The best time to invest in state-owned infrastructure was two years ago, when Congress failed to pass a bond bill.
At that time, interest rates were low and construction costs were low. Both are now soaring.
The cost will be even higher if Congress fails to agree on the bill again this year. And we must learn the lessons of past inaction and pass a small but still essential bond bill.
About half of the $989 million plan proposed by Gov. Tim Walz in January would go toward strengthening state assets such as university buildings and prisons and consolidating State Patrol operations in one location. The plan also would provide $48 million for a new laboratory for the Bureau of Criminal Enforcement in Mankato.
Much of the funding will address deferred maintenance of public buildings that should have been addressed years ago. Walz and Minnesota Management and Budget Commissioner Erin Campbell said the investment in state buildings is necessary to maintain the state’s triple-A bond rating.
Rating agencies are not interested in politics. When a building deteriorates, its value decreases.
The Walz proposal also allocates about $215 million for water and transportation projects, including efforts to eliminate PFAs in drinking water across the state. And while nearly $1 billion in investment in housing last year met some of the need, Walz said he is investing an additional $45 million in housing to build apartment complexes for people facing homelessness. He proposed infrastructure bonds.
Lawmakers have not yet released a bonding proposal, but any bill would need to be introduced on a bipartisan basis, as bonding requires a three-fifths majority to pass. So far, Republicans appear to support things like more investment in local communities and upgrading water treatment plants.
The reality is a $1 billion annual investment needed to strengthen our state’s buildings, clean our water, and keep our streets safe. Even considering last year’s $2.6 billion in bond costs related to recovering from years of neglect. About $1.1 billion of last year’s bill was surplus cash. This year’s bond capacity is about $830 million, leaving about $150 million from the state’s $2.4 billion surplus.
We urge Republicans and Democrats to pass a strong bond bill that includes many of Walz’s projects. Each year that a bond bill is not passed costs taxpayers in the long run and further delays projects.
