Governor Releases Bonding Recommendations

The Governor’s proposal contains nearly $1 billion for regional civic centers, downtown improvements, transportation projects, and more.
(Published Jan 21, 2014)

Gov. Dayton on Jan. 15 announced recommendations for projects to be funded in a capital bonding bill. His proposal would invest $986 million in infrastructure projects statewide.

The 2014 legislative session is the traditional bonding year, and the expectation is that the Legislature will pass a significant bonding bill. The governor’s release of his recommendations is typically the starting point for negotiations between the House, Senate, and administration.

The governor’s proposal contains funds for regional civic centers, downtown improvements, transportation projects, affordable housing investments, water infrastructure, higher education, and state Capitol restoration.

Access a complete summary of the governor’s recommendations

While the League does not advocate on city-specific or regional bonding projects, we do support capital investments that make the state’s infrastructure stronger. Below are some of the governor’s recommendations that the League will be monitoring in 2014.

Transportation related projects total $126.8 million in the governor’s proposal.

For MnDOT, the governor recommends the following:

  • Local Bridge Program: $30 million
  • Local Road Improvement Program: $10 million
  • Greater Minnesota Transit: $1.1 million
  • Highway/Rail Grade Crossing Warning Systems: $2 million
  • Willmar Headquarters: $4.37 million (trunk highway bonds)
  • Little Falls truck station: $3.58 million (trunk highway bonds)
  • Safe Routes to School: $2 million
  • Port Development Assistance: $400,000

For the Metropolitan Council, the governor recommends:

  • Arterial BRT (line A—Snelling/Ford, and line B—W. 7th St.): $10 million
  • Metro Orange Line (I-35W South BRT): $7 million

For local governments, the governor recommends:

  • Chisholm-Hibbing Airport: $5 million
  • Fosston reconstruction of 2nd Street: $400,000
  • International Falls-Koochiching County Airport: $2 million
  • Nicollet Mall revitalization, Minneapolis: $20 million
  • TCAAP Redevelopment Transportation Funding, Ramsey County: $29 million

Water infrastructure

For the Department of Employment and Economic Development, the governor recommends:

  • Business Development Public Infrastructure grants: $5 million
  • Redevelopment grants: $1 million

For local governments, the governor recommends:

  • Big Lake Area Sanitary District: $4.5 million
  • Clara City Business Park infrastructure: $.748 million
  • Voyagers National Park area sanitary sewers: $8.567 million
  • Lewis and Clark Rural Water System: $20.203 million
  • Truman stormwater capacity/flood prevention: $1.25 million
  • Virginia industrial park infrastructure: $1.5 million

For the Metropolitan Council, the governor recommends:

  • Inflow and Infiltration grants: $4 million

For the Department of Natural Resources, the governor recommends:

  • Dam repair/reconstruction/replacement: $4 million

For the Pollution Control Agency, the governor recommends:

  • Municipal Stormwater Pond Clean-up grants: $2 million

For the Public Facilities Authority, the governor recommends:

  • Federal Clean Water and Drinking Water Revolving Fund Match (leverages $60 million in federal matching funds): $12 million
  • Wastewater Infrastructure grants: $20 million


The governor included $50 million toward housing infrastructure and rehabilitation, including:

  • Housing infrastructure bonds: $40 million. These would be used to preserve federally subsidized rental housing; acquire and rehabilitate or replace foreclosed properties; or construct, or acquire and rehabilitate, permanent supportive housing. As part of this recommendation, the governor proposes that up to $3.2 million be appropriated from the general fund each year for 20 years to pay the debt service on the bonds. Funding for housing infrastructure bonds are allocate statewide on a competitive basis.
  • Public housing preservation: $10 million. This includes preserving existing public housing to provide a decent, safe, and sanitary place for low-income residents across the state. Funding is allocated statewide to local public housing authorities on a competitive basis.

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