MN Senate 2014 Capital Investment Bill: A Balanced Approach
Business and Economic
Development: Investing in Minnesota communities and getting people back to work are the highest priorities in the Senates bonding bill. Housing and Infrastructure: Afordable and available housing is a cornerstone of strong economic development and a strong middle class. Businesses all over the state Te Senate bill takes advantage of $846 million in General Obligation (GO) bonds and $200 million in cash. * Senate Bonding Priorities
B u s in e ss & Econom ic D e v e l o p m e n t
H i g h e r
E d u c a i o n
T a n s p o r t a t i o n C o r r e c t i o n s
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I n f r a s t r u c t u r e are eager to hire new workers and yet the lack of housing is limiting this growth. More housing means more jobs and a better economy for us all, Higher Education: Investing in higher education is always a priority in state bonding bills. Tis year is no diferent. Higher education bonding projects provide essential learning space to meet Minnesotas future workforce needs by supporting the growing demand for allied health practitioners, engineers, scientists, and other emerging professions. Corrections and Public Safety: Te senates bonding bill includes projects that fortify and modernize our correction systems making for a safer environment for community members, employees and those incarcerated. Transportation: Given that three quarters of Minnesotas publicly owned land is made up of roads, maintaining these thoroughfares and securing the safety of our bridges is an obligation of the state. * $846 million in GO bonds, $198.7 million cash, $42.6 million in MNSCU user-fnanced bonds, $7.95 million from the transportation fund. Also authorizes MHFA to issue $70 million in housing infrastructure bonds. ROADS 1 $411 million in Business & Economic Development* Creating Tousands of Jobs Across the State Supporting Minnesotas businesses by investing in projects and grant programs that will give the state economy a boost is a signifcant investment in the Senate bonding bill. Current programs through the states Department of Employment and Economic Development show proven results with dozens of announced business expansion projects in just the frst quarter of this year. We know that by investing in projects that help build up communities we are helping not just the people living there, but the entire state as a whole. Investing in projects to build up Minnesota means we stay ahead of the competition and are better able to attract top talent to keep our state a great place to live for future generations. *Includes MN Historical Society, Natural Resources, MN Zoo, Capitol restoration, Amateur Sports Commission, non-transportation related Met Council projects, & employment & economic development projects. * *According to a study by Dr. Stephen Fuller, Faculty Chair and Director of the Center for Regional Analysis at George Mason University. (Statistics provided by Department of Employment and Economic Development (DEED). Who does the bonding bill help?** An additional $1 billion of bonding investments supports or creates: 28,500 Good Paying Jobs Adds $3.4 BILLION to the GDP And $1.1 billion to personal Income Balanced Statewide Projects Include: Business Development Public Infrastructure $4 million Regional and Suburban Parks (12 projects) $47 million Civic Centers in Mankato, Rochester and St. Cloud $60 million Grand Rapids Reif Center $3.897 million St. Paul Minnesota Childrens Museum $14 million Minnesota Zoo (three projects) $10 million Capitol Renovations $126.3 million Amateur Sports Commission (two projects) $5.8 million Talking Points: Last session, we invested more than $30 million to the Minnesota Investment Fund (MIF) to bring large and small new businesses to Minnesota, help existing businesses expand and create thousands of new jobs. It will leverage an estimated $990 million in private investments for Minnesota. Tis years bonding bill will continue this trend of investing in Minnesotas businesses because creating more jobs will strengthen our long- term stability. Te Minnesota Job Creation Fund provides a statewide performance based incentive program to create thousands of jobs and leverage millions in private investment. Last session, we invested $24 million in this important program. Te cornerstone of the 2014 bonding bill builds on our previous business and job creation investments. Minnesota companies announced plans in the frst quarter for 31 expansion projects that will create nearly 1,800 jobs in Minnesota, according to the latest business expansion report from the Minnesota Department of Employment and Economic Development (DEED). We know investment in economic development works; Minneapolis- St. Paul ranks 12th among 363 metropolitan areas nationwide in economic strength. Investment in business and economic development has proven results: Between 2002 and 2006, Minnesota registered 2,333 patents in medical devices, ranking second among all states. 2 $298 million in Higher Education $123 in Corrections, Public Safety & Human Services Protecting our Citizens Ensuring that Minnesota citizens enjoy a safe and productive standard of living is a major priority in the senates bonding bill. Tis includes the roughly 3,000 prisoners currently residing in Minnesotas correction facilities. Te Senates bonding bill includes projects that fortify and modernize our correction systems making for a safer environment for community members, employees and those incarcerated. Balanced Statewide Projects Include: Minnesota Security Hospital in St. Peter $56.3 million and the Sex Ofender Program (MSOP) an Additional $7.4 million Security Improvements at Shakopee and St. Cloud Correctional Facilities $23.3 million Corrections and Human Services Facilities Preservation $10 million Talking Points: Improvements at Minnesota Correctional Facilities enhance safety and security for the community and inmates, as well as rectifes more than ten years of budget cuts and