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Governor Dayton’s Public Works Proposal Would Create an Estimated 22,950 Jobs

1/16/2018 10:10:38 AM

Governor Dayton’s public works proposal would invest in world class colleges and universities, improve and repair state buildings and other critical infrastructure statewide
Governor Dayton’s public works proposal would build more than 218 projects across the state, creating thousands of new Minnesota jobs
Minnesota communities have requested $858 million in additional investments in local infrastructure projects, demonstrating need for significant bonding bill this session
ST. PAUL, MN – Governor Mark Dayton today introduced a $1.5 billion public works proposal that would make urgently-needed investments to build world-class colleges and universities for Minnesotans, and improve and repair state buildings and other critical infrastructure across the state. Given the significant need for investments in higher education institutions statewide, Governor Dayton’s proposal would invest $542 million at the University of Minnesota and Minnesota State campuses. An additional $998 million would be directed to improving state buildings, building affordable housing, repairing clean water infrastructure, and other infrastructure projects across Minnesota.
Governor Dayton’s public works proposal would create an estimated 22,950 jobs* and support statewide economic growth. Thanks to the Governor’s sound fiscal management, the State of Minnesota has a triple-A bond rating and over $3.5 billion in bonding capacity this year. Governor Dayton’s public works proposal would remain well within these limits – protecting the state’s financial standing, while making critical investments in our economy and our future. The Governor’s proposal is designed to make state resources go further, by leveraging more than $570 million in private, local, and federal investment in Minnesota’s infrastructure.
“Since 2011, we have made many important investments in Minnesota’s aging classrooms, buildings, and other critical infrastructure,” said Governor Dayton. “But those investments have not kept pace with the enormous need for infrastructure improvements across Minnesota. Years of underinvestment have shortchanged our economy, our higher education institutions, and the vitality of our communities.
“Now is the time to make substantial investments in our state’s future. My public works proposal would make significant, needed investments to provide world-class educations for our students, guarantee clean, affordable water for more of our communities, and ensure our state has the infrastructure necessary to grow and compete in the modern economy.”
Governor Dayton’s public works proposal prioritizes strategic investments in higher education, would improve and maintain state buildings and other infrastructure, build more affordable housing, and deliver clean, reliable, affordable drinking water for Minnesotans. These urgently-needed investments also would protect the state’s long-term fiscal health. Approximately 50 percent of state and higher education buildings are currently in “fair” or worse condition. It costs an average of 70 percent more to repair a structure in “poor” condition than maintain a building in “fair” condition.
“Investment in state buildings and other critical infrastructure has not kept pace with the growing need. It would cost an estimated $8 billion over the next decade simply to restore and maintain our current state and higher education infrastructure,” said Minnesota Management and Budget Commissioner Myron Frans. “Governor Dayton’s $1.5 billion public works bill remains well within the state’s $3.5 billion in available bonding capacity. The Governor’s proposal is a smart investment in Minnesota’s future – reducing a backlog of deferred maintenance before the costs of these urgently-needed projects escalate further.”
To see a full list of the public works projects included in Governor Dayton’s proposal, listed by county, CLICK HERE. For full descriptions of all of the projects included in the bill, CLICK HERE.
A Note about Local Projects
In addition to the public works projects proposed by Governor Dayton, communities across Minnesota have submitted proposals for $858 million in other urgently-needed local bonding projects – demonstrating the significant need for substantial infrastructure investments in the upcoming legislative session. Though not part of his public works bill, the Governor believes these projects merit state investments, and he looks forward to working with the Legislature to include many of them in a final bill during the 2018 Legislative Session. To view a full list of these local project proposals, CLICK HERE.
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Investing in World Class Colleges and Universities
Minnesota’s public colleges and universities are training the next generation of Minnesota workers for good jobs and bright futures, while supporting economic opportunity for communities all across our state. This year, Governor Dayton’s public works proposal would invest $542 million in public higher education classrooms and facilities statewide. These investments would help ensure that all Minnesotans can access a world-class education no matter where they live. To learn more about how Governor Dayton’s 2018 public works proposal invests in world class colleges and universities, CLICK HERE.
·         Investing $299 Million in the University of Minnesota – The University of Minnesota is our state’s flagship higher education institution. Nearly 68,000 of students attend classes on the school’s five campuses each year. In addition, the university anchors Minnesota’s economy by developing innovations that create economic opportunity in every corner of the state. Governor Dayton’s public works proposal would invest $299 million in projects across all five of the University of Minnesota’s campuses. This funding includes $250 million to maintain and preserve existing infrastructure through projects such as roof repairs, heating and cooling system replacement, and electrical equipment upgrades.
