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House looks at $850 million bonding bill, with $125 million more in cash

ST. PAUL — A nearly $1 billion proposal to fund state construction projects, ranging from trails to transit, launched Tuesday with its author calling it “inadequate” and a Republican who usually supports public works projects saying he could not vote for it.

It was an unusual start for a public works funding bill, financed by the state selling bonds. Few legislators expressed enthusiasm for a pair of bills: One would bond for $850 million while the other could spend $125 million of the state budget surplus on construction projects.

“The one defining word is ‘inadequate,’ “ Rep. Alice Hausman, D-St. Paul, said in introducing her proposal to the House Capital Investment Committee.

“We are still trying to rebuild this bill,” she added.

Hausman said she “hopes for a miracle” and that leaders come up with more money for public works projects.

That is unlikely, however, since Democratic and Republican legislative leaders have already agreed to cap public works borrowing at $850 million. It is not clear what will happen to surplus-funded projects because Republicans generally see the cap as being on both cash and borrowed money.

Rep. Dean Urdahl, R-Grove City, normally is likely to vote for a public works bill, but said he would not support the one released Tuesday because it severely underfunds Capitol building restoration and other significant projects.

Rep. Jay McNamar, D-Elbow Lake, was as close to enthusiastic as any representative, but even he said the bill fell short.

“I would like to see $1.3 billion instead of $850 million,” he said.

McNamar said many of the projects should have been funded years ago.

Rural Minnesota fares well in the bill, McNamar said.

“No one’s totally happy, which I think makes for a good bill,” said Rep. John Ward, D-Baxter.

“We are doing what we can with what we have,” added Rep. Carly Melin, D-Hibbing.

Hausman said she received nearly $4 billion in project requests.

As she told the committee she leads about the bill on Tuesday, she frequently said she would like more money for various projects. However, if she gets her way on many of those projects, others would shrink.

Hausman’s bill, which the committee plans to approve tonight, includes money for state college and university projects, expanding the state trail system, helping communities build sewer systems, giving money to transportation and transit programs and expanding civic centers in many communities, among other uses.

Rep. Matt Dean, R-Dellwood, questioned why the bill includes only $20 million to complete a multiyear Capitol building renovation project. Gov. Mark Dayton’s administration says $126 million is needed this year, but Hausman included only $20 million.

Hausman called the lower amount “a placeholder” that likely will expand as the bill goes through the legislative process.

Urdahl hopes so. The history teacher and author is the most outspoken supporter of repairing the 109-year-old Capitol building.

He called the Hausman plan “seriously lacking in the Capitol area. It would pretty much shut down construction.”

The domed Capitol is undergoing a multiyear renovation in which nearly every inch of the building will be updated and everyone with an office there will be moved out for a time. Some already have been moved out of the Capitol, not to return until work is completed in 2016 or 2017.

Any renovation delays will end up forcing the state to pay higher construction costs, Urdahl and Dean said.

The cash spending bill only needs a simple majority of the 134 representatives to approve, which Democrats alone could provide. However, borrowing money by selling bonds requires 81 votes, meaning the Democratic-Farmer-Labor majority needs some Republican votes to pass the bill.

Hausman said the bill was written, in part, to attract GOP votes. Dean said there are Republican supporters, but he did not know if there would be a consensus among his party members.

Melin was happy Hausman included $19.5 million for moving utilities that are next to U.S. 53.

The Iron Range highway is being moved as a mine expands, but funds had not been appropriated to move utilities that run along it.

After Dayton left flood prevention efforts out of his bonding proposal, Hausman included $9.9 million. But, she said, that could grow.

“I am certain that the Senate will ask us to be a little more aggressive there,” she said about a provision to help Moorhead and Montevideo.

Legislators from across Minnesota said the Hausman bill is at least a good first step.

“A targeted, statewide bonding bill will help our state create good-paying jobs in the short term while strengthening our economy for the long term,” said Rep. Mary Sawatzky, D-Willmar. “We have a huge backlog of critical infrastructure projects that we need to get done if we want a strong economy and high quality of life in the future.”

McNamar said bonding equals jobs, with thousands being put to work to build and repair government facilities.

The proposal includes local projects that some lawmakers have sought for years.

“These local projects will definitely help get people back to work in our area,” said Rep. Roger Erickson, D-Baudette.

