Every-other year, the Legislature takes the opportunity to issue very low-interest bonds to help stimulate new public infrastructure projects around the state. The projects supported by these dollars include everything from higher education building improvements, to wastewater treatment facilities, to bridge replacements. These are projects with regional and statewide importance, and their construction provides hundreds of new, good-paying jobs. Previous bonding bills, as they are called, have created upwards of 10,000 new jobs in Minnesota.

Given these statistics, senators decided last fall that passing a strong bonding bill early in the 2010 legislative session would be the best way to help put Minnesotans back to work and stimulate the state’s economy. By passing a bill this winter, we can ensure that projects are ready to begin as soon as the ground thaws this spring.

This week, the Senate upheld its promise and passed a bonding bill that will promote building across the state. The bill also includes support for some very important projects right here at home, including:

♦ Austin flood hazard mitigation grant — $1.875 million

♦ Blazing Star Trail — $1.6 million

♦ Shooting Star Trail — $1.5 million

♦ Turtle Creek and Cedar River Watershed Districts — $1 million each through an appropriation for the Reinvest In Minnesota (RIM) Program

♦ Local Bridge Replacement — $67 million statewide, to be divided

♦ Nicolville wastewater treatment — to-be-determined allocation from a $27 million Public Facilities Authority appropriation

In total, this bill aims to invest about $800 million in low-interest bonding dollars into Minnesota projects. I’ll be the first to admit that $800 million sounds like a lot of money, and it is.

But bonds are a unique tool provided to states. They allow us to take advantage of our stellar credit rating by utilizing low-interest bonds to fund projects that otherwise would need to be paid for out of the state’s general fund. Through bonding, we can invest money in projects that will stimulate the economy and create jobs, without adding to the state’s general fund deficit. There couldn’t be a more important time to utilize this job-creation tool than during an economic recession and a time of high unemployment.

Another reason it is a good time to bond is because costs for everything are very low. The economic downturn has meant significant savings to taxpayers on things like building materials and labor.

For example, a major construction project at Bemidji State University, for which $15 million was budgeted, is expected to cost just over $12 million when finished later this year. As the Senate’s Capital Investment chairman said, “There’s a sale going on out there,” and Minnesota would be crazy not to take advantage of it.

In most cases, capital investment projects also mean business for Minnesota contractors and vendors. During an October 2009 visit to the site of the new arena and convention facility under construction on the downtown waterfront in Duluth, local officials noted that of the 39 companies under contract on the project supplying materials and labor, 37 of them are Minnesota-based, meaning much-needed business and jobs for people in our state.

That is just one example of where Minnesota is meeting its infrastructure needs and putting skilled Minnesotans back to work with good-paying jobs. We are very hopeful this bonding bill is signed into law very soon so we can replicate these effects on the economy across the state.

The House anticipates passing its version of a bonding bill next week, with the goal of sending a final bill to the governor by the end of the month.

As always, please don’t hesitate to contact me with your suggestions or concerns. You may reach me at sen.dan.sparks@senate.mn; 651-296-9248; or Room 317 State Capitol, St. Paul, MN 55155.

Dan Sparks, DFL-Austin, is the state senator for District 27.