REGIONAL- Gov. Tim Walz unveiled his proposal for a new $887 million bonding bill last week, seeking to navigate a contentious legislative landscape by targeting things he says will benefit all Minnesotans – fixing roads, improving public safety, and repairing aging state buildings.
“This is the way Minnesotans take care of our assets,” Walz said. “Every community matters.”
Walz’s plan is the starting point for legislators to craft a package of state construction projects that is traditionally approved every two years. But last year, even with the DFL controlling both the Senate and the House, the session ended without one. A traditional bonding bill was never agreed to, and a rushed cash-only infrastructure bill passed by the House with only 10 minutes remaining before the session ended did not get a vote in the Senate before the clock struck midnight.
This year’s bill faces a different legislative landscape. While the DFL holds a slim one-vote majority in the Senate, an anticipated historical tie in the House between Republicans and Democrats will likely mean a bonding proposal will have to clear committees with party co-chairs and be shepherded by co-House speakers. That was the context for a power-sharing agreement between the two parties in December before the election of a DFL representative was nullified, giving Republicans a temporary one-vote majority that will likely disappear in March after a special election in a traditionally strong DFL district.
For now, a power-sharing agreement is apparently dead, and DFL representatives are boycotting the House to prevent Republicans from gaining any advantage from their majority by denying them the 68-vote quorum necessary to conduct any business. Unless an agreement is reached beforehand, it’s likely the DFL will continue the boycott until after the March special election, exacerbating an already contentious environment and significantly shortening the time frame for reaching agreement on a bonding bill.
And now, with a slimmed down budget proposal for the next biennium and a projected $5.1 billion future budget deficit coloring the financial picture at the Capitol, the path to a bonding bill could be even more tedious. The measure requires a three-fifths supermajority in both the House and Senate, meaning bipartisan cooperation is necessary.
Still, Walz is optimistic.
“They’ll get it done,” he said, brushing aside concerns about political maneuvering and party boycotts.
What’s in the plan
The governor’s proposal calls for $790 million in general obligation bonds and $97 million in trunk highway funds, prioritizing maintenance over new construction. Here’s how the money would be spent:
• 395 million for upkeep of state facilities, including Minnesota’s public colleges and universities.
• 239 million for public safety projects, including a new headquarters for the Minnesota State Patrol and an expanded forensic lab for the Bureau of Criminal Apprehension.
• 144 million for water and transportation infrastructure, addressing wastewater systems and road improvements.
• 44 million for housing and environmental projects, including $17 million to update the Minneapolis Veterans Home and $7 million for public housing repairs.
• 10 million earmarked specifically for dam safety, including funds for repairs at the heavily damaged Rapidan Dam.
As is typically the case, infrastructure and construction industry leaders who stand to benefit from the projects are throwing their support behind the plan. The Laborers’ International Union of North America (LIUNA) Minnesota and North Dakota issued a statement calling a strong bonding bill a “must” for the state.
“Our communities and construction workers cannot afford another year of inaction,” said Joel Smith, the union’s president and business manager.
Challenges ahead
Despite Walz’s assertion that the plan has broad appeal, it faces opposition from Republican lawmakers who worry about taking on more debt when the state’s finances are tight.
“There’s room to bond for important, bipartisan projects,” said Sen. Karin Housley, R-Stillwater. “But this isn’t the time to be maxing out the state’s credit card on ‘nice-to-haves.’”
One major sticking point will be finding common ground on priorities. Local government officials argue that many shovel-ready projects were put on hold when last year’s bonding bill failed. Craig Johnson of the League of Minnesota Cities said communities across the state are waiting for funding on everything from road repairs to wastewater treatment plants.
“We have a lot of projects backed up that can’t move forward until the state gets a bonding bill,” Johnson said.
Iron Range workaround
While there are always more infrastructure needs to be addressed, the Iron Range fared better than the rest of the state last year thanks to the efforts of area legislators to leverage the taconite production revenue to issue around $80 million of bonds for dozens of projects. DFL Rep. Dave Lislegard and DFL Sen. Grant Hauschild spearheaded the initiative with support from Republican Rep. Roger Skraba.
The measure engendered objections from many Republicans who viewed it as an “end run” around the regular bonding bill process, but with DFL legislators backing the proposal it had the necessary political support to pass.
It’s unknown at present how that success might affect the prospects for Iron Range infrastructure projects getting designated funding in a final bonding bill this time around, but they may be a hard sell to legislators from other regions angling to get projects for their own districts that failed to get funded last year. And it’s entirely possible that a final bill could be devoid of specific earmarks for local infrastructure projects, instead designating lump sum dollars to specific state agencies that would dole out the funds through regular grantmaking procedures.
With Democrats and Republicans in a standoff over other legislative matters, some insiders believe the bonding bill could end up being used as a bargaining chip in broader budget and tax negotiations.
“As always, the bonding bill is the dessert,” Johnson said. “A bonding bill isn’t passed until everyone has played nice and gotten a budget and tax bill done.”
With so much at stake, Walz and his allies are hoping to convince enough lawmakers that now is the time to invest in Minnesota’s future.
“This is about keeping our communities safe, our infrastructure sound, and our state moving forward,” Walz said. “It’s not about politics—it’s about getting things done for Minnesota.”