When the Legislature failed — again — to pass a bonding bill during the second special session that ended earlier this week, it significantly jeopardized the chances of passing a bonding bill in 2020.
 
The CGMC has learned that the state’s pending August bond sale means that the Legislature cannot pass a budget bill of any type, including a bonding bill, until late September — and even then other hurdles (including getting enough legislators to vote for the bill) must be overcome before a bonding bill can come into fruition.
 
Minnesota Management and Budget has long planned a bond sale to raise the cash to pay for current construction projects that were approved for funding in previous legislative sessions. Failure to proceed with the sale could halt work on current projects across the state. Under federal securities law, the state must present its current financial position to bond investors. A short blackout period is imposed in the weeks leading up to and following the bond sale during which the state cannot make material changes to its financial position, such as a passing a bonding bill. In other words, the state cannot pass a bonding bill until late September or it will jeopardize the August bond sale. 
 
The CGMC will continue to advocate for the passage of a bonding bill this year, but it will become even more challenging as legislators and the public shift their focus to the November election, as the Governor and legislative leaders have acknowledged.
 
If you have any questions about the bonding bill, please contact CGMC Executive Director Bradley Peterson at bmpeterson@flaherty-hood.com.