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Dayton’s project list is too big

Published (2/4/2011)
By Lee Ann Schutz
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At a Jan. 31 news conference, Gov. Mark Dayton, left, announces a $1 billion bonding proposal for projects around the state. Others attending the news conference include, from left, Rochester Mayor Ardell Brede; Dr. Robert Hoerr, co-founder of Nanocopoeia, Inc.; Kristin Hanson, Minnesota Management & Budget assistant commissioner for Debt Management and Treasury; and Jim Schowalter, MMB Commissioner. (Photo by Tom Olmscheid)Gov. Mark Dayton’s proposal to spend $1 billion on capital investment projects received a less than lukewarm reception from House Capital Investment Committee leadership.

Rep. Larry Howes (R-Walker), the committee chairman, said the governor’s list goes beyond what the state can afford; but he would not rule out a small bonding bill this year “for emergency purposes.” Instead of bringing out the state’s “credit card,” he would like to divert financial commitments from previously bonded projects that have been delayed to others that can get going immediately.

“I think it is time to take a look at those and ask, ‘Why haven’t we done anything?’ We’ve talked a lot about shovel-ready projects, but someone hasn’t bought the shovel yet,” he said.

Rep. Alice Hausman (DFL-St. Paul), the committee’s DFL lead and former committee chairwoman, agrees with looking at the former project list. She would like to see projects that she championed get a go-ahead, and she is unhappy with some of the priorities Dayton proposes to fund.

“There was only a very small amount for transit in the state. There is no money for public housing at a time when we have a lot of homeless on the street, and a great need for affordable housing. He has the traditional flood mitigation, but as far as I can tell no money for flood prevention,” she said.

Dayton laid out $531 million in projects that are “shovel-ready, paint and repair projects” that would provide approximately 28,000 private sector jobs. He said that, “in keeping with a hand of cooperation,” he has left nearly half of the bonding dollars for the legislative allocation.

Included in his proposal is:

• $51.33 million for a new physics and nanotechnology building at the University of Minnesota’s Minneapolis campus;

• $30 million for asset preservation and maintenance for the Minnesota State Colleges and Universities system;

• $28 million for Department of Natural Resources designated flood mitigation;

• $28 million to renovate and expand the Mayo Civic Center complex in Rochester; and

• $20 million for a new St. Paul Saints stadium in downtown St. Paul.

By bonding standards, the bill’s size is more typical for the second year of the biennium; however, Dayton said there is an immediate need to get people in the construction sector back to work.

“This is a bipartisan approach to putting people back to work. … I would anticipate this would be the major bonding bill of the biennium,” he said.

However, Howes said these projects are “candy” in a budget year, and said the House will begin looking at projects after the governor releases his plan to resolve the state’s projected $6.2 billion deficit on

Feb. 15.

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