A $982 million infrastructure package proposed Tuesday by Gov. Tim Walz includes significant borrowing for projects across the state — including local projects and a new State Patrol headquarters — though there’s much less to go around this year than in 2023.

If the Legislature approves the governor’s proposal as it is, the amount of money available for Minnesota agencies and local governments will be much lower than the $2.6 billion lawmakers approved last year. That amount included $1.5 billion in borrowing and $1.1 billion in cash. The additional spending was aided by a historic $17.5 billion surplus.

This year, Walz is calling for about $830 million in borrowing, the state’s current borrowing capacity, and about $152 million in spending from other sources.

Requests for funding

As is typical, requests for funding are significantly greater than the amount lawmakers realistically will approve. Lawmakers have already received about $7.2 billion in requests for projects across the state, according to the office of Sen. Sandy Pappas, DFL-St. Paul, the chair of the capital investment committee.

On a Tuesday bonding tour in Dakota County, Pappas warned that money would be tight this year — particularly for nonprofits seeking a hand from the state. State bonding dollars rarely flowed to nonprofits before 2020, she said, and they were buoyed by the state surplus last year. That won’t be the case this year.

Walz and his fellow Democrats have considerable control over the agenda at the Capitol, though they’ll need Republican votes for a bonding bill. Republicans may be in the minority in both the Senate and House, but borrowing bills require a three-fifths majority to pass.

The Legislature typically passes bonding bills in even-numbered years, though didn’t do so for two years before last year’s $2.6 billion bill.

What’s in the bill?

During last year’s session, Walz and the Democratic-Farmer-Labor majorities in control of state government passed significant legislation, including a new $72 billion two-year budget. The scope of this year’s session likely will be narrower.

“This is a year to focus on implementing the things that we did last year,” Walz said at a Tuesday Capitol news conference announcing his bonding goals.

About 45%, or $440 million, of this year’s proposal is dedicated to upkeep projects aimed at preserving existing state infrastructure, with more than $200 million going toward repairs and renovations at public universities and colleges. Minnesota Management and Budget Commissioner Erin Campbell said there’s about $6.2 billion in deferred maintenance the state needs to catch up on.

Public safety gets about 14%, or $142 million. Of that, nearly $48 million would go toward a crime lab and regional office in Mankato for the Minnesota Bureau of Criminal Apprehension. And, $22.4 million would go toward the construction of a metro-area headquarters for the Minnesota State Patrol.

Other areas include:

• 22% for water and transportation infrastructure.

• 10% for housing and environment.

• 9% for “other” expenses, including local projects.

Local government projects

Around $40 million is set aside for local government projects, like road work, bridges and wastewater-treatment plants.

Those projects are not specifically named, though projects from different districts will be named while lawmakers craft the bonding bill.

Sen. Karin Housley, R-Stillwater, the minority lead on the Senate Capital Investment Committee, said she’s still assessing priorities for this year’s bonding bill, but said there should be more money available for projects like wastewater-treatment plants.

The Legislature reconvenes on Feb. 12.

Frederick Melo contributed to this report. 

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