Bonding committee unveils $980 million capital investment proposal

Money for asset preservation, infrastructure projects and public housing are included in a $980 million capital investment proposal.

The House Capital Investment Committee heard a walk-through of HF5220, as amended, but took no action Monday. Public testimony is scheduled Tuesday before a committee vote Wednesday.

The package is close to the $982.5 million proposal put forth by Gov. Tim Walz but far short of fulfilling the nearly $7.6 billion in requests from state and local agencies.

Minnesota Management and Budget Commissioner Erin Campbell reported to the committee in February that direct infrastructure funding requests from local governments went from $1.45 billion in 2022 to $2.92 billion in 2024 — a 102% increase.

Rep. Fue Lee (DFL-Mpls), the bill sponsor, said the proposal might represent a small dent compared to capital investment needs, but it is consistent with what the administration has proposed for maintaining state assets. The Legislature’s main responsibility when it comes to bonding, he said, is to take care of state property.

At $256.9 million, asset preservation represents about 25% of the proposed spending. This would include $64 million each for the University of Minnesota and the Minnesota State system as well as $9.23 million at the National Sports Center in Blaine.

[MORE: View the spreadsheet]

There is $302.7 million set aside for local projects in the bill under the heading of “Library Construction Grants.” Projects are yet to be finalized; however, about half the money would go to projects proposed by Republicans.

Project funding

The bill would provide $114.02 million for the Department of Corrections, where crumbling infrastructure has created crisis conditions according to the department ombudsperson. This would include $60 million for asset preservation, $46.59 million to expand programming at the Rush City facility and $7.44 million to expand treatment and program space at Lino Lakes. There are about 2,000 people incarcerated at those facilities.

The bill also calls for $57 million to the Public Facilities Authority, of which $39 million is a state match to acquire federal funds for clean water purposes, and $10 million would be targeted at a grant program to mitigate the impact of contaminants such as manganese and a group of chemicals known as PFAS. Walz had requested $109 million for the agency.

Other proposed appropriations include:

• $65.5 million for the Department of Natural Resources, including $30 million for its Betterment of Buildings program;
• $48 million to construct a Bureau of Criminal Apprehension office and lab in Mankato. An administration proposal for $22 million to design and acquire land for a new state patrol headquarters building is not included;
• $45.7 million from a combination of general-obligation bonding and trunk highway bonds for major local bridge replacement and port development;
• $32 million to rehabilitate public housing;
• $31 million to the Metropolitan Council, with nearly half going toward inflow and infiltration projects;
• $28.86 million to the Department of Veterans Affairs, including $16.05 million to renovate a building at the Minneapolis veterans home and $12.8 million for asset preservation;
• $20.27 million to the Department of Human Services including $12.26 million for asset preservation and $8 million to construct early childhood centers;
• $15 million to construct a new animal hospital at the Minnesota Zoo;
• $12 million to the Pollution Control Agency, with $4 million earmarked for drinking water contamination mitigation; and
• $9.9 million to the Board of Water and Soil Resources, including $6 million for the Reinvest in Minnesota Reserve program that encourages landowners to retire environmentally sensitive land from agricultural production.