Sen. Skoe on Importance of Bonding
With odd numbered years being responsible for setting the state budget, even numbered years are typically reserved for the legislature to pass a large capital investment or bonding bill. Each bonding year, hundreds of projects request bonding money to help acquire and better public land and buildings and to make public capital improvements. The Senate Capital Investment Committee spent time during the interim touring the state region-by-region meeting with locals to discuss proposals that may come before the Legislature.
The state of Minnesota pays for these proposed projects by selling General Obligation (G.O.) bonds for the cost of capital investment projects with the approval of at least a three-fifths vote of the House and Senate and then signed by the Governor.
In order to qualify for bonding, the project must be for a public purpose. Typical projects include colleges and universities, streets, bridges, sewers, water and other utilities, waste management buildings, public buildings (like civic centers), dams, airports, energy facilities, transit and other public uses.
The importance of bonding cannot be overstated – it’s about taking responsibility for our buildings and state assets by properly maintaining them to maximize longevity. Bonding bills are a direct investment in Minnesota creating thousands of jobs. When the state puts bonding dollars into our higher education institutions, state parks, downtown economic development and flood mitigation projects it is helping to make Minnesota a better state.