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This mentions the 3% rule. For over 30 years we have had a AAA bond rating because we never borrow more then 3% of the State's General Fund. The DFL thinks they can by this election this fall by blowing right thru that rule with their massive spending increases. Only problem is, once our bond rating is junked by the DFL, we will have to pay more to fiance our debt thus INCREASING our deficit, not fixing it.

We have plenty of money for reasonable increases in state spending to met real needs. We do NOT have the money to go on this DFL directed spending spree. They are worse then a teenager with their parent credit card!

http://www.twincities.com/ci_8455039?nclick_check=1

At The Capitol / Senate sees opportunity to build in bad economy
Passes public works bill with plan to circumvent
By Bill Salisbury
bsalisbury@pioneerpress.com
Article Last Updated: 03/04/2008 11:41:58 PM CST

The Minnesota Senate on Tuesday passed a $1.1 billion public works bill, setting up a confrontation with Gov. Tim Pawlenty over how much money the state should borrow for construction projects during an economic downturn.

It should borrow and spend a lot, a defiant Senate Capital Investment Committee Chair Keith Langseth, DFL-Glyndon, said after senators voted 51-7 for his bonding bill.

“A recession is the best time to build,” Langseth said. He argued his bill would create jobs and save money because “contractors are hungry for work” and would bid low for state-funded projects.

Last month, Pawlenty also proposed a billion-dollar public works bill. But after state finance officials last week forecast a budget deficit of almost $1 billion, he trimmed the amount he wants to borrow to $825 million. That's the maximum allowed under a state debt guideline that caps borrowing at 3 percent of the state's general fund.

Langseth’s counterpart in the House, Capital Investment Division Chair Alice Hausman, DFL-St. Paul, has said she's willing to negotiate with Pawlenty to reduce the size of the bonding bill.

But Langseth isn't budging. “I intend to send the bill to the governor basically the way it is,” he said.

Asked if that would invite a veto, he replied, “What do we pass that he doesn't threaten to veto?”

The House is scheduled to vote on Hausman’s bill Thursday, and the Senate plans to repass its slightly different version of the legislation later that
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day.

Leaders would then hammer out a final publics works bill next week in negotiations among the House, Senate and Pawlenty.

Langseth’s bill authorizes the state to sell $965 million in general obligation bonds in the next two years to finance construction and repair projects. That sum, combined with cash from user fees and other state funds, would provide $1.1 billion for public works projects.

That would create “thousands and thousands of jobs,” Langseth said. The bill provides $90 million to state colleges and universities for new windows, roofs and other repairs and renovations that could be done immediately. Pawlenty proposed $80 million for those projects.

But the Senate bill allocates $30 million that the governor didn't support for roads, sewers, water and other infrastructure improvements to service a proposed $1.6 billion steel plant near Nashwauk in northeastern Minnesota that would provide 700 jobs.

The Senate measure also authorizes the University of Minnesota to sell bonds to finance construction of four biomedical research laboratories, backed by up to $234 million in state subsidies over 30 years. Pawlenty did not include that project in his capital budget request.

“We have a real disagreement about what happens to the economy of the state,” Langseth said.

He devised a scheme to circumvent the 3 percent debt service guideline. His bill authorizes $1.1 billion in projects, but it bars the state finance commissioner from issuing bonds that would exceed the limit.

The state traditionally authorizes more than it actually spends, he said.

Pawlenty said last week, “We've got to abide by the 3 percent limit.” But he added he's willing to consider Langseth’s plan for calculating the debt limit.

Other large projects funded in the Senate bill include:

— $72 million for hockey arenas and related events centers in Duluth, Bemidji, St. Cloud and Crookston.

— $70 million for the Central Corridor light-rail line between St. Paul and Minneapolis.

— $48 million for a science classroom and student services building on the U’s Minneapolis campus.

— $30 million for flood-control projects.

— $25 million to clean up closed landfills.

— $16 million to expand the state prison in Faribault.

Total money approved for projects in the Senate's public works bill

Amount the state would have to borrow, according to the bill

Amount Pawlenty is willing to borrow, based on debt rules