Dayton proposes $1 billion investment to put Minnesotans back to work

Dayton called on the Legislature to act quickly on his proposed $1 billion Capital Investment Bill, saying he would like to see it passed “in the next few weeks.”

Usually, lawmakers take up bonding – in which the state borrows money to fund infrastructure projects and other public improvements – in even-numbered years. Throughout his campaign, however, Dayton pledged he would move up that timetable, providing the state’s economy – particularly the construction sector – with a much-needed shot in the arm.

“That’s a year’s difference in putting unemployed workers in Minnesota back to work,” Dayton said. “These are public bonds that create jobs in the private sector, which legislative leaders and I have identified as a priority.”

Union leaders praised Dayton for recognizing the urgent need to address the state’s jobs crisis.

Shar Knutson, president of the state’s largest labor federation, the Minnesota AFL-CIO, called bonding for infrastructure improvements “one of the best tools our state can use to create much-needed family sustaining private sector jobs.”

Harry Melander, president of the Minnesota Building and Construction Trades Council, said the bonding bill would improve the lives of thousands of construction workers and their families.

“We need these jobs; workers in the building trades have been hit hardest in this recession,” Melander said. “While the state’s overall unemployment rate is 7 percent, it’s more than 20 percent in the construction sector.”

“Today’s bonding bill will have a ripple effect of creating good jobs not only for the projects themselves, but for all the small businesses surrounding each project,” noted Jim Monroe, executive director of MAPE, the Minnesota Association of Professional Employees.

Surrounded by workers and students who support the measure, Dayton announced the bonding proposal in a news conference at the state Capitol. Minneapolis Labor Review photo

Republican response is negative
Dayton’s proposal dedicates roughly half of the $1 billion price tag to projects his administration has identified as “shovel-ready” priorities. As a gesture of goodwill, the DFL governor left it up to the Republican-controlled Legislature to determine how the state would spend the other half.

But in an immediate response to Dayton’s proposal, Republican leaders applied the breaks to any momentum building for an emergency bonding bill.

Geoff Michel, the GOP’s assistant majority leader in the Senate, said his party’s focus would remain on making $6 billion in public cuts to balance the state’s anticipated budget shortfall.

“This is not a bonding year; this is a budget year,” Michel said. “Taxpayers do not believe in government stimulus anymore.”

Republican House Majority Leader Matt Dean downplayed the need for state lawmakers to invest in projects that create construction jobs.

“There’s not a construction recession in Minnesota,” he said. “It’s a deep recession or depression, and what they need are private-sector jobs to get them going again.”

But an independent analysis by the Associated General Contractors of America proves a $1 billion bonding bill would, in fact, create private-sector jobs – at least 21,000 to 27,000 new jobs.

What’s more, by putting more Minnesotans to work, a bonding bill would boost state income tax revenues, helping to ease the budget crisis.

“This bill is a win-win for all Minnesotans,” Knutson said. “It creates a significant amount of private-sector jobs and makes our state more ‘livable’ by improving infrastructure, which is an important factor in attracting business.

“As jobs increase, the state’s revenue shortfall will decrease. We’re hopeful lawmakers will send a comprehensive jobs and infrastructure bill to Governor Dayton’s desk in the coming weeks.”

A map illustrates how the projects will be located in many communities across Minnesota. Minneapolis Labor Review photo

Projects slated across the state
Among the projects that made Dayton’s “shovel-ready” list: a new St. Paul Saints stadium. Dayton’s proposal would invest $20 million in transforming a vacant downtown lot into a ballpark, matching investments of $10 million by the team and the City of St. Paul.

St. Paul Mayor Chris Coleman said construction of a new ballpark would create 225 construction jobs and151 full-time and seasonal jobs, and generate $10 million of annual economic activity in the city’s burgeoning Lowertown district.

“In a time when it is crucial for cities to invest in our communities in order to create jobs and economic growth, we are excited to see such an incredible level of business and community support for this project,” Coleman said. “We now look forward to working with the Legislature for the final funding necessary to bring this project home.”

Rochester Mayor Ardell Brede said $34 million toward refurbishing the Mayo Civic Center would result in 400 construction jobs and another 800 permanent jobs at the convention center and in the hospitality industry. The project will enable the Civic Center to attract many more conferences and conventions from outside the state.

“It’s new money for the state of Minnesota,” Brede said.

Other projects included in the governor’s proposal include flood-mitigation work along the Red River, campus-improvement projects for both the University of Minnesota and the Minnesota State Colleges and Universities systems and improvements to several state parks.

“I’m satisfied that with this $531 million, we’ve covered a wide swath of the state,” Dayton said. “I can’t compel the Legislature to do anything more than it’s going to do, but … let’s have a discussion about what the benefits are to Minnesota.

“The bottom line is Minnesotans are out of work, waiting for this bill to put them back to work. That’s the point of this undertaking.”

Michael Moore edits The Union Advocate, the official publication of the St. Paul Regional Labor Federation. Learn more at www.stpaulunions.org