delayed maintenance. Money going towards the Minnesota Security Hospital and the Minnesota Sex Ofender Program will help make sure patients will be able to receive the treatment they need in environment that is safe for them as well as the staf. $127 million in Housing & Infrastructure Strengthening our Communities Afordable and available housing is a cornerstone of strong economic development; it also goes hand-in-hand with the Public Facilities Authority. Our investment of $47 million into waste water facilities, sewers and water mains ensures these invisible engines will continue helping cities operate on a day-to-day basis. An $80 million appropriation to Minnesotas Housing Authority will help reduce chronic homelessness, it will help communities recover from foreclosure and it can preserve federally assisted Section 8 housing units throughout the state. Balanced Statewide Projects Include: Minnesota Housing Authority $80 million Wastewater Infrastructure fund $20 million Koochiching County Rainy and Crain Lake Voyagers Sewer Projects $8.567 million Talking Points: Cities and towns across Minnesota are facing housing shortages that is slowing economic growth. Tere is a gap between afordable housing for these workers and the housing stock available; housing bonds can help kickstart economic development and help these communities grow. Currently, workers in areas with low housing stock face out-of-reach expenses, long commutes and a small inventory of options that will suit the needs of their families. By increasing the number of afordable housing options, companies in cities across the state will have the opportunity to prosper leading to greater economic development, more jobs and more money fowing into the states economy. Te states foreclosure crisis has forced many Minnesotans into homelessness, the number of homeless Minnesotans has increased more than 30% since 2006 to more than 14,000. Housing bonds will help communities across the state increase their housing stock and help build afordable housing. 3 Investments in college and university infrastructure are critical to providing students the learning environments and equipment necessary to prepare them for the careers that will keep Minnesota prosperous. Balanced Statewide Projects Include: Metro State University Science Education Center $35.8 million Bemidji State University $13.7 million Northland College Aviation Maintenance $5.8 million University of Mankato $25.8 million U of M- Twin Cities; Tate Science and Teaching $56.7 million Talking Points: 100% of MnSCUs bonding request is for projects that directly beneft students and the quality of their education. Te funding will create jobs in local communities for carpenters, electrical workers, equipment operators, technicians involved with heating, ventilation and air conditioning, mechanical systems and plumbing, roofers and interior fnishers. Te U of M is connected to one out of every 43 jobs in Minnesota. $168 million in Transportation & Transit Funding Safer Roads and Bridges Given that three quarters of Minnesotas publicly owned land is made up of roads, maintaining these thoroughfares and securing the safety of our bridges is a top priority in the bonding bill. Funding transportation projects is an example of how bonding afects all corners of the state. Using a combination of general fund money and general obligation bonds the Minnesota Senate Bonding Bill makes a $154 million investment into roads and bridges across the state. Balanced Statewide Projects Include: Virginia U.S. Hwy. 53 relocation $19.5 million Ramsey County TCAAP Redevelopment $22 million Red Wing Levee Road $1.5 million Greater Minnesota Transit $1 million Gateway Corridor Transitway $3 million Talking Points: Minnesota has the ffh-largest highway system in the nation with 140,000 miles of roads. More than half of those miles and 35% of the states bridges are more than 50 years old. Minnesotans expect and deserve the highest quality infrastructure. Tis bonding bill is investing millions of dollars in modernizing and maintaining our critical infrastructure, while increasing economic opportunity and providing more equitable options for its citizens. Te investments in critical economic corridors will support Minnesotas growing economy, providing our businesses with the ability to move their goods and services easily and efciently. A high-quality transportation network also attracts new businesses and expanding companies. In todays economy, roads, bridges and physical infrastructure play a bigger role than ever for our businesses. As Minnesota grows, we need to invest in long- term projects that will provide our state with the transportation network that gets Minnesotans to their jobs and access to resources. By investing in Bus Rapid Transit and Light Rail, we are meeting the demand of a growing Minnesota and expanding transportation options for hundreds of thousands of people. Project Distribution Te Senate made equity and equal distribution of funded projects a priority in its bonding bill. Not only did the committee travel to all corners of the state from Winona to Tief River Falls, they visited many suburban bonding projects in addition to Minneapolis and St. Paul projects. Te Senates Capital Investment Committee is also comprised of members from all over the state. Teir difering values help make the bonding bill equitable and fair for all Minnesotans. 2014 Bonding Bill is Equitable, Fair and Balanced Unlike other pieces of legislation, the bonding bill requires a 3/5 majority vote. Tis makes bonding bills one of the most bipartisan pieces of legislation lawmakers consider every biennium. Tis years bonding bill makes needed investments in housing infrastructure, transportation, business and economic development, higher education and public safety. 1998 2000 2002 2004 2006 2008 2010 2012 2014 $1.6 $1.4 $1.2 $1.0 $.8 $.6 $.4 $.2 0 Adjusted for infation, numbers are in billions N O
B O N D I N G
B I L L Te average bonding bill over the past ten years is $1.1 billion 4