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State Representative Andrew Falk
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4228
For more information contact: Jenny Nash 651-296-4122
NEWS COLUMN
2012 Legislative Session Begins A substantial and comprehensive bonding bill is a win - win for our state
The 2012 Legislative session is underway. Even after last year’s contentious session, special session and government shutdown, which resulted in a budget agreement that included an irresponsible withholding of dollars for our schools (the school shift) and borrowing through the sale of tobacco bonds - I am optimistic and will work harder than ever to ensure that we get Minnesota back on track.
While there are signals that we are slowly pulling out of the recession, there are 175,000 Minnesotans still out of work and many rural families are struggling to make ends meet. These challenges will not be resolved unless we put forth targeted and meaningful policies that lead to measurable outcomes. Providing small businesses with new incentives to create jobs, improving workforce development and training, and investing in infrastructure are approaches we should take to continue our economic recovery.
The legislature’s main job this session is investing in public works projects — a process commonly known as bonding. Bonding for infrastructure includes construction and repairs of roads and bridges, flood prevention and mitigation, buildings on college campuses, veterans’ homes, waste water treatment plants, and public facilities that have regional or statewide significance. For the better part of two decades Minnesota’s infrastructure has been woefully underfunded and the disrepair is evident. We have accrued backlogs in the billions to repair structurally deficient bridges and crumbling wastewater systems alone. This infrastructure was built and paid for by previous generations and now it is our responsibility to honor that investment by putting forward the resources to maintain and sustain it.
I believe a comprehensive bonding bill passed quickly is a win-win for our state. By getting projects in the pipeline as soon as possible we can take advantage of low interest rates and discounted building costs for materials and labor. In addition, we can provide work for thousands of unemployed construction workers, contractors, engineers, architects and others by this spring construction season if we act swiftly. Some of the worst unemployment is in the construction sector, where more than 40,000 jobs have been lost since 2006. According to Moody's Analytics--a provider of economic analysis and forecasting--infrastructure spending is more effective at boosting job growth than many forms of tax cuts.
How do we afford a bonding bill? At the December 1st budget forecast Management and Budget Office officials announced that the state has the debt capacity of almost $2 billion in 2012. This is 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 well below that figure at 2.45 percent.
Bonding for infrastructure is responsible borrowing because it is a long-term strategic investment, like taking out a mortgage to buy a home at a low interest rate. Racking up debt on the credit card to pay for ongoing expenses, like the Republican majority did last summer with the sale of the high interest tobacco bonds, is fiscally unwise. Coincidently, it has left us with a huge structural imbalance for the next budget cycle.
I’m hopeful that legislators can come together in a bipartisan fashion and work with Governor Dayton to address the many challenges facing Minnesota. My top priority will continue to be creating jobs, strengthening our economic recovery and working to grow the engine of Minnesota — a strong middle class.
It is an honor to serve as your state representative. Please don’t hesitate to contact me with your questions or concerns. I can be reached at 651-296-4228 or e-mail at: rep.andrew.falk@house.mn
News Items
- HOUSE APPROVES ENVIRONMENT, NATURAL RESOURCES & AG BUDGET - (Posted: May 20 2013 3:05PM)
- House approves HHS budget that saves $50 million through reforms - (Posted: May 17 2013 12:00AM)
- HOUSE PASSES HIGHER EDUCATION BILL FREEZE TO TUITION, INCREASE LEGISLATIVE OVERSIGHT OF U of M and MnSCU SPENDING - (Posted: May 17 2013 12:00AM)
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