A major roadblock to a borrowing plan for construction projects around Minnesota fell away Wednesday when Gov. Tim Pawlenty signaled he would sign the $1 billion bill and use his line-item veto authority to bring the cost down.

“It’s still too large but it’s a bill we can work with. We will just have to slim it down to something that’s more reasonable and responsible and affordable,” the Republican governor told reporters after he addressed a Minnesota Chamber of Commerce luncheon

The bill was on course for final votes today in the House and Senate.

A $1 million request to fund the construction of a bridge over Albert Lea Lake for the Blazing Star Trail presently is in the bill as part of a package for the state’s bike trail system.

Though the appropriation is within the category for state trails, it still could run the risk of being line-item vetoed.

“We’re being really hopeful about this,” said District 27A Rep. Robin Brown. “I know that the governor will have a final say about this, but we’re hoping he understands the statewide significance of what we’re doing.”

Also, there are still funds for the Cedar River and Turtle Creek watershed districts in Freeborn, Mower and Steele counties to restore wetlands and reduce flooding.

Pawlenty’s stance on the bill had been in doubt because House and Senate negotiators shortchanged projects dear to him, including an expansion to the sex offender treatment facility in Moose Lake.

The bill authorizes $47.5 million for that remodeling instead of the $89 million Pawlenty sought to add 400 beds, recreation rooms and spiritual areas. One Democrat, Sen. Steve Murphy, criticized Pawlenty for promoting a “sexual offender palace” that would be too nice for the population it serves. The secure building houses convicts who have completed their prison terms but are deemed by a court to be too dangerous to let loose.

Pawlenty said his administration would retool its design to account for the smaller dollar amount.

The legislation, known at the Capitol as the bonding bill, authorizes state debt for public works projects.

The largest share — about $275 million — would pay for science labs, roof repairs and other projects on college campuses. Other major investments include $63.5 million for flood mitigation, $66 million for local bridge replacement and $15 million for renovations at the Minnesota Zoo.

Millions more would be used for community and civic centers, arts buildings and nature trails. Pawlenty has questioned the merit of those upgrades, which could make them veto targets.

The governor has previously said $725 million is his upper limit for the bill’s total cost. On Wednesday, he wouldn’t identify the items or amounts he planned to shave from the bill.

Democratic Rep. Alice Hausman, who leads the House Capital Investment Committee, said she was relieved that Pawlenty backed away from earlier threats to take down the whole bill.

She said low material costs and interest rates make this a prime time to put projects up for bid and she worries that deals will disappear as the economy improves.

“There is a real motivation to get these projects going quickly,” she said.

Before Pawlenty made his comments, hundreds of union members — many wearing yellow reflective safety vests, work boots and hard hats — held a raucous rally at the Capitol. They yelled and chanted, “We want jobs!”

“We have to have a bonding bill and it has to be a good one,” Dave Semerad of the Associated General Contractors said, drawing cheers and applause.

Democratic and Republican legislative leaders addressed the rally. House Speaker Margaret Anderson Kelliher promised the bill would pass before the week was up.

“We want to get you a job now,” Kelliher told the audience.