[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6652305,"mediaKeyId","2490556-51b7046f9c4fa112fa3dd869d7d461e7","parentId",2490556,"title","DEED outlines status of 2023 capital investment grants: about $440M authorized, $200M still available","audioSeconds",2700,"startMs",2478000,"endMs",5178000,"viewUrl","/Search/View?dp=1&key=2490556-51b7046f9c4fa112fa3dd869d7d461e7&start=2478&end=5178","thumbnailUrl","https://assets.pipeline.soar.com/2490556-51b7046f9c4fa112fa3dd869d7d461e7/thumbnail_2478000.jpg","articleUrl","/articles/6652305/Minnesota/DEED-outlines-status-of-2023-capital-investment-grants-about-440M-authorized-200M-still-available","mediaUrl","https://secure.pipeline.soar.com/6652305-888878399505561bacc2490ebd881309/orig.mp4?Expires=1775024721&Signature=dWtvrjZUDr9EAkITaBkZDomJgBZW8NwbScoQM3zR~LRrVWk8XxbZBbuFOLq4I4B45B7P~8mSI4fiyvzHf3tGPoQvuTLqRV7UJu0bb2VdQJNZ6xAK7yzwRv9Sku6jhMeXLfsIkoqH~JVE162Fea2dxLonLm8Eopf7Rb2pg1RimwxVrWOlA7Pn~tzlonrZMC1SSU14Zqj0O92O8Y4hwyGdwQ85MoRVmsjaYPmTTM6eYD5FyAzilX2bZEDDr2q-iYVLaeoOsfwtavhqiQO9OuhpMalbukbKzIlbpFx6ZA1~DadZzvdH6JGZKJok~GYLiCn3RuyDckvHeUZ0~~~hHvgP4Q__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-03-04T22:55:52.787Z","article","Kevin McKinnon, deputy commissioner for economic development at the Minnesota Department of Employment and Economic Development (DEED), briefed the Senate Capital Investment Committee on March 4 about the status and administration of 2023 capital investment grants.

McKinnon told senators that DEED and Minnesota Management and Budget (MMB) jointly manage the grants and that bond funds \"can only be used for the items listed in the grant appropriation language and/or appropriate costs as a result of the construction of whatever the project is building.\" He summarized core grant-administration rules: grantees are discouraged from beginning reimbursable work before a grant agreement is in place, grants are paid on a reimbursement basis, administrative costs are prohibited, projects must meet local permitting and procurement rules, and DEED generally requires a first lien on property financed with state bond proceeds.

McKinnon said the 2023 capital investment package included roughly $440 million for about 120 local or nonprofit projects. As of the March 4 briefing, DEED reported 46 projects with grant agreements in place, representing about $140 million in appropriations; roughly 68 projects remained in process at various stages (some still fundraising or awaiting documentation) and DEED estimates about $200 million in appropriation remains available. McKinnon said the funds are commonly available for up to four years unless the legislature takes specific action to rescind them.

On monitoring and compliance, McKinnon described DEED practices: project managers are assigned to grants and, where possible, remain with a project for its life; DEED conducts monitoring visits and requires annual reports and a final closeout report; DEED typically holds back 10% of a grant until final documentation is submitted. He also noted the State Architect and the Department of Administration participate when projects involve building design and thresholds that trigger state oversight.

Senators asked for additional detail and assistance. Chair Housley and Senator Pappas asked DEED to provide a list of grants still in process and the reasons for delay so legislators can help where appropriate. Senators asked whether grantees could repurpose financed buildings, whether sale or change of ownership would require repayment, and whether DEED charges interest on repayments; McKinnon said the department generally requires repayment if a financed building is sold and that he would provide a specific answer about interest on repayment commitments.

McKinnon said DEED will continue biweekly internal project-management meetings and work with grantees on fundraising, required documents and possible legislative fixes. He also said DEED has not uncovered fraud in its oversight to date and reiterated that smaller nonprofit recipients sometimes need extra legal or financial assistance to complete contracts and procurement requirements.

