Dayton proposes $1.5B for state construction projects

Gov. Mark Dayton presented Minnesota lawmakers a list of $1.5 billion in proposed construction projects Wednesday, up slightly from a plan he put forward last year that failed to result in any borrowing bill passing.

The DFL governor's bonding bill is expected to face deep skepticism from the Republican-led Legislature. GOP lawmakers say they're open to borrowing for critical needs but aren't inclined to approve as much debt as Dayton wants. The mix of projects in Dayton's proposal could differ from legislative priorities as well.

Failure to enact a bonding bill last year has added to the appetite for a bill this session even though the top task is to enact a new two-year state budget. Dayton is urging the Legislature to speed a borrowing bill through to take advantage of still-low interest rates enhanced by Minnesota's top credit status and to fit some of the work into the upcoming construction season.

"To those who say this is too much spending, I say it's frankly too little, relative to the needs," Dayton said on a conference call with reporters. "It's about right in terms of what our capacity is, but the cost of not doing these projects is greater than the cost of doing them."

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His plan seeks new dollars for upgrades to the Minnesota Security Hospital in St. Peter; several improved rail grade crossings and local bridge repairs; the latest installment for the Lewis and Clark Regional Water System in southwestern Minnesota; various flood mitigation projects in western Minnesota; fish hatcheries in central, northeastern and southeastern Minnesota; and a spate of college campus building improvements.

Dayton's office said 35 percent of the money would go to projects in Greater Minnesota, 35 percent is deemed as having a statewide impact and 30 percent would land in the Twin Cities region.

The widespread impact is no accident. Bonding bills require 60 percent majorities to pass out of the Legislature, so assembling a bill often involves satisfying requests from many legislative districts. But the bonding bill is also often seen as the dessert when lawmakers are taking care of weighty budget matters, so negotiations over the size and shape of the bill routinely wait until the end of the session.

"Our top responsibility this session is to set a new two-year state budget," said House Capital Investment Chairman Rep. Dean Urdahl, R-Acton Township. "I don't anticipate a great deal of support for a $1.5 billion bonding bill as the governor has proposed, but I will work in good faith to review projects and proposals that have or may be put forward."