For more information contact: Sandy Connolly 651-296-8877
State Representatives Loren Solberg (DFL-Grand Rapids) and Tom Anzelc (DFL- Balsam Township) said that while they were pleased to learn that the Minnesota Steel project was included in the Governor's bonding recommendations released today, they feel the total bonding amount is too small.
The total funding package was $30 million for the steel plant infrastructure, comprised of $6.2 million in general obligation bonding, $14.9 million in previously appropriated funds from the 21st Century Minerals Fund, $8.9 million from Iron Range Resources funding.
Rep. Anzelc said he believe this is a good starting point, but the small amount of funding from bonding is inadequate and disappointing.
"Basically, the Governor has asked us to spend our own money on this project by appropriating money from the Iron Range Resources fund and the 21st Century Mineral fund," said Anzelc. "We will work this session to change the equation to total bonding dollars, instead of using local funds that are badly needed elsewhere."
The Governor's recommendation also reflects a smaller gas pipeline than had been requested, and does not include funding for construction of a new municipal substation – based on a willingness by Minnesota Power to provide power for the project.
"Last year's Capital Investment bill included the full $30 million in bonding that is needed for this project," said Solberg. "Unfortunately, the Governor vetoed that bill.
With this new proposal, he is once again spending our local money on a project that has statewide benefits."
Solberg and Anzelc said that at a time when jobs are badly needed across the state, this project is expected to create 2 thousand construction jobs, 700 permanent, full-time jobs, and close to 2 thousand "spinnoff" jobs.
The Governor's bonding bill proposes $965 million in funding for statewide projects, including a record amount for transportation; $225 million was designated to replace 600 local bridges.
"The Governor's focus on transportation in this bonding bill signifies to me that he is finally agreeing with what we have been saying for several years now, that our state needs a comprehensive and responsible transportation bill, " said Solberg. " The bonding projects in the bill are a good start – but they do not take the place of a sustainable transportation funding package."
For more information on the bonding bill, please contact Rep. Loren Solberg at 651-296-2365 or Rep. Tom Anzelc at 651-296-4936.