SPI Insights

Minnesota – Gov. Tim Walz released his 2021 Local Jobs and Projects Plan that would invest $518.1 million in infrastructure projects across the state.

Funds would go to maintain existing buildings, invest in communities, and leverage available federal funds. Almost half of the proposed plan would support asset preservation projects at state agencies and higher education institutions.

Deferred maintenance needs for state agencies total more than $1.7 billion, thus nearly half of the governor’s 2021 capital budget will support asset preservation projects. His recommendation includes $43 million to make critical security upgrades to the Capitol Complex.

The plan features $100 million in Housing Infrastructure Bonds to preserve and build new housing opportunities across the state. Funds will be awarded through a competitive request for proposal process to private for-profit and nonprofit developers for supportive housing, preservation, and homeownership development including community land trusts, senior housing, and manufactured home park infrastructure.

More than $150 million in Redevelopment Appropriation Bonds would support rebuilding efforts in the cities of Minneapolis and Saint Paul in the areas damaged by civil unrest in May and June 2020.

Additionally, the plan recommends $10 million for Minnesota’s share of design and environmental work for a second daily Amtrak train between the Twin Cities, Milwaukee, and Chicago, including stops in Winona and Red Wing.

The plan would be funded by $240 million in general obligation bonds, $250 million in appropriation bonds, and an additional $28.3 million in general fund cash.