Labor praises Legislature for passing bonding bill

"It was great to see legislators from both parties working together to help all Minnesotans make it through this recession," Waldron said. "Our economy needs a boost, working folks need jobs — and our legislators have passed a strong bonding bill to address both issues. It is a good bill, and I urge the governor to sign it."

The $1.09 billion capital investment bill was passed 90-42 by the House and 57-10 by the Senate. It now goes to Governor Tim Pawlenty. The legislation totals about $100 million more than the governor\’s proposal and does not adhere to a marker traditionally used to establish a bond spending limit.

Included are funding for University of Minnesota and Minnesota State Colleges and Universities system projects, transit corridors, parks and trails, new public safety facilities, hockey rinks and grants for local projects. Coming in at $925 million in general obligation bond spending, the bill reflects a compromise between the House and Senate.

The traditional indicator used to determine the size of a bonding bill came under heavy scrutiny. Since about 1979, 3 percent of General Fund spending has been the target for general obligation bonding. The governor has said that a bill beyond that threshold would not make it past his veto pen. He can veto the entire proposal or line-item veto to bring the bill to his accepted level.

House and Senate DFLers question the use of that indicator. Some are advocating for one used by several states that is based off a percent of personal income. They also say that the sale of bonds can be staged in such a way that spending will not exceed 3 percent in any given year.

Waldron said Minnesota\’s unions strongly support several key elements in the bill, including:

• Biomedical Research Authority,
• Central Corridor Light Rail line,
• St. Cloud Hockey Arena renovations
• Duluth Entertainment and Convention Center,
• Higher Education Asset Preservation and Replacement (HEAPR) for the University of Minnesota and Minnesota State Colleges and Universities (MNSCU),
• Union Depot (St. Paul).

This article includes information from the Minnesota AFL-CIO and Session Weekly, a publication of the Minnesota House.

Comments are closed.