CHICAGO - The Minnesota House as soon as Thursday, May 8 is expected to vote on a $1.1 billion capital budget that primarily relies on general obligation borrowing.
The plan, sponsored by state Rep. Alice Hausman, D-St. Paul, and Sen. LeRoy Stumpf, D-Plummer, is built on $846 million of GO borrowing and $278 million from the state's budget surplus.
The possible vote follows the Senate and House's Democratic-Farmer -Labor Party majority leaders' announcement of an agreement on the package Wednesday.
Discussions were continuing with Republicans in the House as they had not yet signed off the mix of projects in line for aid. Some Republican votes are needed to reach the three-fifths majority threshold to approve new borrowing.
It's also unclear whether Gov. Mark Dayton would support using the proposed level of cash for the package -referred to locally as the bonding bill -- although he supports a $1 billion package.
The state's annual February economic forecast lifted the projected budget surplus from prior estimates by $400 million to $1.2 billion. The state has already earmarked a portion for tax relief.
Minnesota anticipates a $2.6 billion balance in its next two year budget that begins July 1, 2015 but that's before inflationary increases are accounted for in spending.
"We have worked hard to put together a statewide bonding bill that makes strategic investments that will create thousands of jobs and support the continued growth of Minnesota's economy," Hausman said in a statement. "This bill will benefit Minnesotans across the state at a time when our economy is continuing to improve."
The package provides $100 million for state roads, bridges, and infrastructure work, $126 million to complete work on the restoration of the state capitol, $120 million for the Minnesota State Colleges and Universities system, and $119 million for the University of Minnesota.
The Department of Natural Resources would see $66 million in investments, Metropolitan Council projects would receive $46 million, and local economic development projects including work on civic centers, infrastructure, and theater projects would receive $167 million.
The package also authorizes $80 million in appropriation-backed borrowing for the Minnesota Housing Finance Agency.
"Today's so-called agreement is nothing more than an idea between Democrat legislative leaders, and not a plan Republicans agreed to or were involved in crafting. It is also unclear if Governor Dayton agreed to or was involved in crafting Democrat leaders' idea," House Minority Leader Kurt Daudt, R-Crown, said in a statement Wednesday.
The state typically passes a large bonding bill in the year after approving a two-year operating budget, although smaller bills are often also approved alongside the operating budget.
Lawmakers last year approved a $156 million program. Two years ago lawmakers approved a $566 million bonding package after Dayton asked for $750 million. The state's $5.7 billion of general obligation bonds carry ratings in the high-double-A category.