","mediaType","Video","parentTitle","Committee on Capital Investment - 03/04/25","oneSentenceSummary","Kevin McKinnon of the Minnesota Department of Employment and Economic Development updated the Senate committee on the status of 2023 capital investment appropriations, described grant administration rules and said about $200 million of appropriations remain unspent while projects proceed through contracting and fundraising.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6652310,"Fitch explains state rating framework, reiterates Minnesota AAA stable",2239,235000,2474000,"/Search/View?dp=1&key=2490556-51b7046f9c4fa112fa3dd869d7d461e7&start=235&end=2474","https://assets.pipeline.soar.com/2490556-51b7046f9c4fa112fa3dd869d7d461e7/thumbnail_235000.jpg","/articles/6652310/Minnesota/Fitch-explains-state-rating-framework-reiterates-Minnesota-AAA-stable","https://secure.pipeline.soar.com/6652310-cdaa83ea935b0a2bf96b807e96d0510d/orig.mp4?Expires=1775024721&Signature=X0r5iSaZPkbM7J9-wom7mswTnZEF9Vl3hupK2NfpPUMOTZWoq9K1bru7uqV1zLbQQ3EzNri6984joXiJpnbvKRek5SvNIEomk5vcLxFHZxsh35gNhT5gWgzleQ8S5FDKg5cL-v13jJJEnWJzARLen2cAI3dIjldyUAe4PZ9PtX~-Vy-ex9N2~VdhB3gpIE1~is8Cgkuq6xFhUz1-WECjwqLgwVsUuo8M~A30OAPHi7yTE8nuKim94sAp4tJ7bczOD8IqyOaYCmIta0zMv~FtN8ahMWOMzyHh7Cpy8mo25SgqFy0iK5ZeQ8DmK7Dio8ubT1Qs21xp~WNPRl0gFXUu5w__&Key-Pair-Id=KUT5TJCACFTXG","Eric Kim, an analyst at Fitch Ratings, told the Senate Capital Investment Committee on March 4 that Fitch maintains an issuer default rating of AAA with a stable outlook for the state of Minnesota and outlined how the agency reaches that view.

Kim said that \"a rating is fundamentally Fitch's opinion on the likelihood and willingness of a borrower to repay its debts,\" and walked senators through Fitch's rating process, published criteria and several supporting reports Fitch provided to the committee. He described the AAA assessment for Minnesota as the result of high assessments on three of Fitch's key rating drivers and generally stable operating performance.

Fitch defines four principal rating drivers it reviews for states: the economic resource base, revenue framework, expenditure framework and long-term liability burden. For Minnesota, Kim said Fitch assigns AAA assessments to the state's revenue framework, expenditure framework and long-term liability burden. He said Minnesota's carrying costs — the portion of annual spending for debt service, pensions and other post-employment benefits — are \"low relative to the U.S. median and well below 10%,\" a threshold Fitch uses in its guidance for AAA-level expenditure assessments. He also said Minnesota's long-term liabilities, measured as direct debt plus pension liabilities relative to personal income, are below the state median used in Fitch's annual liability report.

Kim described operating performance as the most important of the four rating drivers. He said Fitch uses a model called FAST (Fitch Analytical Stress Test) to simulate how state revenues perform in a downturn and to compare resilience across states. \"This is not intended to be a forecast,\" Kim said of the scenario analysis; the slides show a modest national recession stress applied consistently across all states to estimate a possible revenue gap if expenditures are left unchanged. Kim emphasized that the scenario is an \"unaddressed stress\" to illustrate comparative sensitivity rather than to predict Minnesota's actual fiscal trajectory.

Senators asked follow-up questions about the scenario analysis and long-term liabilities. Senator Nelson expressed concern about a chart showing revenues and expenditures in the scenario analysis and whether the dotted projection implied a structural imbalance; Kim reiterated the slide represents a stress scenario, not Fitch's forecast, and that the purpose is to apply a consistent stress across states. Senator Pappas asked whether amortization (debt paid off within set periods) is an important part of Fitch's assessment; Kim said amortization is not critical for state ratings but that Fitch considers carrying costs and the liabilities-to-personal-income metric more central. Senator Pratt asked about the carrying-cost threshold and whether it includes pensions and OPEB; Kim confirmed the carrying-cost measure combines debt service, pensions and OPEB.

Kim also noted Fitch's published reports and criteria provided to the committee, including a state criteria document and a 2024 report on long-term state liabilities that compare each state's burden to national medians. He said Fitch publicly rates 43 U.S. states and that most state issuer default ratings have been stable in recent years.

The committee did not take action on the rating presentation. Kim concluded by taking questions from senators; the committee thanked him and moved on to the next agenda item.

","A Fitch Ratings analyst told the Senate Capital Investment Committee that Fitch maintains Minnesota's issuer default rating at AAA with a stable outlook and explained the firm's criteria, stress testing and the metrics that drive state ratings.","actionData","errors"]

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DEED outlines status of 2023 capital investment grants: about $440M authorized, $200M still available

Fitch explains state rating framework, reiterates Minnesota AAA stable