Walz Administration Announces Infrastructure and Bonding Package
Yesterday, Gov. Tim Walz released his proposed capital investment proposal in advance of the 2024 legislative session. The infrastructure package, commonly referred to as a “bonding bill” because of the state bonds used to finance the projects, would total $982 million with nearly half committed to fixing or rejuvenating existing state infrastructure. The proposal includes $830 million in general obligation (“G.O.”) bonds and $152 million from other funding sources.
The governor’s infrastructure package would allocate funds as follows:
Significant projects and funding totals by area or agency include:
Administration: Walz proposes a total of $12.3 million, including $5.8 million for Capitol Complex security upgrades.
Corrections: Walz proposes $81 million for asset preservation to repair and renew state correctional facilities, along with $46 million for the Rush City education and programming expansion for a total of $128 million in corrections spending.
Housing Finance: Walz proposes a total of $57 million for housing infrastructure bonds and public housing rehabilitation.
Human Services: Walz proposes $30 million for different projects within Human Services including: asset preservation, early childhood facilities, and updating the water and sewer infrastructure at the St. Peter Campus.
Metropolitan Council: Walz proposes $44.5 million to be spent on busway improvement, regional parks and trails, and reducing inflow and infiltration.
Minnesota State: Walz proposes $113 million for Higher Education Asset Preservation and Replacement Funding (HEAPR) and academic excellence renovation.
Minnesota Zoo: Although the zoo’s deferred maintenance need is $56 million, Walz proposes $4 million for asset preservation.
Natural Resources: Asset preservation is a major part of the request for natural resources with $71 million for renovations of DNR capital assets. Walz proposes a total request of $100.5 million for all project requests.
Pollution Control: Walz proposes $12 million for drinking water contamination mitigation and nitrate sensor installation and monitoring.
Public Facilities Authority: Walz proposes $109 million for several projects including the Lead Service Line Replacement Program, match for EPA federal funding, water infrastructure, Point Source Implementation grants, and the Emerging Contaminants Grant Program.
Public Safety: Walz proposes $74.5 million for public safety projects including: the expansion of the BCA Bemidji Regional Office and laboratory, a new State Patrol headquarters, and a new Southern Minnesota Bureau of Criminal Apprehension regional office in Mankato.
Transportation: Walz proposes a mix of Trunk Highway Cash and GO bonds for $77.65 million in transportation projects. A large piece of that would go toward high priority bridges, maintenance, expansion, and constriction of MnDOT-owned buildings across Minnesota.
University of Minnesota: Walz proposes $102.9 million for the Higher Education Asset Preservation and Replacement (HEAPR) program across UofM campuses.
Veterans Affairs: Walz proposes $28.8 million for asset preservation and the remodel of building 16 at the Minneapolis Veterans Home.
Water and Soil Resources Board: Walz proposes a $14.5 million to improve water quality and support replacing wetlands in Minnesota.
Capital Projects in Political Subdivisions (Local Projects): Walz proposes $40 million to support local projects.
Legislative Retirement Announcements Continue
With precinct caucuses scheduled for February 27, 2024, one week before Minnesota’s March 5, 2024 presidential primary, there continue to be a steady stream of legislative retirement announcements. In just the last week, a number of notable legislators announced their retirement, including former Speaker of the House Rep. Kurt Daudt (R-Crown), Rep. Pat Garofalo (R-Farmington) and Rep. Gene Pelowski (DFL-Winona). Rep. Pelowski will retire after 38 years of service, making him one of the state’s longest serving legislators.
While most legislators have announced their intent to retire at the end of their current term, Rep. Daudt resigned his seat effective February 11, 2024, triggering a special election later this spring. A complete list of legislators who have announced their retirement can be found here.
State Supreme Court Justices Announce Retirement
In the last week, two Minnesota Supreme Court Justices have announced their upcoming retirements. Justice G. Barry Anderson submitted his resignation letter last week, followed by Justice Margaret Chutich yesterday. Justice Anderson is the last remaining Republican appointee on the Court, having been appointed by Gov. Tim Pawlenty in 2024. His last day will be May 10, 2024. Justice Chutich has been on the Supreme Court since 2016 having been appointed by Gov. Mark Dayton. Her last day will be July 31. Gov. Walz will need to appoint two new justices in the coming months.
Good afternoon. The “Big Four” and appropriations leaders are meeting with President Biden this afternoon. The Senate overwhelmingly voted Tuesday night in favor of the first procedural move needed to avert a partial government shutdown at the end of this week. Tax writers report progress on a bicameral deal and debate how to move it to the floor.
Leaders Meet with Biden on Security Budget
Congressional leaders and key committee heads are headed to the White House today to discuss the national security supplemental package with President Joe Biden. The package has remained stalled over the lack of agreement on border and immigration policy measures. Speaker Mike Johnson, R-La., House Minority Leader Hakeem Jeffries, D-N.Y., Senate Majority Leader Charles E. Schumer, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., are expected to attend.
The top Republicans and Democrats on the Senate and House Appropriations Committees have also been invited, sources familiar with the meeting said. A bipartisan immigration agreement has exluded lawmakers for months, delaying consideration of a $110.5 billion plan that would direct aid to Ukraine, Israel, the Indo-Pacific and other priorities.
Congress Working on Stopgap, Facing Shutdown at Week’s End
Congress is back, with three days to avoid a partial government shutdown. The Senate took a procedural vote Tuesday on a vehicle (HR 2872) for a stopgap spending measure. The stopgap, released over the long weekend, would continue current spending rates for federal agencies through March 1 and March 8, keeping the same bifurcated deadline structure as the previous stopgap law. Under that law, authority for agencies covered by the Agriculture, Energy-Water, Military Construction-VA and Transportation-HUD bills otherwise expires after Jan. 19. The second deadline, for the agencies funded by the remaining eight fiscal 2024 appropriations bills, is Feb. 2.
The Senate overwhelmingly passed the bill last night. It will now go to the House, where Speaker Mike Johnson, R-La., had previously said he would not back another CR. But with no time left to implement that accord through detailed appropriations bills before the first deadline hits on Friday, Johnson changed his mind. “A short continuing resolution is required to complete what House Republicans are working hard to achieve: an end to governance by omnibus, meaningful policy wins, and better stewardship of American tax dollars,” he said in a statement Sunday night.
The far right of his conference was not happy. “This is what surrender looks like,” the Freedom Caucus said of the new continuing resolution. Johnson will need Democrats to support the bill. It’s been placed on the calendar under suspension of the rules, a process that avoids the need for a rule vote but requires a two-thirds majority for passage. The new funding deadlines, meanwhile, could force a change to the House schedule. The chamber is scheduled to be in recess for the two weeks leading up to March 1, which would be the first funding deadline under the new continuing resolution.
House Tax Writers Mulling Strategy for Moving Tentative Deal
Republicans on the House Ways and Means Committee are reporting progress on a tax agreement in the works between House and Senate panel leaders. The $70 billion proposal would revive a trio of business tax credits and expand the child tax credit if it comes to fruition. Ways and Means Chairman Jason Smith, R-Mo., and Senate Finance Chair Ron Wyden, D-Ore., are still working out the logistics of passing a potential deal as they aim to finish by Jan. 29 to avoid disrupting filing season.
They’ve not yet decided whether the House should go first, or whether the Senate should start by using a previously House-passed, revenue-generating bill as a vehicle, Ways and Means member Ron Estes, R-Kan., said, adding that looming government funding deadlines had complicated timing.
