Will Minnesota get a bonding bill in 2024? It’s all in the politics
There’s an aging wastewater treatment plant in Albert Lea in dire need of an estimated $80 million in upgrades. Without some help from the state, city officials say that project simply won’t be possible.
From fire stations to health centers, countless projects in cities across the state are hoping to be included in the bonding bill. This year, around $7.6 billion was requested in funds for bonding projects — $4.7 billion from state facilities and grant programs and $2.9 billion from local governments. But the bill, if it passes, won’t be anywhere near that number.
Will local governments get funding for these important projects? That’s up to Republican and DFL legislative leaders who have four days to agree on an amount to go into the bonding bill and how those funds will be split across the projects.
What’s a bonding bill?
Bonding bills authorize state government to borrow to pay for construction projects like college buildings, roads and bridges, public works and local projects for cities and counties. The money comes through the sale of general obligation bonds that eventually need to be repaid. Because the state is taking on debt, the passage of a bonding bill requires a three-fifths majority, or 60% vote in the House and Senate to pass.
In the Senate, there are 34 DFL members and 33 GOP members, meaning seven Republicans would have to join DFLers in supporting a bonding bill. In the House, Democrats also have the majority 70-64, so they would need to find 11 Republican yes votes.
Why is there no deal yet?
Because of the negotiating power of the bonding bill, it’s often one of the last pieces to come together. Last year, lawmakers passed a $2.58 billion package of infrastructure projects, but that was after a near three-year period without any bonding bills because the government couldn’t agree on infrastructure legislation. Last year’s deal came about in the last weekend of the legislative session and involved $300 million in aid to struggling nursing homes that the GOP wanted.
This year, negotiations became icier after the April 22 burglary arrest of DFL Sen. Nicole Mitchell, with GOP senators calling for her resignation. While Mitchell was removed from committees, she is still participating in Senate floor action as the DFL’s tie-breaking vote.
Still, both sides are still talking about a bonding bill, with a first offer from the GOP sent at the end of April. Their second offer is similar to the third offer given on Tuesday.
What does the latest offer from the GOP say?
GOP lawmakers proposed a bonding package of $860 million in general obligation funds and $30 million in cash.
The offer had specific terms, like giving $125 million of those funds to each party, with a strong preference for heavy infrastructure, and less going toward community center/fire hall-type projects. The offer also asked for $14 million from the capital investment budget to be spent on emergency medical services, totaling $30 million for EMS (which includes $16 million the governor proposed for EMS in his supplemental budget request).
Other terms included stopping the legislation that aims to get an Equal Rights Amendment in the constitution, getting rid of proposed legislation to expand the Minnesota public health option to more individuals and increasing penalties for straw gun purchases, among other things.
How did DFL leaders react to the GOP’s bonding proposal?
DFL House Speaker Melissa Hortman and Senate Majority Leader Erin Murphy responded to those terms in a press release, saying that bonding and EMS have been a priority “for all four caucuses and the Governor, and an agreement on both those issues is within reach.”
“Earlier today, Leaders Demuth and Johnson indicated they would provide the handful of votes needed to pass a capital investment bill in exchange for two simple things: total control of the legislative agenda and the return of partisan gridlock. Neither is acceptable,” the DFL leaders wrote.
How are other lawmakers reacting to the situation?
In the fall, DFL and GOP members went on what they call a “bonding tour” where they spent 14 days traveling the state and seeing the needs of local communities, which some say were exacerbated by the prior legislative years where bonding did not pass.
“As we went on the bonding tour … we saw the needs across the state and quite honestly we saw the harm that had been done to communities, especially with those with wastewater treatment issues, by not having a bonding bill,” said Rep. Mary Franson, R-Alexandria, at the joint meeting of the House and Senate Capital Investment Committees on Tuesday. “The needs are real and if we are not reaching those needs, you know what happens? It becomes more expensive the next bonding bill.”
Although that was months ago, progress on this bonding bill has stalled, and legislative leaders have yet to settle on a dollar amount for the bonding bill.
Despite that, on Tuesday, the DFL brought forward a plan for how to use bonding funds for local projects, with the assumption that $330 million would go toward local projects and $600 million would be for state agencies.
But Republican leaders weren’t in the mood to talk about the details without a broader deal.
“This is a dog and pony show that’s being put on to make sure that our members are feeling the pressure on that. The reality is if we can get a global number … then it will take a very short time to get that capital investment bill together and passed off the floor,” said Senate Minority Leader Mark Johnson, R-East Grand Forks, at a press conference on Tuesday.
State Rep. Roger Skraba, R-Ely, said that he thinks the Democrats have dragged their feet on giving Republicans some of what they’ve been asking for in these negotiations — and as a result, this bill will be drawn out until Sunday.
“The only power that the Republican Party has right now is to negotiate a bonding bill,” Skraba said on Tuesday at the joint committee meeting. “This is our negotiating tool. What is it worth to the Democrats to give us something? Last night I listened to an election bill that just makes no sense to me. And I had to sit and listen to it and I knew … it was going to pass, I’m like, ‘Is there some way we can stop this?’ Yeah, right here. This bonding bill. You guys want bonding? Then give us something.”
DFLers at the meeting responded to GOP concerns, urging the need for an infrastructure bill to pass this year.
“The bill last year was a catch-up bill and if we fail to do anything this year, I think that means that in future years coming before us as we look at the forecast that’s put in front of us, it’s going to be a little bit more difficult for us to chip away at these,” said Rep. Fue Lee, DFL-Minneapolis, who chairs the House Capital Investment Committee.
DFL leadership said they have tried to consult with GOP members on these allocations. In the committee meeting Tuesday, DFL Sen. Sandra Pappas of St. Paul who chairs the Senate Capital Investment Committee said that Republican Sen. Karin Housley of Stillwater had been invited to several meetings on bonding, which she did not attend.
“Staff does have all of our projects. But we are not disclosing them because again, we don’t have an agreed-upon deal. Republicans are a little wary to show … what their projects are,” Housley said at Tuesday’s meeting. “We’re not going to disclose our projects right here when we don’t have an agreed-upon deal.”