OK to spend federal dollars

Current statute prohibits the Department of Transportation from spending money without legislative approval.

With hundreds of millions in potential federal economic stimulus dollars heading to the state, a quick change is needed.

Sponsored by Rep. Bernie Lieder (DFL-Crookston), HF1797 allows the state to spend the stimulus dollars through the creation of a standing appropriation for MnDOT for any initial or future funds. It would expire June 30, 2013.

Approved 113-19 March 26 by the House, it now goes the Senate, where Sen. Steve Murphy (DFL-Red Wing) is the sponsor.

“This lets us spend federal stimulus money even when the Legislature is not in session,” Kevin Gray, MnDOT chief financial officer, previously told a House committee. The possibility exists of the state getting additional dollars when money for other states is returned and reallocated to another state. Some money has to be used within 90 or 120 days of receipt, Lieder said.

The bill requires compliance with all federal requirements for the aid and orders department officials to “make every reasonable effort to seek and utilize” all funding available.

“Are we telling the department that no matter what they should go after money, even if it doesn’t fit into our transportation plans or it’s not something we want to subsidize the operating on?” Rep. Mary Liz Holberg (R-Lakeville) asked the House Transportation Finance and Policy Division March 17.

"The Metropolitan Council's budget of 2009 went up millions of dollars unexpectedly due to ongoing obligations that they hadn’t anticipated with the Northstar rail, including salaries and benefits of employees," Rep. Mark Buesgens (R-Jordan) told the House Finance Committee March 20.

The bill also deletes a state match for any aeronautics projects, because current state law requires a 20 percent local match. It also requires the commissioner to spend no more than 17 percent on administrative costs like engineering, right-of-way acquisition or environmental assessments.