Policy paramount in capital investment bill that calls for $38.7 million from General Fund

One year after passing an historic $2.58 billion infrastructure package, including more than $1 billion paid with cash, lawmakers showed little appetite for another big bite from the General Fund apple this year.

Sponsored by Rep. Fue Lee (DFL-Mpls), HF5162, as amended, calls for $38.7 million in General Fund spending, with a little more than $23 million set aside for local requests under the heading of “Library Construction Grants.”

Other appropriations from the General Fund would include:

• $4.1 million to the Metropolitan Council for tree planting grants;
• $3.9 million for Department of Corrections asset preservation;
• $2 million to support early childhood facilities; and
• $1 million for improvements to the Capitol Mall.  

[MORE: View the spreadsheet; recap of the committee’s general-obligation bonding package]

Held over Monday by the House Capital Investment Committee, the bill also includes policy proposals that aim to explain state expectations for entities seeking state funds for their capital projects.

Among other things, it would clarify that the state share of a project includes any state grant or appropriation, not just money provided through a bonding bill. Nonstate contributions could come from any combination of federal, private or local dollars.

In a hearing earlier this month, Lee gave as an example a town using dollars from the Legislative-Citizen Commission on Minnesota Resources as a nonstate match for a bonding project.

“I want to make clear that we have a standard that there is a local share, and we as legislators when we craft our bill can then decide to allow exceptions,” he said.

A new program to give grants to communities with only one source of drinking water would be established. Priority would be given to poorer, smaller communities that plan to use the grant for a backup well.

Other provisions in the bill would:

• include debt capacity in a community’s capital budget request;
• clarify expectations and responsibilities around the state’s sustainable building guidelines which aim to encourage resilient design and energy-efficient buildings;
• establish dedicated revenue to improve accessibility to state buildings;
• require notice that a project has received state funding. This could be a logo on a water bill or a sign posted at a venue;
• set parameters for Metropolitan Council tree-planting grants to replace trees lost to pests, disease or storm; and
• require non-state funds to improve the Capitol Mall first be used to improve Cass Gilbert Memorial Park.

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What’s in the bill?

The following are selected bills that have been incorporated in part or in whole into the capital investment bill:

• HF3584 (Lee)
• HF5195 (Hussein)
• HF5287 (Lee)
• HF5312 (Reyer)
• HF5384 (Lee)