Walz pitches $982 million in construction projects

Gov. Tim Walz rolled out his $982 million plan Tuesday for public construction projects, a package that spans from prison fixups to dedicated busway expansions to projects that better connect Minnesotans to their natural resources.

The second-term DFL governor said that after approving a massive $2.6 billion bonding package last year and with tighter economic times on the horizon for Minnesota, the state should take on a smaller list of projects in 2024.

He emphasized the ongoing need to fund the construction and maintenance projects. Projects on his list also ranged from wastewater treatment plant replacements to ice rinks to flood mitigation.

“We have an obligation to ensure every Minnesotan has access to clean water, well-maintained infrastructure, safe communities and state buildings that are safe and accessible,” Walz said. “These projects will support local governments in their work to improve our infrastructure and create good-paying jobs in every corner of the state.”

One of the bigger single projects in the Walz framework is $22.4 million for a new headquarters building for the Minnesota State Patrol that would include training space and evidence storage areas. A $16 million request would help pay for remodeling of a key building at the Minneapolis Veterans Home.

More than $7.6 billion worth of state agency and local projects had been pitched to lawmakers ahead of the announcement. 

Walz’s proposal is set to kickstart debates over a capital investment bill at the Capitol. The bill is the top priority for lawmakers as they tee off the legislative session next month.

And the bill will drive unique negotiations, as it takes three-fifths support from each chamber to allow the state to take on debt. That means Republican and Democratic votes are required.

Minnesota Management and Budget has said lawmakers could sell bonds to the tune of about $830 million this year and still remain fiscally sound.

DFL leaders also set aside about $800 million in cash last year for additional capital investment spending. While the move was viewed as a backup, in the event they couldn’t reach a compromise with Republicans, much of that funding has been eaten up by inflation, said Senate Capital Investment Chair Sandy Pappas, DFL-St. Paul.

“Right now, most of the bottom line dollars are going toward inflation. So we’ll have a very limited amount of cash this year,” Pappas said.

Pappas said her committee would focus on asset preservation, along with local projects that have picked up support from local lawmakers. But she warned that legislators wouldn’t be able to please everyone.

“We have a huge backlog for infrastructure needs, you know, roads, bridges, wastewater, clean water in particular. And I think that it’s going to be difficult for the state to meet all those needs, and take care of state buildings,” she said.

Trades union representatives and local government leaders were on-hand Tuesday to voice their support for the governor’s plan.

Republican lawmakers said the state should prioritize a smaller capital investment bill than what Walz put forward.