Selected bonding projects included in House, governor’s plans

• Capitol building renovation. Governor, $126.3 million; House, $20 million

• Correction Department asset preservation, women’s prison security fence and St. Cloud prison improvements. Governor, $47.9 million; House, $25.4 million

• Red Lake school facilities improvement. Governor, $13.5 million; House, $10.5 million

• Housing improvements loans and grants. Governor, $50 million; House, $100 million

• St. Peter security hospital and Sex Offender Program improvements. Governor, $63.7 million; House, $41.3 million

• Giants Ridge Events Center on Iron Range. Governor, $5 million, House, $5 million

• Range Regional Airport terminal. Governor, $5 million, House, $6.5 million

• Duluth NorShor Arts Center. Governor, $7 million; House $7 million

• Duluth Wade Stadium construction. Governor, none. House, $4.4 million

• International Falls airport terminal. Governor, $2 million; House, $1.3 million

•Koochiching County sewage facilities near Voyageurs National Park. Governor, $8.6 million; House, $8.6 million

• Lewis and Clark Water System to provide Luverne with water. Governor, $20.2 million; House, $20 million

• Rochester Mayo Civic Center expansion. Governor, $37 million; House, $30 million

• Spirit Mountain water system for snowmaking. Governor, $3.4 million; House, $3.4 million

• St. Cloud River’s Edge Convention Center expansion. Governor, $11.6 million; House, $11.6 million

• St. Louis County Arrowhead Economic Opportunity Agency and Range Mental Health Center building. Governor, $2 million; House, none

•Northeast Regional Corrections Center. Governor, none; House, $4 million

• Red Wing riverside improvements. Governor, none; House, $6 million

• Virginia industrial park. Governor, $1.5 million; House, none

• Grand Rapids school district performing arts center. Governor, none; House, $3.9 million

• Department of Natural Resources asset preservation. Governor, $23 million; House, $12 million

• Parks and trails acquisition and development. Governor, $5 million; House, $19.4 million

• Sewage project grants. Governor, $20 million; House, $20 million

• Minnesota State Colleges and Universities asset preservation. Governor, $40 million; House, $30 million

• Bemidji State University is proposed to receive $9.2 million in bonding funds — the same amount included in Gov. Mark Dayton’s bonding bill — to renovate or demolish four buildings on its campus. Plans are to move Business/Accounting classes to the top floor of Memorial Hall, move Student Services to Decker Hall, demolish Sanford Hall and map out the demolition of Hagg-Sauer hall.

• Lake Superior College remodeling for allied health science programs. Governor, $3.5 million; House, $3.5 million

• Minnesota State College-Southeast Technical for carpentry, medical lab and welding space. Governor, $1.1 million; House, $1.1 million

• Central Lakes College in Staples to improve energy systems and for one-stop service center. Governor, $3 million; House, $3 million

• Minnesota State Community and Technical College, Moorhead, to expand transportation center. Governor, $4.4 million; House, $4.4 million

• Minnesota West Community and Technical College in Canby and Jackson for various renovations. Governor, $2.3 million; House, $2.3 million

• Northland Community and Technical College to prepare for aerial systems and imagery analyst programs. Governor, $3.9 million; House, none

•Northeast Higher Education District workforce training space. Governor, $2.2 million; House, $2.2 million

• Flood mitigation for Montevideo and Moorhead. Governor, none; House, $9.9 million

• U.S. 53 utilities relocation near Virginia. Governor, none; House, $19.5 million

• Local bridge replacements. Governor, $30 million; House, $21.8 million

•Local road improvements. Governor, $10 million; House, $18.3 million

• Greater Minnesota transit programs. Governor, $1.1 million; House, $1.4 million

• Willmar Minnesota Department of Transportation building construction. Governor, $4.4 million; House, $4.4 million

• Little Falls truck station construction. Governor, $3.4 million; House, $3.6 million

• University of Minnesota asset preservation. Governor, $40 million; House, $30 million

• University of Minnesota Tate science building renovations. Governor, $56.7 million; House, $56.7 million

• University of Minnesota Crookston wellness center. Governor, $10 million; House, $1.1 million

• University of Minnesota research laboratory lab improvements. Governor, $12 million; House, $12 million

• University of Minnesota-Duluth chemical sciences and advance materials building construction. Governor, none. House, $24 million.

• Veterans Affairs Department improvements, including renovating Luverne and Silver Bay veteran homes resident rooms. Governor, $4 million; House, $3.4 million


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