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Governor Dayton Urges Republican Legislators to Release Public Works Proposals, Invest in Better Infrastructure this Session

4/30/2018 12:04:22 PM

With less than three weeks remaining in Session, Republican Legislative Leaders still have not released plans to support local infrastructure and good jobs

Governor Dayton’s Public Works proposal, released three-and-a-half months ago, would create an estimated 22,950 Minnesota jobs, while building more than 218 projects across the state

Governor Dayton’s Public Works proposal would invest in world class colleges and universities, improve and repair state buildings and other critical infrastructure statewide

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 called on Republican Legislative Leaders to release their proposed Public Works bills. Governor Dayton released his Public Works bill three-and-a-half months ago, which would invest in 218 infrastructure projects around the state to create an estimated 22,950* jobs. But with less than three weeks remaining in the Legislative Session, Republican Legislative Leaders still have not released their proposals. This needless delay leaves community leaders in the dark about whether their projects will be funded this year, and makes it more difficult for the Minnesota House of Representatives, the Minnesota Senate, and the Governor to come to agreement on a final Public Works bill.

“Since 2011, we have made many important investments in Minnesota’s aging classrooms, buildings, and other critical infrastructure,” said Governor Dayton. “Years of underinvestment have shortchanged our economy, clean water infrastructure, higher education institutions, and the vitality of our communities. Now is the time to make substantial investments in our state’s future. I urge Legislative Leaders to release their Public Works proposals immediately, so that we may work together to build better infrastructure for a strong and growing economy.”

While the Republican Majorities in the House and Senate have not yet released their public works proposals, House Republicans have indicated that they plan to limit their bill to a total of $825 million. The sooner they release their bill, the sooner Minnesota communities can know which of their important projects have been needlessly cut to meet this arbitrary, low investment target. Many of the infrastructure investments included in the Governor’s Public Works bill have already been delayed for years due to insufficient past investments by the Legislature.

“Investment in state buildings and other critical infrastructure has not kept pace with the growing need,” said Minnesota Management and Budget Commissioner Myron Frans. “Under Governor Mark Dayton’s leadership, Minnesota has earned some of the highest credit ratings in the nation. As a result, we refinanced our debt, saving taxpayers $300 million, while also making investments in vital public works projects across the state. Governor Dayton’s Public Works bill is well within the state’s available bonding capacity, and would reduce a backlog of deferred maintenance before the costs of these urgently-needed projects escalate further.”

Now is the time to make investments in our state’s future. Minnesota Management and Budget (MMB) announced last week that they have saved $300 million since 2011 through bond refinancing. By refinancing state debt at the right time and taking advantage of low interest rates, Minnesota is responsibly managing debt and saving taxpayer money. 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. 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. 

Governor Dayton’s Public Works proposal 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. The Governor’s proposal would invest $541 million at the University of Minnesota and Minnesota State campuses. An additional $996 million would be directed to improving state buildings, building affordable housing, repairing clean water infrastructure, and other infrastructure projects across Minnesota.  

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.

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. 

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.

·         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. 

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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