Capital investment committee reviews $1.35 billion proposal, forwards vehicle bills and project modifications to finance

The Minnesota Senate Committee on Capital Investment on May 8 walked through a proposed $1.35 billion bonding proposal (the committee’s 1.35 spreadsheet), reviewed appropriation modification language, and recommended several vehicle bills and specific modification items be referred to the Senate Finance Committee for further work.

Chair Senator Mary Pappas presented a proposal column labeled as a “1.35” option for the 2025 capital budget. Staff summarized the proposal’s major line items: $100,000,000 for University of Minnesota HEAPR (asset preservation); $100,000,000 for Minnesota State HEAPR; $5,000,000 for Department of Education library construction grants; multiple water and natural resources line items; and a $459,000,000 lump-sum category for local project grants. Committee staff reported an estimated net general-obligation (GO) bond sale impact of $1,350,000,000 and accompanying estimated debt-service projections assuming no additional bonding in 2026.

Staff corrected two spreadsheet items: skate park grants should be general fund rather than GO; and the Minneapolis Parks and Recreation Board project listed was the North Commons project with an amount of $5,125,000. The committee also reviewed a separate packet of appropriation modifications (document SC 32 53-6), which included extensions to earlier appropriations for projects such as Chisago County U.S. Highway 8, a Minneapolis Parks project, and a Saint Anthony Falls study; staff said those projects would cancel if not extended.

On motions from committee members, the committee forwarded multiple vehicle and modification-related bills to the Senate Finance Committee by voice votes so they can serve as vehicles in final negotiations. The committee also debated whether to move the modification package as a standalone corrections bill; several senators urged a separate modifications bill to avoid losing funds for projects that would otherwise cancel.

Committee discussion highlighted caucus differences on scale: Senate DFL members described the $1.35 billion position as an opening for negotiation, while Senate Republicans signaled a preference for a smaller $700,000,000 plan. Senators raised concerns about transparency for a $459,000,000 local-project lump sum without a publicly released project list; staff said local project picks remain under intra-caucus discussion and would be determined prior to final votes.

Other items the committee considered or laid over: a proposal to create a locally controlled housing fund presented by Senator Bolden (laid over for further consideration); Senate File 862 (water infrastructure program changes and new emerging contaminant allocations) presented by Senator Johnson Stewart (laid over); and policy provisions from the governor, including a request to authorize Minnesota Management and Budget to refinance 2014 certificates of participation used to construct the Senate Office Building. MMB’s assistant commissioner said refinancing could yield roughly $5–6 million in present-value savings based on market conditions examined in May and about $400,000–$500,000 annually in reduced debt service if market conditions allow a refinance.

The committee also revisited the status of a skate-park grant program originally administered by the Amateur Sports Commission; Senator John Dibble said prior authorizations had not been deployed and that the proposal moves the funding to a different administrative path and to named projects that have submitted planning materials.

Several vehicle and modification motions were advanced by voice vote; committee staff will carry the forwarded bills into Senate Finance for further drafting and negotiation.