As the saying goes – the fifth time’s the charm! The Legislature was finally able to come together and pass a bonding bill that invests in hundreds of infrastructure projects across the state. The bill, the largest bonding bill in state history at $1.87 billion
, includes $1.36 billion in general obligation bonding, $31 million in supplemental general fund spending, as well as tax provisions to provide relief for farmers and small businesses.
A bonding bill has been a priority for Legislative leaders since the 2020 session began, but its path to becoming law was anything but straightforward. Two similar bonding bills came up for votes on the House floor already this year, and both failed to garner a single vote from the House Republican caucus. Given the makeup of the House and the need for a supermajority to pass a bonding bill, six House Republican votes were needed to pass the bill. This time around, with a general election only weeks away, 25 House Republicans were willing to vote to make the bill a reality.
Once the bill cleared the House it was expected to have an easier time in the Republican lead Senate. The House adjourned after passing the bill, which forced the Senate to accept as is, negating any opportunity to amend the bill in any way. While this annoyed some Senate Republicans, the opportunity to pass a sizable infrastructure bill was too good to pass up and the bill passed the Senate by a 64-3 vote. The bill is expected to be signed by Governor Walz this week.
- $700 million for roads and bridges<
- $300 million wastewater treatments projects
- $100 million in housing infrastructure bonds
- $8.2 million for Greater Minnesota Business Development Public Infrastructure Grant Program
- $2.9 million for Transportation Economic Development Infrastructure
- $1.9 million for Innovative Business Development Public Infrastructure
- Increases the deduction on like-kind exchanges from 20% to 100% and makes change retroactive for tax years 2018 and 2019 (federal tax conformity)
- Change allowing for Minnesota State High School League to use tax-exempt revenue generated from sales at tournaments for operating cost for next several years
- $31.37 million in general fund spending
- $13.75 from trunk highway fund