SENATE BONDS FOR A BILLION
02/29/08
The Senate released and passed their $1 billion
bonding bill out of the Capital Investment committee
on Tuesday night, narrowing the field from $3.5
billion in requests. The bill includes significant
funding for higher education institution and natural
resources improvements, along with $70 million for
the Central Corridor light rail project linking St.
Paul and Minneapolis. It is similar in size to the
Governor's bonding proposal, unveiled last month, but
shows different priorities.
The biggest hurdle for the bill may not be the content now that there is controversy over how big of a bill the latest budget forecast will support. In attempts at fiscal responsibility, the legislature has historically kept their bonding bill amounts under an informal cap of 3% of the state's biennial budget. When the Governor released his bill in January that amount was $965 million and the Senate bill is in that range. Governor Pawlenty is now saying with the downturn in the state's economic forecast, 3% of the budget is $885 million and since $65 million in bonds were included in the transportation package, the new bonding bill ceiling is $825 million. Senate Capital Investment Chair Keith Langseth (DFL-Glyndon) disagrees. Since the 3% number is a guideline, not a firm limit, and past bills (going back to at least 1994/1995) have always fallen under 3%, Langseth thinks when the economy is down it's time to get the most bang for your bonding buck.
He has been communicating with the Governor on the subject this week and said he intends to keep the Senate bill the way it is, despite possibly increasing its' chances of a veto. Although he has asked Pawlenty for a supplemental bonding proposal to get a clearer idea of the Governor's top priorities given the new economic landscape. It was reported today that the Governor has asked that event centers, with the exception of the Duluth DECC project, be removed from the bonding proposals but little is known at this time what else he will recommend.
The House will begin finalizing their bill on Monday, with the possibility of a House floor debate on Thursday. Langseth said he would be ready as early as Tuesday for Senate floor action.
The biggest hurdle for the bill may not be the content now that there is controversy over how big of a bill the latest budget forecast will support. In attempts at fiscal responsibility, the legislature has historically kept their bonding bill amounts under an informal cap of 3% of the state's biennial budget. When the Governor released his bill in January that amount was $965 million and the Senate bill is in that range. Governor Pawlenty is now saying with the downturn in the state's economic forecast, 3% of the budget is $885 million and since $65 million in bonds were included in the transportation package, the new bonding bill ceiling is $825 million. Senate Capital Investment Chair Keith Langseth (DFL-Glyndon) disagrees. Since the 3% number is a guideline, not a firm limit, and past bills (going back to at least 1994/1995) have always fallen under 3%, Langseth thinks when the economy is down it's time to get the most bang for your bonding buck.
He has been communicating with the Governor on the subject this week and said he intends to keep the Senate bill the way it is, despite possibly increasing its' chances of a veto. Although he has asked Pawlenty for a supplemental bonding proposal to get a clearer idea of the Governor's top priorities given the new economic landscape. It was reported today that the Governor has asked that event centers, with the exception of the Duluth DECC project, be removed from the bonding proposals but little is known at this time what else he will recommend.
The House will begin finalizing their bill on Monday, with the possibility of a House floor debate on Thursday. Langseth said he would be ready as early as Tuesday for Senate floor action.