On Tuesday, Gov. Walz announced his plan for the 2022 bonding bill, which calls for $2.7 billion to tackle a backlog of maintenance needs and a host of other priorities across the state through a combination of $2 billion in general obligation bonds and the remainder in appropriation bonds and cash. The Governor, along with Lieutenant Governor Peggy Flanagan, said the package focuses on five key areas: asset preservation, infrastructure, housing and homelessness, community and equity, and environmental stewardship. The proposal also includes $273 million in local projects.
The list of projects in the Governor’s plan is likely to elicit both applause and some disappointment from CGMC members. He proposes fully funding the Public Facilities Authority request for $200 million for water and wastewater infrastructure, although no individual city water projects were included. The popular Greater Minnesota Business Development Public Infrastructure (BPDI) grant program was funded at $7 million, falling short of the desired $20 million needed to meet program demands. The Governor’s plan includes no funding for child care facilities, another top CGMC priority. And while it includes significant funding for affordable housing, it fails to provide any funding for workforce housing.
In the rollout of his bonding proposal, Gov. Walz also highlighted the investments it would make in local roads and bridges. While the bill includes significant funding for those purposes, it falls short in many categories of the funding levels MnDOT had requested and that advocates like CGMC and the Transportation Alliance will be working toward.
Reaction to the proposal was split along party lines. Sen. Tom Bakk (I-Cook), chair of the Senate Capital Investment Committee, said the final bonding bill will likely shrink in size from the Governor’s proposal. Sen. Bakk said it is unlikely this year’s bonding bill will surpass the 2020 bill, which was $1.9 billion. Senate Majority Leader Jeremy Miller (R-Winona) suggested the Senate is leaning toward a bill of less than $900 million. In contrast, House Speaker Melissa Hortman (DFL-Brooklyn Park) said she anticipates House Capital Investment Committee Chair Fue Lee (DFL-Minneapolis) will propose an estimated $3.5 billion bonding bill.
The final number will be the subject of much debate as the House and Senate each develop their own bonding package. The Senate Capital Investment Committee is wrapping up its tour of bonding projects this week. Legislators in the House have stated they will begin to hold hearings on the Governor’s proposal soon after the legislative session begins. The Senate has not stated its intentions with respect to the Governor’s bill, but they promised in the fall to hold several hearings on bonding proposals that were not included in the bonding tours held across the state. If history is any guide, we may not see serious proposals designed to garner a supermajority vote from either body until later this spring.
CGMC will continue to advocate for a substantial bonding bill that includes funding for key Greater Minnesota priorities.
