Dear Neighbor,
We are entering the final stretch of the 2016 session and some of this year's top bills remain in the works.
Legislation to provide tax relief and put a long-term transportation plan in place are in discussions. So is a package of capital investment proposals – aka bonding – which borrow money to fund projects throughout the state.
The governor and the Senate both propose bonding bills of approximately $1.5 billion and, as I wrote in a previous update, that figure is too large. It would only serve to exacerbate a trend in which more and more of our tax dollars are being used to make payments on debt.
Rep. Paul Torkelson chairs the House Capital Investment Committee. We recently submitted a joint column to the Star Tribune in which we delved deeper into this subject by providing an overview of legislation I have authored to better control the debt payments the state accumulates and taxpayers pay. Here is one key passage from that submission:
"In 2010, debt-service payments from Minnesota’s general fund totaled $450 million. Today, we are spending $750 million every year to chip away at our bonding debt. This growth places it among the fastest-growing categories in the general fund. This means the focus of previous legislatures has been to borrow first and not worry about the future fiscal consequences."
Click here to the full column. This is a significant topic that seems to largely be off the public's radar but needs to be addressed.
Look for more as these and other subjects unfold before the Legislature adjourns in less than two weeks.
Sincerely,
Bob