‘So close to the end:’ Bonding bills approved and moved to Rules

More than $1 billion in proposed capital investment spending was approved Tuesday by the House Ways and Means Committee.

Sponsored by Rep. Alice Hausman (DFL-St. Paul), HF2490, as amended, calls for $843 million in general-obligation bonding, and HF1068, as amended, calls for $198.7 million in cash spending from the state’s projected budget reserves. (View the spreadsheet for both bills.)

The bills are headed to the House Rules and Legislative Administration Committee. The Senate proposal, calling for $846 million and $200 million respectively, was unveiled Monday. Sponsored by Sen. LeRoy Stumpf (DFL-Plummer), it awaits action by the Senate Capital Investment Committee.

[Watch the full video archive of Tuesday's House Ways and Means Committee here]

The general-obligation spending bill needs three-fifths of members of each body to vote for passage, meaning eight Republican votes will be needed in the House, assuming all DFLers vote in support; however, the cash bill just needs a simple majority.

“I would like to see something that can get broad support … but we see Democrats going in one direction and reality going in another direction” said Rep. Matt Dean (R-Dellwood).

“Governor, House, Senate, Republicans, Democrats, we are so close to the end that we really all need to be at a table very, very soon” Hausman said.

Among the larger investments in the House cash bill are $51.5 million for local road improvement grants; $41.3 million to remodel the state security hospital in St. Peter; $30 million each in asset preservation for both the University of Minnesota and Minnesota State Colleges and Universities system; and $21.75 million for the local bridge replacement program.

The general-obligation bonding package includes $126.3 million to finish the State Capitol renovation; $119.7 million for five University of Minnesota projects; almost $97.31 million for 16 projects across the MnSCU system; $20 million for the wastewater infrastructure fund; and $18.9 million for trail acquisition and development. It contains almost all the Republican projects and dollar amounts that were in last year’s capital investment bill that failed to pass.

Not included is funding for the Lewis and Clark Regional Water System that would help provide freshwater to parts of southwestern Minnesota where water supplies have dwindled.

An amendment from Rep. Bob Gunther (R-Fairmont) to include the needed $69.18 million to complete the project failed on an 18-11 party-line vote. Gunther’s plan would have gotten the funding by deleting a $51 million appropriation to construct a new James Ford Bell Natural History Museum and Planetarium on the University of Minnesota’s St. Paul campus; $8 million to renovate the Minneapolis Sculpture Garden, including irrigation and drainage improvements; $5 million to expand the Springbrook Nature Center in Fridley; and nearly $5 million to construct a new events center at Giant’s Ridge in Biwabik.

“This is a good opportunity for this committee to do the right thing,” said Rep. Kelby Woodard (R-Belle Plaine). “While Minneapolis may need a drainage project for its sculpture garden, I would argue the needs of thirsty southwestern Minnesotans greatly outweigh a drainage project for sculptures.”

Rep. Jean Wagenius (DFL-Mpls) noted that Marshall, Park Rapids and St. Peter have improved or are improving their water access and quality at their own expense. “Until we get to the fairness issue, this is a ‘no’ vote.”

Gunther said the small, rural communities don’t have the resources to self-fund the project. “If they could afford to do it themselves, I sure they would have done it a long time ago.”

Hausman said that Gov. Mark Dayton would support fully funding the project if the general-obligation bonding bill total is increased to $1.2 billion. He is not alone in calling for a monetary bump as supporters of a larger bill have noted that project demand is high, interest rates are low and there is room based on state debt guidelines.

However, that would go against an agreement last year between legislative leaders to keep general-obligation biennial bonding at no more than $1 billion. A law passed last year contains $156.1 million in spending.

“When people shake hands around here and make an agreement that should be honored,” Dean said.

Dayton on Monday was critical of legislative leaders’ plan for the using of nearly $200 million in cash to supplement a general-obligation bonding bill. The governor said April 22 that he’d accept $126 million in cash funding to supplement the bonding bill.

“I continue to believe that the use of cash in a bonding bill contradicts its very purpose and that cash should not be used for major capital investments,” Dayton wrote in a letter to House Speaker Paul Thissen (DFL-Mpls) and Senate Majority Leader Tom Bakk (DFL-Cook).