Governor Walz Releases Capital Budget Proposal

(KNSI) – Governor Tim Walz’s capital budget proposal earmarks no bonding money for local projects.

In a report released Tuesday afternoon, the governor’s office suggests setting aside only $40.5 million for cities and counties across the state. In this round, they had requested over $2.9 billion. The governor would fund barely 1% of what was asked for.

Roughly $982 million would be spent, with almost half directed to maintenance ($440 million). The Minnesota State University system and the University of Minnesota would get $206 million to rehabilitate and care for existing infrastructure.

There are set-asides for affordable housing and updates to the Minneapolis Veterans Home. Public safety is in line for over $142 million, including prison improvements and an expansion of the Minnesota State Patrol headquarters.

Department of Natural Resources buildings and assets would get better than $71 million for upkeep. Water systems are a major focus of the budget. The governor wants to spend $10 million to replace lead service lines, $18.5 million for water treatment plant upgrades and overall water quality betterments, and $23 million to help attract U.S. Department of Agriculture Rural Development program financing for small towns to make upgrades while keeping rates affordable for those who live there.

Funding would come mostly from general obligation bonds. At $830 million, the Walz proposal is less than expected but in line with recent financial forecasts for upcoming budgets.

___