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Direct Care and Treatment asks for $42.5 million to fix crisis‑aged water systems and preserve facilities
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Summary
Direct Care and Treatment requested $23.7 million for asset preservation and $18.8 million to replace the Saint Peter campus water and sewer system, citing a $162 million deferred maintenance backlog and mission-critical risks to patients and staff.
Nancy Freeman, chief operating officer for Direct Care and Treatment (DCT), presented the agency's 2026 capital priorities to the Capital Investment Committee, saying the newly standalone agency occupies more than 3.5 million square feet across over 200 sites and faces $162 million in deferred maintenance.
DCT's two items in the governor's recommendation total $42.5 million: $23.7 million for asset preservation across DCT facilities and $18.8 million for water and sewer replacement on the lower campus at Saint Peter. Freeman said the Saint Peter project is fully designed and ready to bid, noting recent system breaks and the age of the campus infrastructure.
Freeman described asset-preservation work as focused on health, safety and compliance projects such as mechanical systems, roofs, windows and envelope repairs. She stressed that capital work is mission-critical for a population many providers cannot serve and said DCT had been requesting the Saint Peter project since 2022 as costs have risen substantially.
Committee members thanked DCT for its work and noted that the legislature's 2025 decisions to add bed capacity at Anoka were an example of the legislature stepping in when governor recommendations did not include a needed project.
DCT asked the committee to consider timely funding so construction can proceed on the Saint Peter water and sewer replacement and to support ongoing asset-preservation needs across the agency.