“The University of Minnesota, with five campuses, extension offices and research centers around the state, adds significant educational, cultural and economic value to communities in every corner of Minnesota,” said University of Minnesota President Eric Kaler. “Governor Dayton’s public works proposal supports improvements on our campuses, helping to reduce a backlog in deferred building maintenance, while making strategic investments to renew facilities. We look forward to working with legislative leaders during the 2018 session to secure support for these projects, which will benefit all Minnesotans.”
·         Investing $243 Million in the Minnesota State System – Minnesota State is the fourth-largest system of state colleges and universities in the nation with 30 colleges, 7 universities, and 54 campuses. They annually serve more than 375,000 students in every corner of Minnesota. This year, Governor Dayton’s public works proposal includes $243 million for urgently-needed classroom and facility improvement projects at Minnesota State campuses around the state, including $180 million to maintain existing infrastructure. These infrastructure investments are essential to deliver world-class education for all Minnesotans.
“With 54 campuses in 47 communities across the state, Minnesota State is educating our next generation of workers and leaders – preparing our 375,000 students for a wide spectrum of careers to be the talent Minnesota needs,” said Minnesota State Chancellor Devinder Malhotra. “The public works bill proposed by Governor Dayton would modernize aging infrastructure and expand in-demand programs at campuses around the state. We urge the Legislature to invest in these projects and the students whose academic success the projects will support.”
Improving and Repairing State Buildings and Other Critical Infrastructure
Delaying needed maintenance projects, even small ones, can have a damaging impact on the state’s long-term finances. Costs only increase as older buildings deteriorate further, while new items are added to the growing list of deferred repair and improvement projects. Governor Dayton’s public works proposal would begin to reverse the underinvestment in basic state infrastructure. The Governor’s proposal would invest $998 million to improve and repair state buildings and other critical infrastructure, helping to reduce needed deferred maintenance at aging facilities across the state.
·         Maintaining, Restoring, and Improving State Facilities – Instead of letting problems build, any home or car owner can tell you that basic preventative care will save you money in the long-run. Governor Dayton’s 2018 public works proposal applies that same commonsense approach to state building assets – by investing $458 million in the restoration and maintenance of current state facilities. Improving infrastructure before it deteriorates will save taxpayer money and protect state assets for future generations of Minnesota to use. The Governor’s proposal invests in projects including state laboratory improvements, psychiatric hospital renovations, and mechanical system replacement at buildings all across Minnesota. To learn more about how Governor Dayton’s 2018 public works proposal would improve and repair state buildings and other infrastructure, CLICK HERE.
·         Investing in Clean, Affordable Water for Minnesotans – All Minnesotans have a stake in water that is safe for drinking, swimming, and fishing. To ensure Minnesotans have access to clean, reliable, affordable water, Governor Dayton’s 2018 public works proposal would invest $167 million to modernize Minnesota’s aging clean water infrastructure, support farmers as they make water-quality improvements, and protect groundwater from contamination. To learn more about how Governor Dayton’s 2018 public works proposal invests in clean, affordable water, CLICK HERE.
·         Ensuring Access to Safe, Affordable Housing – More than 554,000 Minnesota households spend at least 30 percent of their income on rent or mortgage payments. With Minnesotans spending a higher percentage of their incomes on housing, they have fewer resources for other essentials such as education, food, healthcare, and transportation. Governor Dayton’s public works proposal would invest $115 million to improve access to safe, affordable housing, and ensure public housing remains safe and healthy for its residents. These investments will build upon the work the Dayton Administration has done since 2011 to expand access to affordable housing, and support the work of the new Governor’s Task Force on Housing. To learn more about Governor Dayton’s 2018 public works proposal invests in strong communities and economies, CLICK HERE.
* In 2015, the Bureau of Economic Analysis at the U.S. Department of Commerce released a modified economic model to replace the original Regional Input-Output Modeling System (RIMS), which was produced in 2007. RIMS is used to gauge the impact of a change in economic activity on a local community or a particular region of the country. The 2015 updated model estimates that for every $1 million in construction project spending in Minnesota approximately 15.3 jobs are generated. The jobs number estimate cited in this news release is based on this analysis.
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