MINNEAPOLIS – Governor Tim Walz proposed a $518 million state borrowing package for construction and infrastructure repairs. Walz acknowledged that his pan leans toward projects in the Twin Cities, notably $150 million for neighborhoods damaged in riots after the death of George Floyd last May. There also is $43 million for security upgrades at the state Capitol complex, where crowds have staged protests. Half of his budget would support asset preservation projects at state agencies and colleges statewide, he said.
Also in the Walz budget:
> $100 million for affordable housing.
> $63 million for deferred maintenance at state colleges and universities.
Siting optics
Walz outlined his budget at the new University of Minnesota health sciences building that the Legislature funded in 2017. He noted that construction projects create jobs.
Borrowing breakdown
Under the Walz plan, the $518 million would come mostly from low-interest loans, which is the usual source, but $28 million would come from the state’s general fund. The $518 million is way short of the $1.9 billion construction budget that the Legislature approved in 2020, but capital budgets in odd-number years like 2021 usually are much smaller.