaders expressed the need for reliable state infrastructure in order for the private sector to thrive. Investing in Minnesota’s infrastructure is an essential part of sustaining and enhancing our economic recovery. According to Moody's Analytics, a provider of economic analysis and forecasting, infrastructure spending is more effective, dollar for dollar, than many forms of tax cuts at boosting jobs growth.
A more sizeable, balanced and strategic bonding bill that focuses on higher education, transportation, water and wastewater systems, and regional economic development would give the private sector the shot in the arm it needs at this critical juncture in the state’s economic recovery. And the demand is great - for the better part of two decades Minnesota’s infrastructure has been underfunded and the disrepair is evident. We have a backlog in the billions to repair structurally deficient bridges and crumbling wastewater systems alone.
In addition, we should be taking advantage of current low interest rates and construction bids. In late September, the state held a $769 million dollar competitive bond sale with the bond proceeds supporting capital construction projects. The sale was overseen by Minnesota Management and Budget and went extremely well. The market was particularly favorable with 20-year general obligation bonds being sold at an interest rate of 2.82 percent – a record low. We have seen construction bids coming in up to 30% under estimate and this trend will not continue forever.
We should heed the advice of those business leaders at the Governor’s Job Summit. Investing in our infrastructure is essential to Minnesota’s economic recovery. There may not be a more important time to make these investments than the present.
News Items
- CAPITAL INVESTMENT BILL INTRODUCED - (Posted: Apr 9 2013 8:57AM)
- Hausman receives 2012 Sierra Club Legislative Leadership Award - (Posted: 2012-10-19 00:00:00)
- NEWS STATEMENT ON HOUSE PASSAGE OF BONDING BILL - (Posted: 2012-05-07 00:00:00)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.