March 5, 2007 – The House Capital Investment Committee passed its bonding bill (HF380) out of committee on Monday, March 3. The $1 billion bill contains $960 million in General Obligation bonds (GO bonds), with the remaining amounts user financed or general fund spending. The House bill includes more than $82 million for Minnesota's parks and trails systems.
The Senate Capital Investment bill is also moving. The Senate bill (SF3295) is also in the $1 billion range, with $965 million in GO bonds. Gov. Pawlenty proposed spending $965 million when he presented his bonding recommendations to the Legislature in January. While the House proposed a record amount of spending for parks and trails, the Senate also made a significant commitment to parks and trails, recommending more than $45 million in investments.
"Clearly, legislators heard our message that a significant investment in our parks and trails is not only a smart investment in our tourism economy, but it spurs economic development and contributes to healthy citizens," said Judy Erickson, Parks & Trails Council Government Relations Director.
The House also took note of the Parks & Trails Council's call that funding for the proposed new park on Lake Vermilion should complement other state park needs by providing just over $20 million in state park improvement projects as well as $15.5 million for acquisition of the U.S. Steel property on Lake Vermilion.
The full Senate passed its bonding bill on Tuesday, March 4 while the full House is set to take floor action on Thursday, March 6. Conference Committee work is expected to begin next week with the goal of sending a final bonding bill to Gov. Pawlenty by March 15.
Grim Budget Forecast
The positive outlook for Minnesota's parks and trails was dampened a bit on Feb. 28 when State Economist Tom Stinson presented a bleak February revenue forecast that showed the projected budget deficit had grown to $935 million. Because of the budget shortfall and other issues, Gov. Pawlenty is now calling for a bonding bill of $825 million in GO bonds. This is significantly smaller than the $965 million bill he originally supported and could have a negative impact on park and trail projects. Stay tuned as we follow the twists and turns of the 2008 bonding bill.